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Under Ind AS 101's OPTIONAL EXEMPTIONS, an entity may elect to use FAIR VALUE OR REVALUED AMOUNT as DEEMED COST for:
AInventories and trade receivables held at the transition date
BProperty, plant and equipment, investment property, intangible assets (subject to revaluation criteria), or right-of-use assets at the date of transition
COnly intangible assets created internally in the past
DOnly items of property, plant and equipment that are land or buildings
Answer & Solution
Correct answer: B. Property, plant and equipment, investment property, intangible assets (subject to revaluation criteria), or right-of-use assets at the date of transition
The deemed-cost exemption permits elections for PPE, investment property, intangibles meeting revaluation criteria, and ROU assets. Inventories, trade receivables, and other current assets are governed by the regular Ind AS recognition/measurement rules at the date of transition — no deemed-cost election applies.
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