ICAI revises ITFG bulletin 5 and issues FAQ... | KPMG | IN

ICAI revises ITFG bulletin 5 and issues FAQ on treatment of securities premium account on transition to Ind AS

ICAI revises ITFG bulletin 5 and issues FAQ...

With Ind AS being applicable to large corporates from 1 April 2016, the Institute of Chartered Accountants of India (ICAI), on 11 January 2016 announced the formation of the Ind AS Transition Facilitation Group (ITFG)....

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Background

With Ind AS being applicable to large corporates from 1 April 2016, the Institute of Chartered Accountants of India (ICAI), on 11 January 2016 announced the formation of the Ind AS Transition Facilitation Group (ITFG) in order to provide clarifications on issues arising due to applicability and/or implementation of Ind AS under the Companies (Indian Accounting Standards) Rules, 2015 (Rules 2015).

Over the past year, ITFG issued seven bulletins to provide guidance on issues relating to the application of Ind AS.

New development

The Ind AS Transition Facilitation Group (ITFG) held its eighth and ninth meetings on 1 April and 8 April 2017, respectively. In these meetings, the ITFG reconsidered certain issues that were part of ITFG Clarification Bulletin 5 (bulletin 5), on the basis of the representations received from the stakeholders. Accordingly, on 17 April 2017, the ITFG issued a revised Clarification Bulletin 5 (revised bulletin 5), wherein they withdrew Issue No. 2 (clarification on current and non-current classification of security deposits) and revised Issues No. 4 and 5 (pertaining to the deemed cost exemption for property, plant and equipment).

In addition, on 17 April 2017, the ICAI issued a frequently asked question (FAQ) on treatment of the securities premium account under Ind AS on date of transition. This FAQ replaces Issue No. 7 of the ITFG Bulletin 2 that was previously released in May 2016.

This issue of IFRS Notes provides an overview of clarifications provided by ICAI.

To access the text of the clarifications provided by ICAI on:

  • The ITFG Clarification Bulletin 5 (Revised), please click here.
  • FAQ on treatment of securities premium account under Ind AS on date of transition, please click here.
     

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