Issue 11 | June 2017 | KPMG | IN

Issue 11 | June 2017

Issue 11 | June 2017

This edition of Accounting and Auditing Update (AAU) explains the concept of a business model assessment to be undertaken by banks on transition to Ind AS.

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AAU - Issue 11 | June 2017

This edition of Accounting and Auditing Update (AAU) explains the concept of a business model assessment to be undertaken by banks on transition to Ind AS. Our article covers two scenarios: loans advanced and investments made in debt instruments by banks. The accounting for these two scenarios has been explained with the help of case studies.

While transitioning to Ind AS under Phase I of Ind AS corporate road map, many companies have opted for deemed cost exemption in relation to the accounting of property, plant and equipment. Our article explains the deemed cost exemption and also highlights the challenges/implications in accounting on Ind AS transition when a company chooses to apply the deemed cost exemption for its property, plant and equipment. This article also covers the implication on Minimum Alternate Tax (MAT) computation both on transition and in subsequent annual financial statements.

Under the Companies Act, 2013 (2013 Act) section, we describe the key responsibilities of directors. The article also compares the requirements of the 2013 Act with the Securities and Exchange Board of India’s (SEBI) regulations with regard to directors.

This month’s edition also carries an article on the accounting of lease of land under Ind AS. Ind AS framework on leases is based on the substance of lease rather than form. Land in India is typically available on lease. Our article emphasises the need to assess all of the lease classification indicators before classifying a lease as an operating or a finance lease.
Our publication also carries a regular synopsis of recent regulatory updates in India and internationally.
 

© 2017 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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