Ind AS 115, Revenue from Contracts with Customers provides guidance
that applies to contracts with customers in all sectors. Accordingly, the
standard may change the way pharmaceutical companies account for sales transactions.
In this issue of the Accounting and Auditing Update (AAU), we focus on the
impact of Ind AS 115 on the pharmaceutical sector. The article highlights
that while transitioning to Ind AS 115, pharmaceutical entities would need
to take critical decisions while identifying performance obligations, accounting
for licenses of intellectual property, variable consideration, financing
Banks are required to meet certain capital adequacy norms that require regulatory capital to be classified as Tier 1 and Tier 2 capital. While banks prepare for the transition to Ind AS, one important aspect to consider is which components of the regulatory capital meet the definition of equity as per Ind AS. Our article on this topic explains the Ind AS requirements with the help of an illustrative.
The publication through its article on new Standard on Auditing (SA) 720, The Auditor’s Responsibilities Relating to Other Information casts lens on the concept of ‘other information’ and enhanced reporting responsibility of the auditors with regard to ‘other information’. Auditor reporting and responsibility has changed in response to significant developments in corporate reporting e.g. in relation to the detail included in companies’ annual reports. Users attribute a lot of importance to the information in annual reports. The revised SA is applicable for audits of financial statements beginning on or after 1 April 2018.
Further, this publication also carries an article on educational material on Ind AS 103, Business Combinations published by the Institute of Chartered Accountant of India (ICAI). The articles summarises key examples in the education material and highlights accounting principles of the business combinations standard.
Additionally, our publication carries a regular synopsis of regulatory updates in India and internationally.