Page 3 - 30. COMPILER QB - IND AS 101

a) recognise all assets and liabilities whose recognition is required by Ind AS;
b) not recognise items as assets or liabilities if Ind AS do not permit such recognition;
c) reclassify items that it recognised in accordance with previous GAAP as one type of asset, liability or

component of equity, but are a different type of asset, liability or component of equity in accordance with
Ind AS; and
d) apply Ind AS in measuring all recognised assets and liabilities.”
Accordingly, as per the above requirements, in the given case, contributions recognised in the Capital Reserve
should be transferred to the appropriate category under ‘Other Equity’ at the date of transition to Ind AS.

Q2 (May 19)

XYZ Pvt. Ltd. is a company registered under the Companies Act, 2013 following Accounting Standards notified
under Companies (Accounting Standards) Rules, 2006. The Company has decided to voluntary adopt Ind AS
w.e.f. 1st April, 2018 with a transition date of 1st April, 2017.
The Company has one Wholly Owned Subsidiary and one Joint Venture which are into manufacturing of
automobile spare parts.
The -consolidated financial statements of the Company under Indian GAAP are as under:

Consolidated Financial Statements
(Rs in Lakhs)
Particulars 31.03.2018 31.03.2017
Shareholder's Funds
Share Capital 7,953 7,953
Reserves & Surplus 16,547 16,597
Non-Current Liabilities
Long Term Borrowings 1,000 1,000
Long Term Provisions 1,101 691
Other Long-Term Liabilities 5,202 5,904
Current Liabilities
Trade Payables 9,905 8,455
Short Term Provisions 500 475
Total 42,208 41,075
Non-Current Assets
Property Plant & Equipment 21,488 22,288
Goodwill on Consolidation of subsidiary and JV 1,507 1,507
Investment Property 5,245 5,245
Long Term Loans & Advances 6,350 6,350
Current Assets
Trade Receivables 4,801 1,818
Investments · 1,263 3,763
Other Current Assets 1,554 104
Total 42,208 41,075

Additional Information:
The Company has entered into a joint arrangement by acquiring 50% of the equity shares of ABC Pvt. Ltd.
Presently, the same has been accounted as per the proportionate consolidated method. The proportionate share
30. 2