First-Time Adoption of Ind AS Working Paper
FIRST-TIME ADOPTION OF IND AS — AUDIT WORKING PAPER (IND AS 101)
Entity: {{client_name}} · Transition date / period ended: {{period_end}}
A. Mandatory Exceptions Applied (Ind AS 101 Appendix B)
- Estimates made under previous GAAP are not revised on transition, other than to correct an error or reflect a difference in accounting policy (para 14-17).
- Derecognition of financial assets/liabilities — generally applied prospectively from the transition date, not retrospectively (unless the entity chooses to apply IFRS/Ind AS derecognition requirements retrospectively from a chosen date).
- Hedge accounting — only hedging relationships that meet the Ind AS 109 hedge accounting criteria at the transition date are reflected as such.
- Non-controlling interests — specified NCI requirements applied prospectively.
B. Optional Exemptions Elected (Ind AS 101 Appendix C/D)
- Business combinations — election on whether to restate past business combinations, and if so from which date.
- Fair value / previous GAAP revaluation as deemed cost for PPE, investment property or intangible assets.
- Cumulative translation differences — election to reset the cumulative translation reserve to zero at the transition date.
- Leases — transitional relief on assessing whether an arrangement contains a lease based on facts and circumstances at transition date rather than at inception.
- Document every exemption elected, with the rationale and the quantified impact of each.
C. Reconciliation of Previous GAAP to Ind AS
| Particulars | Amount (₹) |
|---|
| Profit for the year — previous GAAP | {{previous_gaap_profit}} |
| Net Ind AS transition adjustment to profit | {{profit_adjustment_total}} |
| Profit for the year — Ind AS | 0 |
| Total equity at transition date — previous GAAP | {{previous_gaap_equity}} |
| Net Ind AS transition adjustment to equity | {{equity_adjustment_total}} |
| Total equity at transition date — Ind AS | 0 |
Test that the reconciliations above are disclosed in sufficient detail to enable users to understand the material adjustments (per line item or category — deferred tax, fair valuation, ECL, lease capitalisation, etc.), not just presented as a single net figure.
D. Conclusion
Conclusion on completeness of exemption documentation and accuracy of the transition reconciliation: ____________________________________________
Prepared by: ______________ Date: 31 July 2026
Reviewed by: ______________ Date: ______________
