Issue no. 13| August 2017 | KPMG | IN

Issue no. 13| August 2017

Issue no. 13| August 2017

Ind AS has introduced new accounting concepts into financial reporting in India.

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Issue no. 13| August 2017

Ind AS has introduced new accounting concepts into financial reporting in India. ‘Non-current assets held for sale’ is one such concept. Previous Indian GAAP did not contain a specific standard on this topic. Therefore, in this month’s Accounting and Auditing Update (AAU), we elaborate on the concept of held for sale and explain classification, measurement and presentation requirements of assets so categorised.

While transitioning to Ind AS, application of Expected Credit Loss (ECL) model to measure impairmenton financial assets is an area of significant complexity for financial institutions. However, Ind AS 109, Financial Instruments, does not prescribe methods or techniques for computing ECL. Our series of articles will introduce and explain various concepts surrounding the computation of ECL. In this edition of AAU, our article provides an overview of the ‘staging
assessment’ required to be performed by financial institutions to determine the extent of expected losses to be recognised under Ind AS. 

Under the Companies Act, 2013 (2013 Act) article, we provide an overview of the provisions relating to loans and investments made by companies. The article also highlights the requirements of the Securities and Exchange Board of India’s regulations with regard to loans and investments made by the companies.

This publication also carries an article on replacement of employee stock options in a business combination. In a business combination, an acquirer may be obliged to replace share-based payment awards granted to the employees of the acquiree or an acquirer may voluntarily replace such awards, whereas in other cases the awards may not be replaced. The article explains the accounting treatment under Ind AS for these three scenarios along with an illustration.

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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