The publication is designed to assist companies in understanding guidance issued by ITFG when preparing financial statements in accordance with Ind AS.
Ind AS involve application of several new and complex concepts, which require a significant level of judgement and estimation, accompanied by detailed qualitative and quantitative disclosures.
Our publication ‘Ind AS – ITFG interpretations and application issues’ is designed to assist companies in understanding guidance issued by ITFG when preparing financial statements in accordance with Ind AS.
About Ind AS implementation in India
Ind AS has become business as usual for corporate India. For Non-Banking Financial Companies (NBFC) which have net worth of INR500 crore or more, financial year 2018-19 would be the first year of implementation of Ind AS. The scheduled commercial banks (excluding regional rural banks) are expected to transition from 1 April 2019.
However, Ind AS are also a moving target with new standards opening up new areas of judgement and estimates. Ind AS 115, Revenue from Contracts with Customers has been implemented from 1 April 2018 and we expect Ind AS 116, Leases to be implemented from 1 April 2019.
The Ind AS Technical Facilitation Group (ITFG)
The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) constituted the ITFG to provide clarifications on various issues related to the applicability of Ind AS and its implementation. The preparers, users and other stakeholders have raised a number of issues to ITFG. Till date, ITFG has issued 18 bulletins covering implementation issues on various Ind AS such as, consolidation, financial instruments, business combinations, income taxes, etc.
About the publication
The publication is designed to provide a brief overview of the Ind AS and highlights the key differences from the respective IFRS. Further, the publication summarises the clarifications and recommendations provided by ITFG with respect to various implementation and interpretation issues pertaining to Ind AS (including certain frequently asked questions issued by ICAI). It contains 10 chapters, which provide an essence of the principles within Ind AS pertaining to each topic. Further, some chapters may contain multiple topics/Ind AS application issues.
The publication is based on the Ind AS notified by the Ministry of Corporate Affairs (MCA), including amendments made to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance on 20 September 2018 and to Schedule III to the 2013 Act in the month of October 2018. It also includes all the issues of the 18 clarifications’ bulletins that have been issued by ITFG till 15 February 2019.
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