Issue 8 - Financial Services

Issue 8 - Financial Services

This month the Accounting and Auditing Update focusses on the financial services sector and highlights key matters relating to accounting, financial reporting and regulatory areas relevant to this sector.

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aau-april2016

Issue no. 8/2016 | Financial Services

This month the Accounting and Auditing Update focusses on the financial services sector and highlights key matters relating to accounting, financial reporting and regulatory areas relevant to this sector. The Indian financial services sector comprises commercial banks, Non-Banking Finance Companies (NBFCs), insurance companies, mutual fund, Asset Management Companies (AMCs) and broking companies.

The government has put forward the road map for implementation of Ind AS by banks, insurance companies and NBFCs. This will require scheduled commercial banks to prepare their financial statements as per Ind AS from 1 April 2018 with comparatives for 31 March 2018. The adoption of Ind AS by banks, insurance companies and NBFCs could have a significant impact on financial reporting as well as on the way entities are managed and conduct their business. In this publication, we have summarised the impact of Ind AS on the financial services sector.

This publication also carries an article on derivative valuation and provides an overview of the recent derivative valuation models and the impact of credit and debit valuation adjustments on these models while taking into account effects of non-performance into the value of liability.

The publication also features an interaction with Mr. Keki Mistry, Vice Chairman and CEO of Housing Development Finance Corporation Limited and explores some key accounting, reporting and other topical matters relevant to the industry.

Private Equity and venture capital funds are an important part of this sector and our article in this publication provides an overview of accounting guidance available under IFRS and its differences from Ind AS and U.S. GAAP.

Further, this publication also provides a keen perspective on key regulatory updates issued by the RBI, the impact of the Income Computation and Disclosure Standards (ICDS) and the proposed Goods and Services Tax (GST) on the financial services sector. We also strive to undertake an analysis of the Expert Advisory Opinion on Special Reserves issued by the Institute of Chartered Accountants of India.

Additionally, our publication carries a regular synopsis of regulatory updates. 

For more information on this update, please write to aaupdate@kpmg.com

© 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.

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