Page 1
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
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Accounting Standards (ASs) are written policy documents issued by expert accounting body or by
government or other regulatory body covering the aspects of recognition, measurement, presentation
and disclosure of accounting transactions in the financial statements.
Purpose of AS :
To promote the dissemination of timely and useful financial information to the users.
To reduce the accounting alternatives in the preparation of financial statements.
To ensure comparability of financial statements of different enterprises.
Accounting Standards deal with the issues of
Accounting Standards standardize diverse accounting policies with a view to
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The Institute of Chartered Accountants of India (ICAI), being a premier accounting body in the
country, took upon itself the leadership role by constituting the AS Board (ASB) in 1977.
The ICAI has taken significant initiatives in the setting and issuing procedure of Accounting Standards.
It ensures that the standard-setting process is fully consultative and transparent.
Introduction
status &
Benefits of
Accounting
Standards
Standards
setting
process
IFRS as
global
standards
Need for
convergenc
e with IFRS
Concepts of
Ind AS
Carve outs/
ins in Ind
AS
Recognition of
events and
transactions.
Disclosure is to
enable users to take
prudent & informed
business decisions.
Measurement of
events and
transactions.
Eliminate the non-
comparability of
financial
statements
Provide a set of standard
accounting policies,
valuation norms &
disclosure requirements.
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CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
The ASB considers the International Accounting Standards (IASs)/lnternational Financial Reporting
Standards (IFRSs) while framing Indian Accounting Standards (ASs) and try to integrate them, in the
light of applicable laws, customs, usages and business environment in the country.
The composition of ASB includes representatives of industries, regulators, academicians, government
departments etc.
Although ASB is a body constituted by the Council of the ICAI, it is independent in the formulation of
accounting standards.
Council of the ICAI is not empowered to make any modifications in the draft accounting standards
formulated by ASB without consulting with the ASB.
Procedure to issue Accounting Standards :
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Sr. no.
Points
Explanation
A]
Benefits :
1]
Standardisation of
alternative accounting
treatments
Standards reduce confusing variations in the accounting
treatments.
2]
Requirements for additional
disclosures
There are certain areas where important information is not
statutorily required to be disclosed.
Standards may call for disclosure beyond required by law.
3]
Comparability of financial
statements
AS facilitate comparison of financial statements of companies
situated in different parts of the world & also of different
companies situated in the same country.
However, differences in institutions, & legal systems from 1
country to another give rise to differences in AS adopted.
Accounting Standards Board
2. Prepare
3. Circulate
Study Groups
Specified Bodies
Preliminary
Draft
for discussion
Preliminary
Draft
for discussion
1. Determine areas
where AS are
required & refer to
study Group
5. Consider
comments & submit
Final Draft to council
Council of ICAI
4. Finalise Exposure Draft for comments by
3. Circulate Preliminary
Draft for discussion
Members if ICAI, Representatives of
Public Stock Exchanges, other
appropriate interest groups & other
specified bodies.
Mandatory AS
6. Discuss Final Draft modify, if
required & issue the AS
Page 3
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
B]
Limitations :
1]
Difficulties in making
choice between different
treatments
Alternative solutions to accounting problems have arguments.
Therefore, the choice between different alternative accounting
treatments may become difficult.
2]
Lack of flexibilities
There may be a trend towards rigidity and away from
flexibility in applying the accounting standards.
3]
Restricted scope
Accounting standards cannot override the statute.
AS are to be framed within the ambit of prevailing statutes.
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M
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Y
Y
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O
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U
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A
A
N
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D
A
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S
?
?
The Council of the ICAI has, so far, issued twenty nine Accounting Standards.
However, AS 6 on 'Depreciation Accounting' has been withdrawn on revision of AS 10 'Property, Plant
& Equipment" and AS 8 on Accounting for Research and Development' has been withdrawn
consequent to the issuance of AS 26 on 'Intangible Assets'. Thus effectively, there are 27 AS at present.
The 'AS' issued by the AS Board establish standards which have to be complied by the business entities
so that the FS are prepared in accordance with generally accepted accounting principles(GAAP’s).
The following is the list of AS with their respective date of applicability:
AS no.
AS Title
Date
1.
Disclosure of Accounting Policies
01/04/1993
2.
Valuation of Inventories (Revised)
01/04/1999
3.
Cash Flow Statement
01/04/2001
4.
Contingencies & Events Occurring after the B/s Date (Revised)
01/04/1998
5.
Net P&L for the Period, Prior Period Items & Changes in
Accounting Policies
01/04/1996
6.
Depreciation Accounting
Withdrawn w.e.f 1.4.2016 after
issuance of revised AS 10 on PPE
7.
Construction Contracts
01/04/2002
8.
Research & Development
Now included in AS 26
9.
Revenue Recognition
01/04/1993
10.
Property, Plant and Equipment (Revised)
01/04/2016
11.
The Effects of Changes in Foreign Exchange Rates
01/04/2004
12.
Accounting for Government Grants
01/04/1994
13.
Accounting for Investments (Revised)
01/04/1995
14.
Accounting for Amalgamations (Revised)
01/04/1995
15.
Employee Benefits
01/04/2006
16.
Borrowing Costs
01/04/2000
17.
Segment Reporting
01/04/2001
18.
Related Party Disclosures
01/04/2001
19.
Leases
01/04/2001
20.
Earnings Per Share
01/04/2001
21.
Consolidated Financial Statements (Revised)
01/04/2001
22.
Accounting for Taxes on Income
01/04/2001
23.
Accounting for Investments in Associates in Consolidated FS
01/04/2002
24.
Discontinuing Operations
01/04/2004
25.
Interim Financial Reporting
01/04/2002
26.
Intangible Assets
01/04/2003
27.
Financial Reporting of Interests in Joint Ventures
01/04/2002
28.
Impairment of Assets
01/04/2008
29.
Provisions, Contingent Liabilities & Contingent Assets (Revised)
01/04/2004
NOTE : AS 1; AS 2 (Revised); AS 3; AS 4 (Revised); AS 5; AS 10 (Revised); AS 11; AS 12; AS 13
(Revised); AS 16; AS 17 and AS 22 are covered in the syllabus of this paper at Intermediate Level.
Page 4
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
C
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6
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The AS are developed by the AS Board (ASB) of the Institute of Chartered Accountants of India & are
issued under the authority of its Council.
Institute not being a legislative body can enforce compliance with its standards only by its members.
Also, the standards cannot override laws & local regulations.
The AS are nevertheless made mandatory from the dates specified in respective standards and are
generally applicable to all enterprises, subject to certain exception as stated below.
The implication of mandatory status of an Accounting Standard depends on whether the statute
governing the enterprise concerned requires compliance with the AS. The Companies Act had earlier
notified 28 AS and mandated the corporate entities to comply with the provisions stated therein.
However, in 2016 the MCA has withdrawn AS 6. Hence, effectively there are now only 27 notified AS
as per the Companies (AS) Rules, 2006 (as amended in 2016).
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7
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D
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O
O
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R
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O
O
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N
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G
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N
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O
O
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S
1) Each country has its own set of rules and regulations for accounting and financial reporting.
Therefore, when an enterprise decides to raise capital from the markets other than the country in
which it is located, the rules and regulations of that other country will apply and this in turn will
require that the enterprise is in a position to understand the differences between the rules governing
financial reporting in the foreign country as compared to its own country of origin.
2) The harmonization of financial reporting around the world will help to raise confidence of investors
generally in the information they are using to make their decisions and assess their risks.
3) Also a strong need was felt by legislation to bring about uniformity, rationalisation, comparability,
transparency and adaptability in FS. Global Standards facilitate cross border flow of money, global
listing in different stock markets and comparability of FS.
4) The convergence of financial reporting and AS is a valuable process that contributes to the free flow of
global investment and achieves substantial benefits for all capital market stakeholders.
a) It improves the ability of investors to compare investments on a global basis and, thus, lower their
risk of errors of judgment.
b) It facilitates accounting and reporting for companies with global operations and eliminates some
costly requirements.
c) It has the potential to create a new standard of accountability and greater transparency provides
value to all market participants including regulators.
d) It reduces operational challenges for accounting firms and focuses their value and expertise
around an increasingly unified set of standards.
e) It creates an unprecedented opportunity for standard setters and other stakeholders to improve the
reporting model.
f) For the companies with joint listings in both domestic and foreign country, the convergence is very
much significant.
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8
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O
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L
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A
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O
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U
U
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N
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T
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N
G
G
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T
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A
A
N
N
D
D
A
A
R
R
D
D
B
B
O
O
A
A
R
R
D
D
With a view of achieving these objectives, the London based group namely the International AS
Committee (IASC), responsible for developing International AS, was established in June, 1973. It is
presently known as International AS Board (IASB).
The IASC comprises the professional accountancy bodies of over 75 countries (including ICAI).
Primarily, the IASC was established, in the public interest, to formulate and publish, International AS
to be followed in the presentation of FS.
International AS was issued to promote acceptance and observance of International AS worldwide.
Page 5
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
Between 1973 and 2001, the International AS Committee (IASC) released International AS. Between
1997 and 1999, the IASC restructured their organisation, which resulted in formation of International
AS Board (IASB). These changes came into effect on 1st April, 2001.
Subsequently, IASB issued statements about current and future standards; IASB publishes its Standards
in a series of pronouncements called International Financial Reporting Standards (IFRS). However,
IASB has not rejected the standards issued by the ISAC. Those pronouncements continue to be
designated as "International AS" (IAS).
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9
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:
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E
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A
T
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I
O
O
N
N
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A
L
L
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F
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A
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N
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A
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A
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A
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O
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S
T
T
A
A
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N
D
D
A
A
R
R
D
D
S
S
The term International Financial Reporting Standards (IFRS) comprises IFRS issued by IASB; IAS issued
by International AS Committee (IASC); Interpretations issued by the Standard Interpretations
Committee (SIC) and the IFRS Interpretations Committee of the IASB.
International Financial Reporting Standards (IFRSs) are considered a "principles-based" set of
standards.
The increased use of IFRS is not limited to public-company listing requirements or statutory reporting.
Many lenders and regulatory and government bodies are looking to IFRS to fulfill local financial
reporting obligations related to financing or licensing.
C
C
O
O
N
N
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C
E
E
P
P
T
T
1
1
0
0
:
:
B
B
E
E
N
N
E
E
F
F
I
I
T
T
S
S
O
O
F
F
C
C
O
O
N
N
V
V
E
E
R
R
G
G
E
E
N
N
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E
E
W
W
I
I
T
T
H
H
I
I
F
F
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R
S
S
There are many beneficiaries of convergence with IFRS such as the economy, investors, industry, etc.
The Economy :
1) It facilitates maintenance of orderly and efficient capital markets and also helps to increase the
capital formation and thereby economic growth.
2) It encourages international investing and thereby leads to more foreign capital flows to the
country.
Investors :
1) Investors want the information that is more relevant, reliable, timely and comparable across the
jurisdictions.
2) FS prepared using a common set of AS help investors better understand investment opportunities
as opposed to FS prepared using a different set of national AS.
3) Investors' confidence is strong when AS used are globally accepted.
The Industry :
1) The industry is able to raise capital from foreign markets at lower cost if it can create confidence in
the minds of foreign investors that their FS comply with globally accepted AS.
2) The burden of financial reporting is lessened with convergence of AS because it simplifies the
process of preparing the individual and group FS and thereby reduces the costs of preparing the FS
using different sets of AS.
C
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O
O
N
N
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C
E
E
P
P
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1
1
1
1
:
:
C
C
O
O
N
N
V
V
E
E
R
R
G
G
E
E
N
N
C
C
E
E
T
T
O
O
I
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F
F
R
R
S
S
I
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N
N
I
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N
N
D
D
I
I
A
A
In India, so far as the ICAI & the Government authorities such as the National Advisory Committee on
AS established under the Companies Act, 1956, & various regulators such as Securities & Exchange
Board of India & Reserve Bank of India are concerned, the aim has always been to comply with the
IFRS to the extent possible with the objective to formulate sound financial reporting standards.
The ICAI, being a member of the International Federation of Accountants (IFAC), considered the IFRS
and tried to integrate them, to the extent possible, in the light of the laws, customs, practices and
business environment prevailing in India.
Also, the recent stream of overseas acquisitions by Indian companies makes a compelling case for
adoption of high quality standards to convince foreign enterprises about the financial standing as also
the disclosure and governance standards of Indian acquires.
Page 6
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
In India, the ICAI has worked towards convergence by considering the application of IFRS in Indian
corporate environment of Indian AS with Global Standards.
Recognising the growing need of full convergence of Indian AS with IFRS, ICAI constituted a Task
Force to examine various issues involved. Full convergence involves adoption of IFRS in the same form
as that issued by the IASB. While formulating the AS, ICAI recognises the legal and other conditions
prevailing in India and makes deviations from the corresponding IFRS.
For convergence of Indian AS with International Financial Reporting Standards (IFRS), the Accounting
Standard Board in consultation with the Ministry of Corporate Affairs (MCA)), has decided that there
will be two separate sets of AS viz. (i) Indian AS converged with the IFRS - standards which are being
converged by eliminating the differences of the Indian AS vis-a-vis IFRS (known as Ind AS) and (ii)
Existing Notified AS.
C
C
O
O
N
N
C
C
E
E
P
P
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T
1
1
2
2
:
:
W
W
H
H
A
A
T
T
A
A
R
R
E
E
I
I
N
N
D
D
I
I
A
A
N
N
A
A
C
C
C
C
O
O
U
U
N
N
T
T
I
I
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N
G
G
S
S
T
T
A
A
N
N
D
D
A
A
R
R
D
D
S
S
(
(
I
I
N
N
D
D
A
A
S
S
)
)
?
?
Indian AS (Ind AS) are IFRS converged standards issued by the CG of India under the supervision and
control of AS Board (ASB) of ICAI & in consultation with National Advisory Committee on AS (NACAS).
ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of
representatives from government department, academicians, other professional bodies viz. ICSI, ICAI,
representatives from ASSOCHAM, CM, FICCI, etc. National Advisory Committee on AS (NACAS)
recommend these standards to the Ministry of Corporate Affairs (MCA). MCA has to spell out the AS
applicable for companies in India.
Ind AS are named & numbered in the same way as the corresponding IFRS.
Indian Accounting Standard
Globalization and
Liberalization
Transparency of
financial statements
Comparability of
financial statements
Enhanced Disclosure
requirements
C
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E
E
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1
1
3
3
:
:
S
S
I
I
G
G
N
N
I
I
F
F
I
I
C
C
A
A
N
N
C
C
E
E
O
O
F
F
I
I
N
N
D
D
A
A
S
S
(
(
I
I
F
F
R
R
S
S
C
C
O
O
N
N
V
V
E
E
R
R
G
G
E
E
D
D
S
S
T
T
A
A
N
N
D
D
A
A
R
R
D
D
S
S
)
)
The globalisation of business world, structures & regulations, which support it, as well as the
development of e-commerce make it imperative to have a single globally accepted financial reporting
system.
A number of multi-national companies are establishing their businesses in various countries with
emerging economies and vice versa.
The use of different accounting frameworks in different countries, which require inconsistent
treatment and presentation of the same underlying economic transactions, creates confusion for users
of FS. This confusion leads to inefficiency in capital markets across the world. Therefore, increasing
complexity of business transactions and globalisation of capital markets call for a single set of high
quality AS.
High standards of financial reporting underpin the trust investors place in financial and non-financial
information. Thus, the case for a single set of globally accepted AS has prompted many countries to
pursue convergence of national AS with IFRS.
C
C
O
O
N
N
C
C
E
E
P
P
T
T
1
1
4
4
:
:
H
H
I
I
S
S
T
T
O
O
R
R
Y
Y
O
O
F
F
I
I
F
F
R
R
S
S
-
-
C
C
O
O
N
N
V
V
E
E
R
R
G
G
E
E
D
D
I
I
N
N
D
D
I
I
A
A
N
N
A
A
C
C
C
C
O
O
U
U
N
N
T
T
I
I
N
N
G
G
S
S
T
T
A
A
N
N
D
D
A
A
R
R
D
D
S
S
(
(
I
I
N
N
D
D
A
A
S
S
)
)
First Step towards IFRS :
The Institute of Chartered Accountants of India (ICAI) being the AS-setting body in India, way back in
2006, initiated the process of moving towards the International Financial Reporting Standards (IFRS)
issued by the International AS Board (IASB) with a view to enhance acceptability and transparency of
the financial information communicated by the Indian corporate through their FS. This move towards
IFRS was subsequently accepted by the Government of India.
The Government of India in consultation with the ICAI decided to converge and not to adopt IFRS
issued by the IASB. The decision of convergence rather than adoption was taken after the detailed
analysis of IFRS requirements and extensive discussion with various stakeholders. Accordingly, while
Page 7
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
formulating IFRS converged Indian AS (Ind AS), efforts have been made to keep these Standards, as far
as possible, in line with the corresponding IAS/IFRS and departures have been made where considered
absolutely essential. These changes have been made considering various factors, such as, various
terminology related changes have been made to make it consistent with the terminology used in law,
e.g., 'statement of profit and loss' in place of 'statement of profit and loss and other comprehensive
income' and 'balance sheet' in place of 'statement of financial position'.
Certain changes have been made considering the economic environment of the country, which is
different as compared to the economic environment presumed to be in existence by IFRS.
Government of India - Commitment to IFRS Converged Ind AS :
Consistent, comparable and understandable financial reporting is essential to develop a robust
economy. With a view to achieve international benchmarks of financial reporting, the Institute of
Chartered Accountants of India (ICAI), as a proactive role in accounting, set out to introduce Indian
AS (Ind AS) converged with the International Financial Reporting Standards (IFRS). This endeavour of
the ICAI is supported by the Government of India.
Initially Ind AS were expected to be implemented from the year 2011. However, keeping in view the
fact that certain issues including tax issues were still to be addressed, the Ministry of Corporate Affairs
decided to postpone the date of implementation of Ind AS.
In July 2014, the Finance Minister of India at that time, Shri Arun Jaitelyji, in his Budget Speech,
announced an urgency to converge the existing AS with the International Financial Reporting
Standards (IFRS) through adoption of the new Indian AS (Ind AS) by the Indian companies.
Pursuant to the above announcement, various steps have been taken to facilitate the implementation of
IFRS - converged Indian AS (Ind AS). Moving in this direction, the Ministry of Corporate Affairs
(MCA) has issued the Companies (Indian AS) Rules, 2015 vide Notification dated February 16, 2015
covering the revised roadmap of implementation of Ind AS for companies other than Banking
companies, Insurance Companies & NBFCs and Indian AS (Ind AS). As per the Notification, Indian AS
(Ind AS) converged with International Financial Reporting Standards (IFRS) shall be implemented on
voluntary basis from 1st April, 2015 and mandatorily from 1st April, 2016. Separate road-maps have
been prescribed for implementation of Ind AS to Banking, Insurance companies & NBFCs respectively.
C
C
O
O
N
N
C
C
E
E
P
P
T
T
1
1
5
5
:
:
W
W
H
H
A
A
T
T
A
A
R
R
E
E
C
C
A
A
R
R
V
V
E
E
O
O
U
U
T
T
S
S
/
/
I
I
N
N
S
S
I
I
N
N
I
I
N
N
D
D
A
A
S
S
?
?
The Government of India in consultation with the ICAI decided to converge and not to adopt IFRS
issued by the IASB. The decision of convergence rather than adoption was taken after the detailed
analysis of IFRS requirements and extensive discussion with various stakeholders.
Accordingly while formulating IFRS converged Ind AS, efforts have been made to keep these Standards,
as far as possible, in line with the corresponding IAS/IFRS & departures have been made where
considered absolutely essential. These changes have been made considering various factors, such as
a] Various terminology related changes have been made to make it consistent with the terminology used
in law, e.g., 'statement of profit and loss' in place of 'statement of comprehensive income' and 'balance
sheet' in place of 'statement of financial position'.
b] Removal of options in accounting principles and practices in Ind AS vis-a-vis IFRS, have been made to
maintain consistency and comparability of the FS to be prepared by following Ind AS. However, these
changes will not result into carve outs.
c] Certain changes have been made considering the economic environment of the country, which is
different as compared to the economic environment presumed to be in existence by IFRS. These
differences are due to differences in economic conditions prevailing in India. These differences which
are in deviation to the accounting principles and practices stated in IFRS, are commonly known as
'Carve-outs'.
Page 8
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
C
C
O
O
N
N
C
C
E
E
P
P
T
T
1
1
6
6
:
:
L
L
I
I
S
S
T
T
O
O
F
F
I
I
N
N
D
D
A
A
S
S
The following is the list of Ind AS vis - a - vis IFRS and AS :
Ind AS
IFRS
Title of Ind AS/IFRS
AS/GN
AS/GN Title
101
1
First Time Adoption of Ind AS
-
-
102
2
Share Based Payment
GN 18
Guidance Note on Accounting for
Employee Share-based Payments
103
3
Business Combinations
AS 14
Accounting for Amalgamations
104
4
Insurance Contracts
-
-
105
5
Non-current Assets Held for Sale and
Discontinued Operations
AS 24
Discontinuing Operations
106
6
Exploration for & Evaluation of Mineral
Resources
GN 15
Guidance Note on Accounting for
Oil and Gas Producing Activities
107
7
Financial Instruments: Disclosures
-
-
108
8
Operating Segments
AS 17
Segment Reporting
109
9
Financial Instruments
-
-
110
10
Consolidated Financial Statements
AS 21
Consolidated Financial Statements
111
11
Joint Arrangements
AS 27
Financial Reporting of Interests in
Joint Ventures
112
12
Disclosure of Interests in Other Entities
-
-
113
13
Fair Value Measurement
-
-
114
14
Regulatory Deferral Accounts
GN
Accounting for Rate Regulated
Activities
1
1
Presentation of Financial Statements
AS 1
Disclosure of Accounting Policies
2
2
Inventories
AS 2
Valuation of Inventories
7
7
Statement of Cash Flows
AS 3
Cash Flow Statements
8
8
Accounting Policies, Changes in
Accounting Estimates and Errors
AS 5
Net P&L for the Period, Prior period
Items & Changes in Accounting
Policies
10
10
Events after the Reporting Period
AS 4
Contingencies & Events Occurring
After the Balance Sheet Date
11
11
Construction Contracts
AS 7
Construction Contracts
12
12
Income Taxes
AS 22
Accounting for Taxes on Income
16
16
Property, Plant and Equipment
AS 10
Property, Plant and Equipment
17
17
Leases
AS 19
Leases
18
18
Revenue
AS 9
Revenue Recognition
19
19
Employee Benefits
AS 15
Employee Benefits
20
20
Accounting for Government Grants and
Disclosure of Government Assistance
AS 12
Accounting for Government Grants
21
21
The Effects of Changes in Foreign
Exchange Rates
AS 11
The Effects of Changes in Foreign
Exchange Rates
23
23
Borrowing Costs
AS 16
Borrowing Costs
24
24
Related Party Disclosures
AS 18
Related Party Disclosures
27
27
Separate Financial Statements
-
-
28
28
Investment in Associates & Joint Ventures
AS 23
Accounting for Investment in
Associates in Consolidated FS
29
29
FR in Hyperinflationary Economies
-
-
32
32
Financial Instruments: Presentation
-
-
33
33
Earnings per Share
AS 20
Earnings per Share
Page 9
CA - IPCC
ACCOUNTS
Source of Finance
1. Introduction to Accounting Standards
CA SANKET SHAH
34
34
Interim Financial Reporting
AS 25
Interim Financial Reporting
36
36
Impairment of Assets
AS 28
Impairment of Assets
37
37
Provisions, Contingent Liabilities and
Contingent Assets
AS 29
Provisions, Contingent Liabilities
and Contingent Assets
38
38
Intangible Assets
AS 26
Intangible Assets
40
40
Investment Property
AS 13
Accounting for Investments
41
41
Agriculture
-
-
C
C
O
O
N
N
C
C
E
E
P
P
T
T
1
1
7
7
:
:
R
R
O
O
A
A
D
D
M
M
A
A
P
P
F
F
O
O
R
R
I
I
M
M
P
P
L
L
E
E
M
M
E
E
N
N
T
T
A
A
T
T
I
I
O
O
N
N
O
O
F
F
I
I
N
N
D
D
A
A
S
S
:
:
A
A
S
S
N
N
A
A
P
P
S
S
H
H
O
O
T
T
For Companies other than banks, NBFCs and Insurance Companies :
1st April 2015 or thereafter : Voluntary Basis for all companies (with Comparatives)
Sr. No.
Phase I 1st April 2016: Mandatory Basis
a]
Companies listed/in process of listing on Stock Exchanges in India or Outside India
having net worth > INR 5 Billion
b]
Unlisted Companies having net worth > INR 5 Billion
c]
Parent, Subsidiary, Associate and J.V. of above
Sr. No.
Phase II 1st April 2017: Mandatory Basis
d]
All companies which are listed/or in process of listing inside or outside India on Stock
Exchanges not covered in Phase I (other than companies listed on SME Exchanges)
e]
Unlisted companies having net worth INR 5 Billion > INR 2.5 Billion
f]
Parent, Subsidiary, Associate and J.V. of Above
Companies listed on SME exchange not required to apply Ind AS.
Once Ind AS are applicable, an entity shall be required to follow the Ind AS for all the subsequent FS.
Companies not covered by the above roadmap shall continue to apply existing AS notified in
Companies (AS) Rules, 2006.
For Scheduled Commercial Banks (Excluding RRBs), Insurers/Insurance Companies and Non-Banking
Financial Companies (NBFC’s)
Non-Banking Financial Companies (NBFC’s)
Sr. No.
Phase I : From 1st April, 2018 (with comparatives)
a]
NBFCs (whether listed or unlisted) having net worth 500 crore or more
b]
Holding, Subsidiary, JV and Associate companies of above NBFC other than those
already covered under corporate roadmap shall also apply from said date
Sr. No.
Phase II : From 1st April, 2019 (with comparatives)
a]
NBFCs whose equity and/or debt securities are listed or are in the process of listing
on any stock exchange in India or outside India & having net worth less than 500 cr
b]
NBFCs that are unlisted having net worth 250 crore or more but less 500 crore
c]
Holding, Subsidiary, JV and Associate companies of above other than those already
covered under corporate roadmap shall also apply from said date
Applicable for both Consolidated and individual FS.
NBFC having net worth below 250 crore shall not apply Ind AS.
Adoption of Ind AS is allowed only when required as per the roadmap.
Voluntary adoption of Ind AS is not allowed.
Scheduled Commercial banks (excluding RRB's) and Insurers/Insurance companies
From 1st April, 2018 (with comparatives):
Holding, subsidiary, JV and Associates companies of scheduled commercial banks (excluding RRB's)
shall also apply from the said date irrespective of it being covered under corporate roadmap.
Applicable for both Consolidated and individual FS.
Urban Cooperative banks (UCBs) and Regional Rural banks (RRBs) are not required to apply Ind AS.
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