New standard on leases notified
On 30 March 2019, the Ministry of Corporate Affairs (MCA) notified Ind AS 116, Leases as part of the Companies (Indian Accounting Standards (Ind AS)) Amendment Rules, 2019. Ind AS 116 replaces existing standard on leases i.e. Ind AS 17, Leases with effect from accounting periods beginning on or after 1 April 2019.
Ind AS 116 is largely converged with International Financial Reporting Standard (IFRS) 16, Leases.
In this issue of First Notes, we aim to provide an overview of the key requirements of Ind AS 116.
For a detailed overview of the requirements of Ind AS 116 along with significant practical application issues vis-à-vis different sectors, please refer to KPMG in India’s publication ‘Lease accounting is changing - An insight with sectoral impacts’.
To access the text of the MCA notification, please click here.
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