In this month’s call, we covered following topics:
1. Ind AS Transition Facilitation Group (ITFG) issues clarifications on matters relating to Ind AS - (Bulletin 2)
The Institute of Chartered Accountants of India (ICAI) on 11 January 2016 formed the Ind AS ITFG in order to provide certain clarifications on issues arising due to applicability and/or implementation of Ind AS. The ITFG had issued its first bulletin (Bulletin I) on 11 February 2016 which provided guidance on five issues relating to the application of Ind AS.
2. The MCA approves changes to the existing Accounting Standards (ASs)
On 30 March 2016, the Ministry of Corporate Affairs (MCA) issued the Companies (Accounting Standards) Amendment Rules, 2016 to amend some of the existing ASs. The notification also provides specific transitional provisions for some of the ASs.
These ASs would apply to companies not covered in the Phase I of the Ind AS road map and such companies would have to incorporate the consequential changes to their accounting policies.
The amended ASs should be used for preparation of financial statements for accounting periods commencing on or after the date of notification i.e. 30 March 2016.
On the call, we provided an overview of the key amendments to the ASs.
3. Guidance Note on Accounting for Real Estate Transactions
The ICAI on 10 May 2016, issued the Guidance Note on Accounting for Real Estate Transactions. This will apply to entities to whom Ind AS is applicable. The objective of this Guidance Note is to recommend the accounting treatment by entities dealing in real estate as sellers or developers.
On the call, we provided an overview of this Guidance Note.
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