Ind AS 115 , Revenue from Contracts with Customers introduces
a single comprehensive model of accounting for revenue arising from contracts
with customers and will supersede the current revenue recognition guidance.
In this edition of the Accounting and Auditing Update (AAU), we focus on
technology sector which has a varied range of products and services that
could be bundled in many different ways. Therefore, technology sector companies
would need to evaluate the impact of Ind AS 115 on revenue recognition,
transition and disclosures. An article on this topic highlights the significant
areas where current guidance in Ind AS is expected to change due to implementation
of Ind AS 115.
Technological advancement due to data and analytics is helping organisations and auditors to derive benefits and value addition while performing audits, thereby, providing enhanced audit quality. The publication cast lens on key insights and values that are an outcome of the technology driven audit process
This edition of AAU carries an article on derecognition of loans assigned by Non-Banking Financial Companies (NBFCs) to other lending institutions. Under Ind AS 109, Financial Instruments the accounting treatment for loan assets directly assigned or converted into marketable securities could differ from current Indian GAAP. Therefore, an article on this topic aims to demonstrate the factors to be considered for derecognition of loans and its impact on the business model for similar loans. The article further highlights the accounting treatment and the business model assessment if loans are generally sold by way of securitisation transactions.
In continuation with our Companies Act series, this edition carries an article on relaxations available to private companies in India from the provisions of the Companies Act, 2013.
The publication also carries an article on decommissioning cost. Ind AS provides detailed guidance on decommissioning costs and the article on this topic discusses important factors that should be considered while recognising these costs.
Our publication also carries a regular synopsis of some recent regulatory updates in India and internationally.