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Issue no. 19| February 2018

Ind AS 115, Revenue from Contracts with Customers, is expected to be applicable from 1 April 2018 to Indian companies following the Ind AS road map. The new requirements are expected to affect different entities in different ways. In this edition of Accounting and Auditing Update (AAU), we focus on the telecommunication sector which has a varied range of products and services that could be bundled in many different ways. Therefore, telecommunication sector companies would need to evaluate the impact of Ind AS 115 on revenue recognition, transition and disclosures. An article on this topic highlights the significant areas where current guidance in Ind AS is expected to change due to implementation of Ind AS 115.

The consolidated financial statements of fund managers which are classified as Non-Banking Financial Companies would need to be prepared in accordance with Ind AS 110, Consolidated Financial Statements from 1 April 2018. Accordingly, they would need to consolidate funds after evaluating the factors relating to ‘delegated power’. Our article on this topic explains major considerations to determine whether fund managers should consolidate the funds managed by them under Ind AS.

Integrated Reporting expects to bring together the diverse but currently disconnected strands of reporting into a coherent, integrated whole, and demonstrate an organisation’s ability to create value now and in the future. Additionally, many organisations report on the United Nation’s sustainable development goals. Our article highlights a new approach to Integrated Reporting and UN’s sustainable development goals. This approach has been developed by the Integrated Reporting Council (IIRC) and the Institute of Chartered Accountants of Scotland (ICAS).

This publication also cast lens on accounting for joint operations. The article on joint operations highlights the factors to be assessed for determining whether an arrangement is a joint operation, the accounting in separate and consolidated financial statements and certain practical implications.

Our publication also carries a regular synopsis of some recent regulatory updates in India and internationally.