In this publication, we have highlighted the impact of Ind AS on various topics including revenue recognition under Ind AS 115, Revenue From Contracts with Customers, and its potential impact for a typical technology services contract. Under business combinations accounting, we highlighted the impact of accounting of contingent consideration, types of intangibles recognised in the technology services sector and difference in approach of goodwill impairment under current Indian GAAP, Ind AS and U.S. GAAP. Other areas discussed in this publication are share-based payment, financial instruments and segment reporting under Ind AS and their likely impact on the financial statements of the technology services sector.
We also carry this month an interview section in our publication where we speak to a CFO/finance director of a leading company from the sector where we explore some key accounting and reporting, and topical matters relevant to this industry. This month’s issue features an interview with Mr. Sanjay Puria, Group Chief Financial Officer, WNS. He shares his perspective on a wide range of issues.
We also cast our lens on certain tax exemptions that the technology services sector entities enjoy when they set-up their facility in the special economic zones in India. This sector also gets affected by number of global developments in the areas of direct and indirect tax. For example, the Organisation for Economic Co-operation and Development issued guidance on 15 key areas for identifying and curbing aggressive tax planning practices (Base Erosion and Profit Sharing) and altering the international tax system in a way that it is coherent and consistent among countries. Our article summarises the impact of this guidance with specific reference to the technology services sector. Additionally, we summarise the expected impact of the Goods and Services Tax requirements for the technology services sector.
Finally, apart from our regular round up of regulatory updates, this edition of the Accounting and Auditing Update provides a summary of the concept release by the U.S. Securities and Exchange Commission on enhanced responsibilities of the audit committee along with the Indian exposure draft on Auditing Standard 260, Communication with those charged with governance.
This issue includes :
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