Ind AS 118 — Transition & Reporting Tool

Lock this tab once you have reviewed and completed the information. This prevents accidental changes to the inputs and selections.

Step 1 — Entity profile and engagement scope

Minimum information needed to drive classification.

A · Entity information

INPUT
Show guidance — What, Why & Action
What Ind AS 118 is still at ICAI Exposure Draft stage — not yet a notified standard.
Why The effective date, transition provisions and consequential Schedule III amendments could still change before final notification.
Action Treat every conclusion in this tool as planning-stage and revalidate against the notified standard before finalising financial statements.
Status caveat. Ind AS 118 is at ICAI Exposure Draft stage, recommended by NFRA for periods beginning on or after 1 April 2027 (early adoption from 1 January 2027 proposed for calendar-year entities). Consequential amendments to Schedule III have not been notified. Conclusions are planning-stage and must be revalidated on final notification.
Show guidance — What, Why & Action
What Current year and comparative figures are entered together in one working paper.
Why Ind AS 118 comparatives must be restated on the same basis as the current year, so keeping both years side by side avoids running the exercise twice.
Action Enter CY and PY figures side by side wherever the tool asks for both (Declare the PL face, Mapping, etc.) — do not maintain separate files per period.
Both years are captured together in this single working paper — enter the current-year and comparative figures side by side throughout (Declare the PL face, Mapping, etc.). There is no need to run the tool twice or keep separate files per period.

B · Specified main business activity assessment

The single most consequential judgement in Ind AS 118. It moves whole categories into Operating and therefore changes Operating Profit — the subtotal analysts, lenders and covenant tests will use.

INPUT
Reviewer prompts
Question to resolveWhy it matters
Is this a main business activity or incidental treasury deployment?Parking surplus cash in mutual funds is not "investing as a main business". Getting this wrong overstates Operating Profit.
Can there be more than one specified main business activity?Yes. Assess each separately; effects are cumulative.
Entity or group level for CFS?Assess for the reporting entity. A manufacturer with a captive NBFC subsidiary may qualify on consolidation but not standalone — creating a standalone/consolidated presentation difference that must be explained.
Is the conclusion contemporaneously documented and approved?A significant judgement requiring disclosure. Auditors and NFRA inspections will look for the working paper, not a post-hoc rationalisation.
Could the conclusion change year on year?Reassessment on business model change triggers restated comparatives and re-presentation disclosure.

C · Feature requirements for this engagement

Not every engagement needs every tab. Answer No to hide a tab that does not apply — nothing already entered there is lost, and you can switch back to Yes at any time.

INPUT
Screens management-defined performance measures used in investor communications (Step 7 · MPMs). Say No only where the entity issues no such communications — most listed entities and many large unlisted ones should keep this Yes.
Reconciles the new Operating profit to legacy EBITDA/EBIT and tests loan covenants (Step 8 · Covenants & KPIs). Say No where the entity has no financial covenants to monitor.

D · Engagement actions

Save, reload, print or start from a worked sample engagement.

Application Preferences → Appearance

A visual preference for this device only. It has no effect on Ind AS 118 calculations, mapping, tie-out, MPM assessment, covenants, engagement conclusions, reports, the audit trail, or locking/workflow status — and this card stays usable even when the Profile tab above is locked.