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Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Surana Maloo & Co. CHARTERED ACCOUNTANTS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Note:
From Financial year 2018-19, Ind AS(s) shall be applied if Net worth exceeds
Rs.250 crores.
Voluntary Adoption of Ind-AS is always encouraged as in the future nearly
all entities will be required to prepare their financial statements using Ind AS.
ROAD MAP TO INDIAN ACCOUNTING STANDARDS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
As per Section 2(57) of Companies Act, 2013, 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.
Ind AS will apply to both consolidated as well as standalone financial statements
of a company. While overseas subsidiary, associate or joint venture companies are
not required to prepare standalone financial statements under Ind AS, they will
need to prepare Ind AS adjusted financial information to enable consolidation by
the Indian parent.
In case of conflict between Ind AS and the law, the provisions of law will prevail
and financial statements are to be prepared in compliance with the law.
ROAD MAP TO INDIAN ACCOUNTING STANDARDS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Ind AS Description
Ind AS - 101 First-time Adoption of Indian Accounting Standards
Ind AS - 102 Share-based Payment
Ind AS - 103 Business Combinations
Ind AS - 104 Insurance Contracts
Ind AS - 105 Non-current Assets Held for Sale and Discontinued Operations
Ind AS - 106 Exploration for and Evaluation of Mineral Resources
Ind AS - 107 Financial Instruments: Disclosures
Ind AS - 108 Operating Segments
Ind AS - 109 Financial Instruments
Ind AS - 110 Consolidated Financial Statements
Ind AS - 111 Joint Arrangements
Ind AS - 112 Disclosure of Interests in Other Entities
Ind AS - 113 Fair Value Measurement
Ind AS - 114 Regulatory Deferral Accounts
Ind AS - 115 Revenue from Contracts with Customers
NOTIFIED INDIAN ACCOUNTING STANDARDS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Ind AS Description
Ind AS - 1 Presentation of Financial Statements
Ind AS - 2 Inventories
Ind AS - 7 Statement of Cash Flows
Ind AS - 8 Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS - 10 Events after the Reporting Period
Ind AS - 12 Income Taxes
Ind AS - 16 Property, Plant and Equipment
Ind AS - 17 Leases
Ind AS - 19 Employee Benefits
Ind AS - 20 Accounting for Government Grants and Disclosure of Government Assistance
Ind AS - 21 The Effects of Changes in Foreign Exchange Rates
Ind AS - 23 Borrowing Costs
Ind AS - 24 Related Party Disclosures
Ind AS - 27 Separate Financial Statements
Ind AS - 28 Investments in Associates and Joint Ventures
NOTIFIED INDIAN ACCOUNTING STANDARDS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Ind AS Description
Ind AS - 29 Financial Reporting in Hyperinflationary Economies
Ind AS - 32 Financial Instruments: Presentation
Ind AS - 33 Earnings per Share
Ind AS - 34 Interim Financial Reporting
Ind AS - 36 Impairment of Assets
Ind AS - 37 Provisions, Contingent Liabilities and Contingent Assets
Ind AS - 38 Intangible Assets
Ind AS - 40 Investment Property
Ind AS - 41 Agriculture
NOTIFIED INDIAN ACCOUNTING STANDARDS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Ind AS Description
Ind AS - 101 First-time Adoption of Indian Accounting Standards
Ind AS - 108 Operating Segments
Ind AS - 1 Presentation of Financial Statements
Ind AS - 2 Inventories
Ind AS - 7 Statement of Cash Flows
Ind AS - 8 Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS - 10 Events after the Reporting Period
Ind AS - 12 Income Taxes
Ind AS - 16 Property, Plant and Equipment
Ind AS - 18 Revenue
Ind AS - 19 Employee Benefits
Ind AS - 36 Impairment of Assets
Ind AS - 37 Provisions, Contingent Liabilities and Contingent Assets
Ind AS - 38 Intangible Assets
KEY IND-AS RELEVANT FOR FINANCIAL STATEMENTS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Application:
First Ind-AS financial statements
Each interim financial report, if any, that an entity presents in accordance with
Ind AS 34 Interim Financial Reporting for part of the period, covered by its first
Ind-AS financial statements.
Layout of First Ind AS Financial Statements:
Retrospective Application:
Ind AS(s) are to be applied retrospectively to the comparative financial statements
except as are provided through mandatory exceptions and voluntary exemptions for
preparation of First Ind As financial statements.
Profit and Loss for the year ended
on 31.03.2018 on 31.03.2017
Closing Balance Sheet Opening Balance Sheet
as on 01.04.2016 As on 31.03.2018 As on 31.03.2017
IND AS 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
For preparing Opening Ind As Balance Sheet:
Recognise all assets and liabilities whose recognition is required by Ind-As.
Derecognise items as assets or liabilities if Ind-ASs do not permit such
recognition.
Reclassify items that it recognised in accordance with previous GAAP as one
type of asset, liability or component of equity, but are a different type of asset,
liability or component of equity in accordance with Ind-ASs
Apply Ind-ASs in measuring all recognised assets and liabilities.
Financial Effect of Changes:
While adopting Ind AS, the retrospective application may result in changes in the
line items of Balance Sheet and Profit and Loss which shall be recognised in
Retained Earnings.
Reconciliations:
An entity shall explain how the transition from previous GAAP to Ind-ASs affected
its reported financial position, financial performance and cash flows through
reconciliations as provided by Ind AS 101.
IND AS 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
Existing AS 17 requires
identification of two sets of
segments—one based on related
products and services, and the
other on geographical areas
based on the risks and returns
approach. One set is regarded as
primary segments and the other
as secondary segments.
Identification of segments
under Ind AS 108 is based on
‘management approach’ i.e.
operating segments are
identified based on the internal
reports regularly reviewed by
the entity’s Chief Operating
Decision Maker (CODM).
Reportable Segments
For each segment disclosed as per Ind AS, entities are required to
provide a measure of profit or loss in the format viewed by the
CODM, as well as a measure of assets and liabilities if such
amounts are regularly provided to the CODM. Other segment
disclosures include revenue from customers for each group of
similar products and services, revenue by geography and
dependence on major customers. Additional detailed disclosures of
performance and resources are required if the CODM reviews these
amounts. A reconciliation of the total amount disclosed for all
segments to the primary financial statements is required for revenue,
profit and loss, and other material items reviewed by the CODM.
IND AS 108 OPERATING SEGMENTS
IND AS - 108
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS - 101
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Components of Financial Statements:
A balance sheet as at the end of the period.
A statement of profit and loss for the period.
A statement of cash flows for the period.
Notes, comprising a summary of significant accounting policies and other
explanatory information.
A balance sheet as at the beginning of the earliest comparative 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.
New Components introduced:
Statement of Changes in Equity ( as a part of Balance Sheet)
Statement of Other Comprehensive Income ( as a part of Profit and loss)
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 1 PRESENTATION OF FINANCIAL STATEMENTS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Statement of Changes in Equity
An entity shall present a statement of changes in equity as a part of balance sheet
containing following information:
total comprehensive income for the period, showing separately the total amounts
attributable to owners of the parent and to non-controlling interests;
for each component of equity, the effects of retrospective application or
retrospective restatement recognised in accordance with Ind AS 8
for each component of equity, a reconciliation between the carrying amount at
the beginning and the end of the period, separately disclosing each changes
resulting from:
i) profit or loss;
ii) each item of other comprehensive income;
iii) transactions with owners in their capacity as owners, showing separately
contributions by and distributions to owners and changes in ownership
interests in subsidiaries that do not result in a loss of control and
iv) any item recognised directly in equity such as amount recognised directly in
equity as capital reserve with paragraph 36A of Ind AS 103.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 1 PRESENTATION OF FINANCIAL STATEMENTS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Other Comprehensive Income
Types of Income recognised as Other Comprehensive Income
Changes in revaluation surplus (as per Ind AS 16 Property, Plant and Equipment
and Ind AS 38 Intangible Assets);
Actuarial gains and losses on defined benefit plans recognised in accordance
with Ind AS 19 Employee Benefits;
Gains and losses arising from translating the financial statements of a foreign
operation (as per Ind AS 21 The Effects of Changes in Foreign Exchange Rates)
Gains and losses on remeasuring available-for-sale financial assets (as Ind AS 39
Financial Instruments: Recognition and Measurement);
the effective portion of gains and losses on hedging instruments in a cash flow
hedge (as per Ind AS 39).
Presentation of Other Comprehensive Income
An entity may present components of other comprehensive income either:
(a) net of related tax effects, or
(b) before related tax effects with one amount shown for the aggregate amount of
income tax relating to those components.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 1 PRESENTATION OF FINANCIAL STATEMENTS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per Ind AS, if the cost of materials purchased includes a
component for deferred settlement payment (i.e., interest) the same
shall be excluded from the carrying amount of inventory and be
recognised as interest expense.
Existing AS does not contain such provision.
Cost of Inventory (excluding interest)
Specific Provision for reversal of write-down
As per Ind AS, write down of inventory is reversed, if circumstances
that previously caused inventories to be written down below cost no
longer exists or when there is clear evidence of an increase in the
net realizable value because of changes in economic circumstances.
The amount of reversal is limited to the amount of original write
down.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 2 VALUATION OF INVENTORIES
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
Existing AS does not provide
any specific treatment for Bank
Overdraft.
Ind AS Specifically includes
bank overdrafts which are
repayable on demand as a part
of cash and cash equivalents.
Bank Overdrafts
Amounts pertaining to obtaining or losing Control
Ind AS 7 requires to disclose the amount of cash and cash
equivalents and other assets and liabilities in the subsidiaries or other
businesses over which control is obtained or lost. Ind AS 7 also
requires to report the aggregate amount of the cash paid or received
as consideration for obtaining or losing control of subsidiaries or
other businesses in the statement of cash flows, net of cash and cash
equivalents acquired or disposed of as a part of such transactions,
events or changes in circumstances.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 7 STATEMENT OF CASH FLOWS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, Extraordinary Items
were separately disclosed on
the face of financial statements.
Ind AS, prohibits the presenta-
tion of Extraordinary Items in
financial statements.
Extraordinary Items
Accounting Treatment for Change in an Accounting Policy
As per AS, accounting
treatment for Change in an
accounting policy is not
prescribed. Further, restatement
of financial statements was
subject to certain conditions as
a result of which changes in
accounting policies were
effected prospectively.
Ind AS requires retrospective
application of changes in
accounting policies by
adjusting the opening balance
of each affected component of
equity for the earliest prior
period presented and other
comparative amounts for each
prior period presented as if the
new accounting policy has
always been applied, subject to
certain limitations.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
Accounting for Prior Period Items
Existing AS requires the
rectification of prior
period items with
prospective effect.
Ind AS requires rectification of material
prior period errors with retrospective
effect subject to limited exceptions viz.,
where it is impracticable to determine the
period specific effects or the cumulative
effect of applying a new accounting
policy.
Prior Period Items
Existing AS 5 defines prior
period items as incomes or
expenses which arise in the
current period as a result of
errors or omissions in the
preparation of financial
statements of one or more
prior periods .
Prior period errors are omissions from,
and misstatements in the entity’s financial
statements for one or more prior periods
arising from a failure to use, or misuse of,
reliable information that:
a) was available when financial statements
for those periods were approved for
issue; and
b) could reasonably be expected to have
been obtained and taken into account in
the preparation and presentation of
those financial statements.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, material
non-adjusting events are
required to be disclosed in the
report of approving authority
As per IND AS, material
non-adjusting events are required
to be disclosed in the financial
statements
As per IND AS, proposed or
declared dividends are disclosed
in notes to accounts and not
recognised in financial
statements.
As per AS, proposed or
declared dividends are
recognised in the financial
statements,
Non-Adjusting Events
Dividends proposed or declared after reporting period
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 10 EVENTS AFTER THE REPORTING PERIOD
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, deferred taxes are
recognised for the tax effect of
timing differences between
accounting income and taxable
income for the year i.e.,
income statement approach.
As per Ind AS, deferred taxes
are recognised for future tax
consequences of temporary
differences between the
carrying value of assets and
liabilities in books and their
respective tax base i.e.,
balance sheet approach
Computation Approach
Ind AS requires a more detailed disclosure as compared to the
existing accounting standard
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 12 INCOME TAXES
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
REVALUATION MODEL
After recognition as an asset, an item of property, plant and
equipment whose fair value can be measured reliably shall be carried
at a revalued amount, being its fair value at the date of the
revaluation less any subsequent accumulated depreciation and
subsequent accumulated impairment losses. Revaluations shall be
made with sufficient regularity to ensure that the carrying amount
does not differ materially from that which would be determined
using fair value at the end of the reporting period.
COST MODEL
After recognition as an asset, an item of property, plant and
equipment shall be carried at its cost less any accumulated
depreciation and any accumulated impairment losses.
Cost or Fair Value
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 16 PROPERTY, PLANT AND EQUIPMENT
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Upward Revaluation
If an asset’s carrying amount is increased as a result of a revaluation,
the increase shall be recognised in other comprehensive income and
accumulated in equity under the heading of revaluation surplus.
However, the increase shall be recognised in profit or loss to the extent
that it reverses a revaluation decrease of the same asset previously
recognised in profit or loss.
Downward Revaluation
If an asset’s carrying amount is decreased as a result of a revaluation,
the decrease shall be recognised in profit or loss. However, the
decrease shall be recognised in other comprehensive income to the
extent of any credit balance existing in the revaluation surplus in
respect of that asset. The decrease recognised in other comprehensive
income r educes the amount accumulated in equity under the heading
of revaluation surplus.
Effects of Revaluation IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 16 PROPERTY, PLANT AND EQUIPMENT
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Emphasis on Mandatory
Component Approach
Under IND AS, each major part of
an item of property plant and
equipment with a cost that is
significant in relation to the total
cost of the item is depreciated
separately.
Further, it has been emphasized
that assets identifiable as separate
components be depreciated
separately.
Approach to Capitalisation & Depreciation
Voluntary Approach
Under AS, fixed assets are gen-
erally recorded at the
consolidated price paid for an
asset without allocating costs
to individually identifiable
components.
Component approach is
encouraged, but not
emphasized.
Under Ind AS, subsequent
expenditure on materials is
capitalized if the material is
expected to be used for a period
more than one year. (Subject to
materiality).
Costs incurred for services or
inspections of non-recurring
nature is to be capitalised.
Capitalization of Subsequent Expenditure
As per existing AS 10,
subsequent expenditures related
to an item of fixed asset are
capitalised only if they increase
the future benefits from the
existing asset beyond its
previously assessed standard of
performance.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 16 PROPERTY, PLANT AND EQUIPMENT
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Ind AS 16 requires that the cost of major inspections should be
capitalised with consequent derecognition of any remaining
carrying amount of the cost of the previous inspection. If the cost of
previous inspection is not available, the same needs to be worked
out in a manner similar to physical component
Cost of Major Inspections
Ind AS requires interest cost inherent in the purchase price to be
recognised as interest expense using effective interest rate method,
unless the same qualifies for capitalization as per Ind AS 23
‘Borrowing Costs’.
Interest Component Capitalisation
Dismantling Costs
Ind AS 16 requires that the initial estimate of the costs of dismantling
and removing the item and restoring the site on which it is located
should be included in the cost of the respective item of property plant
and equipment. Also, a corresponding provision is required to be made
as per Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent
Assets’.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 16 PROPERTY, PLANT AND EQUIPMENT
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
The carrying amount of an item of property, plant and
equipment shall be derecognised:
a) on disposal; or
b) when no future economic benefits are expected from its use or
disposal.
The gain or loss arising from the derecognition of an item of property,
plant and equipment shall be included in profit or loss when the item is
derecognised Gains shall not be classified as revenue.
The cost of replacing those parts which have not been depreciated
separately is also capitalised with the consequent derecognition of the
replaced parts. If it is not practicable for an entity to determine the
carrying amount of the replaced part, it may use the cost of the
replacement as an indication of what the cost of the replaced part was
at the time it was acquired or constructed.
Derecognition of Assets IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 16 PROPERTY, PLANT AND EQUIPMENT
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, Revenue is
recognised at the Nominal
value of the consideration.
Interest component, even if
inherent in the transaction is
not required to be recognised
separate from the
consideration for sale of
goods.
As per Ind AS, Revenue is
recognised at Fair Value of the
consideration, which means if the
consideration includes the
element of interest, revenue from
sale is recognised at fair value
(without interest impact) and the
interest component is recognised
using effective interest rate
method
Measurement and Recognition of Sale Revenue
Measurement and recognition of Interest Revenue
As per AS, interest is
recognised using the Effective
Interest rate method.
As per Ind AS, interest is
recognised on time proportion
basis.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 18 REVENUE
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, revenue from
rendering of services may be
recognised using either
completed service contract
method or percentage of
completion method.
As per Ind AS, Revenue from
rendering of service is
mandatorily recognised by using
Percentage of Completion
method.
Revenue from Rendering of Services
Presentation of Excise Duty
As per AS, Revenue from sale
of goods is presented net of
excise duty.
As per Ind AS, Revenue from
sale of goods is to be disclosed
inclusive of Excise Duty in the
statement of profit and loss,
which implies that excise duty is
to be shown as an expense.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 18 REVENUE
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per AS, all actuarial gains
and losses shall be
recognised immediately in
the statement of profit and
loss.
As per Ind AS, actuarial gains or
losses representing changes in the
present value of the defined
benefit obligation resulting from
experience adjustment and effect
of changes in actuarial
assumptions are recognised in
Other Comprehensive Income
and not reclassified to profit or
loss in a subsequent period.
Actuarial Gains/Losses
As per Ind AS, description of funding arrangements and policy that
affects future contributions and maturity profile of defined benefit
obligation (for instance, weighted average duration) needs to be
disclosed.
Existing AS does not require such disclosure.
Information about Future Cash Flows
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 19 EMPLOYEE BENEFITS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
AS for impairment does not
apply to subsidiaries, associates
and joint ventures.
Ind AS applies to financial assets
classified as subsidiaries, associates
and join ventures.
Applicability
Ind AS 36 requires annual
impairment testing for an
intangible asset with an indefinite
useful life or not yet available for
use and goodwill acquired in a
business combination
Annual Impairment Testing for certain class of assets
Existing AS does not require
the annual impairment testing
for the goodwill unless there is
an indication of impairment
Ind AS 36 prohibits the
recognition of reversals of
impairment loss for good-
will.
Reversal of Impairment Loss on Goodwill
Existing AS requires that the
impairment loss recognised for
goodwill should be reversed in a
subsequent period when it was caused
by a specific external event of an
exceptional nature that is not expected
to recur and subsequent external events
that have occurred that reverse the
effect of that event .
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 36 IMPAIRMENT OF ASSETS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per Ind AS, the provisions
may be discounted using an
appropriate pre-tax rate, if the
effect of Time Value of Money
is Material.
Carrying Amount of Provisions
As per AS, discounting of
provisions is not permissible.
As per Ind AS, disclosure of
contingent assets in the
financial statements is required
when the inflow of economic
benefits is probable
Contingent Assets
As per AS, contingent assets
may be disclosed in the report
of approving authority, but not
in the financial statements.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 37 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
As per IND AS, an intangible
asset shall be recognised, if and
only if it can be identified
separately from Goodwill. Ind
AS also provides a guidance
with respect to identifiability.
Separability from Goodwill
Existing AS does not define
‘identifiability’, but states that
an intangible asset could be
distinguished clearly from
goodwill if the asset was
separable, but that separability
was not a necessary condition
for identifiability.
As per Ind AS, in the case of
separately acquired
intangibles, the criterion of
probable inflow of expected
future economic benefits is
always considered satisfied,
even if there is uncertainty
about the timing or the amount
of the inflow.
Probability of Inflow of Economic Resources
As per AS, probability of
inflow of economic resources
is required to be assessed
before an asset could be
recognised. As contains no
such deeming fiction.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 38 INTANGIBLE ASSETS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Key Comparisons : Ind AS and AS
Ind AS recognizes that the
useful life of an intangible asset
can even be indefinite subject to
fulfillment of certain
conditions, in which case it
should not be amortised but
should be tested for
impairment.
Useful Life and Amortisation
Existing AS states that the
useful life of an intangible
asset is always finite, and
includes a rebuttable
presumption that the useful
life cannot exceed ten years
from the date the asset is
available for use.
As per Ind AS, the intangible
asset may be recognised at cost
or revalued figure.
Valuation Approach
As per AS, revaluation of
Intangibles is not permissible.
IND AS - 108
IND AS - 101
IND AS - 1
IND AS - 2
IND AS - 7
IND AS - 8
IND AS - 10
IND AS - 12
IND AS - 16
IND AS - 19
IND AS - 36
IND AS - 37
IND AS - 38
IND AS - 18
IND AS 38 INTANGIBLE ASSETS
Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.
Disclaimer
This document is intended for private circulation and knowledge sharing purpose only. All efforts have been made to ensure the accuracy of information in this publication.
The information contained in this document is published for the knowledge of the recipient but is not to be relied upon as authoritative or taken in substitution for the exer-
cise of judgment by any recipient. The publication is a service to our clients to provide an overview of the Direct Tax Proposals and shall not be construed as professional
advice or an authoritative opinion. Whilst due care has been taken in the preparation of this publication and information contained herein, we will not be responsible for
any errors that may have crept in inadvertently and do not accept any liability whatsoever, for any direct or consequential loss howsoever arising from any use of this publi-
cation or its contents or otherwise arising in connection herewith.
Reader's feedback / observation are welcomed and would be appreciated. [email protected], [email protected], [email protected]
CA VIDHAN SURANA (FOUNDER PARTNER)
CA SUNIL MALOO (PARTNER)
Key Professionals for Transition to and Implementation of Ind AS
CA URVISH SANGHAVI CA ZEEL SALOT