Converting a six-SPV renewable energy platform to IFRS-converged Ind AS, entity by entity and on consolidation

The situation

A renewable energy group operating through several special purpose vehicles became subject to Ind AS, India’s IFRS-converged standards. Every SPV had to convert at once and produce standalone and consolidated financial statements with restated comparatives. Lenders and investors expected compliant reporting on the original timetable.

The challenge

• Consistent opening balance sheets and first-time adoption elections across six separate entities
• Revenue under the IFRS 15 model, land and equipment leases under IFRS 16, and project debt under IFRS 9, each as adopted in Ind AS
• Deferred tax recalculated on every transition adjustment, with an equity reconciliation for each SPV
• Consolidated statements with intercompany eliminations agreed across the group

What we did

We ran the conversion as one programme rather than six parallel projects. Transition elections were decided once at group level and applied consistently, and a decision log recorded each election and the reason for it.

Each difference between Indian GAAP and Ind AS was worked through in the same format: the facts, the requirement, the adjustment, and its tax effect. Lease portfolios were rebuilt on the IFRS 16 model with incremental borrowing rates that reflected project tenors, and borrowings were remeasured at amortised cost using the effective interest method.

We prepared standalone statements, transition reconciliations, and full disclosures for every SPV, followed by the consolidated statements with eliminations reconciled across the group.

The impact

• A compliant transition for all six entities, delivered on schedule
• No audit misstatements, with every technical position supported by documentation
• Disclosures that met lender and investor reporting requirements

Client details are anonymised, and some facts are generalised to protect confidentiality.