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.
CAclubindia
