Conversion to Ind-AS / IFRS
The hard part is not the new standards. It is rebuilding two years of comparatives on a basis your systems were never designed to produce.
Conversion to Ind AS is a first-time adoption exercise governed by Ind AS 101: the company fixes a transition date, prepares an opening balance sheet at that date, restates the comparative period, and discloses reconciliations of equity and total comprehensive income from previous GAAP. Applicability is driven by net worth and listing status under the Companies (Indian Accounting Standards) Rules, 2015, and once Ind AS applies to a company it continues to apply even if net worth later falls below the threshold.
What a conversion project covers
Diagnostic, policy choices, restatement and disclosure.
- Applicability assessment against net worth and listing thresholds
- Fixing the transition date and preparing the opening balance sheet
- Selecting optional exemptions and applying mandatory exceptions under Ind AS 101
- GAAP difference analysis standard by standard, with quantified impact
- Restated comparatives and reconciliations of equity and total comprehensive income
- Disclosure checklist, accounting policy manual and auditor coordination
The four workstreams
Sequenced, because each one depends on the last.
Applicability
Whether the company, or its holding, subsidiary, joint venture or associate, is drawn into Ind AS and from which year.
Transition date
The beginning of the earliest comparative period presented, at which the opening Ind AS balance sheet is prepared.
GAAP differences
Standard-by-standard analysis of where the new basis changes recognition, measurement or presentation, with the numbers attached.
Disclosures
The substantially expanded disclosure set, plus the first-time adoption reconciliations Ind AS 101 requires.
Our process
A project with a clear sequence and a hard reporting date.
Diagnostic
Applicability, transition date, and a first pass at where the material differences will arise.
Policy and exemptions
Accounting policy choices and the Ind AS 101 exemptions elected, documented and agreed with the auditor.
Restatement
Opening balance sheet and restated comparatives built, with supporting workings for each adjustment.
Reporting and handover
First Ind AS financial statements, plus the process and templates to produce them monthly afterwards.
Where conversions run into trouble
What sets our approach apart.
First-time elections are one-time
The exemptions elected under Ind AS 101 are chosen once at transition and shape the numbers permanently, so they deserve analysis rather than a default answer.
The differences that bite sit in contracts
Financial instruments, revenue and leases usually drive the largest adjustments, and each requires reading actual agreements rather than reviewing the ledger.
Reporting has to continue afterwards
A conversion that produces one set of restated statements but no repeatable monthly process leaves the company unable to report on the new basis at all.
Conversion to Ind-AS / IFRS questions answered
What people ask before engaging us.
Approaching an Ind AS threshold?
A diagnostic before the transition date is far cheaper than a restatement after it.
