the new axis of financial reporting - ind as and icds
TRANSCRIPT
THE POWER OF BEING UNDERSTOOD
THE NEW AXIS OF FINANCIAL REPORTING - IND AS AND ICDS
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| The New Axis of Financial Reporting � Ind AS and ICDS RSM
About this publication
The publication 'The New Axis of Financial Reporting � Ind AS and ICDS' is prepared by RSM Astute Consulting Pvt. Ltd. (the Indian member of RSM) to provide readers a broad understanding of applicability of Ind AS and Income Computation and Disclosure Standards (ICDS) and some key differences with IFRS and Indian Standards. The publication is general in nature and does not cover all the requirements of Ind AS / (ICDS). The publication does not focus on other regulatory requirements that an Indian Entity needs to comply with. The preparation of financial statements complying with Ind AS is the responsibility of the management of the relevant entity and accordingly this publication does not replace the need for professional judgment which may be necessary for application of relevant standards and other disclosure requirements.
Although the publication has been compiled by RSM Astute Consulting Pvt. Ltd., the views expressed are those of RSM Astute - IFRS Champions.
The copyright in this published work shall belong to and vest in RSM Astute Consulting Pvt. Ltd. and all rights are reserved. Every effort has been made to ensure the contents are accurate and current. Information in this publication is no way intended to replace or supersede specific independent or other professional, legal, tax or accounting advice. This publication cannot and should not be relied upon for taking actions or decisions without appropriate professional advice. While all reasonable care has been taken in preparation of this publication, we accept no responsibility for any liability arising from any statements or errors contained in this publication.
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|The New Axis of Financial Reporting � Ind AS and ICDS RSM
Table of Contents
Chapter 1 : Introduction 1Chapter 2 : Applicability of Ind AS 5Chapter 3 : Ind AS Vs. IFRS Vs. Indian GAAP (AS) 9 3.1 Ind AS Vs. IFRS and Indian GAAP (AS) � Listing 10 3.2 Ind AS Vs. IFRS � Carve-outs 13 3.3 Ind AS Vs. AS - Key Differences 22Chapter 4 : Ind AS Vs. ICDS � Key Differences 75 4.1 Brief Background of ICDS 76 4.2 Comparison of ICDS and Ind AS 76 4.3 Comparative list of ICDS Vs. corresponding Ind AS 77 4.4 Key differences � ICDS Vs. Ind AS 77Chapter 5 : First Time Adoption of Indian Accounting Standards (Ind AS 101) 96 5.1 Scope of Ind AS 101 97 5.2 Certain Key Aspects 97 5.2.1 Opening Ind AS balance sheet and accounting policies 97 5.2.2 Exceptions to the principles that an entity�s opening Ind AS balance sheet shall fully comply with each Ind AS effective at the reporting date 98 5.2.3 Exemptions from retrospective application of some aspects of other Ind AS 99 5.2.4 Exemptions from the requirements of certain Ind ASs 100 5.2.5 Comparative information 101 5.2.6 Explanation for transition to Ind AS 101 5.2.7 Use of fair value as deemed cost 102 5.2.8 Use of deemed cost for investments in subsidiaries, joint ventures and associates 102 5.2.9 Derecognition of financial assets and financial liabilities 103 5.2.10 Hedge accounting 103 5.2.11 Non-controlling interest 104 5.2.12 Interim financial reports 105 5.2.13 Presentation and disclosures 105Chapter 6 : Frequently Asked Questions (FAQs) by First Time Adopters of Ind AS 107 6.1 From which date Ind AS will be applicable in India? 108 6.2 Which entities in India need to comply with Ind AS with effect from 1 April 2016? 108 6.3 If an unlisted company has net worth less than Rs. 250 crores as at 31 March 2014, can Ind AS become applicable to it in future? 108
Table of Contents
6.4 What is the date of transition to Ind AS? 108 6.5 If the date of transition to Ind AS is 1 April 2015, what GAAP the Indian company needs to follow for the year 2015-2016? 109 6.6 What are the components of a complete set of Ind AS financial statements? 109 6.7 What would entity need to do in converting financial statements as per Indian GAAP to Ind AS financial statements? 109 6.8 Can any entity prepare Ind AS financial statements for period longer / shorter than one year? If yes, what are the disclosures required? 110 6.9 Which Ind AS would an entity need to comply with in its first Ind AS financial statements? 110 6.10 If an entity presents interim financial information for part of the period covered by its first Ind AS financial statements, what additional disclosures are required? 111 6.11 What is offsetting? 111
| The New Axis of Financial Reporting � Ind AS and ICDS RSM
Terms DefinitionAFS Available for saleAS Accounting Standards notified vide Companies (Accounting Standards) Rules, 2006BS Balance SheetCFS Consolidated Financial StatementsCGU Cash Generating UnitEPS Earning Per ShareFASB Financial Accounting Standards BoardFIFO First-In First-OutGAAP Generally Accepted Accounting PrinciplesGCA Going Concern AssumptionIAS The International Accounting StandardsIASB The International Accounting Standards BoardICAI The Institute of Chartered Accountants of IndiaICDS Income Computation and Disclosure StandardsIFRIC The International Financial Reporting Interpretations Committee IFRS The International Financial Reporting StandardsIND AS Indian Accounting Standards notified vide Companies (Accounting Standards) Rules, 2015MCA Ministry of Corporate Affairs NRV Net Realisable ValueOCI Other Comprehensive IncomeP&L Profit and LossPPE Property, Plant and EquipmentSFS Separate Financial StatementsSIC Standing Interpretations CommitteeSMC Small and Medium-Sized CompaniesSME Small and Medium-Sized EntitiesWAV Weighted Average Cost
Abbreviations
|The New Axis of Financial Reporting � Ind AS and ICDS RSMBack to Content
The financial reporting for Indian companies is set to change completely from financial year 2016-17 with India moving towards IFRS - the most commonly used global financial reporting standards. From the financial year 2016-17, companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth of Rs. 500 crores or more (about US$ 75 million) as well as unlisted companies having net worth of Rs. 500 crores or more (about US$ 75 million) would be required to adopt Ind AS i.e. the Indian Accounting Standards which have been converged with the IFRS with certain minimal exceptions. This requirement will also be applicable to the holding, subsidiary, joint venture or associate companies of companies covered above. From the financial year 2017-18, companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India irrespective of net worth and all other companies having net worth of Rs. 250 crores or more (about US$ 38 million) would be required to adopt Ind AS. This is perhaps the most significant change in respect of financial reporting in the history of corporate India and will have far reaching implications in terms of assets, liabilities, income and expenses, disclosures and will also impact tax on book profits.
The term International Financial Reporting Standards (IFRSs) includes IFRSs, IASs and interpretations originated by the IFRIC or its predecessor, the former Standing Interpretations Committee (SIC). IFRS are increasingly being recognised as Global Reporting Standards for financial statements. �National GAAP� is becoming rare. As global capital markets become increasingly integrated, many countries are moving to IFRS. More than 130 countries such as European Union, Australia, New Zealand and Russia currently permit the use of IFRS in their countries.
IFRSs are accounting standards for reporting financial results and are applicable to general purpose financial statements and other financial reporting of all profit- oriented entities. Profit-oriented entities includes those engaged in commercial, industrial, financial and similar activities, whether organized in corporate or in other forms also includes mutual insurance companies, other mutual co-operative entities, etc. developed and approved by IASB (International Accounting Standard Board).
Chapter 1 Introduction
|The New Axis of Financial Reporting � Ind AS and ICDS 2RSMBack to Content
Chapter 1 Introduction
IASB is also working with FASB on joint project to align IFRS and US GAAP along with other projects to improve IFRS requirements. As a result, IFRS have under gone significant changes in recent past and more changes would be implemented in future.
The legal recognition to the Accounting Standards in India was accorded for the companies in the Companies Act, 1956, by introduction of Section 211(3C) whereby it is required that the companies shall follow the Accounting Standards notified by the Central Government. The Accounting Standards were notified by Ministry of Corporate Affairs (MCA) vide the Companies (Accounting Standards) Rules, 2006 under the Companies Act, 1956. This Rule contained the standards to be applied by companies for preparation of general purpose financial statements for accounting periods commencing on or after 7 December 2006.
In February 2011, MCA had hosted 35 Ind AS (Indian Accounting Standards, which are converged with IFRS) on its website. However, date for implementation of these Ind AS by Indian companies was not notified.
In February 2015, MCA notified the Companies (Indian Accounting Standards) Rules2015. These rules require select class of companies and their auditors to comply with the Ind AS in specified manner. Other companies not required to comply with Ind AS are required to comply with Accounting Standards as specified in Annexure to the Companies (Accounting Standards) Rules, 2006.
Sub-section (1) of Section 145 of the Income-tax Act, 1961 (�the Act�) provides that the income chargeable under the head �Profits and gain of business or profession� or �Income from other sources� shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Sub-section (2) of Section 145 provides that the Central Government may notify Income Computation and Disclosure Standards (ICDS) for any class of assessees or for any class of income. 10 ICDS were notified and are effective from 1 April 2015 and accordingly applicable from the assessment year 2016-17 onwards.
| The New Axis of Financial Reporting � Ind AS and ICDS 3 RSMBack to Content
What is Ind AS?
Ind AS stands for Indian Accounting Standards as notified by MCA vide Companies (Indian Accounting Standards) Rules, 2015. These are standards converged with International Financial Reporting Standards (IFRS).
Since India has not adopted IFRS as issued by IASB, Ind AS were formulated. In principle, Ind AS are very much same as IFRS, but with some exceptions (carveouts).
Ind AS are not approved by IASB, but are approved / notified by MCA for implementation by select class of Indian companies.
It can also be noted that the 39 Ind AS as notified by MCA in February 2015 are not same as 35 Ind AS published in February 2011.
The notified Ind AS would be mandatorily applied by select class of companies from financial year 2016-17, with comparatives for previous year ending 31 March 2016 or thereafter.
IFRS stands for �International Financial Reporting Standards� and includes International Accounting Standards (IAS) until they are replaced by any IFRS and interpretations originated by the IFRIC or its predecessor, the former Standing Interpretations Committee (SIC).
Chapter 1 Introduction
|The New Axis of Financial Reporting � Ind AS and ICDS 4RSMBack to Content
Ind AS are applicable to companies meeting specified criteria as under:
Particulars Phase I (FY 2016-17) Phase II (FY 2017-18)
Covered companies
Year in which Ind AS to be applied
Comparative figures for preceding accounting period
a) Companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth of Rs. 500 crores or more
Accounting period beginning on or after 1 April 2016
Required for period ending on 31 March 2016 or thereafter
a) Companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth less than Rs. 500 crores
Accounting period beginning on or after 1 April 2017
Required for period ending on 31 March 2017 or thereafter
b) Companies not covered in (a) above and having net worth of Rs. 500 crores or more
b) Companies not covered in (a) above and having net worth of Rs. 250 crores or more but less than Rs. 500 crores
c) Holding, subsidiary, joint venture or associate companies of companies covered above
c) Holding, subsidiary, joint venture or associate companies of companies covered above
Notes:
1. Ind AS shall be applicable to both, standalone and consolidated financial statements of the company.
2. Any company may comply with the Ind AS for financial statements for accounting periods beginning on or after 1 April 2015, with the comparatives for the periods ending on 31 March 2015 or thereafter. Such company would prepare its financial statements as per Ind AS consistently.
3. Companies whose securities are listed or are in the process of being listed on SME exchange without initial public offering need not apply Ind AS.
Chapter 2 Applicability of Ind AS
|The New Axis of Financial Reporting � Ind AS and ICDS 6RSMBack to Content
4. 'Net Worth' means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
5. For the purpose of applicability of Ind AS the net worth shall be calculated in accordance with the standalone financial statements of the company as on 31 March 2014 or the first audited financial statements for accounting period which ends after that date.
6. Companies which are not in existence as on 31 March 2014 or an existing company falling under any of the thresholds specified in subsequent year, the net worth shall be calculated on the basis of first audited financial statements ending after 31 March 2014.
7. Overseas subsidiary, associates, joint venture and other similar entities of an Indian company may prepare its standalone financial statements in accordance with the requirements of the specific jurisdiction.
8. Once a company starts following Indian Accounting Standards (Ind AS) either voluntarily or mandatorily), it shall be required to follow the Indian Accounting Standards (Ind AS) for all the subsequent financial statements.
9. Once Indian Accounting Standards (Ind AS) are applied voluntarily, it shall be irrevocable and such companies shall not be required to prepare another set of financial statements in accordance with Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006.
10. Ind AS are intended to be in conformity with the provisions of applicable laws. However, if due to subsequent amendments in the law, a particular Ind AS is found not to be inconformity with such law, the provisions of the said law shall prevail and the financial statements shall be prepared in conformity with such law.
Chapter 2 Applicability of Ind AS
| The New Axis of Financial Reporting � Ind AS and ICDS 7 RSMBack to Content
11. Ind AS are intended to apply only to items which are material.
Exemptions: The insurance companies, banking companies and non-banking finance companies shall not be required to apply Ind AS for preparation of their financial statements either voluntarily or mandatorily. It is expected that a separate roadmap would be announced by MCA for implementation of Ind AS by these classes of companies in near future.
Chapter 2 Applicability of Ind AS
|The New Axis of Financial Reporting � Ind AS and ICDS 8RSMBack to Content
3.1 Ind AS Vs. IFRS and Indian GAAP (AS) � Listing
As at 30 September 2015, 39 Ind AS corresponding to related IFRS have been notified. There are 43 IFRS of which 3 standards though issued would be applicable from future dates. Similarly there are 28 AS that are applicable as on this date.
A comparative listing of accounting standards under Ind AS, IFRS and AS, as at 30 September 2015 is given hereunder:
ASAS 1 - Disclosure of Accounting Policies
IFRSInd ASIAS 1 - Presentation of Financial Statements
Ind AS 1 - Presentation of Financial Statements
AS 2 - Valuation of Inventories
IAS 2 - InventoriesInd AS 2 - Inventories
AS 3 - Cash Flow Statements
IAS 7 - Statements of Cash Flows
Ind AS 7 - Statement of Cash Flows
AS 5 - Net Profit or Loss for the period, Prior period items and Changes in Accounting policies
IAS 8 - Accounting Policies, Changes in Accounting estimates and errors
Ind AS 8 - Accounting policies, Changes in Accounting estimates and errors
AS 4 � Contingencies and event occurring after the balance sheet date
IAS 10 - Events After the Balance Sheet Date
Ind AS 10 � Event after the reporting period
AS 7 - Construction Contracts
IAS 11 - Construction Contracts (will be superseded by IFRS 15 � Revenue from Contract with Customers)
AS 22 - Accounting for Taxes on Income
IAS 12 - Income TaxesInd AS 12 - Income Taxes
AS 10 � Accounting for Fixed AssetsAS 6 - Depreciation Accounting
IAS 16 - Property, Plant and Equipment
Ind AS 16 - Property, Plant and Equipment
AS 19 � LeasesIAS 17 - LeasesInd AS 17 - Leases
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
AS 9 - Revenue Recognition
IAS 18 - Revenue (will be superseded by
|The New Axis of Financial Reporting � Ind AS and ICDS 10RSM
Ind AS 115 - Revenue from Contract with Customers
Back to Content
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
ASIFRSInd ASIFRS 15 � Revenue from Contract with Customers)
AS 15 - Employee BenefitsIAS 19 - Employee Benefits
Ind AS 19 - Employee Benefits
AS 12 - Accounting for Government Grants
IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance
Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance
AS 11 - The Effects of Changes in Foreign Exchange Rates
IAS 21 - The Effect of Changes in Foreign Exchange Rates
Ind AS 21 - The Effects of Changes in Foreign Exchange Rates
AS 16 - Borrowing CostsIAS 23 - Borrowing CostsInd AS 23 - Borrowing Costs
AS 18 - Related Party Disclosures
IAS 24 - Related Party Disclosures
Ind AS 24 - Related Party Disclosures
IAS 26 - Accounting and Reporting by Retirement Benefit PlansIAS 27 - Separate Financial Statements
Ind AS 27 - Separate Financial Statements
AS 23 - Accounting for Investments in Associates in Consolidated Financial Statements
IAS 28 - Investments in Associates and Joint Ventures
Ind AS 28 - Investments in Associates and Joint Ventures
IAS 29 - Financial Reporting in Hyperinflationary Economies
Ind AS 29 - Financial Reporting in Hyperinflationary Economies
AS 27 - Financial reporting of Interests in Joint Ventures
IAS 32 - Financial Instruments - Presentation
Ind AS 32 - Financial Instruments - Presentation
AS 20 - Earnings per share
IAS 33 - Earnings per share
Ind AS 33 - Earnings per share
| The New Axis of Financial Reporting � Ind AS and ICDS 11 RSMBack to Content
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
ASIFRSInd ASAS 25 - Interim Financial Reporting
IAS 34 - Interim Financial Reporting
Ind AS 34 - Interim Financial Reporting
AS 28 - Impairment of Assets
IAS 36 - Impairment of Assets
Ind AS 36 - Impairment of Assets
AS 29 - Provisions, Contingent Liabilities and Contingent Assets
IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets
AS 26 - Intangible AssetsIAS 38 - Intangible AssetsInd AS 38 - Intangible Assets
AS 13 - Accounting for Investments
IAS 39 - Financial instruments - Recognition and Measurement
AS 13 - Accounting for Investments
IAS 40 - Investment Property
Ind AS 40 - Investment Property
IAS 41 - AgricultureInd AS 41 - AgricultureIFRS 1 - First Time Adoption of International Financial Reporting Standards
Ind AS 101 - First Time Adoption of Indian Accounting Standards
IFRS 2 - Share based payment
Ind AS 102 - Share based payment
AS 14 - Accounting for Amalgamations
IFRS 3 - Business combinations
Ind AS 103 - Business Combinations
IFRS 4 - Insurance Contracts
Ind AS 104 - Insurance Contracts
IFRS 5 - Non Current Assets Held for Sale and Discontinued Operations
AS 24 � Discontinued Operations
Ind AS 105 - Non Current Assets Held for Sale and Discontinued Operations
IFRS 6 - Exploration for and evaluation of Mineral Resources
Ind AS 106 - Exploration for and evaluation of Mineral Resources
IFRS 7 - Financial Instruments - Disclosures
Ind AS 107 - Financial Instruments - Disclosures
AS 17 � Segment Reporting
IFRS 8 - Operating Segments
Ind AS 108 - Operating Segments
|The New Axis of Financial Reporting � Ind AS and ICDS 12RSMBack to Content
IFRS 9 - Financial Instruments (effective from 1 Jan 2018)
Ind AS 109 � Financial Instruments
AS 21 - Consolidated Financial Statements
IFRS 10 - Consolidated Financial statements
Ind AS 110 � Consolidated Financial Statements
AS 27 - Financial reporting of Interests in Joint Ventures
IFRS 11 - Joint Arrangements
Ind AS 111 � Joint Arrangements
IFRS 12 - Disclosure of Interests in other entities
Ind AS 112 � Disclosure of Interest in other entities
IFRS 13 - Fair value measurement
Ind AS 113 � Fair value measurement
IFRS 14 - Regulatory Deferral Accounts (effective from 1 Jan 2016)
Ind AS 114 � Regulatory Deferral Accounts
AS 7 - Construction ContractsAS 9 - Revenue Recognition
IFRS 15 - Revenue from Contracts with Customers (effective from 1 Jan 2018)
Ind AS 115 � Revenue from Contracts with Customers
Chapter 3
ASIFRSInd AS
Standards that would be mandatory from a future datea
Standards that would be superseded
No corresponding Standards
3.2 Ind AS Vs. IFRS � Carve-outs
India has not adopted IFRS as issued by IASB, instead IFRS converged standards (Ind AS) were formulated and notified. Though in principle, Ind AS�s are similar to IFRS, certain differences still exist which are popularly called carve-outs. In order to facilitate easy comparison and understanding, at the end of each Ind AS an Appendix is given summarizing the differences, if any, between Ind AS and corresponding IFRS
A brief summary of significant carve-outs (differences between IFRS and Ind AS) is as follows:
Ind AS Vs. IFRS Vs. Indian GAAP (AS)
| The New Axis of Financial Reporting � Ind AS and ICDS 13 RSMBack to Content
IFRS
Ind
ASPa
rtic
ular
sBa
lanc
e sh
eet
Ind
AS-1
Te
rmin
olog
y
used
Stat
emen
t of f
inan
cial
pos
ition
(SO
FP)
Stat
emen
t of p
rofit
and
loss
Stat
emen
t of p
rofit
or l
oss
(SO
PL) a
nd o
ther
co
mpr
ehen
sive
inco
me(
SOCI
)Ap
prov
al o
f fin
anci
al s
tate
men
ts fo
r iss
ueAu
thor
izat
ion
of fi
nanc
ial s
tate
men
ts fo
r iss
ueTr
ue a
nd fa
ir vi
ewFa
ir pr
esen
tatio
nIn
d AS
requ
ires
all e
ntiti
es to
use
term
inol
ogy
for t
he ti
tle o
f the
fina
ncia
l sta
tem
ents
as
give
n in
the
stan
dard
IAS
1 giv
es th
e op
tion
to in
divi
dual
ent
ities
to
follo
w d
iffer
ent t
erm
inol
ogy
for t
he ti
tle o
f the
fin
anci
al s
tate
men
ts
Ind
AS 1
allo
ws
only
sin
gle
stat
emen
t app
roac
h fo
r pre
sent
ing
stat
emen
t of p
rofit
and
loss
and
ot
her c
ompr
ehen
sive
inco
me,
i.e. c
ompo
nent
s of
pro
fit o
r los
s an
d co
mpo
nent
s of
oth
er
com
preh
ensi
ve in
com
e sh
all b
e pr
esen
ted
as a
pa
rt o
f the
sta
tem
ent o
f pro
fit a
nd lo
ss.
Pres
enta
tion
of
Fina
ncia
l St
atem
ents
IAS
1 pro
vide
s an
opt
ion
eith
er to
follo
w th
e si
ngle
sta
tem
ent a
ppro
ach
or to
follo
w th
e tw
o st
atem
ent a
ppro
ach
i.e. e
ntity
may
eith
er
pres
ent a
sin
gle
stat
emen
t of
prof
it or
loss
and
ot
her c
ompr
ehen
sive
inco
me
pres
ente
d in
two
sect
ion
or p
rese
nt s
epar
ate
stat
emen
t of p
rofit
or
loss
whi
ch s
hall i
mm
edia
tely
pre
cede
the
stat
emen
t pre
sent
ing
com
preh
ensi
ve in
com
e,
whi
ch s
hall b
egin
with
pro
fit o
r los
s.O
nly
natu
re-w
ise
clas
sific
atio
n of
exp
ense
is
allo
wed
.Ex
pens
es c
lass
ifica
tion
base
d on
eith
er n
atur
e or
func
tion
is a
llow
ed.
Long
term
loan
s ne
ed n
ot b
e cl
assi
fied
as
curr
ent l
iabi
litie
s on
acc
ount
of b
reac
h of
a
mat
eria
l pro
visi
on, f
or w
hich
the
lend
er h
as
agre
ed to
wai
ve b
efor
e th
e ap
prov
al o
f fin
anci
al
stat
emen
ts fo
r iss
ue.
Und
er IF
RS, e
ntiti
es n
eed
to c
lass
ify s
uch
long
te
rm lo
an a
s cu
rren
t, ev
en if
the
lend
er a
gree
d,
afte
r the
repo
rtin
g pe
riod
and
befo
re th
e au
thor
isat
ion
of th
e fin
anci
al s
tate
men
ts fo
r is
sue,
not
to d
eman
d pa
ymen
t as
a co
nseq
uenc
e of
the
brea
ch.
Ind
AS 7
doe
s no
t pro
vide
an
optio
n to
cla
ssify
th
e in
tere
st p
aid
and
inte
rest
/ d
ivid
ends
St
atem
ent o
f Ca
sh F
low
IAS
7 gi
ves
an o
ptio
n to
cla
ssify
the
inte
rest
pai
d an
d in
tere
st /
divi
dend
s re
ceiv
ed a
s ite
m o
f
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 14RSMBack to Content
IFRS
Ind
ASPa
rtic
ular
sre
ceiv
ed a
s ite
m o
f ope
ratin
g ca
sh fl
ows
and
requ
ires
thes
e ite
m to
be
clas
sifie
d as
item
of
finan
cing
act
ivity
and
inve
stin
g ac
tivity
re
spec
tivel
y.
oper
atin
g ca
sh fl
ows.
Ind
AS 7
requ
ires
divi
dend
pai
d to
be
clas
sifie
d as
an
item
of f
inan
cing
act
ivity
onl
y.IA
S 7
give
s an
opt
ion
to c
lass
ify th
e di
vide
nd
paid
as
an it
em o
f ope
ratin
g ac
tivity
.
Even
ts a
fter
the
Repo
rtin
g Pe
riod
Whe
n an
ent
ity b
reac
hes
a m
ater
ial p
rovi
sion
of
a lo
ng-t
erm
loan
arr
ange
men
t on
or b
efor
e th
e en
d of
the
repo
rtin
g pe
riod
with
the
effe
ct th
at
the
liabi
lity
beco
mes
pay
able
on
dem
and
on th
e re
port
ing
date
and
if th
e le
nder
, bef
ore
the
appr
oval
of t
he fi
nanc
ial s
tate
men
ts fo
r iss
ue,
agre
es to
wai
ve th
e br
each
, it s
hall b
e co
nsid
ered
as
an a
djus
ting
even
t.
Whe
n an
ent
ity b
reac
hes
the
prov
isio
n of
a lo
ng
term
loan
arr
ange
men
t on
or b
efor
e th
e en
d of
th
e re
port
ing
perio
d w
ith th
e ef
fect
that
liabi
lity
beco
mes
pay
able
on
dem
and,
an
agre
emen
t by
the
lend
er a
fter
the
repo
rtin
g pe
riod
and
befo
re
the
auth
roris
atio
n of
the
finan
cial
sta
tem
ents
fo
r iss
ue, n
ot to
dem
and
paym
ent i
s no
t co
nsid
ered
as
an a
djus
ting
even
t.
Leas
esIn
d AS
17 e
scal
atio
n of
ope
ratin
g le
ase
rent
als
that
are
in lin
e w
ith th
e ex
pect
ed g
ener
al
infla
tion,
the
incr
ease
s in
the
rent
als
shal
l not
be
stra
ight
line.
IAS
17 re
quire
s re
cogn
ition
of o
pera
ting
leas
e ex
pens
es /
inco
me
on s
trai
ght l
ine
basi
s un
less
an
othe
r sys
tem
atic
bas
is is
mor
e re
pres
enta
tive
of th
e tim
e pa
tter
n of
the
user
�s
bene
fit.
Empl
oyee
Be
nefit
sIn
d AS
19 re
quire
s th
e ra
te u
sed
to d
isco
unt
post
-em
ploy
men
t ben
efit
oblig
atio
ns to
be
dete
rmin
ed b
y re
fere
nce
to m
arke
t yie
lds
on
gove
rnm
ent b
onds
. How
ever
, sub
sidi
arie
s,
asso
ciat
es, jo
int v
entu
res
and
bran
ches
do
mic
iled
outs
ide
Indi
a sh
all d
isco
unt p
ost-
empl
oym
ent b
enef
it ob
ligat
ions
aris
ing
on
acco
unt o
f pos
t-em
ploy
men
t ben
efit
plan
s
IAS
19 ra
te u
sed
to d
isco
unt p
ost-
empl
oym
ent
bene
fit o
blig
atio
ns a
re d
eter
min
ed b
y re
fere
nce
to m
arke
t yie
lds
on th
e hi
gh q
ualit
y co
rpor
ate
bond
s. G
over
nmen
t bon
ds y
ield
can
be
used
on
ly w
here
ther
e is
no
deep
mar
ket o
f hig
h qu
ality
cor
pora
te b
onds
.
| The New Axis of Financial Reporting � Ind AS and ICDS 15 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
IFRS
Ind
ASPa
rtic
ular
sus
ing
the
rate
det
erm
ined
by
refe
renc
e to
m
arke
t yie
lds
on h
igh
qual
ity c
orpo
rate
bon
ds.
Gov
ernm
ent
Gra
nts
Ind
AS 2
0 re
quire
s m
easu
rem
ent o
f non
-m
onet
ary
gove
rnm
ent g
rant
s on
ly a
t the
ir fa
ir va
lue.
IAS
20 g
ives
an
optio
n to
mea
sure
non
-m
onet
ary
gove
rnm
ent g
rant
s ei
ther
at t
heir
fair
valu
e or
at n
omin
al v
alue
.In
d AS
20
does
not
per
mit
dedu
ctio
n of
the
gran
t in
arriv
ing
at th
e ca
rryi
ng a
mou
nt o
f the
as
set.
Thus
gra
nts
rela
ted
to a
sset
s, n
eeds
to
be a
ccou
nted
as
defe
rred
inco
me
only
.
IAS
20 g
ives
an
optio
n to
pre
sent
the
gran
ts
rela
ted
to a
sset
s, in
clud
ing
non-
mon
etar
y gr
ants
at f
air v
alue
in th
e ba
lanc
e sh
eet e
ither
by
set
ting
up th
e gr
ant a
s de
ferr
ed in
com
e or
by
dedu
ctin
g th
e gr
ant i
n ar
rivin
g at
the
carr
ying
am
ount
of t
he a
sset
.Ef
fect
s of
Ch
ange
s in
Fo
reig
n Ex
chan
ge R
ate
Whe
n th
ere
is a
cha
nge
in fu
nctio
nal c
urre
ncy,
In
d AS
21 r
equi
res
disc
losu
re o
f tha
t fac
t and
the
reas
on fo
r the
cha
nge.
Add
ition
ally
Ind
AS 2
1 re
quire
s di
sclo
sure
of t
he d
ate
of c
hang
e in
fu
nctio
nal c
urre
ncy.
Whe
n th
ere
is a
cha
nge
in fu
nctio
nal c
urre
ncy,
IA
S 21
requ
ires
disc
losu
re o
f tha
t fac
t and
the
reas
on fo
r the
cha
nge
only
.
Ind
AS 2
1 has
bee
n am
ende
d to
sco
pe o
ut th
e lo
ng-t
erm
fore
ign
curr
ency
mon
etar
y ite
ms
for
whi
ch a
n en
tity
has
opte
d fo
r the
exe
mpt
ion
give
n in
Ind
AS 10
1.
IAS
21 d
o no
t pro
vide
for s
uch
scop
e ex
clus
ion
for l
ong-
term
fore
ign
curr
ency
mon
etar
y ite
ms.
Rela
ted
Part
y D
iscl
osur
esD
iscl
osur
e re
quire
men
t of I
nd A
S 24
, do
not
appl
y in
circ
umst
ance
s w
here
pro
vidi
ng s
uch
disc
losu
res
wou
ld c
onfli
ct w
ith th
e re
port
ing
entit
y�s
dutie
s of
con
fiden
tialit
y as
spe
cific
ally
re
quire
d in
term
s of
a s
tatu
te o
r by
any
regu
lato
r or s
imila
r com
pete
nt a
utho
rity
and
a st
atut
e or
a re
gula
tor o
r sim
ilar c
ompe
tent
IAS
24 d
oes
not p
rovi
de fo
r suc
h sc
ope
excl
usio
n.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 16RSMBack to Content
IFRS
Ind
ASPa
rtic
ular
sau
thor
ity g
over
ning
an
entit
y pr
ohib
its th
e en
tity
to d
iscl
ose
cert
ain
info
rmat
ion
requ
ired
by th
e st
anda
rd.
Sepa
rate
Fi
nanc
ial
Stat
emen
ts
The
Com
pani
es A
ct m
anda
tes
prep
arat
ion
of
sepa
rate
fina
ncia
l sta
tem
ents
by
each
co
mpa
ny. A
ccor
ding
ly In
d AS
27
has
rem
oved
re
quire
men
t of d
iscl
osin
g th
e re
ason
for
prep
arin
g se
para
te fi
nanc
ial s
tate
men
ts if
not
re
quire
d by
law
.
IAS
27 re
quire
s ce
rtai
n cl
ass
of e
ntity
bei
ng a
Pa
rent
or i
nves
tor w
ith jo
int c
ontr
ol o
f or
sign
ifica
nt in
fluen
ce o
ver,
an in
vest
ee to
di
sclo
se th
e re
ason
for p
repa
ring
sepa
rate
fin
anci
al s
tate
men
ts if
not
requ
ired
by la
w
Def
initi
on o
f clo
se m
embe
rs o
f the
fam
ily o
f a
pers
on a
s pe
r IFR
S is
am
ende
d to
incl
ude
brot
her,
sist
er, f
athe
r and
mot
her.
Clo
se m
embe
rs o
f the
fam
ily o
f a p
erso
n ar
e th
ose
fam
ily m
embe
rs w
ho m
ay b
e ex
pect
ed to
in
fluen
ce, o
r be
influ
ence
d by
, tha
t per
son
in
thei
r dea
lings
with
the
entit
y in
clud
ing:
(a) t
hat i
ndiv
idua
l�s d
omes
tic p
artn
er a
nd
ch
ildre
n,
(b) c
hild
ren
of th
e in
divi
dual
�s d
omes
tic p
artn
er;
an
d(c
) dep
enda
nts
of th
e in
divi
dual
or t
he
in
divi
dual
�s d
omes
tic p
artn
er.
Opt
ion
to u
se th
e eq
uity
met
hod
to a
ccou
nt fo
r in
vest
men
t in
subs
idia
ry, jo
int v
entu
re a
nd
asso
ciat
es in
sep
arat
e fin
anci
al s
tate
men
ts is
no
t giv
en in
Ind
AS 2
7.
IAS
27 a
llow
s th
e en
titie
s to
use
the
equi
ty
met
hod
to a
ccou
nt fo
r inv
estm
ent i
n su
bsid
iarie
s, jo
int v
entu
res
and
asso
ciat
es in
th
eir S
epar
ate
Fina
ncia
l Sta
tem
ents
(SFS
).
Inve
stm
ents
in
Ass
ocia
tes
and
Join
t Ven
ture
s
Ind
AS 2
8 re
quire
s us
e of
uni
form
acc
ount
ing
polic
ies,
unl
ess,
in c
ase
of a
n as
soci
ate,
it is
im
prac
ticab
le.
IAS
28 re
quire
s an
inve
stor
to m
ake
appr
opria
te
adju
stm
ents
to th
e as
soci
ate�
s fin
anci
al
stat
emen
ts to
con
form
them
to th
e in
vest
or�s
ac
coun
ting
polic
ies
for r
epor
ting
like
| The New Axis of Financial Reporting � Ind AS and ICDS 17 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
IFRS
Ind
ASPa
rtic
ular
s
Exce
ss o
f the
ent
ity�s
sha
re o
f the
net
fair
valu
e of
the
inve
stee
�s id
entif
iabl
e as
sets
and
lia
bilit
ies
over
the
cost
of t
he in
vest
men
t is
reco
gnis
ed d
irect
ly in
equ
ity a
s ca
pita
l res
erve
.
Exce
ss o
f the
ent
ity�s
sha
re o
f the
net
fair
valu
e of
the
inve
stee
�s id
entif
iabl
e as
sets
and
lia
bilit
ies
over
the
cost
of t
he in
vest
men
t is
reco
gnis
ed in
pro
fit o
r los
s.
Fina
ncia
l Re
port
ing
in
Hyp
erin
flatio
n-ar
y Ec
onom
ies
Ind
AS 2
9 re
quire
s an
add
ition
al d
iscl
osur
e re
gard
ing
the
dura
tion
of th
e hy
perin
flatio
nary
si
tuat
ion
exis
ting
in th
e ec
onom
y.
IAS
29 d
oes
not r
equi
re s
uch
a di
sclo
sure
.
Fina
ncia
l In
stru
men
ts:
Pres
enta
tion
As
an e
xcep
tion
to th
e de
finiti
on o
f �fin
anci
al
liabi
lity�
, Ind
AS 3
2 co
nsid
ers
the
equi
ty
conv
ersi
on o
ptio
n em
bedd
ed in
a c
onve
rtib
le
bond
den
omin
ated
in fo
reig
n cu
rren
cy to
ac
quire
a fi
xed
num
ber o
f ent
ity�s
ow
n eq
uity
in
stru
men
ts a
s an
equ
ity in
stru
men
t if t
he
exer
cise
pric
e is
fixe
d in
any
cur
renc
y.
This
exc
eptio
n to
the
defin
ition
of �
finan
cial
lia
bilit
y� is
not
pro
vide
d in
IAS
32.
Earn
ings
per
Sh
are
Ind
AS 3
3 is
app
licab
le to
all c
ompa
nies
that
ha
ve o
rdin
ary
shar
es a
nd a
re re
quire
d to
app
ly
Ind
AS.
IAS
33 is
app
licab
le to
ent
ity/
grou
p w
ith a
pa
rent
:i)
Who
se o
rdin
ary
shar
es o
r pot
entia
lly
or
dina
ry s
hare
s ar
e tr
aded
in p
ublic
mar
ket
(a
dom
estic
or f
orei
gn s
tock
exc
hang
e or
an
ov
er-t
he�
coun
ter m
arke
t, in
clud
ing
loca
l
and
regi
onal
mar
kets
); or
ii)
That
file
s or
is in
the
proc
ess
of fi
ling,
its
fin
anci
al s
tate
men
ts w
ith a
sec
uriti
es
co
mm
issi
on o
r oth
er re
gula
tory
tran
sact
ions
and
oth
er e
vent
s in
sim
ilar
circ
umst
ance
s.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 18RSMBack to Content
IFRS
Ind
ASPa
rtic
ular
s
Inta
ngib
le
Ass
ets
Ind
AS 3
8 al
low
s on
ly fa
ir va
lue
for r
ecog
nisi
ng
the
inta
ngib
le a
sset
and
gra
nt in
acc
orda
nce
with
Ind
AS 2
0.
With
rega
rd to
the
acqu
isiti
on o
f an
inta
ngib
le
asse
t by
way
of a
gov
ernm
ent g
rant
, IAS
38,
Inta
ngib
le A
sset
s, p
rovi
des
the
optio
n to
an
entit
y to
reco
gnis
e bo
th a
sset
and
gra
nt in
itial
ly
at fa
ir va
lue
or a
t a n
omin
al a
mou
nt p
lus
any
expe
nditu
re th
at is
dire
ctly
att
ribut
able
to
prep
arin
g th
e as
set f
or it
s in
tend
ed u
se.
Ind
AS 3
3 re
quire
s EP
S re
late
d in
form
atio
n to
be
disc
lose
d bo
th in
con
solid
ated
fina
ncia
l st
atem
ents
and
sep
arat
e fin
anci
al
stat
emen
ts.
IAS
33 p
rovi
des
that
whe
n an
ent
ity p
rese
nts
both
con
solid
ated
fina
ncia
l sta
tem
ents
and
se
para
te fi
nanc
ial s
tate
men
ts, it
may
giv
e EP
S re
late
d in
form
atio
n in
con
solid
ated
fina
ncia
l st
atem
ents
onl
y.In
d AS
33
requ
ires
amou
nt o
f inc
ome
or
expe
nse
debi
ted
or c
redi
ted
to s
ecur
ities
pr
emiu
m a
ccou
nt/o
ther
rese
rves
(whi
ch is
ot
herw
ise
requ
ired
to b
e re
cogn
ised
in p
rofit
or
loss
in a
ccor
danc
e w
ith In
d A
ss) t
o be
adj
uste
d fr
om p
rofit
or l
oss
from
con
tinui
ng o
pera
tions
fo
r the
pur
pose
of c
alcu
latin
g ba
sic
EPS.
Such
situ
atio
n is
not
cov
ered
und
er IA
S 33
.
The
amor
tizat
ion
met
hod
spec
ified
in th
e st
anda
rd d
oes
not a
pply
to a
mor
tizat
ion
of
inta
ngib
le a
sset
s ar
isin
g fr
om s
ervi
ce
conc
essi
on a
rran
gem
ents
in re
spec
t of t
oll
road
s re
cogn
ised
in th
e fin
anci
al s
tate
men
ts o
f en
tity
befo
re t
he b
egin
ning
of t
he fi
rst I
nd A
S re
port
ing
perio
d of
the
entit
y.
IAS
38 d
oes
not c
onta
in s
uch
exem
ptio
n.
or
gani
satio
n fo
r the
pur
pose
of i
ssui
ng
or
dina
ry s
hare
s in
a p
ublic
mar
ket.
| The New Axis of Financial Reporting � Ind AS and ICDS 19 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
IFRS
Ind
ASPa
rtic
ular
sIn
vest
men
t Pr
oper
tyA
s pe
r Ind
AS
40 In
vest
men
t pro
pert
ies
are
acco
unte
d on
ly b
ased
on
the
cost
mod
el. F
air
valu
e m
odel
is n
ot p
erm
itted
.
IAS
40 p
erm
its b
oth
cost
mod
el a
nd fa
ir va
lue
mod
el (e
xcep
t in
som
e si
tuat
ions
) for
m
easu
rem
ent o
f inv
estm
ent p
rope
rtie
s af
ter
initi
al re
cogn
ition
.
Ind
AS a
lso
prov
ides
cer
tain
opt
iona
l exe
mpt
ion
rela
ting
to th
e lo
ng-t
erm
fore
ign
curr
ency
m
onet
ary
item
s an
d se
rvic
e co
nces
sion
ar
rang
emen
ts re
latin
g to
toll r
oads
.
IFRS
doe
s no
t pro
vide
any
opt
iona
l exe
mpt
ion
rela
ting
to th
e lo
ng-t
erm
fore
ign
curr
ency
m
onet
ary
item
s an
d se
rvic
e co
nces
sion
ar
rang
emen
ts re
latin
g to
toll r
oads
.
Firs
t-tim
e ad
optio
nA
s pe
r Ind
AS
101 a
n en
tity�
s fir
st In
d AS
fin
anci
al s
tate
men
ts a
re th
e fir
st a
nnua
l fin
anci
al s
tate
men
ts in
whi
ch th
e en
tity
adop
ts
Ind
ASs.
The
firs
t-tim
e ad
opte
r sha
ll acc
ount
for
the
resu
lting
cha
nge
in th
e re
tain
ed e
arni
ngs
as
at th
e tr
ansi
tion
date
exc
ept i
n ce
rtai
n sp
ecifi
c in
stan
ces
whe
re it
requ
ires
adju
stm
ent i
n Ca
pita
l res
erve
to th
e ex
tent
suc
h ad
just
men
t am
ount
doe
s no
t exc
eed
the
bala
nce
avai
labl
e in
Cap
ital r
eser
ve.
IFRS
1 pr
ovid
es v
ario
us e
xam
ples
of f
irst I
FRS
finan
cial
sta
tem
ents
. It a
lso
prov
ides
exa
mpl
es
of in
stan
ces
whe
n an
ent
ity d
oes
not a
pply
IF
RS 1.
The
firs
t-tim
e ad
opte
r sha
ll acc
ount
for
the
resu
lting
cha
nge
in th
e re
tain
ed e
arni
ngs
as
at th
e tr
ansi
tion
date
exc
ept i
n ce
rtai
n sp
ecifi
c in
stan
ces
whe
re it
requ
ires
adju
stm
ent i
n th
e go
odw
ill.
Busi
ness
Co
mbi
natio
nsIn
cas
e of
bus
ines
s co
mbi
natio
ns o
f ent
ities
un
der c
omm
on c
ontr
ol In
d AS
103
prov
ides
that
su
ch b
usin
ess
com
bina
tion
tran
sact
ions
sho
uld
be a
ccou
nted
for u
sing
the
pool
ing
of in
tere
st
met
hod.
IFRS
3 e
xclu
des
from
its
scop
e bu
sine
ss
com
bina
tions
of e
ntiti
es u
nder
com
mon
con
trol
.
Ind
AS 10
3 re
quire
s th
e ba
rgai
n pu
rcha
se to
be
reco
gnis
ed in
oth
er c
ompr
ehen
sive
inco
me
and
accu
mul
ated
in e
quity
as
capi
tal r
eser
ve, u
nles
s th
ere
is n
o cl
ear e
vide
nce
for t
he u
nder
lyin
g
IFRS
3 re
quire
s ba
rgai
n pu
rcha
se g
ain
aris
ing
on
busi
ness
com
bina
tion
to b
e re
cogn
ized
in p
rofit
or
loss
.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 20RSMBack to Content
IFRS
Ind
ASPa
rtic
ular
s re
ason
for c
lass
ifica
tion
of th
e bu
sine
ss
com
bina
tion
as a
bar
gain
pur
chas
e, in
whi
ch
case
, it s
hall b
e re
cogn
ised
dire
ctly
in e
quity
as
capi
tal r
eser
ve.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Und
er In
d AS
115,
pen
altie
s sh
ould
be
acco
unte
d fo
r as
per t
he s
ubst
ance
of t
he c
ontr
act.
Whe
re
the
pena
lty is
inhe
rent
in th
e de
term
inat
ion
of
tran
sact
ion
pric
e, it
sho
uld
form
par
t of v
aria
ble
cons
ider
atio
n, o
ther
wis
e th
e sa
me
shou
ld n
ot
be c
onsi
dere
d fo
r det
erm
inin
g th
e co
nsid
erat
ion
and
the
tran
sact
ion
pric
e sh
ould
con
side
red
as
fixed
.
IFRS
15 a
mou
nt o
f con
side
ratio
n, a
mon
g ot
her
thin
gs, c
an v
ary
beca
use
of p
enal
ties.
As
such
pe
nalti
es a
re re
quire
d to
be
cons
ider
ed in
de
term
inat
ion
of tr
ansa
ctio
n pr
ice.
Ind
AS 11
5 re
quire
s an
ent
ity to
pre
sent
se
para
tely
the
amou
nt o
f exc
ise
duty
incl
uded
in
the
reve
nue
reco
gnis
ed in
the
stat
emen
t of
prof
it an
d lo
ss.
IFRS
15 d
oes
not r
equi
re s
uch
disc
losu
re.
Ind
AS 11
5 re
quire
s to
pre
sent
reco
ncilia
tion
of
the
amou
nt o
f rev
enue
reco
gnis
ed in
the
stat
emen
t of p
rofit
and
loss
with
the
cont
ract
ed
pric
e sh
owin
g se
para
tely
eac
h of
the
adju
stm
ents
mad
e to
the
cont
ract
pric
e sp
ecify
ing
the
natu
re a
nd a
mou
nt o
f eac
h su
ch
adju
stm
ent s
epar
atel
y.
IFRS
15 d
oes
not r
equi
re s
uch
disc
losu
re.
| The New Axis of Financial Reporting � Ind AS and ICDS 21 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
3.3
Ind
AS V
s. A
S -
Key
Diff
eren
ces
Th
e ac
coun
ting
stan
dard
s as
spe
cifie
d in
the
Anne
xure
to th
e Co
mpa
nies
(Ind
ian
Acco
untin
g St
anda
rds)
Rul
es,
20
15 a
re c
alle
d th
e In
dian
Acc
ount
ing
Stan
dard
s (In
d AS
). T
he A
ccou
ntin
g st
anda
rds
as s
peci
fied
in A
nnex
ure
to
the
Com
pani
es (A
ccou
ntin
g St
anda
rds)
Rul
es, 2
006
are
refe
rred
as
AS in
this
sec
tion.
A
sum
mar
y of
key
diff
eren
ces
betw
een
som
e of
the
Ind
AS a
nd A
S is
giv
en h
ereu
nder
: Requ
irem
ents
as
per
AS
Cate
gory
Topi
c
Gen
eral
In
d AS
gen
eral
ly d
eals
with
pres
enta
tion
of fi
nanc
ial
st
atem
ents
.
Ind
ASRe
quire
men
ts
as p
er In
d AS
Ind
AS 1
Scop
e
AS
1 dea
ls o
nly
with
disc
losu
re o
f acc
ount
ing
po
licie
s.
Com
plia
nce
with
G
AA
P
Ent
ities
sho
uld
mak
e an
ex
plic
it an
d un
rese
rved
st
atem
ent i
n th
e no
tes
that
th
e fin
anci
al s
tate
men
ts
com
ply
with
Ind
AS.
Ind
AS 1
Pres
enta
tion
and
Dis
clos
ure
T
here
is a
pre
sum
ptio
n th
at
finan
cial
sta
tem
ents
sho
uld
be p
repa
red
in c
ompl
ianc
e w
ith A
S to
giv
e a
true
and
fa
ir vi
ew.
A
n en
tity
cann
ot d
escr
ibe
finan
cial
sta
tem
ents
as
com
plyi
ng w
ith In
d AS
un
less
they
com
ply
with
all
the
requ
irem
ents
of e
ach
appl
icab
le s
tand
ard
and
inte
rpre
tatio
n.
N
on-c
ompl
ianc
e w
ith a
ny o
f th
e ap
plic
able
AS
need
s to
be
dis
clos
ed in
the
finan
cial
st
atem
ents
.
Com
pone
nts
of
Fina
ncia
l st
atem
ents
Fi
nanc
ial s
tate
men
ts
com
pris
e of
1.
Bala
nce
shee
t as
at th
e en
d
Ind
AS 1
Pres
enta
tion
and
Dis
clos
ure
T
he re
quire
men
ts fo
r the
fin
anci
al s
tate
men
ts a
re s
et
out u
nder
the
Act s
uch
as
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 22RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
of
the
perio
d 2.
Sta
tem
ent o
f pro
fit a
nd lo
ss
for t
he p
erio
d3.
Sta
tem
ent o
f cha
nges
in
equi
ty fo
r the
per
iod
4. S
tate
men
t of c
ash
flow
for
the
perio
d 5.
Not
es c
ompr
isin
g a
sum
mar
y of
sig
nific
ant
acco
untin
g po
licie
s an
d ot
her e
xpla
nato
ry
info
rmat
ion
6. C
ompa
rativ
e in
form
atio
n in
re
spec
t of t
he p
rece
ding
pe
riod
7. B
alan
ce s
heet
as
at th
e be
ginn
ing
of th
e pr
eced
ing
perio
d w
hen
an e
ntity
ap
plie
s an
acc
ount
ing
polic
y re
tros
pect
ivel
y or
mak
es
rest
atem
ent o
r rec
lass
ifies
in
its
finan
cial
sta
tem
ents
.
Sc
hedu
le III
of t
he
Com
pani
es A
ct, 2
013.
Fi
nanc
ial s
tate
men
ts u
nder
th
e Co
mpa
nies
Act
, 201
3 in
clud
e:
- Ba
lanc
e sh
eet
- St
atem
ent o
f Pro
fit a
nd
Loss
- Ca
sh fl
ow s
tate
men
t (no
t m
anda
tory
for O
ne P
erso
n Co
mpa
ny, S
mal
l Com
pany
an
d D
orm
ant C
ompa
ny)
- Ac
coun
ting
polic
ies
and
Not
es to
fina
ncia
l st
atem
ents
.
Fair
pres
enta
tion
In
ext
rem
ely
rare
ci
rcum
stan
ces
in w
hich
m
anag
emen
t con
clud
es
Ind
AS 1
Pres
enta
tion
and
Dis
clos
ure
D
epar
ture
s fr
om A
S is
pe
rmitt
ed if
requ
ired
by la
w.
| The New Axis of Financial Reporting � Ind AS and ICDS 23 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
re
quire
men
t in
an In
d AS
w
ould
be
so m
isle
adin
g th
at
it w
ould
con
flict
with
the
obje
ctiv
e of
fina
ncia
l st
atem
ents
set
out
in th
e Fr
amew
ork,
the
entit
y sh
all
depa
rt fr
om th
at
requ
irem
ent i
f the
rele
vant
re
gula
tory
fram
ewor
k re
quire
s, o
r oth
erw
ise
does
no
t pro
hibi
t, su
ch a
de
part
ure.
In
d AS
pre
scrib
es
disc
losu
res
in c
ase
an e
ntity
de
part
s fr
om a
requ
irem
ent
of In
d AS
.Ca
pita
l
An
entit
y sh
all d
iscl
ose
info
rmat
ion
that
ena
bles
us
ers
of it
s fin
anci
al
stat
emen
ts to
eva
luat
e th
e en
tity�
s ob
ject
ives
, pol
icie
s an
d pr
oces
ses
for m
anag
ing
capi
tal.
Ind
AS 1
Dis
clos
ure
A
S do
es n
ot re
quire
suc
h a
disc
losu
re.
Extr
a-or
dina
ry it
ems
A
n en
tity
shal
l not
pre
sent
an
y ite
ms
of in
com
e or
ex
pens
es a
s ex
trao
rdin
ary
item
s in
the
sepa
rate
of
Ind
AS 1
Dis
clos
ure
A
n en
tity
shou
ld d
iscl
ose
in
stat
emen
t of p
rofit
and
loss
an
y in
com
e or
exp
ense
s th
at a
rise
from
eve
nts
or
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 24RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Com
para
tives
A
n en
tity
shal
l dis
clos
e co
mpa
rativ
e in
form
atio
n in
re
spec
t of p
revi
ous
perio
d fo
r al
l am
ount
s re
port
ed in
cu
rren
t per
iod�
s fin
anci
al
stat
emen
ts.
A
n en
tity
shal
l als
o in
clud
e co
mpa
rativ
e in
form
atio
n fo
r na
rrat
ive
and
desc
riptiv
e in
form
atio
n w
hen
it is
re
leva
nt to
an
un
ders
tand
ing
of th
e
Ind
AS 1
Dis
clos
ure
A
n en
tity
shal
l dis
clos
e on
e ye
ar o
f com
para
tives
for a
ll nu
mer
ical
info
rmat
ion
in th
e fin
anci
al s
tate
men
ts.
tr
ansa
ctio
ns th
at a
re c
lear
ly
dist
inct
from
the
ordi
nary
ac
tiviti
es o
f the
ent
erpr
ise
and,
ther
efor
e, a
re n
ot
expe
cted
to re
cur
freq
uent
ly o
r reg
ular
ly a
s ex
trao
rdin
ary
item
s.
The
nat
ure
and
the
amou
nt
of e
ach
extr
aord
inar
y ite
m
shou
ld b
e se
para
tely
di
sclo
sed
in th
e pr
ofit
and
loss
acc
ount
in a
man
ner
that
its
impa
ct o
n cu
rren
t pr
ofit
or lo
ss c
an b
e pe
rcei
ved.
pr
ofit
and
loss
or i
n th
e no
tes.
| The New Axis of Financial Reporting � Ind AS and ICDS 25 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Cons
iste
ncy
of
pres
enta
tion
cr
itica
l judg
emen
ts a
nd
estim
ates
mad
e by
the
man
agem
ent i
n ap
plyi
ng
acco
untin
g po
licie
s.
Ind
AS 1
Pres
enta
tion
and
disc
losu
re
No
such
requ
irem
ent.
Prev
ious
yea
rs fi
gure
s ar
e re
grou
ped
/rec
lass
ified
to
corr
espo
nd w
ith th
e cu
rren
t ye
ar�s
cla
ssifi
catio
n /
disc
losu
re.
estim
ates
sp
ecifi
cally
requ
ires
such
di
sclo
sure
.
A
n en
tity
shal
l ret
ain
the
pres
enta
tion
and
clas
sific
atio
n of
item
s in
the
finan
cial
sta
tem
ents
from
on
e pe
riod
to a
noth
er
unle
ss th
e ch
ange
is
requ
ired
by In
d AS
or d
ue to
chan
ge in
nat
ure
of th
e en
tity�
s op
erat
ion
havi
ng
rega
rds
to th
e cr
iteria
set
ou
t in
Ind
AS 8
, ano
ther
pr
esen
tatio
n or
cl
assi
ficat
ion
wou
ld b
e m
ore
appr
opria
te.
Off
sett
ing
Ind
AS 1
Gen
eral
T
here
is n
o sp
ecifi
c gu
idan
ce
avai
labl
e in
AS
in th
is
rega
rds.
A
n en
tity
shal
l off
set a
sset
s an
d lia
bilit
ies
or in
com
e an
d ex
pens
es o
nly
whe
n th
e sa
me
is re
quire
d or
pe
rmitt
ed b
y In
d AS
.
Repo
rtin
g cu
rren
cy fo
r pr
esen
tatio
n of
Ind
AS 1
and
Ind
AS 2
1Pr
esen
tatio
n an
d di
sclo
sure
A
S do
es n
ot s
peci
fy th
e cu
rren
cy in
whi
ch a
n en
terp
rise
pres
ents
its
T
he s
tand
ard
perm
its a
n en
tity
to p
rese
nt it
s fin
anci
al
stat
emen
ts in
any
cur
renc
y
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 26RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
(o
r cur
renc
ies)
. The
st
anda
rd a
lso
requ
ires
an
entit
y to
det
erm
ine
its
func
tiona
l cur
renc
y an
d its
re
sults
and
fina
ncia
l pos
ition
in
that
cur
renc
y.
finan
cial
st
atem
ents
fin
anci
al s
tate
men
ts.
How
ever
, an
ente
rpris
e no
rmal
ly u
ses
the
curr
ency
of
the
coun
try
in w
hich
it is
do
mic
iled.
T
he s
tand
ard
requ
ires
disc
losu
re o
f rea
son
for
usin
g ot
her c
urre
ncy
and
chan
ge in
the
repo
rtin
g cu
rren
cy.
If
an
entit
y se
lect
s a
pres
enta
tion
(rep
ortin
g)
curr
ency
whi
ch is
diff
eren
t fr
om th
e fu
nctio
nal
curr
ency
, the
sta
ndar
d re
quire
s th
e fin
anci
al
stat
emen
t to
be tr
ansl
ated
fr
om fu
nctio
nal c
urre
ncy
to
pres
enta
tion
curr
ency
.
Inve
ntor
ies
of a
se
rvic
e pr
ovid
erIn
d AS
2Sc
ope
A
S 2
excl
udes
wor
k in
pr
ogre
ss a
risin
g in
the
ordi
nary
cou
rse
of b
usin
ess
of s
ervi
ce p
rovi
ders
.
In
d AS
2 in
clud
es p
rovi
sion
s re
latin
g to
the
wor
k-in
-pr
ogre
ss o
f a s
ervi
ce
prov
ider
. Ser
vice
pro
vide
rs
gene
rally
acc
umul
ate
cost
in
resp
ect o
f eac
h se
rvic
e fo
r w
hich
a s
epar
ate
sellin
g pr
ice
will
be c
harg
ed.
Ther
efor
e, e
ach
such
se
rvic
e is
trea
ted
as a
se
para
te it
em.
| The New Axis of Financial Reporting � Ind AS and ICDS 27 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
ASIn
vent
orie
s of
co
mm
odity
br
oker
-tra
ders
Ind
AS 2
Scop
e
No
such
gui
danc
e in
AS
2.
Ind
AS 2
doe
s no
t app
ly to
th
e m
easu
rem
ent o
f in
vent
orie
s he
ld b
y co
mm
odity
bro
ker-
trad
ers
who
mea
sure
thei
r in
vent
orie
s at
fair
valu
e le
ss
cost
to s
ell.
Inve
ntor
ies
acqu
ired
on
defe
rred
se
ttle
men
t te
rms
Ind
AS 2
Valu
atio
n
The
re is
no
spec
ific
guid
ance
un
der
AS 2
for t
he
trea
tmen
t of i
nven
torie
s ac
quire
d on
def
erre
d se
ttle
men
t ter
ms.
As
such
pu
rcha
se p
rice
unde
r de
ferr
ed s
ettle
men
t is
gene
rally
con
side
red
as c
ost
of in
vent
ory
unle
ss in
tere
st
is s
peci
fied
in th
e ar
rang
emen
t.
AS
prov
ides
that
Inte
rest
an
d ot
her b
orro
win
g co
sts
are
usua
lly c
onsi
dere
d as
no
t rel
atin
g to
brin
ging
the
inve
ntor
ies
to th
eir p
rese
nt
loca
tion
and
cond
ition
and
ar
e, th
eref
ore,
usu
ally
not
in
clud
ed in
the
cost
of
inve
ntor
ies.
W
hen
arra
ngem
ent
effe
ctiv
ely
cont
ains
fin
anci
ng e
lem
ents
for
exam
ple
whe
re in
vent
ory
is
acqu
ired
on d
efer
red
sett
lem
ent t
erm
s, a
di
ffer
ence
bet
wee
n th
e pu
rcha
se p
rice
for n
orm
al
cred
it te
rms
and
the
amou
nt p
aid
is re
cogn
ised
as
inte
rest
exp
ense
ove
r the
pe
riod
of th
e fin
anci
ng.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 28RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
ASIn
vent
orie
sIn
d AS
2Co
st fo
rmul
a
AS
2 do
es n
ot e
xpre
ssly
m
anda
ted
that
sa
me
cost
form
ula
shou
ld b
e us
ed
for a
ll inv
ento
ries
that
hav
e a
sim
ilar n
atur
e an
d us
e to
th
e en
tity.
A
S re
quire
s th
at th
e fo
rmul
a us
ed s
houl
d re
flect
the
faire
st p
ossi
ble
appr
oxim
atio
n to
the
cost
in
curr
ed in
brin
ging
the
item
s of
inve
ntor
y to
thei
r pr
esen
t loc
atio
n an
d co
nditi
on.
A
n en
tity
shal
l use
the
sam
e co
st fo
rmul
a fo
r all
inve
ntor
ies
that
hav
e a
sim
ilar n
atur
e an
d us
e to
the
entit
y.
Cash
flow
st
atem
ents
Ind
AS 7
Pres
enta
tion
and
disc
losu
re
AS
3 is
not
man
dato
ry fo
r SM
C�s
. How
ever
, it m
ay b
e no
ted
that
the
Com
pani
es
Act,
2013
man
date
s pr
epar
atio
n of
cas
h flo
w
stat
emen
ts e
xcep
t for
One
Pe
rson
Com
pany
, Sm
all
Com
pany
and
Dor
man
t Co
mpa
ny.
C
ash
flow
sta
tem
ent i
s a
com
pone
nt o
f com
plet
e se
t of
fina
ncia
l sta
tem
ents
, it is
m
anda
tory
for a
ll ent
ities
ap
plyi
ng In
d AS
.
T
here
is n
o st
ipul
atio
n in
AS
3 fo
r cla
ssifi
catio
n of
ban
k ov
erdr
afts
.
B
ank
borr
owin
gs a
re
norm
ally
par
t of f
inan
cing
ac
tiviti
es. N
onet
hele
ss,
bank
ove
rdra
fts
that
are
| The New Axis of Financial Reporting � Ind AS and ICDS 29 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
repa
yabl
e on
dem
and
and
that
form
an
inte
gral
par
t of
an e
ntity
�s c
ash
man
agem
ent a
re in
clud
ed in
ca
sh e
quiv
alen
ts.
T
he c
ash
flow
s as
soci
ated
w
ith e
xtra
ordi
nary
item
s sh
ould
be
clas
sifie
d as
ar
isin
g fr
om o
pera
ting,
in
vest
ing
or fi
nanc
ing
activ
ities
as
appr
opria
te a
nd
sepa
rate
ly d
iscl
osed
.
U
nder
Ind
AS, a
n en
tity
shal
l no
t pre
sent
ext
ra-o
rdin
ary
item
s, h
ence
dis
clos
ure
of
the
sam
e in
cas
h flo
w
stat
emen
t is
proh
ibite
d.
N
o gu
idan
ce in
AS.
C
ash
rece
ipts
from
rent
s an
d su
bseq
uent
sal
es o
f su
ch a
sset
s ar
e al
so c
ash
flow
s fr
om o
pera
ting
activ
ities
.
Chan
ge in
ac
coun
ting
polic
y
Ind
AS 8
Reco
gniti
on a
nd
Mea
sure
men
t
AS
perm
it ch
ange
in
acco
untin
g po
licy
if re
quire
d by
sta
tute
.
In
d AS
doe
s no
t pro
vide
for
chan
ge in
acc
ount
ing
polic
y be
caus
e of
requ
irem
ent o
f st
atut
e.
The
impa
ct o
f cha
nge
in a
n ac
coun
ting
polic
y vo
lunt
arily
or o
ther
wis
e is
to
be
adju
sted
aga
inst
cu
rren
t per
iods
pro
fit a
nd
A
cha
nge
in a
ccou
ntin
g po
licy
volu
ntar
ily o
r in
case
w
here
Ind
AS d
oes
not
incl
ude
spec
ific
tran
sitio
nal
prov
isio
ns s
hall b
e ap
plie
d
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 30RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
retr
ospe
ctiv
ely
exce
pt to
th
e cu
mul
ativ
e ef
fect
of t
he
chan
ge.
lo
ss a
ccou
nt. W
here
the
effe
ct o
f suc
h ch
ange
is n
ot
asce
rtai
nabl
e, w
holly
or i
n pa
rt, t
he fa
ct s
houl
d be
in
dica
ted.
C
ompa
rativ
e in
form
atio
n to
be
rest
ated
and
the
amou
nt
of th
e ad
just
men
ts re
latin
g to
prio
r per
iods
is a
djus
ted
agai
nst t
he o
peni
ng b
alan
ce
of e
ach
affe
cted
com
pone
nt
of e
quity
of t
he e
arlie
st
perio
d pr
esen
ted
and
othe
r co
mpa
rativ
e am
ount
s di
sclo
sed
for e
ach
prio
r pe
riod
as if
the
new
ac
coun
ting
polic
y ha
d al
way
s be
en a
pplie
d.
Prio
r per
iod
item
s (C
orre
ctio
n of
er
rors
)
Ind
AS 8
Scop
e
The
def
initi
on o
f prio
r per
iod
item
s is
rest
ricte
d to
inco
me
and
expe
nses
whi
ch a
rise
in
curr
ent p
erio
d as
a re
sult
of
erro
rs a
nd o
mis
sion
in th
e pr
epar
atio
ns o
f fin
anci
al
stat
emen
ts o
f prio
r pe
riod(
s).
T
he d
efin
ition
of p
rior p
erio
d ite
ms
is m
uch
broa
der a
s co
mpa
red
to A
S 5.
Prio
r pe
riod
erro
rs c
over
s al
l the
ite
ms
in th
e fin
anci
al
stat
emen
ts in
clud
ing
asse
ts
and
liabi
litie
s.
| The New Axis of Financial Reporting � Ind AS and ICDS 31 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
The
repo
rtin
g re
quire
men
ts
are
sim
ilar t
o ch
ange
s in
ac
coun
ting
polic
y.
A
ll prio
r-pe
riod
adju
stm
ents
ar
e di
sclo
sed
sepa
rate
ly in
cu
rren
t yea
r pro
fit a
nd lo
ss
acco
unt i
n a
man
ner t
hat i
ts
impa
ct o
n th
e re
sults
can
be
perc
eive
d.
Dis
clos
ure
of
non-
appl
icat
ion
of n
ew In
d AS
s
Ind
AS 8
Dis
clos
ure
N
o su
ch d
iscl
osur
es re
quire
d un
der A
S.
Ind
AS 8
requ
ires
whe
n an
en
tity
has
not a
pplie
d ne
w
Ind
ASs
that
has
bee
n is
sued
but
is n
ot y
et
effe
ctiv
e sh
all d
iscl
ose:
� t
his
fact
; and
�
kno
wn
or re
ason
ably
estim
able
info
rmat
ion
re
leva
nt to
ass
essi
ng th
e
poss
ible
impa
ct th
at
ap
plic
atio
n of
new
Ind
AS
w
ill ha
ve o
n th
e en
tity�
s
finan
cial
sta
tem
ents
in
th
e pe
riod
of in
itial
appl
icat
ion.
Cont
inge
ncie
s an
d Ev
ents
O
ccur
ring
Afte
r th
e Ba
lanc
e Sh
eet D
ate
Ind
AS 10
Reco
gniti
on a
nd
Mea
sure
men
t
As
per A
S 4
divi
dend
pr
opos
ed o
r dec
lare
d af
ter
the
bala
nce
shee
t dat
e bu
t be
fore
app
rova
l of f
inan
cial
st
atem
ent a
re re
quire
d to
be
adju
sted
(i.e
acc
ount
ed).
D
ivid
end
decl
ared
aft
er th
e re
port
ing
perio
d, th
e en
tity
shal
l not
reco
gnis
e th
ose
divi
dend
s as
a lia
bilit
y as
the
end
of th
e re
port
ing
perio
d.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 32RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Cont
inge
ncie
s an
d Ev
ents
O
ccur
ring
Afte
r th
e Ba
lanc
e Sh
eet D
ate
Ind
AS 10
Dis
clos
ure
A
S 4
requ
ires
disc
losu
re in
th
e re
port
of t
he a
ppro
ving
au
thor
ity, f
or e
xam
ple,
the
boar
d re
port
for t
hose
ev
ents
occ
urrin
g af
ter t
he
bala
nce
shee
t dat
e th
at
repr
esen
t mat
eria
l cha
nges
an
d co
mm
itmen
ts a
ffec
ting
the
finan
cial
pos
ition
of t
he
entit
y.
A
n en
tity
shal
l dis
clos
e fo
r ea
ch m
ater
ial c
ateg
ory
of
non-
adju
stin
g ev
ent a
fter
th
e re
port
ing
perio
d, n
atur
e of
eve
nt a
nd e
stim
ate
of it
s fin
anci
al e
ffec
t, or
a
stat
emen
t tha
t suc
h an
es
timat
e ca
nnot
be
mad
e.
N
o su
ch d
iscl
osur
e re
quire
d by
AS.
A
n en
tity
shal
l dis
clos
e th
e da
te w
hen
the
finan
cial
st
atem
ents
wer
e ap
prov
ed
for i
ssue
and
who
gav
e th
at
appr
oval
. If th
e en
tity�
s ow
ners
or o
ther
s ha
ve th
e po
wer
to a
men
d th
e fin
anci
al s
tate
men
ts a
fter
is
sue,
the
entit
y sh
all
disc
lose
that
fact
.
Inco
me
Taxe
sIn
d AS
12Re
cogn
ition
U
nder
AS
22, d
efer
red
tax
is
reco
gnis
ed fo
r all t
he ti
min
g di
ffer
ence
s. T
imin
g di
ffer
ence
s ar
e th
e di
ffer
ence
s be
twee
n ta
xabl
e in
com
e an
d ac
coun
ting
inco
me
for a
per
iod
that
U
nder
Ind
AS, d
efer
red
tax
is
reco
gnis
ed fo
r all t
axab
le
tem
pora
ry d
iffer
ence
s.
Tem
pora
ry d
iffer
ence
s ar
e di
ffer
ence
s be
twee
n th
e ca
rryi
ng a
mou
nt o
f an
asse
t or
liabi
lity
in th
e ba
lanc
e
| The New Axis of Financial Reporting � Ind AS and ICDS 33 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
or
igin
ate
in o
ne p
erio
d an
d ar
e ca
pabl
e of
reve
rsal
in
one
or m
ore
subs
eque
nt
perio
ds.
s
heet
and
its
tax
base
.
Inco
me
Taxe
sIn
d AS
12Re
cogn
ition
- re
valu
atio
n
On
reva
luat
ion
of
depr
ecia
ble
asse
ts in
boo
ks,
the
diff
eren
ce is
trea
ted
as
perm
anen
t diff
eren
ce a
nd
no d
efer
red
tax
is
reco
gnis
ed.
D
efer
red
tax
is c
reat
ed o
n di
ffer
ence
bet
wee
n th
e ca
rryi
ng v
alue
and
tax
base
.
Inco
me
Taxe
sIn
d AS
12Re
cogn
ition
U
nder
AS-
22 n
o su
ch
spec
ific
exce
ptio
ns a
re
prov
ided
.
D
efer
red
tax
is n
ot
reco
gnis
ed fo
r the
follo
win
g:
� D
efer
red
tax
liabi
lity
ar
ises
from
the
initi
al
re
cogn
ition
of g
oodw
ill or
�
Def
erre
d ta
x as
set o
r
liabi
lity
aris
es fr
om th
e
initi
al re
cogn
ition
of
an
ass
et o
r lia
bilit
y in
a
tr
ansa
ctio
n w
hich
:
i)
is n
ot a
bus
ines
s
co
mbi
natio
n; a
nd
ii)
at t
he ti
me
of th
e
tr
ansa
ctio
n, a
ffec
ts
neith
er a
ccou
ntin
g
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 34RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
pr
ofit
nor t
axab
le p
rofit
(t
ax lo
ss).
Inco
me
Taxe
s In
d AS
12Re
cogn
ition
of
defe
rred
tax
asse
ts in
cas
e of
ta
x lo
sses
D
efer
red
tax
asse
ts s
houl
d be
reco
gnis
ed a
nd c
arrie
d fo
rwar
d on
ly to
the
exte
nt
that
ther
e is
a re
ason
able
ce
rtai
nty
that
suf
ficie
nt
futu
re ta
xabl
e in
com
e w
ill be
ava
ilabl
e ag
ains
t whi
ch
such
def
erre
d ta
x as
sets
ca
n be
real
ized
.
A
def
erre
d ta
x as
set s
hall b
e re
cogn
ised
for t
he c
arry
fo
rwar
d of
unu
sed
tax
loss
es a
nd u
nuse
d ta
x cr
edits
to th
e ex
tent
that
it
is p
roba
ble
that
futu
re
taxa
ble
prof
it w
ill be
av
aila
ble
agai
nst w
hich
the
unus
ed ta
x lo
sses
and
un
used
tax
cred
its c
an b
e ut
ilized
.
W
here
an
ente
rpris
e ha
s un
abso
rbed
dep
reci
atio
n or
ca
rry
forw
ard
of lo
sses
un
der t
ax la
ws,
def
erre
d ta
x as
sets
sho
uld
be re
cogn
ised
on
ly to
the
exte
nt th
at th
ere
is v
irtua
l cer
tain
ty
supp
orte
d by
con
vinc
ing
evid
ence
that
suf
ficie
nt
futu
re ta
xabl
e in
com
e w
ill be
ava
ilabl
e
aga
inst
w
hich
suc
h de
ferr
ed ta
x as
sets
can
be
real
ized
.
| The New Axis of Financial Reporting � Ind AS and ICDS 35 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Inco
me
Tax
esIn
d AS
12Re
cogn
ition
-co
nsol
idat
ion
D
efer
red
tax
expe
nse
/inc
ome
is a
ggre
gate
d fr
om
sepa
rate
fina
ncia
l st
atem
ents
of t
he G
roup
en
tity
and
no a
djus
tmen
ts
are
mad
e on
con
solid
atio
n.
A
n en
tity
shal
l rec
ogni
se a
de
ferr
ed ta
x lia
bilit
y fo
r all
taxa
ble
tem
pora
ry
diff
eren
ces
asso
ciat
ed w
ith
inve
stm
ents
in s
ubsi
diar
ies,
br
anch
es a
nd a
ssoc
iate
s,
and
inte
rest
s in
join
t ar
rang
emen
ts, e
xcep
t to
the
exte
nt th
at b
oth
of th
e fo
llow
ing
cond
ition
s ar
e sa
tisfie
d:
(a)
the
pare
nt, in
vest
or,
join
t ven
ture
r or j
oint
op
erat
or is
abl
e to
co
ntro
l the
tim
ing
of
the
reve
rsal
of t
he
tem
pora
ry d
iffer
ence
;
an
d
(b)
it is
pro
babl
e th
at th
e
te
mpo
rary
diff
eren
ce
will
not r
ever
se in
the
fore
seea
ble
futu
re.
N
o de
ferr
ed ta
x is
re
cogn
ised
on
elim
inat
ion
of
intr
a-gr
oup
tran
sact
ions
.
D
efer
red
tax
shou
ld b
e ca
lcul
ated
on
tem
pora
ry
diff
eren
ces
that
aris
e fr
om
the
elim
inat
ion
of p
rofit
s
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 36RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
an
d lo
sses
resu
lting
from
in
tra
grou
p tr
ansa
ctio
ns.
Inco
me
Taxe
sIn
d AS
12D
iscl
osur
es
AS
does
not
man
date
suc
h di
sclo
sure
s.
Ind
AS re
quire
s di
sclo
sure
of
reco
ncilia
tion
betw
een
the
aver
age
effe
ctiv
e ta
x ra
te
and
the
appl
icab
le ta
x ra
te,
pote
ntia
l inco
me
tax
cons
eque
nces
that
wou
ld
resu
lt fr
om th
e pa
ymen
t of
divi
dend
s to
its
shar
ehol
ders
, etc
.Ac
coun
ting
for
PPE
� P
urch
ase
cost
Ind
AS 16
Valu
atio
n
Sim
ilar t
o In
d AS
exc
ept n
o gu
idan
ce is
giv
en fo
r ca
pita
lizat
ion
of d
ism
antli
ng
and
site
rest
orat
ion
cost
. H
owev
er, t
he G
uida
nce
note
on
Acc
ount
ing
for O
il and
G
as P
rodu
cing
Act
iviti
es
stat
es th
at e
ntiti
es in
volv
ed
in th
ose
shou
ld c
apita
lize
the
dism
antli
ng a
nd s
ite
rest
orat
ion
cost
.
P
urch
ase
cost
of P
PE
incl
udes
:
1. pu
rcha
se p
rice
(less
any
disc
ount
s an
d re
bate
s);
2.
impo
rt d
utie
s, n
on-
re
fund
able
taxe
s;
3.
any
dire
ctly
att
ribut
able
cost
s of
brin
ging
the
as
set t
o its
wor
king
cond
ition
; and
4.
the
initi
al e
stim
ate
of th
e
cost
s of
dis
man
tling
and
rem
ovin
g th
e ite
m a
nd
re
stor
ing
the
site
on
whi
ch it
is lo
cate
d.
| The New Axis of Financial Reporting � Ind AS and ICDS 37 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Reva
luat
ion
of
PPE
Ind
AS 16
Valu
atio
n an
d m
easu
rem
ent
A
s pe
r AS
10 fi
xed
asse
ts
are
carr
ied
at c
ost l
ess
accu
mul
ated
dep
reci
atio
n.
In
d AS
16 re
quire
d an
ent
ity
to c
hoos
e ei
ther
cos
t mod
el
or re
valu
atio
n m
odel
as
its
acco
untin
g po
licy
and
shal
l ap
ply
that
pol
icy
to a
n en
tire
clas
s of
PPE
.
T
here
is n
o re
quire
men
t to
perf
orm
reva
luat
ions
at
regu
lar i
nter
vals
.
W
hen
entit
y ap
plie
s re
valu
atio
n m
odel
it re
quire
s re
gula
r rev
alua
tions
of a
ll PP
E (s
ay 3
to 5
yea
rs).
In
case
of i
tem
of P
PE
expe
rienc
e si
gnifi
cant
and
vo
latil
e ch
ange
s in
fair
valu
e,
annu
al re
valu
atio
n m
ay b
e ne
cess
ary.
Man
agem
ent
mus
t con
side
r at e
ach
year
en
d w
heth
er fa
ir va
lue
is
mat
eria
lly d
iffer
ent f
rom
ca
rryi
ng v
alue
.
Whe
n re
valu
atio
n do
es n
ot
cove
rs a
ll ass
ets
of th
e gi
ven
clas
s, it
is a
ppro
pria
te
that
the
sele
ctio
n of
the
asse
t to
be re
valu
ed b
e m
ade
on s
yste
mat
ic b
asis
, e.
g. a
n en
tity
may
reva
lue
a cl
ass
of a
sset
s w
ithin
one
If
an
item
of P
PE is
reva
lued
, th
e en
tire
clas
s of
PPE
to
whi
ch th
at a
sset
bel
ongs
sh
all b
e re
valu
ed.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 38RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
u
nit a
nd ig
nore
ass
ets
of
the
sam
e cl
ass
at a
noth
er
unit.
As
such
und
er A
S en
tire
clas
s of
PPE
is n
ot
requ
ired
to b
e re
valu
ed.
Reva
luat
ion
of
PPE
Ind
AS 16
Valu
atio
n an
d m
easu
rem
ent �
Co
st o
f maj
or
repa
ir/ in
spec
tion
C
ost o
f rep
air i
s ch
arge
d to
pr
ofit
and
loss
.
Suc
h co
sts
are
requ
ired
to
be c
apita
lised
if s
atis
fy th
e re
cogn
ition
crit
eria
laid
do
wn
in th
e In
d AS
. H
owev
er, c
arry
ing
amou
nt
of s
imila
r cos
t cap
italis
ed
earli
er n
eeds
to b
e de
reco
gnis
ed.
Resi
dual
val
ue
and
usef
ul lif
e of
an
ass
et
Ind
AS 16
Mea
sure
men
t
Und
er A
S, p
erio
dic
revi
ew o
f re
sidu
al v
alue
and
use
ful li
fe
of a
n as
set n
ot s
peci
fical
ly
requ
ired.
A
n en
tity
need
s to
revi
ew
resi
dual
val
ue a
nd u
sefu
l life
of
an
asse
t at l
east
at e
ach
finan
cial
yea
r end
.
Dep
reci
atio
n Ac
coun
ting
�
Chan
ge in
m
etho
d of
D
epre
ciat
ion
Ind
AS 16
Reco
gniti
on a
nd
Mea
sure
men
t
The
met
hod
of d
epre
ciat
ion
is a
pplie
d co
nsis
tent
ly to
pr
ovid
e co
mpa
rabi
lity
of th
e re
sults
of t
he o
pera
tions
of
the
ente
rpris
e fr
om p
erio
d to
per
iod.
D
epre
ciat
ion
met
hod
appl
ied
shal
l be
revi
ewed
at
leas
t at e
ach
finan
cial
yea
r en
d.
C
hang
e in
dep
reci
atio
n m
etho
d is
trea
ted
as c
hang
e in
acc
ount
ing
polic
ies
and
C
hang
e in
met
hod
of
depr
ecia
tion
is tr
eate
d as
ch
ange
in a
ccou
ntin
g
| The New Axis of Financial Reporting � Ind AS and ICDS 39 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
im
pact
is d
eter
min
ed b
y re
tros
pect
ivel
y co
mpu
ting
depr
ecia
tion
unde
r new
m
etho
d an
d th
e im
pact
is
reco
rded
in th
e pe
riod
of
chan
ge.
Leas
esIn
d AS
17Sc
ope
A
S 19
exc
lude
s le
ase
agre
emen
t to
use
land
s fr
om it
s sc
ope.
In
d AS
17 d
oes
not e
xclu
de
leas
e ag
reem
ent t
o us
e la
nds
from
its
scop
e.
es
timat
es, r
efle
cted
in th
e de
prec
iatio
n ch
arge
for t
he
curr
ent a
nd p
rosp
ectiv
e ye
ars.
Le
aseh
old
prem
ium
is
capi
taliz
ed a
s fix
ed a
sset
s an
d am
ortis
ed o
ver t
he
perio
d of
the
leas
e.
Le
ase
of la
nd w
ould
be
trea
ted
as p
er c
lass
ifica
tion
of th
e le
ase
in a
ccor
danc
e w
ith th
e In
d AS
(i.e
op
erat
ing
or fi
nanc
e).
Leas
es -
Initi
al
dire
ct c
ost
Ind
AS 17
Mea
sure
men
t
AS
19 re
quire
s in
itial
dire
ct
cost
i.e. c
omm
issi
on a
nd
lega
l fee
s in
curr
ed b
y le
ssor
w
ith re
spec
t to
finan
ce
leas
e to
be
eith
er c
harg
ed
off a
t the
tim
e of
incu
rren
ce
or to
be
amor
tised
ove
r the
le
ase
perio
d.
Initi
al d
irect
cos
ts in
curr
ed
spec
ifica
lly to
ear
n re
venu
es
from
an
oper
atin
g le
ase
are
defe
rred
and
allo
cate
d to
In
d AS
17 p
resc
ribes
initi
al
dire
ct c
ost i
ncur
red
by
less
or to
be
incl
uded
in le
ase
rece
ivab
le a
mou
nt in
cas
e of
fin
ance
leas
e an
d in
the
carr
ying
am
ount
of t
he
asse
t in
case
of o
pera
ting
leas
e re
cogn
ised
as
an
expe
nse
over
the
leas
e te
rm o
n th
e sa
me
basi
s as
th
e le
ase
inco
me.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 40RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
in
com
e ov
er th
e le
ase
term
in
pro
port
ion
to th
e re
cogn
ition
of r
ent i
ncom
e,
or a
re re
cogn
ised
as
an
expe
nse
in th
e st
atem
ent o
f pr
ofit
and
loss
in th
e pe
riod
in w
hich
they
are
incu
rred
.Sa
le a
nd
leas
ebac
kIn
d AS
17Re
cogn
ition
S
ale
and
leas
ebac
k w
hich
re
sults
in a
fina
nce
leas
e,
AS 19
requ
ires
exce
ss/
defic
ienc
y bo
th to
be
defe
rred
and
am
ortis
ed
over
the
leas
e te
rm in
pr
opor
tion
to th
e de
prec
iatio
n of
the
leas
ed
asse
t.
If
sal
e an
d le
aseb
ack
tran
sact
ion
resu
lts in
a
finan
ce le
ase,
any
exc
ess
of
sale
s pr
ocee
ds o
ver t
he
carr
ying
am
ount
sha
ll not
be
imm
edia
tely
reco
gnis
ed
as in
com
e by
a s
elle
r-le
ssee
. Inst
ead,
it s
hall b
e de
ferr
ed a
nd a
mor
tised
ov
er th
e le
ase
term
.
Leas
e of
land
Ind
AS 17
Reco
gniti
on
AS
19 e
xclu
des
leas
e of
land
fr
om it
s sc
ope.
Leas
es o
f lan
d ar
e cl
assi
fied
as o
pera
ting
or fi
nanc
e le
ases
in th
e sa
me
way
as
leas
es o
f oth
er a
sset
s.
H
owev
er, a
cha
ract
eris
tic o
f la
nd is
that
it n
orm
ally
has
an
inde
finite
eco
nom
ic lif
e an
d, if
title
is n
ot e
xpec
ted
to p
ass
to th
e le
ssee
by
the
end
of th
e le
ase
term
, the
| The New Axis of Financial Reporting � Ind AS and ICDS 41 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Leas
es
Ind
AS 17
Dis
clos
ure
A
S 19
requ
ires
disc
losu
re fo
r ac
coun
ting
polic
y re
latin
g th
eret
o in
the
finan
cial
st
atem
ents
of t
he le
ssor
.
In
d AS
17 d
oes
not m
anda
te
any
acco
untin
g po
licy
rela
ted
disc
losu
re.
le
ssee
nor
mal
ly d
oes
not
rece
ive
subs
tant
ially
all o
f th
e ris
ks a
nd re
war
ds
inci
dent
al to
ow
ners
hip,
in
whi
ch c
ase
the
leas
e of
land
w
ill be
an
oper
atin
g le
ase.
Empl
oyee
be
nefit
s �
Ac
tuar
ial g
ains
or
loss
es
Ind
AS 19
Reco
gniti
on
Act
uaria
l gai
ns o
r los
ses
shou
ld b
e r
ecog
nise
d im
med
iate
ly in
the
prof
it an
d lo
ss a
ccou
nt u
nder
AS
15.
A
ctua
rial g
ains
or l
osse
s to
be
re
cogn
ised
imm
edia
tely
in
Oth
er C
ompr
ehen
sive
In
com
e as
per
Ind
AS 19
.
Borr
owin
g co
sts
Ind
AS 2
3Sc
ope
T
here
is n
o su
ch e
xclu
sion
un
der A
S 16
.
An
entit
y is
not
requ
ired
to
appl
y In
d AS
23
to
borr
owin
g co
sts
dire
ctly
at
trib
utab
le to
the
acqu
isiti
on, c
onst
ruct
ion
or
prod
uctio
n of
a q
ualif
ying
as
set,
mea
sure
d at
fair
valu
e.
Borr
owin
g co
sts
Ind
AS 2
3D
efin
ition
A
S de
finiti
on is
sim
ilar t
o In
d AS
exc
ept s
ubst
antia
l pe
riod
of ti
me
has
been
Q
ualif
ying
ass
ets
are
thos
e th
at re
quire
a s
ubst
antia
l pe
riod
of ti
me
to g
et re
ady
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 42RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Borr
owin
g co
sts
Ind
AS 2
3D
iscl
osur
e
No
such
dis
clos
ure
requ
ired
unde
r AS
16.
T
he d
iscl
osur
e re
quire
men
ts
of In
d AS
23
requ
ire th
e en
tity
to d
iscl
ose
sepa
rate
ly
the
capi
taliz
atio
n ra
te u
sed
to d
eter
min
e th
e am
ount
of
borr
owin
g co
sts.
fo
r the
ir in
tend
ed u
se o
r sa
le.
in
terp
rete
d to
gen
eral
ly
mea
n m
ore
than
12 m
onth
s.
Rela
ted
part
y di
sclo
sure
Ind
AS 2
4D
efin
ition
A
S 18
cov
ers
only
rela
tives
of
Key
man
agem
ent
pers
onne
l.
U
nder
Ind
AS 2
4, R
elat
ed
part
y co
vers
clo
se
mem
bers
of f
amily
of a
ny
indi
vidu
al re
ferr
ed to
as
follo
ws:
�
Key
man
agem
ent
pe
rson
nel o
r
� A
par
ty w
ho e
xerc
ise
co
ntro
l or s
igni
fican
t
influ
ence
A
S 18
doe
s no
t inc
lude
pos
t em
ploy
men
t ben
efit
plan
as
rela
ted
part
y.
In
d AS
24
incl
udes
pos
t em
ploy
men
t ben
efit
plan
for
the
bene
fit o
f em
ploy
ees
of
the
entit
y or
of a
ny e
ntity
th
at is
rela
ted
part
y to
the
repo
rtin
g en
tity.
| The New Axis of Financial Reporting � Ind AS and ICDS 43 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 44RSM
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Rela
ted
part
y di
sclo
sure
Ind
AS 2
4D
efin
ition
s
Und
er A
S 18
Con
trol
is
defin
ed a
s:�
Ow
ners
hip,
dire
ctly
or
indi
rect
ly, o
f mor
e th
an o
ne
half
of th
e vo
ting
pow
er o
f th
e en
terp
rises
, or
� C
ontr
ol o
f the
com
posi
tion
of b
oard
of d
irect
ors
in th
e ca
se o
f a c
ompa
ny o
r of t
he
com
posi
tion
of
corr
espo
ndin
g go
vern
ing
body
in c
ase
of a
ny o
ther
en
terp
rises
, or
� A
sub
stan
tial in
tere
st in
vo
ting
pow
er a
nd th
e po
wer
to
dire
ct, b
y st
atut
e or
ag
reem
ent,
the
finan
cial
an
d/or
ope
ratin
g po
licie
s of
th
e en
terp
rises
.
In
d AS
24
does
not
def
ine
the
term
Con
trol
. It u
ses
that
the
term
as
defin
ed in
In
d AS
110.
Con
trol
is
inve
stor
�s c
urre
nt a
bilit
y to
di
rect
the
rele
vant
act
ivity
of
the
inve
stee
and
hav
ing
right
to v
aria
ble
retu
rns
fr
om it
s in
volv
emen
t and
ab
ility
to u
se it
s po
wer
to
affe
ct th
ose
retu
rns.
Rela
ted
part
y di
sclo
sure
� K
ey
man
agem
ent
pers
onne
l
Ind
AS 2
4D
efin
ition
A
non
-exe
cutiv
e di
rect
or o
f a
com
pany
is n
ot c
onsi
dere
d as
a k
ey m
anag
emen
t pe
rson
und
er A
S 18
unl
ess
he h
as th
e au
thor
ity a
nd
resp
onsi
bilit
y fo
r pla
nnin
g,
dire
ctin
g an
d co
ntro
lling
the
K
ey m
anag
emen
t per
sonn
el
are
thos
e pe
rson
s ha
ving
au
thor
ity a
nd re
spon
sibi
lity
for p
lann
ing,
dire
ctin
g an
d co
ntro
lling
the
activ
ities
of
the
entit
y, d
irect
ly o
r in
dire
ctly
, incl
udin
g an
y
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Ind
AS 2
4
activ
ities
of t
he re
port
ing
ente
rpris
es.
di
rect
or (w
heth
er e
xecu
tive
or o
ther
wis
e) o
f tha
t ent
ity.
Rela
ted
part
y
disc
losu
reIn
d AS
24
Dis
clos
ure
T
here
is n
o su
ch d
iscl
osur
e
requ
irem
ent u
nder
AS
18.
In
d AS
24
requ
ires
disc
losu
re
of te
rms
and
cond
ition
s of
ou
tsta
ndin
g ite
ms
pert
aini
ng to
rela
ted
part
ies.
Rela
ted
part
y di
sclo
sure
�
mat
eria
l tr
ansa
ctio
ns
Ind
AS 2
4D
iscl
osur
e
As
per A
S 18
ord
inar
ily a
re
late
d pa
rty
tran
sact
ion
the
amou
nt o
f whi
ch is
in
exce
ss o
f 10%
of t
he to
tal
rela
ted
part
y tr
ansa
ctio
ns
of th
e sa
me
type
is
cons
ider
ed m
ater
ial.
It
ems
of a
sim
ilar n
atur
e m
ay b
e di
sclo
sed
in
aggr
egat
e, b
ut In
d AS
doe
s no
t per
mit
club
bing
on
mat
eria
l rel
ated
par
ty
tran
sact
ion
with
an
indi
vidu
al p
arty
in th
e ag
greg
ate
disc
losu
re. In
d AS
24
als
o do
es n
ot p
rovi
de
guid
ance
sim
ilar t
o AS
18 o
n w
hat i
s co
nsid
ered
to b
e m
ater
ial t
rans
actio
n.
Inve
stm
ent i
n A
ssoc
iate
s-Si
gnifi
cant
in
fluen
ce
Ind
AS 2
8D
efin
ition
S
imila
r to
Ind
AS. U
nder
AS
23 s
igni
fican
t inf
luen
ce is
th
e po
wer
to p
artic
ipat
e in
th
e fin
anci
al a
nd/o
r op
erat
ing
polic
y de
cisi
ons
of
the
inve
stee
but
not
con
trol
ov
er th
ose
polic
ies.
The
w
ord
�or�
is n
ot th
ere
in In
d
S
igni
fican
t inf
luen
ce is
the
pow
er to
par
ticip
ate
in th
e fin
anci
al a
nd o
pera
ting
polic
y de
cisi
ons
of th
e in
vest
ee b
ut is
not
con
trol
or
join
t con
trol
ove
r tho
se
polic
ies.
If a
n in
vest
or h
olds
, di
rect
ly o
r ind
irect
ly (e
.g.
| The New Axis of Financial Reporting � Ind AS and ICDS 45 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
AS
28.
The
refo
re u
nder
Ind
AS 2
8 th
e po
wer
to
part
icip
ate
shou
ld e
xist
for
both
fina
ncia
l and
ope
ratin
g po
licie
s; w
here
as u
nder
AS
23,
eith
er o
ne w
ould
su
ffic
e to
det
erm
ine
sign
ifica
nt in
fluen
ce.
th
roug
h su
bsid
iarie
s), 2
0 pe
r cen
t or m
ore
of th
e vo
ting
pow
er o
f the
in
vest
ee, it
is p
resu
med
that
th
e in
vest
or h
as s
igni
fican
t in
fluen
ce, u
nles
s it
can
be
clea
rly d
emon
stra
ted
that
th
is is
not
the
case
.
A
s pe
r AS,
pot
entia
l vot
ing
right
s ar
e no
t con
side
red
for
dete
rmin
ing
sign
ifica
nt
influ
ence
.
T
he e
xist
ence
and
eff
ect o
f po
tent
ial v
otin
g rig
hts
that
ar
e cu
rren
tly e
xerc
isab
le o
r co
nver
tible
, incl
udin
g po
tent
ial v
otin
g rig
hts
held
by
oth
er e
ntiti
es, a
re
cons
ider
ed w
hen
asse
ssin
g w
heth
er a
n en
tity
has
sign
ifica
nt in
fluen
ce.
Inve
stm
ent i
n A
ssoc
iate
s-D
ispl
ay o
f go
odw
ill
Ind
AS 2
8Pr
esen
tatio
n an
d di
sclo
sure
G
oodw
ill or
cap
ital r
eser
ves
aris
ing
on th
e ac
quis
ition
of
asso
ciat
es s
houl
d be
in
clud
ed in
the
carr
ying
am
ount
of t
he in
vest
men
t, bu
t sho
uld
be d
iscl
osed
se
para
tely
.
G
oodw
ill on
acq
uisi
tion
is
incl
uded
in th
e ca
rryi
ng c
ost
of th
e in
vest
men
ts a
nd is
no
t req
uire
d to
be
disc
lose
d se
para
tely
. How
ever
, cap
ital
rese
rves
on
acqu
isiti
on a
re
dire
ctly
reco
gnis
ed in
equ
ity
as c
apita
l res
erve
.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 46RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Fina
ncia
l in
stru
men
ts�
pr
esen
tatio
n
Ind
AS 3
2Cl
assi
ficat
ion
N
o co
rres
pond
ing
stan
dard
s no
tifie
d un
der t
he
Com
pani
es A
ct, 2
013.
AS
30,
31 a
nd 3
2 on
the
topi
c is
sued
by
ICA
I are
not
m
anda
tory
.
T
he s
ubst
ance
of a
fina
ncia
l in
stru
men
t, ra
ther
than
its
lega
l for
m, g
over
ns it
s cl
assi
ficat
ion
in th
e en
tity�
s ba
lanc
e sh
eet.
Subs
tanc
e an
d le
gal f
orm
are
co
mm
only
con
sist
ent,
but
not a
lway
s.
P
refe
renc
e sh
ares
are
cl
assi
fied
as e
quity
.
In d
eter
min
ing
whe
ther
a
pref
eren
ce s
hare
is a
fin
anci
al lia
bilit
y or
an
equi
ty
inst
rum
ent,
an is
suer
as
sess
es th
e pa
rtic
ular
rig
hts
atta
chin
g to
the
shar
e to
det
erm
ine
whe
ther
it
exhi
bits
the
fund
amen
tal
char
acte
ristic
of a
fina
ncia
l lia
bilit
y.
S
imila
rly d
ivid
end
on
pref
eren
ce s
hare
s is
alw
ays
trea
ted
as a
ppro
pria
tion
of
prof
it /r
eser
ves.
D
ivid
end
on p
refe
renc
e sh
are
clas
sifie
d as
liabi
lity
wou
ld b
e c
lass
ified
as
inte
rest
exp
ense
.
Fina
ncia
l in
stru
men
ts
�pr
esen
tatio
n
Ind
AS 3
2Cl
assi
ficat
ion�
co
nver
tible
in
stru
men
ts
C
onve
rtib
le p
refe
renc
e sh
ares
are
cla
ssifi
ed a
s eq
uity
and
con
vert
ible
loan
s /
debe
ntur
es a
re c
lass
ified
In
d AS
requ
ires
split
ting
of
conv
ertib
le in
stru
men
ts a
s eq
uity
and
liabi
lity
base
d on
op
tions
and
con
trac
tual
| The New Axis of Financial Reporting � Ind AS and ICDS 47 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
a
s lia
bilit
y.te
rms
of th
e in
stru
men
ts,
subj
ect t
o ex
cept
ion
in c
ase
of fo
reig
n cu
rren
cy b
onds
.Ea
rnin
g pe
r sh
are
Ind
AS 3
3Pr
esen
tatio
n an
d D
iscl
osur
e
AS
20 d
oes
not s
peci
fical
ly
man
date
suc
h di
sclo
sure
.
As
per I
nd A
S 33
an
entit
y th
at re
port
s a
disc
ontin
ued
oper
atio
n sh
all d
iscl
ose
the
basi
c an
d di
lute
d EP
S fo
r di
scon
tinue
d op
erat
ions
ei
ther
in th
e st
atem
ent o
f pr
ofit
and
loss
or i
n th
e no
tes.
Earn
ing
per
shar
eIn
d AS
33
Dis
clos
ure-
man
dato
rily
conv
ertib
le
inst
rum
ent
N
ot s
peci
fical
ly c
over
ed in
AS
.
As
per I
nd A
S, to
con
side
r sh
ares
to b
e is
sued
upo
n co
nver
sion
in c
alcu
latio
n of
EP
S.In
terim
fina
ncia
l re
port
ing
/ Im
pairm
ent o
f as
sets
Ind
AS 3
4 &
36
Impa
irmen
t of
good
will
A
S 25
doe
s no
t pro
vide
any
gu
idan
ce in
this
rega
rds.
H
owev
er A
S 28
an
im
pairm
ent l
oss
reco
gnis
ed
for g
oodw
ill sh
ould
not
be
reve
rsed
in a
sub
sequ
ent
perio
d un
less
:
(a)
the
impa
irmen
t los
s
was
cau
sed
by a
spec
ific
exte
rnal
eve
nt
of
an
exce
ptio
nal
na
ture
that
is n
ot
A
n en
tity
is re
quire
d to
as
sess
goo
dwill
for
impa
irmen
t at t
he e
nd o
f ea
ch re
port
ing
perio
d, a
nd, if
re
quire
d, to
reco
gnis
e an
im
pairm
ent l
oss
at th
at d
ate
in a
ccor
danc
e w
ith In
d AS
36
. An
entit
y sh
all n
ot
reve
rse
an im
pairm
ent l
oss
reco
gnis
ed in
a p
revi
ous
inte
rim p
erio
d in
resp
ect o
f go
odw
ill.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 48RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
expe
cted
to re
cur;
and
(b
) su
bseq
uent
ext
erna
l
even
ts h
ave
occu
rred
that
reve
rse
the
effe
ct
of
that
eve
nt.
Impa
irmen
t of
asse
tsIn
d AS
36
Goo
dwill
A
S re
quire
s an
ent
erpr
ise
to
asse
ss a
t eac
h ba
lanc
e sh
eet d
ate
whe
ther
ther
e is
an
y in
dica
tion
that
an
asse
t m
ay b
e im
paire
d. If
any
suc
h in
dica
tion
exis
ts, t
he
ente
rpris
e sh
ould
est
imat
e th
e r
ecov
erab
le a
mou
nt o
f th
e as
set.
In
d AS
requ
ires
good
will
acqu
ired
in a
bus
ines
s co
mbi
natio
n to
be
test
ed fo
r im
pairm
ent a
nnua
lly.
Prov
isio
ns,
Cont
inge
nt
Liab
ilitie
s an
d Co
ntin
gent
A
sset
s
Ind
AS 3
7Re
cogn
ition
-Pr
ovis
ions
P
rovi
sion
s ar
e ba
sed
on th
e be
st e
stim
ate.
No
deta
iled
guid
ance
is a
vaila
ble.
T
he a
mou
nt re
cogn
ised
as
prov
isio
n sh
ould
be
the
best
es
timat
e of
the
expe
nditu
re
requ
ired
to s
ettle
the
pres
ent o
blig
atio
n at
the
bala
nce
shee
t dat
e, d
etai
led
guid
ance
is a
vaila
ble
on
mea
sure
men
t.
T
he a
mou
nt o
f pro
visi
on
shou
ld n
ot b
e di
scou
nted
to
its p
rese
nt v
alue
.
W
here
the
effe
ct o
f tim
e va
lue
of m
oney
is m
ater
ial,
the
amou
nt o
f pro
visi
on
shou
ld b
e th
e pr
esen
t val
ue
| The New Axis of Financial Reporting � Ind AS and ICDS 49 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Prov
isio
ns,
Cont
inge
nt
Liab
ilitie
s an
d Co
ntin
gent
A
sset
s -
Prov
isio
ns
Ind
AS 3
7Re
cogn
ition
R
estr
uctu
ring
prov
isio
n sh
ould
be
mad
e on
lega
l ob
ligat
ion.
R
estr
uctu
ring
prov
isio
n sh
ould
be
mad
e on
co
nstr
uctiv
e ob
ligat
ion.
of
the
expe
nditu
res
expe
cted
to b
e re
quire
d to
se
ttle
the
oblig
atio
n. T
he
disc
ount
rate
s sh
ould
not
re
flect
risk
s fo
r whi
ch fu
ture
ca
sh fl
ow e
stim
ates
hav
e be
en a
djus
ted.
Prov
isio
ns,
Cont
inge
nt
Liab
ilitie
s an
d Co
ntin
gent
A
sset
s
Ind
AS 3
7D
iscl
osur
e-Co
ntin
gent
ass
ets
A
con
tinge
nt a
sset
is n
ot
disc
lose
d in
fina
ncia
l st
atem
ents
.
A
con
tinge
nt a
sset
is
disc
lose
d in
fina
ncia
l st
atem
ents
whe
re a
n in
flow
of
eco
nom
ic b
enef
its is
pr
obab
le.
Inta
ngib
le
Ass
ets
- Su
bseq
uent
m
easu
re-m
ent
Ind
AS 3
8M
easu
rem
ent
A
fter
initi
al re
cogn
ition
, an
inta
ngib
le a
sset
sho
uld
be
carr
ied
at it
s co
st le
ss a
ny
accu
mul
ated
am
ortis
atio
n an
d an
y ac
cum
ulat
ed
impa
irmen
t los
ses.
A
n en
tity
shal
l cho
ose
eith
er th
e co
st m
odel
or t
he
reva
luat
ion
mod
el a
s its
ac
coun
ting
polic
y.
If
an
inta
ngib
le a
sset
is
acco
unte
d fo
r usi
ng th
e
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 50RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
re
valu
atio
n m
odel
, all t
he
othe
r ass
ets
in it
s cl
ass
shal
l al
so b
e ac
coun
ted
for u
sing
th
e sa
me
mod
el, u
nles
s th
ere
is n
o ac
tive
mar
ket f
or
thos
e as
sets
.
R
eval
uatio
n is
pro
hibi
ted.
R
eval
uatio
n m
odel
is
perm
itted
onl
y w
here
ther
e is
an
activ
e m
arke
t for
the
unde
rlyin
g in
tang
ible
s.
Inta
ngib
le
Ass
ets
- U
sefu
l lif
e
Ind
AS 3
8M
easu
rem
ent
T
here
is a
rebu
ttab
le
pres
umpt
ion
that
the
usef
ul
life
of a
n in
tang
ible
ass
et w
ill no
t exc
eed
ten
year
s fr
om
the
date
whe
n th
e as
set i
s av
aila
ble
for u
se.
A
n en
tity
shal
l ass
ess
whe
ther
the
usef
ul lif
e of
an
inta
ngib
le a
sset
is fi
nite
or
inde
finite
and
, if fi
nite
, the
le
ngth
of,
or n
umbe
r of
prod
uctio
n or
sim
ilar u
nits
th
at w
ould
con
stitu
te u
sefu
l lif
e.
Amor
tisat
ion
of
inta
ngib
le a
sset
sIn
d AS
38
Mea
sure
men
t
Am
ortis
atio
n is
bas
ed o
n al
loca
tion
of d
epre
ciab
le
amou
nt o
n a
syst
emat
ic
basi
s do
ne o
ver b
est
estim
ate
of u
sefu
l life
but
sh
ould
not
exc
eed
10 y
ears
, un
less
ther
e is
per
suas
ive
evid
ence
for a
mor
tisin
g
T
he d
epre
ciab
le a
mou
nt o
f an
inta
ngib
le a
sset
with
a
finite
use
ful li
fe s
hall b
e al
loca
ted
on a
sys
tem
atic
ba
sis
over
its
usef
ul lif
e.
Inta
ngib
le a
sset
with
in
defin
ite u
sefu
l life
is n
ot
amor
tised
but
is re
quire
d to
| The New Axis of Financial Reporting � Ind AS and ICDS 51 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Impa
irmen
t of
inta
ngib
le a
sset
sIn
d AS
38
Mea
sure
men
t
In a
dditi
on to
the
requ
irem
ents
of A
S-28
, an
ente
rpris
e sh
ould
est
imat
e th
e re
cove
rabl
e am
ount
of
the
follo
win
g in
tang
ible
as
sets
at l
east
at e
ach
finan
cial
yea
r end
eve
n if
ther
e is
no
indi
catio
n th
at
the
asse
t is
impa
ired:
1. an
inta
ngib
le a
sset
that
is n
ot y
et a
vaila
ble
for
us
e; a
nd
2.
an in
tang
ible
ass
et th
at
is
am
ortis
ed o
ver a
perio
d ex
ceed
ing
ten
ye
ars
from
the
date
whe
n th
e as
set i
s
avai
labl
e fo
r use
.
A
n in
tang
ible
ass
et w
ith a
n in
defin
ite u
sefu
l life
and
w
hich
is n
ot y
et a
vaila
ble
for
use
shou
ld b
e te
sted
for
impa
irmen
t ann
ually
and
w
hene
ver t
here
is a
n in
dica
tion
that
the
inta
ngib
le
asse
t may
be
impa
ired.
ov
er a
long
er p
erio
d. B
oth
finite
life
and
inde
finite
life
inta
ngib
les
are
requ
ired
to
be a
mor
tised
.
be
test
ed fo
r im
pairm
ent.
Acco
untin
g fo
r In
vest
men
t -In
vest
men
t Pr
oper
ty
Ind
AS 4
0Sc
ope
A
n in
vest
men
t pro
pert
y is
an
inve
stm
ent i
n la
nd o
r bu
ildin
gs th
at a
re n
ot
inte
nded
to b
e oc
cupi
ed
subs
tant
ially
for u
se b
y, o
r
In
vest
men
t pro
pert
y is
pr
oper
ty (l
and
or a
bu
ildin
g�or
par
t of a
bu
ildin
g�or
bot
h) h
eld
(by
the
owne
r or b
y th
e le
ssee
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 52RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Acco
untin
g fo
r In
vest
men
t -In
vest
men
t Pr
oper
ty
Ind
AS 4
0M
easu
rem
ent
A
n en
terp
rise
hold
ing
inve
stm
ent p
rope
rtie
s sh
ould
acc
ount
for t
hem
as
long
term
inve
stm
ents
. Lo
ng-t
erm
inve
stm
ents
are
va
lued
at c
ost l
ess
dim
inut
ion
in v
alue
w
here
ver t
he d
eclin
e is
ot
her t
han
a te
mpo
rary
de
clin
e.
A
n in
vest
men
t pro
pert
y sh
all b
e m
easu
red
initi
ally
at
its c
ost.
Tran
sact
ion
cost
s sh
all b
e in
clud
ed in
the
initi
al
mea
sure
men
t.
For s
ubse
quen
t m
easu
rem
ent a
n en
tity
shal
l mea
sure
all o
f its
in
vest
men
t pro
pert
ies
in
acco
rdan
ce w
ith c
ost m
odel
as
per
Ind
AS 16
exc
ept f
or
inve
stm
ent p
rope
rtie
s th
at
mee
t the
crit
eria
to b
e cl
assi
fied
as h
eld
for s
ale,
w
hich
sha
ll be
mea
sure
d at
in
the
oper
atio
ns o
f, th
e in
vest
ing
ente
rpris
e.
und
er a
fina
nce
leas
e) to
ea
rn re
ntal
s or
for
capi
tal
appr
ecia
tion
or b
oth,
rath
er
than
for:
i)
use
in th
e pr
oduc
tion
or
su
pply
of g
oods
or
se
rvic
es o
r for
adm
inis
trat
ive
purp
oses
;
or
ii) s
ale
in th
e or
dina
ry c
ours
e
of b
usin
ess.
| The New Axis of Financial Reporting � Ind AS and ICDS 53 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Biol
ogic
al a
sset
sIn
d AS
41
Mea
sure
men
t
No
guid
ance
ava
ilabl
e un
der
AS.
A
bio
logi
cal a
sset
sho
uld
be
mea
sure
d on
initi
al
reco
gniti
on a
nd a
t eac
h ba
lanc
e sh
eet d
ate
at it
s fa
ir va
lue
less
est
imat
ed c
osts
to
sel
l.
th
e lo
wer
of i
ts c
arry
ing
amou
nt a
nd fa
ir va
lue
less
co
sts
to s
ell.
Firs
t tim
e ad
optio
nIn
d AS
101
Scop
e �
Ap
plic
abili
ty
AS
does
not
pro
vide
gu
idan
ce o
n fir
st ti
me
adop
tion
of th
e st
anda
rds
by a
n en
tity.
In
d AS
101 s
peci
fical
ly d
eals
w
ith h
ow to
app
ly In
d AS
s fo
r the
firs
t tim
e.
Sub
ject
to re
quire
men
t set
ou
t in
the
Stan
dard
, ful
l re
tros
pect
ive
appl
icat
ion
of
Ind
ASs
effe
ctiv
e at
the
repo
rtin
g da
te fo
r an
entit
y�s
first
Ind
AS fi
nanc
ial
stat
emen
ts is
requ
ired.
The
st
anda
rds
also
pro
vide
for
cert
ain
optio
nal e
xem
ptio
ns
and
man
dato
ry
exce
ptio
ns.
A
n en
tity
shal
l exp
lain
how
th
e tr
ansi
tion
from
pre
viou
s G
AA
P to
Ind
ASs
affe
cted
its
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 54RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Busi
ness
co
mbi
natio
nIn
d AS
103
Scop
e
AS
does
not
pro
vide
gu
idan
ce fo
r all t
ype
of
busi
ness
com
bina
tions
. AS
14 d
eals
with
acc
ount
ing
for
amal
gam
atio
ns.
In
d AS
app
lies
to a
tr
ansa
ctio
n or
oth
er e
vent
th
at m
eets
the
defin
ition
of
a bu
sine
ss c
ombi
natio
n.
re
port
ed b
alan
ce s
heet
, fin
anci
al p
erfo
rman
ce a
nd
cash
flow
.
Busi
ness
co
mbi
natio
nIn
d AS
103
Met
hod
of
acco
untin
g
AS
prov
ides
two
met
hods
of
acco
untin
g fo
r am
alga
mat
ions
. Poo
ling
of
inte
rest
met
hods
in c
ase
of
amal
gam
atio
n in
nat
ure
of
mer
ger a
nd in
oth
er c
ases
pu
rcha
se m
etho
d.
In
d AS
pro
vide
s bu
sine
ss
com
bina
tions
invo
lvin
g en
titie
s or
bus
ines
ses
unde
r co
mm
on c
ontr
ol s
hall b
e ac
coun
ted
for u
sing
the
pool
ing
of in
tere
st m
etho
d.
All o
ther
bus
ines
s co
mbi
natio
ns a
re a
ccou
nted
us
ing
purc
hase
met
hod.
Busi
ness
co
mbi
natio
nIn
d AS
103
Met
hod
of
acco
untin
g
Goo
dwill
aris
ing
on
amal
gam
atio
n re
pres
ents
a
paym
ent m
ade
in
antic
ipat
ion
of fu
ture
in
com
e an
d it
is a
ppro
pria
te
to tr
eat i
t as
an a
sset
to b
e am
ortis
ed to
inco
me
on a
sy
stem
atic
bas
is o
ver i
ts
usef
ul lif
e no
t exc
eedi
ng 5
ye
ars.
A
s pe
r Ind
AS
good
will
is n
ot
amor
tised
, but
is te
sted
for
impa
irmen
t ann
ually
or
mor
e fr
eque
ntly
if e
vent
or
circ
umst
ance
indi
cate
im
pairm
ent.
| The New Axis of Financial Reporting � Ind AS and ICDS 55 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Busi
ness
co
mbi
natio
nIn
d AS
103
Reco
gniti
on a
nd
mea
sure
men
t
AS
does
not
pro
vide
any
sp
ecifi
c gu
idan
ce.
A
cqui
sitio
n-re
late
d co
sts
are
cost
s th
e ac
quire
r inc
urs
to e
ffec
t a b
usin
ess
com
bina
tion.
Tho
se c
osts
in
clud
e fin
der�s
fees
; ad
viso
ry, le
gal, a
ccou
ntin
g,
valu
atio
n an
d ot
her
prof
essi
onal
or c
onsu
lting
fe
es; g
ener
al a
dmin
istr
ativ
e co
sts,
incl
udin
g th
e co
sts
of
mai
ntai
ning
an
inte
rnal
ac
quis
ition
s de
part
men
t; an
d co
sts
of re
gist
erin
g an
d is
suin
g de
bt a
nd e
quity
se
curit
ies.
The
acq
uire
r sha
ll ac
coun
t for
ac
quis
ition
-rel
ated
cos
ts a
s ex
pens
es in
the
perio
ds in
w
hich
the
cost
s ar
e in
curr
ed
and
the
serv
ices
are
re
ceiv
ed, w
ith o
ne
exce
ptio
n. T
he c
osts
to
issu
e de
bt o
r equ
ity
secu
ritie
s sh
all b
e re
cogn
ised
in a
ccor
danc
e w
ith In
d AS
32
and
Ind
AS
109.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 56RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Busi
ness
co
mbi
natio
nIn
d AS
103,
In
d AS
38
Valu
atio
n
If a
n in
tang
ible
ass
et is
ac
quire
d in
an
amal
gam
atio
n in
the
natu
re o
f pur
chas
e,
the
sam
e sh
ould
be
acco
unte
d at
cos
t or f
air
valu
e if
the
cost
/fai
r val
ue
can
be re
liabl
y m
easu
red.
If
the
sam
e is
not
relia
bly
mea
sura
ble
it is
incl
uded
as
a pa
rt o
f goo
dwill.
Inta
ngib
le
asse
ts a
cqui
red
in a
n am
alga
mat
ion
in th
e na
ture
of
mer
ger,
or a
cqui
sitio
n of
a
su
bsid
iary
is re
cord
ed
at b
ook
valu
es.
In
acc
orda
nce
with
Ind
AS
103
Busi
ness
Com
bina
tions
, if
an in
tang
ible
ass
et is
ac
quire
d in
a b
usin
ess
com
bina
tion,
the
cost
of
that
inta
ngib
le a
sset
is it
s fa
ir va
lue
at th
e ac
quis
ition
da
te.
In
tang
ible
ass
et a
cqui
red
in
an a
mal
gam
atio
n in
the
natu
re o
f pur
chas
e is
re
cord
ed e
ven
if th
at
inta
ngib
le a
sset
had
not
be
en re
cogn
ised
in th
e fin
anci
al s
tate
men
ts o
f the
tr
ansf
eror
how
ever
, in c
ase
of a
mal
gam
atio
n in
the
natu
re o
f mer
ger i
f the
in
tang
ible
ass
et w
as n
ot
reco
gnis
ed b
y th
e ac
quire
e,
T
he in
tang
ible
is re
cord
ed b
y th
e ac
quire
r irr
espe
ctiv
e of
w
heth
er th
e as
set h
ad b
een
reco
gnis
ed b
y th
e ac
quire
e be
fore
the
busi
ness
co
mbi
natio
n.
| The New Axis of Financial Reporting � Ind AS and ICDS 57 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
th
e ac
quire
r wou
ld n
ot b
e ab
le to
reco
rd th
e sa
me.
Fina
ncia
l in
stru
men
ts -
di
sclo
sure
s
Ind
AS 10
7D
iscl
osur
es
AS
does
not
requ
ire s
imila
r di
sclo
sure
. Dis
clos
ure
requ
irem
ents
spe
cifie
d in
th
e Ac
t are
nee
d to
be
mad
e in
the
finan
cial
sta
tem
ents
.
In
d AS
man
date
di
sclo
sure
s by
cla
ss o
f fin
anci
al in
stru
men
t, of
fset
ting
of fi
nanc
ial
asse
ts a
nd fi
nanc
ial
liabi
litie
s, a
naly
sis
of th
e ga
in o
r los
s re
cogn
ised
re
latin
g to
fina
ncia
l ass
ets
carr
ied
at a
mor
tised
cos
t, its
risk
man
agem
ent
stra
tegy
, cer
tain
qua
litat
ive
and
quan
titat
ive
info
rmat
ion.
Ope
ratin
g Re
port
ing
Ind
AS 10
8Sc
ope
A
S 17
is n
ot a
pplic
able
to
SMCs
.
Ind
AS 10
8 is
app
licab
le to
co
mpa
nies
to w
hich
Ind
AS
notif
ied
unde
r the
Co
mpa
nies
Act
app
ly.
Segm
ent
Repo
rtin
g �
Ch
ange
in
acco
untin
g po
licie
s
Ind
AS 10
8Pr
esen
tatio
n an
d di
sclo
sure
C
hang
es in
acc
ount
ing
polic
ies
adop
ted
for
segm
ent r
epor
ting
that
ha
ve a
mat
eria
l eff
ect o
n se
gmen
t inf
orm
atio
n sh
ould
be
dis
clos
ed. S
uch
disc
losu
re s
houl
d in
clud
e a
If
an
entit
y ch
ange
s th
e st
ruct
ure
of it
s in
tern
al
orga
nisa
tion
in a
man
ner
that
cau
ses
the
com
posi
tion
of it
s re
port
able
seg
men
ts to
ch
ange
, the
cor
resp
ondi
ng
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 58RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
des
crip
tion
of th
e
natu
re o
f th
e ch
ange
, and
the
finan
cial
ef
fect
of t
he c
hang
e if
it is
re
ason
ably
det
erm
inab
le.
No
rest
atem
ent r
equi
red
for
prio
r per
iod
figur
es.
in
form
atio
n fo
r ear
lier
perio
ds, in
clud
ing
inte
rim
perio
ds, s
hall b
e re
stat
ed
unle
ss th
e in
form
atio
n is
not
av
aila
ble
and
the
cost
to
deve
lop
it w
ould
be
ex
cess
ive.
A
S do
es n
ot p
rovi
de a
ny
guid
ance
.
Two
or m
ore
oper
atin
g se
gmen
ts m
ay b
e ag
greg
ated
into
a s
ingl
e op
erat
ing
segm
ent i
f ag
greg
atio
n is
con
sist
ent
with
the
core
prin
cipl
e of
th
is In
d AS
.
Fina
ncia
l in
stru
men
tsIn
d AS
109
Gen
eral
A
S do
es n
ot p
rovi
de
guid
ance
on
the
subj
ect.
A
S 13
dea
l with
acc
ount
ing
for i
nves
tmen
ts in
the
finan
cial
sta
tem
ents
of
ente
rpris
es a
nd re
late
d di
sclo
sure
requ
irem
ents
.
In
d AS
est
ablis
hes
prin
cipl
es
for t
he fi
nanc
ial r
epor
ting
of
finan
cial
ass
ets
and
finan
cial
lia
bilit
ies
that
will
pres
ent
rele
vant
and
use
ful
info
rmat
ion
to u
sers
of
finan
cial
sta
tem
ents
for
thei
r ass
essm
ent o
f the
am
ount
s, ti
min
g an
d un
cert
aint
y of
an
entit
y�s
futu
re c
ash
flow
s.
| The New Axis of Financial Reporting � Ind AS and ICDS 59 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Fina
ncia
l in
stru
men
tsIn
d AS
109
Reco
gniti
on a
nd
mea
sure
men
t
AS
inve
stm
ent a
re in
itial
ly
reco
rded
at c
ost.
Subs
eque
ntly
cur
rent
in
vest
men
t are
car
ried
at
low
er o
f cos
t and
fair
valu
e an
d lo
ng te
rm in
vest
men
ts
are
carr
ied
at c
ost l
ess
prov
isio
n fo
r dim
inut
ion
in
valu
e w
hich
is o
ther
than
te
mpo
rary
.
A
n en
tity
shal
l rec
ogni
se a
fin
anci
al a
sset
or a
fina
ncia
l lia
bilit
y in
its
bala
nce
shee
t w
hen,
and
onl
y w
hen,
the
entit
y be
com
es p
arty
to th
e co
ntra
ctua
l pro
visi
ons
of
the
inst
rum
ent.
Fi
nanc
ial in
stru
men
t are
in
itial
ly m
easu
red
at fa
ir va
lue.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts
Ind
AS 11
0Sc
ope
A
S do
es n
ot m
anda
te
prep
arat
ion
of c
onso
lidat
ed
finan
cial
sta
tem
ents
. H
owev
er if
an
entit
y pr
epar
es c
onso
lidat
ed
finan
cial
sta
tem
ents
it
need
s to
com
ply
with
AS
21.
U
nder
Ind
AS, a
n en
tity
need
s to
pre
pare
co
nsol
idat
ed fi
nanc
ial
stat
emen
ts u
nles
s it
mee
ts
the
exem
ptio
n cr
iteria
.
Ind
AS 11
0 re
quire
s an
ent
ity
(the
par
ent)
that
con
trol
s on
e or
mor
e ot
her e
ntiti
es
(sub
sidi
arie
s) to
pre
sent
co
nsol
idat
ed fi
nanc
ial
stat
emen
ts u
nles
s it
mee
ts
the
exem
ptio
n cr
iteria
pr
escr
ibed
und
er th
e In
d AS
.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts
Ind
AS 11
0Pr
inci
ple
U
nder
AS
it is
pos
sibl
e th
at
an e
ntity
has
mor
e th
an o
ne
pare
nt w
hich
wou
ld
U
nder
Ind
AS, a
n en
tity
can
have
onl
y on
e pa
rent
, whi
ch
wou
ld c
onso
lidat
e th
e en
tity
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 60RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
co
nsol
idat
e th
e en
tity
in
thei
r res
pect
ive
cons
olid
ated
fina
ncia
l st
atem
ents
.
in
its
cons
olid
ated
fina
ncia
l st
atem
ents
.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts -
M
inor
ity in
tere
st In
d AS
110
Pres
enta
tion
and
Dis
clos
ure
M
inor
ity in
tere
sts
are
pres
ente
d se
para
tely
from
lia
bilit
ies
and
equi
ty.
N
on-c
ontr
ollin
g in
tere
sts
in
the
cons
olid
ated
bal
ance
sh
eet a
re p
rese
nted
as
a co
mpo
nent
of e
quity
, se
para
tely
from
the
equi
ty
of th
e ow
ners
of t
he p
aren
t.
A
mou
nt a
ttrib
utab
le to
m
inor
ity in
tere
st a
re
pres
ente
d as
a d
educ
tion
from
net
inco
me
or lo
ss in
st
atem
ent o
f pro
fit a
nd lo
ss.
T
he p
ortio
n of
inco
me
stat
emen
t att
ribut
able
to
non-
cont
rollin
g in
tere
st a
nd
to th
e pa
rent
is s
epar
atel
y di
sclo
sed
on th
e fa
ce o
f the
in
com
e st
atem
ent a
s al
loca
tions
of i
ncom
e st
atem
ent f
or th
e pe
riod.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts�
Lo
ss o
f su
bsid
iary
Ind
AS 11
0Re
cogn
ition
T
he lo
sses
exc
eedi
ng th
e m
inor
ity in
tere
st in
the
equi
ty o
f the
sub
sidi
ary
have
to b
e ad
just
ed a
gain
st
the
maj
ority
inte
rest
, ex
cept
to th
e ex
tent
that
th
e m
inor
ity h
as a
bin
ding
ob
ligat
ion
to, a
nd a
re a
ble
to
In
d AS
110,
loss
es in
curr
ed
by th
e su
bsid
iary
hav
e to
be
allo
cate
d be
twee
n th
e pa
rent
and
non
-con
trol
ling
inte
rest
s, e
ven
if th
is
resu
lts in
def
icit
bala
nce
of
non-
cont
rollin
g in
tere
st.
| The New Axis of Financial Reporting � Ind AS and ICDS 61 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
m
ake
good
the
loss
es. If
the
subs
idia
ry s
ubse
quen
tly
repo
rts
prof
its, a
ll suc
h pr
ofits
are
allo
cate
d to
the
maj
ority
inte
rest
unt
il the
m
inor
ity�s
sha
re o
f los
ses
prev
ious
ly a
bsor
bed
by th
e m
ajor
ity h
as b
een
reco
vere
d.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts-
Repo
rtin
g pe
riod
Ind
AS 11
0, 2
8Sc
ope
In
d AS
requ
irem
ents
are
si
mila
r to
AS. H
owev
er,
unde
r Ind
AS
diff
eren
ce
betw
een
the
repo
rtin
g da
te
of th
e su
bsid
iary
/ jo
intly
co
ntro
lled
entit
y/
asso
ciat
es m
ade
for
sign
ifica
nt tr
ansa
ctio
n an
d ev
ents
to th
ose
finan
cial
st
atem
ents
of s
ubsi
diar
ies/
as
soci
ates
/ JV
dra
wn
up to
di
ffer
ent r
epor
ting
date
to
the
date
of t
he p
aren
t�s
finan
cial
sta
tem
ents
. In a
ny
case
, the
diff
eren
ce
betw
een
repo
rtin
g da
tes
shou
ld n
ot b
e m
ore
than
6
mon
ths.
Fur
ther
, the
leng
th
In
d AS
requ
irem
ents
are
si
mila
r to
AS. H
owev
er,
unde
r Ind
AS
diff
eren
ce
betw
een
the
repo
rtin
g da
te
of th
e su
bsid
iary
/ jo
intly
co
ntro
lled
entit
y/
asso
ciat
es w
hich
is
cons
olid
ated
and
that
of t
he
pare
nt s
hall n
ot b
e m
ore
than
3 m
onth
s.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 62RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
of
the
repo
rtin
g pe
riods
and
an
y di
ffer
ence
in th
e re
port
ing
date
s sh
ould
be
the
sam
e fr
om p
erio
d to
pe
riod.
It
may
als
o be
not
ed th
at, in
ca
se o
f ass
ocia
tes,
AS
does
no
t spe
cific
ally
lay
dow
n co
nditi
on th
at th
e di
ffer
ence
in
repo
rtin
g da
tes
shou
ld n
ot
exce
ed 6
mon
ths.
Cons
olid
ated
Fi
nanc
ial
Stat
emen
ts -
U
nifo
rm
acco
untin
g po
licie
s
Ind
AS 11
0, 2
8M
easu
rem
ent a
nd
disc
losu
re
Con
solid
ated
Fin
anci
al
Stat
emen
ts (C
FS) s
houl
d be
pr
epar
ed u
sing
uni
form
ac
coun
ting
polic
ies
for l
ike
tran
sact
ions
and
oth
er
even
ts in
sim
ilar
circ
umst
ance
s.
C
ompl
ianc
e w
ith u
nifo
rm
acco
untin
g po
licie
s is
m
anda
tory
, unl
ess
in c
ase
of
asso
ciat
es it
is
impr
actic
able
to d
o so
.
If
it is
not
pra
ctic
able
to u
se
unifo
rm a
ccou
ntin
g po
licie
s in
pre
parin
g th
e CF
S, th
at
fact
sho
uld
be d
iscl
osed
to
geth
er w
ith th
e pr
opor
tions
of t
he it
ems
in
the
CFS
to w
hich
the
diff
eren
t acc
ount
ing
polic
ies
If
a m
embe
r of t
he g
roup
us
es a
ccou
ntin
g po
licie
s ot
her t
han
thos
e ad
opte
d in
th
e co
nsol
idat
ed fi
nanc
ial
stat
emen
ts fo
r lik
e tr
ansa
ctio
ns a
nd e
vent
s in
si
mila
r circ
umst
ance
s,
appr
opria
te a
djus
tmen
ts a
re
| The New Axis of Financial Reporting � Ind AS and ICDS 63 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
ha
ve b
een
appl
ied.
Tho
ugh
unifo
rm a
ccou
ntin
g po
licie
s ar
e no
t man
dato
ry,
it is
impo
rtan
t to
note
that
th
ose
polic
ies,
nev
erth
eles
s,
have
to b
e in
com
plia
nce
with
AS.
Join
t ve
ntur
eIn
d AS
111
Mea
sure
men
t &
reco
gniti
on
In s
epar
ate
finan
cial
st
atem
ents
of a
ven
ture
, in
tere
st in
join
tly c
ontr
olle
d en
titie
s sh
ould
be
acco
unte
d as
per
AS 13
�A
ccou
ntin
g fo
r In
vest
men
t�.
In
sep
arat
e fin
anci
al
stat
emen
t of t
he p
aren
t en
tity
inve
stm
ent i
n jo
int
vent
ure
shal
l acc
ount
for
inve
stm
ents
at c
ost o
r in
acco
rdan
ce w
ith In
d AS
109.
m
ade
to th
at g
roup
m
embe
r�s fi
nanc
ial
stat
emen
ts in
pre
parin
g th
e co
nsol
idat
ed fi
nanc
ial
stat
emen
ts to
ens
ure
conf
orm
ity w
ith th
e gr
oup�
s ac
coun
ting
polic
ies.
In
con
solid
ated
fina
ncia
l st
atem
ents
, a v
entu
re
repo
rts
its in
tere
st in
join
tly
cont
rolle
d en
tity
usin
g pr
opor
tiona
te c
onso
lidat
ion
met
hod
unle
ss it
mee
t the
ex
cept
ion
crite
ria, in
whi
ch
case
it s
hall a
ccou
nt
inve
stm
ent i
n ac
cord
ance
w
ith A
S 13
Acc
ount
ing
for
Inve
stm
ents
.
In
con
solid
ated
fina
ncia
l st
atem
ents
a v
entu
rer s
hall
acco
unts
for t
he in
vest
men
t in
join
t ven
ture
usi
ng th
e eq
uity
met
hod,
unl
ess
the
entit
y is
exe
mpt
from
ap
plyi
ng e
quity
met
hod
in
acco
rdan
ce w
ith th
e In
d AS
.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 64RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Fair
valu
e m
easu
rem
ent
Ind
AS 11
3Sc
ope,
app
licat
ion
and
disc
losu
res
A
S do
es n
ot p
rovi
de a
ny
spec
ific
guid
ance
.
Ind
AS 11
3 ap
plie
s w
hen
anot
her I
nd A
S re
quire
s or
pe
rmits
fair
valu
e m
easu
rem
ents
or
disc
losu
res
abou
t fai
r val
ue
mea
sure
men
ts (a
nd
mea
sure
men
ts, s
uch
as fa
ir va
lue
less
cos
ts to
sel
l, ba
sed
on fa
ir va
lue
or
disc
losu
res
ab
out
thos
e m
easu
rem
ents
), ex
cept
as
spec
ified
in th
e In
d AS
.
Fair
valu
e is
the
pric
e th
at
wou
ld b
e re
ceiv
ed to
sel
l an
asse
t or p
aid
to tr
ansf
er a
lia
bilit
y in
an
orde
rly
tran
sact
ion
betw
een
mar
ket p
artic
ipan
ts a
t the
m
easu
rem
ent d
ate.
To
incr
ease
con
sist
ency
and
co
mpa
rabi
lity
in fa
ir va
lue
mea
sure
men
ts a
nd re
late
d di
sclo
sure
s, th
is In
d AS
es
tabl
ishe
s a
fair
valu
e hi
erar
chy
that
cat
egor
ises
in
to th
ree
leve
ls.
| The New Axis of Financial Reporting � Ind AS and ICDS 65 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
The
fair
valu
e hi
erar
chy
give
s th
e h
ighe
st p
riorit
y to
qu
oted
pric
es in
ac
tive
mar
ket f
or id
entic
al a
sset
s or
liabi
litie
s (le
vel 1
inpu
ts)
and
low
est p
riorit
y to
un
obse
rvab
le in
puts
(lev
el 3
in
puts
).
Ind
AS p
resc
ribes
var
ious
di
sclo
sure
on
the
basi
s of
fa
ir va
lue
mea
sure
men
t and
cl
assi
ficat
ion
as p
er fa
ir va
lue
hier
arch
y.Re
venu
e fr
om
cont
ract
s w
ith
cust
omer
Ind
AS 11
5Sc
ope
A
S 9
deal
s w
ith re
cogn
ition
of
reve
nue
aris
ing
in th
e co
urse
of t
he o
rdin
ary
activ
ities
of t
he e
nter
pris
e fr
om:
1.
sale
of g
oods
2.
ren
derin
g of
ser
vice
s
3. i
nter
est,
roya
lties
and
divi
dend
s
In
d AS
115
appl
y to
all
cont
ract
s w
ith c
usto
mer
s,
exce
pt le
ase,
insu
ranc
e,
finan
cial
inst
rum
ents
, bar
ter
tran
sact
ion
betw
een
entit
ies
in s
ame
line
of
busi
ness
to fa
cilit
ate
sale
s to
cus
tom
ers
or p
oten
tial
cust
omer
s.
AS
7 de
als
with
acc
ount
ing
trea
tmen
t of r
even
ue a
nd
cost
s as
soci
ated
with
co
nstr
uctio
n c
ontr
acts
.
A
con
trac
t is
an a
gree
men
t be
twee
n tw
o or
mor
e pa
rtie
s th
at c
reat
es
enfo
rcea
ble
right
s an
d ob
ligat
ions
.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 66RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
R
even
ue re
cogn
ition
is
mai
nly
conc
erne
d w
ith th
e tim
ing
of re
cogn
ition
of
reve
nue
in th
e st
atem
ent o
f pr
ofit
and
loss
of a
n en
terp
rise.
R
even
ue is
reco
gnis
ed
whe
n th
e se
ller h
as
tran
sfer
red
to th
e bu
yer
prop
erty
in g
oods
or a
ll si
gnifi
cant
risk
s an
d re
war
ds
of o
wne
rshi
p an
d re
tain
s no
ef
fect
ive
cont
rol o
f the
go
ods
asso
ciat
ed w
ith
owne
rshi
p; a
nd n
o si
gnifi
cant
unc
erta
inty
ex
ists
rega
rdin
g th
e co
nsid
erat
ion.
R
even
ue fr
om s
ervi
ce
tran
sact
ions
as
per A
S 9
is
usua
lly re
cogn
ised
as
the
serv
ice
is p
erfo
rmed
, eith
er
by th
e pr
opor
tiona
te
com
plet
ion m
etho
d or
by
the
com
plet
ed s
ervi
ce
cont
ract
met
hod.
In
d AS
lay
dow
n 5
step
pr
oces
s fo
r rec
ogni
tion
of
reve
nue:
�
Ste
p 1 -
Iden
tify
the
co
ntra
ct w
ith a
cus
tom
er
� S
tep
2 �
Iden
tify
the
pe
rfor
man
ce o
blig
atio
ns
in
the
cont
ract
�
Ste
p 3
�
D
eter
min
e th
e tr
ansa
ctio
n
pric
e
� S
tep
4 �
Allo
cate
the
tr
ansa
ctio
n pr
ice
to th
e
perf
orm
ance
obl
igat
ion
in
th
e co
ntra
ct
� S
tep
5 �
reco
gniz
e th
e re
venu
e
whe
n (o
r as)
the
entit
y
satis
fies
a pe
rfor
man
ce
ob
ligat
ion.
A
n en
tity
shal
l rec
ogni
se
reve
nue
whe
n (o
r as)
the
entit
y sa
tisfie
s a
perf
orm
ance
obl
igat
ion
by
tran
sfer
ring
a pr
omis
ed g
ood
or s
ervi
ce to
| The New Axis of Financial Reporting � Ind AS and ICDS 67 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
a
cust
omer
. The
tran
sfer
ta
kes
plac
e w
hen
cust
omer
ob
tain
s co
ntro
l of t
hat
asse
t.
Whe
n a
cont
ract
doe
s no
t m
eet t
he c
riter
ia s
peci
fied
in th
e In
d AS
, and
co
nsid
erat
ion
is re
ceiv
ed
from
cus
tom
er, t
he e
ntity
sh
all r
ecog
nise
d co
nsid
erat
ion
rece
ived
as
reve
nue
whe
n ei
ther
of t
he
follo
win
g ev
ent h
as
occu
rred
:
1. Th
e en
tity
has
no
re
mai
ning
obl
igat
ion
and
al
l or s
ubst
antia
lly a
ll, of
the
con
side
ratio
n
has
been
rece
ived
and
is
no
n-re
fund
able
; or
2.
The
con
trac
t has
bee
n
term
inat
ed a
nd th
e
cons
ider
atio
n re
ceiv
ed
fr
om th
e cu
stom
er is
non-
refu
ndab
le.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 68RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
�
unila
tera
l rig
ht
The
re is
no
spec
ific
guid
ance
av
aila
ble
unde
r AS.
U
nder
Ind
AS, a
con
trac
t do
es n
ot e
xist
if e
ach
part
y to
the
cont
ract
has
the
unila
tera
l enf
orce
able
righ
t to
term
inat
e a
who
lly
unpe
rfor
med
con
trac
t w
ithou
t com
pens
atin
g th
e ot
her p
arty
(or p
artie
s).
C
onsi
dera
tion
rece
ived
w
ould
be
acco
unte
d as
re
venu
e ba
sed
usin
g cr
iteria
sp
ecifi
ed in
Ind
AS.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
�
cont
ract
co
mbi
natio
n/m
odifi
catio
n
A
S 9
is s
ilent
on
the
mat
ter.
How
ever
, AS
7 pr
ovid
es
guid
ance
on
com
bini
ng a
nd
segm
entin
g co
nstr
uctio
n co
ntra
cts.
C
ontr
act c
ombi
natio
n ha
ppen
s w
hen
entit
y ne
eds
to a
ccou
nt fo
r tw
o or
mor
e co
ntra
ct a
s fo
r 1 c
ontr
act
and
not s
epar
atel
y as
per
In
d AS
.
A c
ontr
act m
odifi
catio
n is
a
chan
ge in
the
scop
e or
pric
e (o
r bot
h) o
f a c
ontr
act t
hat
is a
ppro
ved
by th
e pa
rtie
s to
th
e co
ntra
ct. In
d A
s re
quire
s co
ntra
ct m
odifi
catio
n to
be
acco
unte
d as
sep
arat
e co
ntra
ct if
follo
win
g tw
o
| The New Axis of Financial Reporting � Ind AS and ICDS 69 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
co
nditi
ons
are
satis
fied:
1. S
cope
of c
ontr
act
in
crea
ses
due
to a
dditi
on
of
goo
ds o
r ser
vice
s th
at
ar
e di
stin
ct; a
nd
2. In
crea
se in
con
side
ratio
n
refle
cts
that
sta
nd-a
lone
sellin
g pr
ices
of a
dditi
onal
good
s or
ser
vice
s.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
-
Mul
tiple
ele
men
t ar
rang
emen
ts
Th
ere
is n
o sp
ecifi
c gu
idan
ce
avai
labl
e un
der A
S.
Ind
AS 11
5 re
quire
s id
entif
icat
ion
of e
ach
perf
orm
ance
obl
igat
ion
sepa
rate
ly.
T
he re
cogn
ition
crit
eria
ca
nnot
be
appl
ied
to tw
o or
m
ore
oblig
atio
n to
geth
er if
fo
llow
ing
two
crite
ria a
re
met
:
1. G
oods
or s
ervi
ce is
capa
ble
of b
eing
dis
tinct
;
and
2.
The
pro
mis
e to
tran
sfer
the
good
or s
ervi
ce
is
sep
arat
ely
iden
tifia
ble
fr
om o
ther
pro
mis
es
in
the
cont
ract
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 70RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
T
he tr
ansa
ctio
n pr
ice
is
allo
cate
d to
eac
h pe
rfor
man
ce o
blig
atio
n on
th
e ba
sis
of th
eir r
elat
ive
stan
d-al
one
sellin
g pr
ice,
su
bjec
t to
Ind
AS c
riter
ia fo
r al
loca
tion
of d
isco
unts
and
va
riabl
e co
nsid
erat
ion.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5M
easu
rem
ent �
tr
ansa
ctio
n pr
ice
A
S re
quire
s th
at re
venu
e is
m
easu
rabl
e an
d th
at a
t the
tim
e of
sal
e or
the
rend
erin
g of
the
serv
ice
it w
ould
not
be
unr
easo
nabl
e to
exp
ect
ultim
ate
colle
ctio
n. W
here
th
e ul
timat
e co
llect
ion
cann
ot b
e re
ason
ably
as
cert
aine
d, re
venu
e re
cogn
ition
is p
ostp
oned
.
T
he tr
ansa
ctio
n pr
ice
is th
e am
ount
of c
onsi
dera
tion
to
whi
ch a
n en
tity
expe
cts
to
be e
ntitl
ed in
exc
hang
e fo
r tr
ansf
errin
g pr
omis
ed g
oods
or
ser
vice
s to
a c
usto
mer
, ex
clud
ing
amou
nts
colle
cted
on
beh
alf o
f thi
rd p
artie
s (fo
r exa
mpl
e, s
ome
sale
s ta
xes)
.
The
con
side
ratio
n pr
omis
ed
in a
con
trac
t with
a
cust
omer
may
incl
ude
fixed
am
ount
s, v
aria
ble
amou
nts,
or
bot
h.
N
on-c
ash
cons
ider
atio
n is
m
easu
red
at fa
ir va
lue.
If fa
ir va
lue
cann
ot b
e re
ason
ably
| The New Axis of Financial Reporting � Ind AS and ICDS 71 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
Back to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
es
timat
ed th
e co
nsid
erat
ion
is m
easu
red
with
refe
renc
e to
sta
nd-a
lone
sel
ling
pric
e to
the
cust
omer
or c
lass
of
cust
omer
.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
�
cont
ract
cos
t
AS
7, C
ontr
act c
osts
incl
ude
the
cost
s at
trib
utab
le to
a
cont
ract
for t
he p
erio
d fr
om
the
date
of s
ecur
ing
the
cont
ract
to th
e fi
nal
com
plet
ion
of th
e co
ntra
ct.
How
ever
, cos
ts t
hat r
elat
e di
rect
ly t
o a
cont
ract
and
w
hich
are
incu
rred
in
secu
ring
the
cont
ract
are
al
so in
clud
ed a
s pa
rt o
f the
co
ntra
ct c
osts
if th
ey c
an b
e se
para
tely
iden
tifie
d an
d m
easu
red
relia
bly
and
it is
pr
obab
le th
at th
e co
ntra
ct
will
be o
btai
ned.
A
n en
tity
shal
l rec
ogni
se a
s an
ass
et th
e in
crem
enta
l co
sts
of o
btai
ning
a c
ontr
act
with
a c
usto
mer
if th
e en
tity
expe
cts
to r
ecov
er th
ose
cost
s. T
he in
crem
enta
l co
sts
of o
btai
ning
a
cont
ract
are
thos
e co
sts
that
an
entit
y in
curs
to
obta
in a
con
trac
t with
a
cust
omer
that
it w
ould
not
ha
ve in
curr
ed if
the
cont
ract
ha
d no
t bee
n ob
tain
ed (f
or
exam
ple,
a s
ales
co
mm
issi
on).
W
hen
cost
s in
curr
ed in
se
curin
g a
cont
ract
are
re
cogn
ised
as
an e
xpen
se in
th
e pe
riod
in w
hich
they
are
in
curr
ed, t
hey
are
not
C
osts
to o
btai
n a
cont
ract
th
at w
ould
hav
e be
en
incu
rred
rega
rdle
ss o
f w
heth
er th
e co
ntra
ct w
as
obta
ined
sha
ll be
reco
gnis
ed
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 72RSMBack to Content
Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
as
an
expe
nse
whe
n in
curr
ed, u
nles
s th
ose
cost
s ar
e ex
plic
itly
char
geab
le to
th
e cu
stom
er re
gard
less
of
whe
ther
the
cont
ract
is
obta
ined
.
in
clud
ed in
con
trac
t cos
ts
whe
n th
e co
ntra
ct is
ob
tain
ed in
a s
ubse
quen
t pe
riod.
Reve
nue
from
co
ntra
cts
with
cu
stom
er
Ind
AS 11
5Re
cogn
ition
and
m
easu
rem
ent �
se
rvic
e co
nces
sion
ar
rang
emen
ts
N
o sp
ecifi
c gu
idan
ce u
nder
AS
.
Ind
AS p
rovi
des
deta
iled
guid
ance
on
reco
gniti
on a
nd
clas
sific
atio
n
depe
ndin
g on
the
term
s of
th
e ar
rang
emen
ts. T
he
arra
ngem
ent i
s ac
coun
ted
as fi
nanc
ial a
sset
or a
n in
tang
ible
ass
et.
If
the
arra
ngem
ent g
ives
co
ntra
ctua
l rig
ht to
rece
ive
cash
or a
noth
er fi
nanc
ial
asse
t, th
e co
ntra
ctor
(e
ntity
) sha
ll rec
ogni
ze a
fin
anci
al a
sset
.
If th
e ar
rang
emen
ts g
ives
rig
ht (l
icen
ce) t
o ch
arge
us
ers
of th
e pu
blic
ser
vice
, th
e co
ntra
ctor
(ent
ity) s
hall
reco
gniz
e an
inta
ngib
le
asse
t.
| The New Axis of Financial Reporting � Ind AS and ICDS 73 RSM
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
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Requ
irem
ents
as
per
AS
Cate
gory
Topi
cIn
d AS
Requ
irem
ents
as
per
Ind
AS
W
here
the
retu
rns
are
part
ly
in fo
rm o
f fin
anci
al a
sset
s an
d pa
rtly
inta
ngib
le, e
ach
com
pone
nt is
acc
ount
ed
sepa
rate
ly.
Chapter 3 Ind AS Vs. IFRS Vs. Indian GAAP (AS)
|The New Axis of Financial Reporting � Ind AS and ICDS 74RSMBack to Content
4.1 Brief Background of ICDS
Section 145(1) of the Income-tax Act, 1961 (�the IT Act�) provides that the income chargeable under the heads 'Profits and gains of business or profession' or 'Income from other sources' be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Section 145(2) of the IT Act provides that the Central Government may notify Income Computation and Disclosure Standards (ICDS) for any class of assessees or for any class of income.
1 On this background, the Central Government notified 10 ICDS vide
Notification No. 32 of 2015 dated 31st March, 2015.
4.2 Comparison of ICDS and Ind AS
Chapter 4 Ind AS Vs. ICDS � Key Differences
ICDS Ind AS
To minimise alternatives, reduce litigation and provide certainty while computing income under the IT Act
To converge with global reporting standards in an integrated global markets
Objective
FY 2015-16 FY 2016-17 with comparative figures for FY 2015-16
Applicable
from
All persons following mercantile system of accounting
Specified companies
ApplicableTo
Computation of Income under �Business and Profession� and �Other Sources� and not for the purpose of maintenance of books of accounts
Preparation and Presentation of financial statements
Applicable
For
1. Certain provisions of ICDS may be further clarified by the CBDT as the expert committee is at present examining the issues based on the suggestion by the stakeholders - Press release dated 26 November 2015.
|The New Axis of Financial Reporting � IND AS and ICDS 76RSMBack to Content
Chapter 4 Ind AS Vs. ICDS � Key Differences
ICDS Ind AS
No. Particulars
4.3 A comparative list of ICDS Vs. corresponding Ind AS is as under:
No. Particulars
I
IIIIIIV
VVI
VII
VIII
IXX
Disclosure of Accounting Policies
Valuation of InventoriesConstruction ContractRevenue Recognition
Tangible Fixed AssetsThe effects of changes in foreign exchange ratesGovernment Grants
Securities
Borrowing CostsProvisions, Contingent Liabilities and Contingent Assets
1
8
21151151091621
20
109
2337
Presentation of Financial StatementsAccounting Policies, Changes in Accounting Estimates and ErrorsInventoriesRevenue from ContractsRevenue from ContractsFinancial InstrumentsProperty, Plant and EquipmentThe Effects of Changes in Foreign Exchange RatesAccounting for Government Grants and Disclosure of Government AssistanceFinancial instruments(Ind AS 32 and Ind AS 107 forpresentation and disclosure )Borrowing CostsProvisions, Contingent Liabilities and Contingent Assets
4.4 Key differences � ICDS Vs. Ind AS
As per ICDSAres ofDifferences
As per Ind AS
Scope Deals with disclosure of accounting policies only.
Deals with presentation of financial statements and is much wider in scope.
ICDS I Vs. Ind AS 1 / Ind AS 8
Deviation Deviation from ICDS-I allowed only if
Deviation from requirement of an Ind AS allowed if
| The New Axis of Financial Reporting � IND AS and ICDS 77 RSMBack to Content
Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 78RSM
As per ICDSAres ofDifferences
As per Ind AS
True and fair Accounting policies adopted by a person shall be such so as to represent a true and fair view of the state of affairs and income of the business, profession or vocation. Deviation from ICDS not allowed if deviation would help showing a true and fair view. Concept of 'true and fair' is there but not the concept of 'true and fair override'.
Deviation subject to certain criteria. This is known as 'true and fair override'. Concepts of both 'true and fair' and of 'true and fair override' are there.
requirements of ICDS-I would conflict with the Act.
management concludes that compliance would make financial statements misleading and if the relevant regulatory framework requires, or otherwise does not prohibit, such a departure.
Materiality Concept of Materiality absent. An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial except when required by law.
Change in accounting policy
An accounting policy shall not be changed without any reasonable cause.
Change in accounting policy should be made only if it is required by Ind AS or if such change will result in financial statements providing reliable and more relevant information.
Assessment of appropriateness of Going
No guidance on how assessment of appropriateness of GCA is to be
In assessing whether the going concern assumption is appropriate, management
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 79 RSM
As per ICDSAres ofDifferences
As per Ind AS
done. takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. The degree of consideration depends on the facts in each case. When an entity has a history of profitable operations and ready access to financial resources, the entity may reach a conclusion that the going concern basis of accounting is appropriate without detailed analysis. In other cases, management may need to consider a wide range of factors relating to current and expected profitability, debt repayment schedules and potential sources of replacement financing before it can satisfy itself that the going concern basis is appropriate. [Para 26 of Ind AS 1]
Disclosures required if GCA is not followed
If a fundamental accounting assumption is not followed, the fact shall be disclosed.
When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not regarded as a going concern.
Costs of Cost of inventories shall The cost of inventories shall
Concern Assumption (�GCA�)
ICDS II Vs. Ind AS 2
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 80RSM
As per ICDSAres ofDifferences
As per Ind AS
comprise of all costs of purchase, costs of services, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of purchase shall consist of purchase price including duties and taxes, freight inwards and other expenditure directly attributable to the acquisition. Trade discounts, rebate and other similar items shall be deducted.
comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of purchase shall consist of purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight in- wards and other expenditure directly attributable to the acquisition.
Reversal of write-down of inventories when NRV increases
Silent Reversal of write down shall be reduced from the amount of inventories recognised as an expense in the period in which the reversal occurs when such NRV increases.
Purchase
Inventory of service providers
The costs of services in the case of a service provider shall consist of labour and other costs of personnel directly engaged in providing the service including supervisory personnel and attributable overheads.
Inventory of service providers is measured at cost of production. These will generally include labour and other cost of personnel directly engaged in providing the services, including supervisory personnel and attributable overhead. It has been expressly provided that Labour and other costs relating to sales and general administrative personnel, profit margins or non-attributable overheads,
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 81 RSM
As per ICDSAres ofDifferences
As per Ind AS
are not to be included.
Techniques for the Measurement of Cost
Where it is impracticable to use the costing methods (i.e. FIFO / WAV) retail method can be used in the retail trade for measuring inventories of large number of rapidly changing items that have similar margins. Standard cost method is not permitted.
Techniques for the measurement of the cost of inventories, such as the standard cost method or the retail method, may be used for convenience if the results approximate cost. Standard costs take into account normal levels of materials and supplies, labour, efficiency and capacity utilisation. They are regularly reviewed and, if necessary, revised in the light of current conditions.
The same cost formula for all inventories having a similar nature and use to the entity.
No such stipulation. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified. E.g. inventories used in one operating segment may have a use to the entity different from the same type of inventories used in another operating segment. However, a difference in geographical location of inventories (or in the respective tax rules), by itself, is not sufficient to justify the use of different cost formulas.
Valuation of inventory on dissolution of a
In case of dissolution of a partnership firm or association of person or body of
No such stipulation.
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 82RSM
As per ICDSAres ofDifferences
As per Ind AS
partnership firm or association of person or body of individuals
individuals, notwithstanding whether business is discontinued or not, the inventory on the date of dissolution shall be valued at the net realisable value.
Value of opening inventory
The value of the inventory as on the beginning of the previous year shall be :(i) the cost of inventory available, if any, on the day of the commencement of the business when the business has commenced during the previous year; and(ii) the value of the inventory as on the close of the immediately preceding previous year, in any other case.
No such stipulation.
ICDS III Vs. Ind AS 115Scope This ICDS shall be applied in
determination of income for a construction contract of a contractor.
Ind AS 115 is single comprehensive standard to be applied for recognition of revenue from all contracts with customer.
Retention Money
This ICDS provides that contract revenue including retention money shall be recognized on basis of percentage of completion method.
As per Ind AS 115, consideration promised in a contract with customer shall include fixed amount, variable amount or both.It further provides that consideration promised in a contract can vary if an entity�s entitlement to the consideration is contingent on
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 83 RSM
As per ICDSAres ofDifferences
As per Ind AS
Cost incurred for securing a contract included as part of contract cost
if (a) they can be separately identified; and (b) it is probable that the contract shall be obtained.
An entity shall recognise the incremental costs of obtaining a contract as an asset if the entity expects to recover those costs.Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognised as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.
the occurrence or non-occurrence of a future event. In such a case, the same shall be estimated as per the prescribed methods.
Criteria for recognition of variations in contract work, claims and incentive payments
Variations in contract work, claims and incentive payments shall be recognised(i) to the extent that it is probable that they will result in revenue; and(ii) they are capable of being reliably measured.
Detailed recognition criteria specified in Ind AS 115.
Recognition of contract costs and contract revenues with reference to stage of completion of
Contract revenue and contract costs associated with the construction contract should be recognised as revenue and expenses respectively by reference to the stage of completion of the contract
Ind AS 115 lay down 5 step process for recognition of revenue:Step 1 - Identify the contract with a customerStep 2 � Identify the performance obligations in the
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 84RSM
As per ICDSAres ofDifferences
As per Ind AS
the contract activity at the reporting date (percentage of completion method)
activity at the reporting date. During early stages of a contract, where the outcome of the contract cannot be estimated reliably contract revenue is recognized only to the extent of cost incurred. The early stages of contract shall not extend beyond 25% of the stage of completion.
contractStep 3 � Determine the transaction priceStep 4 � Allocate the transaction price to the performance obligation in the contractStep 5 � recognize the revenue when (or as) the entity satisfies a performance obligation.It further provides that in some circumstances (for example, in the early stages of a contract), an entity may not be able to reasonably measure the outcome of a performance obligation, but the entity expects to recover the costs incurred in satisfying the performance obligation. In those circumstances, the entity shall recognise revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.
Expected losses on the contract
ICDS III does not provide any specific guidance.
After contract inception, the transaction price can change for various reasons, including the resolution of uncertain events or other changes in circumstances that change the amount of consideration to which an entity expects to be
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ICDS IV Vs. Ind AS 115 / Ind AS 109
Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 85 RSM
As per ICDSAres ofDifferences
As per Ind AS
entitled in exchange for the promised goods or services.Amounts allocated to a satisfied performance obligation shall be recognised as a reduction of revenue, in the period in which the transaction price changes.
Time value concept in measurement of contract revenue
No such stipulation. Ind AS 115 requires transaction price to be adjusted for the effect of the time value of money in case of significant financing component. Ind AS also provides factors that would indicate existence of financing component. However, it also provide that an entity need not adjust the consideration if period is one year or less.
Definition of 'revenue'
'Revenue' is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of a person from the sale of goods, from the rendering of services, or from the use by others of the person's resources yielding interest, royalties or dividends.
Ind AS 115 defines revenue as income arising in the course of an entity�s ordinary activities. Income is defined as Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.
Effects of Uncertainties on
Postponement of revenue due to uncertainty is restricted to
As per Ind AS 115, the consideration promised in a
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 86RSM
As per ICDSAres ofDifferences
As per Ind AS
Revenue Recognition
claims for price escalation and export incentives.
contract with a customer may include fixed amounts, variable amounts, or both. Variable consideration shall be included in transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
Revenue from rendering of services when outcome cannot be estimated reliably
The requirements of ICDS III shall mutatis mutandis apply to the recognition of revenue and the associated expenses for a service transaction. As such, the recognition of revenue cannot be postponed beyond 25% of stage of completion.
Ind AS 115 provides that in some circumstances (E.g. in the early stages of a contract), an entity may not be able to reasonably measure the outcome of a performance obligation, but the entity expects to recover the costs incurred in satisfying the performance obligation. In those circumstances, the entity shall recognise revenue only to the extent of the costs incurred until such time that it can reasonably measure the outcome of the performance obligation.
Taxes collected from buyer/client whether includible in revenue?
ICDS-IV silent in this regard. However, section 145A(1)(a) of the IT Act requires that taxes collected from buyer on sale of goods shall be included in the valuation of sale of goods.
Revenue (transaction price) is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer,
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 87 RSM
As per ICDSAres ofDifferences
As per Ind AS
Section 145A(1)(a) does not apply to amounts received from rendering of services.
excluding amounts collected on behalf of third parties (E.g. some sales taxes).
Barter Transactions
ICDS-IV silent in this regard. Ind AS 115 provides that the transaction price for contracts in which a customer promises consideration in a form other than cash, an entity shall measure the non-cash consideration (or promise of non-cash consideration) at fair value.
Dividend income Dividends are recognised in accordance with the provisions of the IT Act.
Dividends are recognised in profit and loss only when:i) right to receive payment is establishedii) it is probable that economic benefit associated with the dividend will flow to the entity; and iii) the amount of dividend can be measured reliably. (Ind AS 109)
Recognition of revenue from interest
Interest shall accrue on the time basis determined by the amount outstanding and the rate applicable.
Interest shall be recognised by effective interest rate method. (Ind AS 109)
ICDS V Vs. Ind AS 16Criteria for initial recognition
As per ICDS-V, any item which meets the definition of a tangible fixed asset should be classified as a fixed asset.
Ind AS 16, in addition to defining the fixed assets, lays down the following criteria for recognition of items of property, plant and equipment: (i) It is probable that future economic benefits
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 88RSM
As per ICDSAres ofDifferences
As per Ind AS
associated with the item will flow to the entity, and (ii) The cost of the item can be measured reliably.
Criteria for recognition of subsequent expenditure
Subsequent expenditures are capitalised only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.
Same as criteria for initial recognition as above.
Major spare parts � Capitalisation
Only those spares are required to be capitalised which can be used only in connection with a fixed asset and whose use is expected to be irregular.
Major spare parts qualify as property, plant and equipment when an entity expects to use them during more than one period and when they can be used only in connection with an item of property, plant and equipment.
Cost of major inspections
Does not deal with this aspect.
Requires that the cost of major inspections should be capitalised if the recognition criteria are satisfied with consequent de-recognition of any remaining carrying amount of the cost of the previous inspection.
Costs of dismantling and removing the item of property, plant & equipment and restoring the site.
Does not contain any such requirement.
Requires that the initial estimate of the said costs be included in the cost of the respective item of the cost of plant and equipment.
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ICDS VI Vs. Ind AS 21
Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 89 RSM
As per ICDSAres ofDifferences
As per Ind AS
Forward exchange contracts and options
It covers the same. Excludes from its scope forward exchange contracts and other similar financial instruments, which are treated in accordance with Ind AS-39.
Definition of foreign operation
Foreign operation of a person is a branch, by whatever name called, of that person, the activities of which are based or conducted in a country other than India.
Foreign operation is an entity that is a subsidiary, associate, joint arrangement or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.
Non-monetary items at year end
ICDS VI requires all non-monetary items in a foreign currency shall be converted into reporting currency by using the exchange rate at the date of the transaction.
ICDS VI requires all non-monetary items in a foreign currency shall be converted into reporting currency by using the exchange rate at the date of the transaction. In respect of non-monetary items,
Non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was measured.
In respect of non-monetary items, exchange differences arising on conversion thereof at the last day of the previous year shall not be recognised as income or as expense in that previous year.
Exchange differences arising on certain long
No option is allowed, i.e. to be recognised to profit and loss immediately.
Option is provided to recognize the same to equity directly and systematically recognise it to profit and loss account over the life of that monetary item. Option is to be exercised once
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ICDS VII Vs. Ind AS 20
Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 90RSM
As per ICDSAres ofDifferences
As per Ind AS
and is irrevocable and to be applied to all such items.
Recognition of Government grants
Government grants should not be recognised until there is reasonable assurance that (i) the person shall comply with the conditions attached to them, and (ii) the grants shall be received. Recognition of Government grant shall not be postponed beyond the date of actual receipt.
Government grants, including non-monetary grants at fair value, shall not be recognised until there is reasonable assurance that: (a) the entity will comply with the conditions attaching to them; and(b) the grants will be received Mere receipt of a grant is not necessarily conclusive evidence that the conditions attached to the grant have been or will be fulfilled.
Grants relating to assets
Grants relating to depreciable asset are deducted from the actual cost of the assets or assets concerned or from the written down value of block of assets to which the concerned asset or assets belong to.No stipulation regarding grant for non-depreciable asset.
Government grants related to assets, including non-monetary grants at fair value, shall be presented in the balance sheet by setting up the grant as deferred income.
Government Assistance which does not fall within the definition of Government grants
Does not deal with such Government assistance.
Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria.
Loan at concessional
Silent Such loan shall be recognized as per Ind-AS 39.
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 91 RSM
ICDS VIII Vs. Ind AS 109
As per ICDSAres ofDifferences
As per Ind AS
The value of concession shall be difference between the proceeds received and the initial carrying value (determined as per Ind-AS 39) shall be treated as grant as per this standard.
Scope Deals with securities held as stock in trade.
Much wider in scope and applies to all types of financial instruments (exceptions specified).
rates of interest
Valuation of Non-Monetary grants given at a concessional rate
It requires that non-monetary assets, given at a concessional rate, should be accounted for on the basis of their acquisition cost.
It requires to value non-monetary grants at their fair value.
Initial measurement of securities
A security on acquisition shall be recognised at actual cost. The actual cost of a security shall comprise of its purchase price and include acquisition charges such as brokerage, fees, tax duty or cess.
At initial recognition, an entity shall measure a financial asset (except trade receivable) or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.
Subsequent measurement of securities
Securities held as stock in trade shall be valued at actual cost initially recognised or net realizable value at the end of previous year, whichever is lower.
An entity shall subsequently measure a financial asset at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of:
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Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 92RSM
ICDS IX Vs. Ind AS 23
As per ICDSAres ofDifferences
As per Ind AS
a. the entity�s business model for managing the financial assets and b. the contractual cash flow characteristics of the financial asset.
Qualifying asset measured at fair value
Applicable to all qualifying assets.
Does not apply to borrowing costs directly attributable to qualifying asset measured at fair value, E.g. a biological asset.
Applicability to Inventories
Applicable to borrowing costs related to all inventories that require substantial period of time to bring them in saleable condition.
Excludes the application of this Standard to borrowing costs directly attributable to inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis.
Securities not listed on a recognised stock exchange, or listed but not quoted on a recognized stock exchange with regularity from time to time, shall be valued at actual cost initially recognised.
Definition of 'Borrowing costs'
'Borrowing costs' are interest and other costs incurred by a person in connection with the borrowing of funds and include: (i) commitment charges on borrowings; (ii) amortised amount of discounts or premiums relating to borrowings; (iii) amortised amount of ancillary costs incurred in connection with the arrangement of borrowings; (iv) finance charges in respect of assets acquired under finance leases or under other
'Borrowing costs' are interest and other costs incurred by an enterprise in connection with the borrowing of funds. Borrowing costs may include: (a) interest and commitment charges on bank borrowings and other short-term and long-term borrowings; (b) amortisation of discounts or premiums relating to borrowings; (c) amortisation of ancillary costs incurred in connection with the arrangement of borrowings;
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 93 RSM
As per ICDSAres ofDifferences
As per Ind AS
(d) finance charges in respect of assets acquired under finance leases or under other similar arrangements; and (e) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.
Definition of qualifying asset
'Qualifying asset' means: (i) land, building, machinery, plant or furniture, being tangible assets; (ii) know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets; (iii) Inventories that require a period of twelve months or more to bring them to a saleable condition.
A qualifying asset is an asset that necessarily takes a substantial period of time to getready for its intended use or sale.
similar arrangements.
Commence of capitalisation
Capitalisation of borrowing costs shall commence: (a) in a case funds are borrowed specifically, from the date on which funds were borrowed; (b) in a case funds are borrowed generally and utilised, from the date on which funds were utilised.
Capitalisation of borrowing costs shall commence when all the following conditions are satisfied: (a) expenditure for the acquisition, construction or production of a qualifying asset is being incurred; (b) borrowing costs are being incurred; and (c) activities that are necessary to prepare the asset
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ICDS X Vs. Ind AS 37
Chapter 4 Ind AS Vs. ICDS � Key Differences
|The New Axis of Financial Reporting � IND AS and ICDS 94RSM
As per ICDSAres ofDifferences
As per Ind AS
for its intended use or sale are in progress.
Cessation of capitalisation
Capitalisation of borrowing costs shall cease: (a) in case of assets, when such asset is first put to use; (b) in case of inventory, when substantially all the activities necessary to prepare such inventory for its intended sale are complete.
Capitalisation of borrowing costs should cease when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.
Suspension of Capitalisation
ICDS IX does not provide any guidance on the matter.
Capitalisation of borrowing costs should be suspended during extended periods in which active development is interrupted.
Recognition of provision
It is reasonably certain that an outflow of resources embodying economic benefits will be required to settle the obligation.
An outflow of resources embodying economic benefit required to settle an obligation should be probable.
Recognition of contingent assets
When it becomes reasonably certain that inflow of economic benefit will arise, the asset and related income are recognized. The amount recognised as asset and related income shall be the best estimate of the value of economic benefit arising at the end of the previous year. The amount and related income shall not be discounted to its present value.
Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
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Chapter 4 Ind AS Vs. ICDS � Key Differences
| The New Axis of Financial Reporting � IND AS and ICDS 95 RSM
As per ICDSAres ofDifferences
As per Ind AS
Reimbursement Reimbursement shall be recognised when it is reasonably certain that reimbursement will be received if the person settles the obligation.
Reimbursement of expense by another party shall be recognised when, and only when, it is virtually certain that reimbursement will be received if the enterprise settles the obligation.
Restructuring Expenses and onerous contracts
This ICDS does not have provisions relating to restructuring costs and onerous contracts.
It provides for treatment of restructuring expenses and onerous contracts.
If it is no longer reasonably certain that an inflow of economic benefits will arise, the asset and related income shall be reversed.
Discounting the amounts of provisions
Prohibits discounting the amounts of provisions.
Requires discounting the amounts of provisions, if effect of the time value of money is material.
Additional guidance
Gives guidance on (i) Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds and (ii) Liabilities arising from Participating in a Specific Market� Waste Electrical and Electronic Equipment.
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The objective of Ind AS 101 is to ensure that the entity�s first Ind AS financial statements and its interim financial report for the period covered by those statements, contain high quality information that:
is transparent for users and comparable for overall period presented
provides suitable starting point for accounting in accordance with Ind ASs; and
can be generated at a cost that does not exceed the benefit
5.1 Scope of Ind AS 101
Ind AS 101 is applicable to the entity�s first set Ind AS financial statements and each interim financial report, if any, that it presents in accordance with Ind AS 34, Interim Financial Reporting, for part of the period covered by its first Ind AS financial statements.
An entity�s �first Ind AS financial statements� is defined as the first annual financial statements in which the entity adopts Ind ASs and makes an explicit and unreserved statement in those financial statements of compliance with Ind ASs.
Ind AS 101 does not apply to changes in accounting policy made by an entity that already applies Ind ASs.
5.2 Certain Key Aspects
5.2.1 Opening Ind AS balance sheet and accounting policies
An entity shall prepare and present an opening Ind AS balance sheet at the date of transition to Ind AS. This is the starting point for its accounting in accordance with Ind AS.
An entity shall use the same accounting policies in its opening Ind AS
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
| The New Axis of Financial Reporting � Ind AS and ICDS 97 RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
balance sheet and throughout all periods presented in its first Ind AS financial statements. Those accounting policies shall comply with each Ind AS effective at the end of its first Ind AS reporting period, except for specified exemptions.
An entity shall not apply different versions of Ind ASs that were effective at earlier dates. An entity may apply a new Ind AS that is not yet mandatory if that Ind AS permits early application.
Except as provided in the standard, in its opening Ind AS balance sheet, an entity should:
� recognise all assets and liabilities whose recognition is required by Ind ASs
� not recognise items as assets or liabilities if Ind ASs does not permit such recognition
� reclassify assets, liabilities and items of equity as per the requirements of Ind ASs
� apply Ind ASs in measuring all recognised assets and liabilities
The accounting policies that an entity uses in its first Ind AS balance sheet may differ from those that it used for the same date using Indian GAAP. The resulting adjustments arise from events and transactions before the date of transition to Ind ASs. Therefore, an entity shall recognise those adjustments directly in retained earnings (or if appropriate another category of equity) at the date of transition to Ind ASs.
5.2.2 Exceptions to the principles that an entity�s opening Ind AS balance sheet shall fully comply with each Ind AS effective at the reporting date
Mandatory exceptions to the retrospective application of other Ind ASs
The New Axis of Financial Reporting � Ind AS and ICDS 98RSM |Back to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
Ind AS 101 prohibits retrospective application of Ind AS in some areas, particularly where retrospective application would require judgements by management about past conditions after the outcome of a particular transaction is already known. These exceptions relate to:
de-recognition of financial assets and financial liabilities
hedge accounting
non-controlling interest
classification and measurement of financial assets
impairment of financial assets
embedded derivatives
government loans
5.2.3 Exemptions from retrospective application of some aspects of other Ind AS
a) Estimates: An entity�s estimates in accordance with Ind AS at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error. Any new information received after the date of transition to Ind ASs about the estimates shall be treated as non- adjusting events after the reporting period. The entity shall not reflect such new information in its opening Ind AS balance sheet and shall reflect such new information in profit or loss for the year.
b) New estimates required in accordance with Ind ASs at the date of transition that were not required under the previous GAAP shall reflect conditions that existed at the date of transition, E.g. Market prices, interest rates or foreign exchange rate shall reflect market conditions at that date.
The above requirements apply to the opening Ind AS balance sheet. They also
| The New Axis of Financial Reporting � Ind AS and ICDS 99 RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
apply to a comparative period presented in an entity�s first Ind AS financial statements, in which case the references to the date of transition to Ind AS are replaced by references to the end of that comparative period.
5.2.4 Exemptions from the requirements of certain Ind ASs
Ind AS 101 grants certain optional exemptions from the general rule of full retrospective application of Ind AS. An entity may elect to use one or more of these exemptions. An entity shall not apply these exemptions by analogy to other items. These exemptions relate to:
share-based payment transactions
insurance contracts
deemed cost
leases
cumulative translation differences
investments in subsidiaries, joint ventures and associates
assets and liabilities of subsidiaries, associates and joint venture
compound financial instruments
designation of previously recognised financial instruments
fair value measurement of financial assets or financial liabilities at initial recognition
decommissioning liabilities included in the cost of property, plant and equipment
financial assets or intangible assets in respect of service concession arrangements accounted for in accordance with Ind AS 115
|The New Axis of Financial Reporting � Ind AS and ICDS 100RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
borrowing costs
joint arrangements
non-current assets held for sale and discontinued operations
revenue from contracts with customers
5.2.5 Comparative information
An entity�s first Ind AS financial statements shall include at least
three balance sheets
two statements of profit and loss
two statements of cash flows
two statements of changes in equity and
related notes, including comparative information for all statements presented.
5.2.6 Explanation for transition to Ind AS
An entity shall explain how the transition from previous GAAP to Ind ASs affected its reported balance sheet, financial performance and cash flows.
An entity�s first Ind AS financial statements shall include:
� reconciliation of its equity reported in accordance with previous GAAP to its equity in accordance with Ind AS for both of the following dates:
the date of transition to Ind AS and
the end of the latest period presented in the entity�s most recent annual financial statements in accordance with
| The New Axis of Financial Reporting � Ind AS and ICDS 101 RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
previous GAAP
� a reconciliation to its total comprehensive income in accordance with Ind AS for the latest period in the entity�s most recent annual financial statements. The starting point for such reconciliation shall be total comprehensive income in accordance with previous GAAP for the same period or, if an entity did not report such a total, profit or loss under pervious GAAP.
� if the entity has recognised or reversed any impairment losses for the first time in preparing its opening Ind AS balance sheet, the disclosures that Ind AS 36, 'Impairment of Assets', would have required if the entity had recognised those impairment losses or reversals in the period beginning with the date of transition to Ind AS.
� if the entity has presented a statement of cash flows under its previous GAAP, it shall also explain the material adjustments to the statement of cash flows.
5.2.7 Use of fair value as deemed cost
If an entity uses fair value in its opening Ind AS balance sheet as deemed cost for an item of property, plant and equipment (PPE), an investment property or an intangible asset, the entity�s first Ind AS financial statements shall disclose, for each line item in the opening Ind AS balance sheet:
a) the aggregate of those fair values; and
b) the aggregate adjustment to the carrying amounts reported under previous GAAP
5.2.8 Use of deemed cost for investments in subsidiaries, joint ventures and associates
If an entity uses deemed cost in its opening Ind AS balance sheet for an item of PPE, an investment property or an intangible asset, the entity�s first Ind AS financial statements shall disclose:
|The New Axis of Financial Reporting � Ind AS and ICDS 102RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
a) the aggregate deemed cost of those investments for which deemed cost is their carrying amount as per previous GAAP ;
b) the aggregate deemed cost of those investments for which deemed cost is fair value; and
c) the aggregate adjustment to the carrying amounts reported under previous GAAP.
5.2.9 Derecognition of financial assets and financial liabilities
A first-time adopter shall apply the derecognition requirements in Ind AS 109 �Financial Instruments� prospectively for transactions occurring on or after the date of transition to Ind AS. In other words, if a first-time adopter has derecognised non-derivative financial assets or non-derivative financial liabilities under previous GAAP as a result of a transaction that occurred before the date of transition to Ind AS, it shall not recognise those assets and liabilities in accordance with Ind Ass (unless they qualify for recognition as a result of a later transaction or event).
An entity may apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity�s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.
5.2.10 Hedge accounting
As required by Ind AS 109, at the date of transition to Ind AS, an entity shall:
a) measure all derivatives at fair value; and
b) eliminate all deferred losses and gains arising on derivatives that were reported in accordance with previous GAAP as if they were assets or liabilities.
| The New Axis of Financial Reporting � Ind AS and ICDS 103 RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
An entity shall not reflect in its opening Ind AS balance sheet a hedging relationship of a type that does not qualify for hedge accounting in accordance with Ind AS 109 (E.g. many hedging relationships where the hedging instrument is a stand-alone written option or a net written option; or where the hedged item is a net position in a cash flow hedger for another risk than foreign currency risk).However, if an entity designated a net position as a hedged item under previous GAAP it may designate an individual item within that net position as a hedged item in accordance with Ind AS 109, provided that it does so no later than the date of transition to Ind AS.
If, before the date of transition to Ind AS, an entity had designated a transaction as a hedge but the hedge does not meet the conditions for hedge accounting in Ind AS 109 the entity shall apply requirements of Ind AS 109 to discontinue hedge accounting. Transactions entered into before the date of transition to Ind AS shall not be retrospectively designated as hedges.
5.2.11 Non-controlling interest
A first-time adopter shall apply the following requirements of Ind AS 110 prospectively from the date of transition to Ind AS:
(a) the requirement that total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance;
(b) the requirements for accounting for changes in the parent�s ownership interest in a subsidiary that do not result in a loss of control; and
(c) the requirements for accounting for a loss of control over a subsidiary, and the related requirements of Ind AS 105 �Non-current Assets Held for Sale and Discontinued Operations.�
However, if a first-time adopter elects to apply Ind AS 103 retrospectively to past business combinations, it shall also apply Ind AS 110 from the same date.
|The New Axis of Financial Reporting � Ind AS and ICDS 104RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
5.2.12 Interim financial reports
If an entity presents an interim financial report in accordance with Ind AS 34 for part of the period covered by its first Ind AS financial statements, the entity shall include:
a) reconciliation of its equity in accordance with previous GAAP at the end of that comparable interim period to its equity under Ind AS at that date;
b) a reconciliation to its total comprehensive income in accordance with Ind AS for that comparable interim period (current and year to date). The starting point for that reconciliation shall be total comprehensive income in accordance with previous GAAP for that period or, if an entity did not report such a total, profit or loss in accordance with previous GAAP.
c) Reconciliations described in (a) above or a cross reference to another published documents that includes these reconciliations.
d) If during the period covered by its first Ind AS financial statements an entity changes its accounting policies or its use of the exemptions contained in the Ind AS 101, it shall explain the changes between its first Ind AS interim financial report and its first Ind AS financial statements and update the reconciliations disclosed as above.
If a first time adopter did not disclose information material to an understanding of the current interim period in its most recent annual financial statements in accordance with previous GAAP, its interim financial report shall disclose that information or include a cross-reference to another published document that includes it.
5.2.13 Presentation and disclosures
The first Ind AS financial statements shall be presented in accordance with the presentation and disclosure requirements of Ind AS 1.
Ind AS 101 does not provide exemptions from the presentation and
| The New Axis of Financial Reporting � Ind AS and ICDS 105 RSMBack to Content
Chapter 5 First Time Adoption of Indian Accounting Standards (Ind AS 101)
disclosure requirements in other Ind ASs.
If an entity becomes aware of errors made under previous GAAP, the reconciliations as disclosed above shall distinguish the correction of those errors from changes in accounting policies.
Ind AS 8 does not deal with changes in accounting policies that occur when an entity first adopts Ind AS. Therefore, Ind AS 8 requirements for disclosures about changes in accounting policies do not apply to the entity�s first Ind AS financial statements.
Where there is no change in its functional currency on the date of transition to Ind AS, an entity may elect to continue with carrying value for all of its PPE as at the date of transition as recognised under previous GAAP and use that as its deemed cost after making adjustment in respect of decommissioning liabilities, if any. If the entity adopts such exemption, the fact and the accounting policy shall be disclosed by the entity until such time that those items of PPE, investment properties or intangible assets, are significantly depreciated, impaired or derecognised in the balance sheet.
If an entity did not present financial statements for previous periods, its first Ind AS financial statements shall disclose such fact.
|The New Axis of Financial Reporting � Ind AS and ICDS 106RSMBack to Content
6.1 From which date Ind AS will be applicable in India?
As per MCA notification, a company may voluntary apply Ind AS for accounting period commencing 1 April 2015 or thereafter. Select class of companies and its holding, subsidiary, joint venture or associate companies would need to mandatorily apply Ind AS for period commencing 1 April 2016.
6.2 Which entities in India need to comply with Ind AS with effect from 1 April 2016?
Indian companies meeting following criteria :
i) Companies whose equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India and having net worth of Rs. 500 crores or more as at 31 March 2014 on the basis of standalone financial statements of the company;
ii) Other companies having net worth of Rs. 500 crores or more as at 31 March 2014 on the basis of standalone financial statements of the company;
iii) Holding, subsidiary, joint venture or associate companies of companies covered above.
6.3 If an unlisted company has net worth less than Rs. 250 crores as at 31 March 2014, can Ind AS become applicable to it in future?
As specified in the notification by MCA, Ind AS may become applicable to such companies if in subsequent period it meets the specified criteria for applicability of Ind AS.
6.4 What is the date of transition to Ind AS?
Date of transition is the beginning date of the earliest period for which the company presents full comparative information in its first Ind AS financial statements. E.g. for Ind AS financial statements to be prepared for year ending 31 March 2017 the date of transition would be 1 April 2015.
Chapter 6 Frequently Asked Questions (FAQs) by First Time Adopters of Ind AS
|The New Axis of Financial Reporting � Ind AS and ICDS 108RSMBack to Content
Chapter 6 Frequently Asked Questions (FAQs) by First Time Adopters of Ind AS
6.5 If the date of transition to Ind AS is 1 April 2015, what GAAP the Indian company needs to follow for the year 2015-2016?
The company would need to follow Accounting Standards as notified vide Companies (Accounting Standards) Rules, 2006. However, it would also need to prepare financial statements in compliance with Ind AS for FY 2015-2016 for presenting comparative previous year figures in its first Ind AS financial statements for the FY 2016-2017.
6.6 What are the components of a complete set of Ind AS financial statements?
As prescribed in Ind AS 1 'Presentation of financial statements' a complete set of financial statements comprises of:
a) a balance sheet as at the end of the period;
b) a statement of profit and loss for the period;
c) a statement of changes in equity for the period;
d) a statements of cash flows for the period ;
e) notes, comprising a summary of significant accounting policies, and other explanatory information;
f) comparative information in respect of the preceding period as specified; and
g) a balance sheet as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements or when it reclassifies items in its financial statements.
6.7 What would entity need to do in converting financial statements as per Indian GAAP to Ind AS financial statements?
In converting financial statements as per Indian GAAP to Ind AS financial statements, an entity needs to:
| The New Axis of Financial Reporting � Ind AS and ICDS 109 RSMBack to Content
recognise all assets and liabilities whose recognition is required by Ind AS
de-recognise items of assets or liabilities if Ind AS does not permit such recognition
reclassify assets, liabilities and items of equity as per the requirements of Ind AS
apply Ind AS measurement principles for all recognised assets and liabilities retrospectively (unless exemption is available under Ind AS)
6.8 Can any entity prepare Ind AS financial statements for period longer / shorter than one year? If yes, what are the disclosures required?
As per Ind AS 1 'Presentation of financial statements' an entity shall present a complete set of financial statements (including comparative information) at least annually. When an entity changes the end of its reporting period and presents financial statements for a period longer or shorter than one year, an entity shall disclose, in addition to the period covered by the financial statements:
a) the reason for using a longer or shorter period; and
b) the fact that amounts presented in the financial statements are not entirely comparable.
6.9 Which Ind AS would an entity need to comply with in its first Ind AS financial statements?
An entity would be required to apply all the Ind AS effective as at the end of the reporting period in:
preparing and presenting its opening Ind AS balance sheet; and
preparing and presenting its balance sheet for the year (including comparative previous year figures), statement of profit and loss, statement of changes in equity and cash flow statement for the periods then ended and disclosures (including comparative information)
Chapter 6 Frequently Asked Questions (FAQs) by First Time Adopters of Ind AS
|The New Axis of Financial Reporting � Ind AS and ICDS 110RSMBack to Content
If a new Ind AS is not mandatory as at the reporting date, but permits early application, an entity is permitted, but not required, to apply that Ind AS in its first Ind AS financial statements.
6.10 If an entity presents interim financial information for part of the period covered by its first Ind AS financial statements, what additional disclosures are required?
An entity shall give reconciliation of:
Equity under the Indian GAAP at the end of that comparable interim period to its equity under Ind AS at that date.
Profit and loss under the Indian GAAP for that comparable interim period (current and year to date) to its profit or loss under Ind AS for that period.
Ind AS 34 � the reconciliations demanded for annual reports or a cross reference to another published document that includes such reconciliation.
If the most recent annual financial statements under the Indian GAAP, disclosure information material to an understanding of the current interim period, the interim report should include such disclosure.
6.11 What is offsetting?
Offsetting means netting of assets and liabilities or income and expenses. An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by Ind AS. E.g. Valuation allowances for obsolescence of inventory should be offset against inventory valuation because Ind AS 1 specifically states that this situation is not offsetting.
Chapter 6 Frequently Asked Questions (FAQs) by First Time Adopters of Ind AS
| The New Axis of Financial Reporting � Ind AS and ICDS 111 RSMBack to Content
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This publication is intended to provide the readers, a broad understanding of applicability of Ind AS and Income Computation and Disclosure Standards (ICDS), some key differences with IFRS and Accounting Standards (AS) presently applied by companies. Every effort has been made to ensure that the contents are accurate and current. Information in this publication is in no way intended to replace or supersede independent or other professional advice. This publication should not be relied upon for taking actions or decisions without appropriate professional advice and it may be noted that nothing contained in this publication should be regarded as our opinion and facts of each case will need to be analysed based on specific facts. While all reasonable care has been taken in preparation of this publication, we accept no responsibility for any liability arising from any statements or errors contained in this publication.
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