Ind AS provide extensive guidance and entail a significant change in the financial reporting framework applied by Indian companies to report their financial results.
Ind AS provide extensive guidance and entail a significant change in the financial reporting framework applied by Indian companies to report their financial results. Their implementation involves a detailed level of analysis and requires companies to invest substantial time to ensure compliance.
Our publication ‘Ind AS – ITFG interpretations and application issues’ is designed to assist companies in understanding some of the significant practical issues that may arise when preparing financial statements in accordance with Ind AS.
About Ind AS implementation in India
Indian financial reporting has undergone a paradigm shift with the introduction of Indian Accounting Standards (Ind AS). These involve application of several new and complex concepts, which require a significant level of judgement and estimation, accompanied by detailed qualitative and quantitative disclosures. However, this is just the beginning. The recent key amendments to the Companies Act, 2013 (2013 Act) and other Ind ASs that are on the verge of implementation (Ind AS 115, Revenue from Contracts with Customers and Ind AS 116, Leases), are expected to have a further impact on compliance as well as other accounting and reporting requirements across industries.
India Inc. is about to complete phase II of the Ind AS implementation. Our experience is that the real success of the convergence initiatives depends on how well these standards are implemented and how effectively companies embrace this change in both spirit and form.
The Ind AS Transition and Facilitation Group (ITFG)
In the context of the above developments, the Accounting Standards Board (ASB) and the Ind AS Implementation Committee of the Institute of Chartered Accountants of India (ICAI) constituted the ITFG to provide clarifications on various issues related to the applicability of Ind AS and its implementation. These issues are being raised by preparers, users and other stakeholders. Till date, ITFG has issued 14 bulletins covering implementation issues on various Ind AS such as, consolidation, financial instruments, business combinations, etc.
About the publication
Our publication ‘Ind AS – ITFG interpretations and application issues’ is designed to assist companies in understanding the guidance on these issues, when preparing financial statements in accordance with Ind AS. The publication provides a brief overview of the Ind AS and highlights the key differences from the respective IFRS. Further, the publication summarises the clarification and recommendations provided by ITFG with respect to various implementation and interpretation issues pertaining to Ind AS (including certain frequently asked questions issued by ICAI). The publication is based on the Ind AS notified by the Ministry of Corporate Affairs (MCA), including amendments up to 15 February 2018. It also includes the 14 clarifications’ bulletins that have been issued by ITFG till 15 February 2018.
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