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yasaswi gomes (My grammar is 💯 good I)     24 June 2021

First time adoption of IndAS format

Hi,

The below method of transition can be adopted and this draft was made for easy reference. In case of any doubts or errors please dont hesitate to contact me.

ITEMS GAAP IndAS TRANSITION
Revenue xxx xxx Deemed Revenue - Sales Returns (GAAP)
Customer Contracts xxx xxx Deemed Revenue
COS      
Opening Inventory xx xx Deemed cost + fixed and variable production costs
Inventory Write-off xx xx Deemed Cost or Charged to retained earning
Purchases xx xx Deemed Cost
Returns xx xx Deemed amount
Depreciation xx xx Deemed Depreciation
Amortisation xx xx Deemed Cost and any difference in amounts between GAAP & IndAS is taken to Retained Earnings  
Impairment Loss     Deemed Loss
Intangible Assets (a) xx xx Deemed Cost and recognise the differences due to estimates and errors in retained earnings +/-
Pension Liability xx xx Deemed Cost
Closing Inventory xx xx Deemed cost (Includes both fixed and variable production overheads)
Total COS xxx xxx  
Gross Profit xxxxx xxxxx  
Distribution Costs      
Pension Liability xx xx Deemed Cost
Advertisement xx xx Deemed Cost
Administration Costs xx xx Deemed cost (Includes both fixed and variable production overheads)
Pension Liability xx xx Deemed Cost
Finance Income xx xx Deemed Income if financial instruments measured are close to IndAS or else derecognise financial assets and re-recognise them as per IndAS
Finance Costs xx xx Deemed Cost if financial instruments measured as per IndAS or else derecognise financial assets and re-recognise them as per IndAS
PBT xxxxx xxxxx  
Current Tax xx xx Deemed Cost +/- tax amount increase/decrease adjustment as a result from the above.
Deferred Tax xx xx Deemed Cost and other Deferred Taxes arising from recognition of development costs, derivatives, revaluations, production overheads increasing cost of Inventories, restructuring provisions derecognised on transition is included in Retained Earning.
PAT xxxxx xxxxx  
OCI      
FX Translations gains/losses xx xx IndAS method of recognition and all previous GAAP reserves will be '0'
Profit attributable to Owners Equity xxxxx xxxxx  
      (a) some research, start-up, pre-operating, training, advertising, moving and relocation costs are recognised as assets as per previous GAAP. Under IndAS, expense them and derecognise as assets.

 

Txs.



 1 Replies

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     24 June 2021

Forgot to mention, if pension liability is same as IAS 19, it’s deemed or else it must be remeasured to IFRS.


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