A first-time adopter of Ind AS shall apply the requirements in Ind AS 109, Financial Instruments and Ind AS 20, Accounting for Government Grants and…

CA Final · Financial Reporting · MTP · September 2025
A first-time adopter of Ind AS shall apply the requirements in Ind AS 109, Financial Instruments and Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance -
(A) Retrospectively to government loans existing at the date of transition to Ind AS and shall recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant.
(B) Prospectively to government loans existing at the date of transition to Ind AS and shall not recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant.
(C) Prospectively to government loans existing at the date of transition to Ind AS and shall recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant.
(D) Retrospectively to government loans existing at the date of transition to Ind AS and shall not recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Prospectively to government loans existing at the date of transition to Ind AS and shall not recognise the corresponding benefit of the government loan at a below-market rate of interest as a government grant.

Topics: Ind AS 109, Ind AS 110, General

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