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Under Ind AS 101, on transition to Ind AS, an entity must in its OPENING IND AS BALANCE SHEET:
AApply Ind AS only to new transactions; legacy items retain previous-GAAP treatment
BRestate only the previous year's balance sheet, not opening balances
CContinue carrying values from previous GAAP unchanged for first 12 months
DRecognise all assets/liabilities required by Ind AS, derecognise items Ind AS does not permit, reclassify per Ind AS categories, and remeasure per Ind AS — all subject to mandatory exceptions and optional exemptions
Answer & Solution
Correct answer: D. Recognise all assets/liabilities required by Ind AS, derecognise items Ind AS does not permit, reclassify per Ind AS categories, and remeasure per Ind AS — all subject to mandatory exceptions and optional exemptions
Para 7-9 — the general principle is full retrospective application: recognise (e.g., derivatives, business combination intangibles), derecognise (items Ind AS doesn't permit), reclassify (e.g., operating lease assets → investment property), and remeasure (e.g., financial assets to fair value). Mandatory exceptions and optional exemptions then modify this for specific areas where retrospective application is impracticable or costly.
Related questions
Ind AS 101 grants several OPTIONAL EXEMPTIONS to reduce transition burden. These exemptionUnder Ind AS 101's impairment exception, if determining whether there has been a SIGNIFICAUnder Ind AS 101, an entity's CLASSIFICATION of financial assets under Ind AS 109 (amortisUnder Ind AS 101, an entity's opening Ind AS balance sheet shows a DEFICIT NCI balance thaA company's foreign subsidiary uses IFRS for its local financial reporting but prepares acUnder Ind AS 101, HEDGE ACCOUNTING at the date of transition requires the entity to:X Ltd. adopts Ind AS from 1 April 2026 with one year of comparatives. Its DATE OF TRANSITIUnder Ind AS 101, NON-CONTROLLING INTERESTS rules of Ind AS 110 apply: