In this month’s call, we covered the salient features of Indian Accounting Standard (Ind AS) 16, Property, Plant and Equipment, and Ind AS 38, Intangible Assets, along with key differences from AS 10, Accounting for Fixed Assets and AS 26, Intangible Assets respectively. Additionally, we covered the key aspects of the application guide on the provisions of Schedule II to the Companies Act, 2013 issued by the Institute of Chartered Accountants of India (ICAI).
The Ministry of Company Affairs (MCA) on 16 February 2015 notified 39 Ind AS that are converged with International Financial Reporting Standards (IFRS). As per the roadmap notified by the MCA, the prescribed class of companies covered under the first phase will have to report under these standards for financial years beginning on or after 1 April 2016, together with comparative information for the previous year.
In this call, we examined the key requirements of the Ind AS 16 and Ind AS 38 along with the first time adoption requirements relating to fixed assets and intangible assets. We also highlighted key differences from current Indian GAAP.
Recently, the ICAI has issued the application guide on the provisions of the Schedule II to the Companies Act, 2013. It addresses certain practical issues arising in the implementation of the Schedule II to the Companies Act, 2013 relating to depreciation of assets. As opposed to the Schedule XIV to the Companies Act, 1956, the Schedule II of the Companies Act, 2013 brings along a number of changes in how Indian companies compute depreciation. On our call, discussed the key aspects of the application guide.
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