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Under Ind AS 101's exemption for NON-CURRENT ASSETS HELD FOR SALE / DISCONTINUED OPERATIONS, a first-time adopter:
AMeasures such assets at the LOWER of carrying value and fair value less costs to sell at the date of transition under Ind AS 105, with any difference vs previous-GAAP carrying amount taken directly to RETAINED EARNINGS
BRestates them retrospectively under Ind AS 105 from original classification date
CMust immediately derecognise them and recognise the proceeds in P&L
DCarries them forward at previous-GAAP carrying values without any Ind AS 105 adjustment
Answer & Solution
Correct answer: A. Measures such assets at the LOWER of carrying value and fair value less costs to sell at the date of transition under Ind AS 105, with any difference vs previous-GAAP carrying amount taken directly to RETAINED EARNINGS
Optional exemption — NCAHFS / discontinued operations at transition can be measured at the lower of carrying value and FV less costs to sell as per Ind AS 105, with the differential taken to retained earnings. Retrospective restatement back to original classification date is avoided; the entity gets a clean reset at transition.
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