Ind AS 109, Financial Instruments
Financial instruments is an area under Indian GAAP where there is no mandatorily applicable detailed guidance available currently. Ind AS 109 is expected to fill this gap. Ind AS 109 establishes principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity’s future cash flows.
Under Ind AS 109, classification of financial assets is based on an entity’s business model for managing financial assets and the contractual cash flow characteristics of the financial asset.
On the call, we examined the key requirements of the Ind AS 109 and also highlighted key differences from current Indian GAAP.
Draft interpretations on IAS 12 and IAS 21
On 21 October 2015, the IFRS Interpretations Committee (IFRIC) of the International Accounting Standards Board (IASB) published for public comment the following two proposed Interpretations of Standards to address the diversity in how the standards are applied in practice.
Uncertainty over income tax treatments (IAS 12): Provide guidance on how uncertainty over income tax treatments should affect the accounting for income taxes.
Foreign currency transactions and advance consideration (IAS 21): Provide guidance on which exchange rate should be used to report foreign currency transactions when payment is made or received in advance.
In our call, we also highlighted key guidance comprised in the above mentioned interpretations issued by the IASB.
Slide deck - November 2015 (PDF, 563 KB)
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.