An entity is required to take into account the following while considering the accounting policies as per Ind AS 101:

  • Use the same accounting policies in its opening Ind AS Balance Sheet and throughout all periods presented in its first Ind AS financial statements
  • Accounting policies to comply with each Ind AS effective at the end of its first Ind AS reporting period
  • May apply a new Ind AS that is not yet mandatory if that Ind AS permits early application
  • Not apply different versions of Ind ASs that were effective at earlier dates

Changes in accounting policies

  • Ind AS 8 does not apply to the changes in accounting policies an entity makes when it adopts Ind ASs or to changes in those policies until after it presents its first Ind AS financial statements.
  • Ind AS 8’s requirements about changes in accounting policies do not apply in an entity’s first Ind AS financial statements.

Accounting policies changes during the year

If an entity

  • changes its accounting policies during the period covered by its first Ind AS financial statements or
  • changes its use of the exemptions contained in this Ind AS

it shall explain the changes between its first Ind AS interim financial report and its first Ind AS financial statements, and it shall update the reconciliations.