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Issue 9 | April 2017

Issue 9 | April 2017

This edition of Accounting and Auditing Update covers an article on accounting of prior period errors and explains the guidance with the help of illustrative examples.

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This edition of Accounting and Auditing Update covers an article on accounting of prior period errors and explains the guidance with the help of illustrative examples.

Ind AS 8, Accounting policies, Changes in Accounting Estimates and Errors covers guidance on accounting for accounting of changes in accounting policies, estimates and prior period errors. The guidance on accounting of errors under Ind AS is wider than current Indian GAAP (Accounting Standards) and requires an entity to adjust material prior period errors retrospectively by restating the comparative amounts and opening retained earnings at the beginning of the earliest period presented in the balance sheet.

Many Indian entities have foreign operations and while preparing the Consolidated Financial Statements (CFS) under Ind AS, such entities need to understand the accounting requirements for Foreign Currency Translation Reserve (FCTR). The FCTR is a reserve that arises due to foreign currency translation differences while consolidating foreign operations (when the functional currency of the foreign operation is different from the parent entity). In this edition of AAU, we explain the accounting treatment of FCTR in various scenarios e.g. on first-time adoption of Ind AS, disposal, impairment, restructuring, etc. of a foreign operation.

Under the Companies Act, 2013 section of AAU, we highlight the regulatory requirements with regard to acceptance of deposits. This article captures the amendments and updates on the topic ‘acceptance of deposits’ by the Ministry of Corporate Affairs.

The IFRS 8, Operating Segments standard under International Financial Reporting Standards (IFRS) focusses on segment disclosures based on the components of the entity that management monitors in making decisions about operating matters. The International Accounting Standards Board (IASB) conducted a Post Implementation Review (PIR) of IFRS 8 in July 2013. As a follow up of PIR, the IASB proposed certain amendments to IFRS 8. Our article summarises the amendments proposed by the IASB.

As is the case each month, we also cover a regular round-up of some recent regulatory updates in India.
 

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KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.

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