IFRS 16, Leases the new standard on leases would be applicable internationally from 1 January 2019. The standard is not yet notified in India but it is expected to be effective for annual periods beginning on or after 1 April 2019. The standard envisages to bring leases on-balance sheet for lessees. Many companies, lease major assets for use in their business and the application of the new standard on leases will give rise to an increase in reported assets and liabilities. This standard is expected to affect a wide variety of sectors, from airlines that lease aircraft to retailers that lease stores. In this edition of the Accounting and Auditing Update (AAU), we have included an article on the impact of IFRS 16 on the Information Technology sector.
The publication also carries an article on new revenue standard - Ind AS 115, Revenue from Contracts with Customers. Ind AS 115 changes the core principle that requires companies to evaluate their transactions in a new way. The standard would also impact healthcare sector and our article highlights the key areas where more judgement and estimation would be required in relation to the healthcare sector.
The publication also cast lens on the concept of annual impairment testing of goodwill under Ind AS. An article elaborates this concept from the perspective of a subsidiary, associate and joint venture in the consolidated financial statements of an investor.
Our publication also carries a regular synopsis of some recent regulatory updates in India and internationally.