MCA notifies the Companies Accounting Standards (AS) Amendment Rules, 2016 vide Notification dt 30/03/2016, which are applicable from the financial year 2016-17. Accounting Standard 6 on Depreciation Accounting has been omitted and the following Accounting Standards have been amended/ substituted:
| List of Amended / Substituted Accounting Standards |
| Accounting Standards (AS) 2 Valuation of Inventories |
| Accounting Standards (AS) 4 Contingencies and events Occurring after Balance Sheet Date |
| Accounting Standards (AS) 10 Property, Plant and Equipment |
| Accounting Standards (AS) 13 Accounting for Investments |
| Accounting Standards (AS) 14 Accounting for Amalgamation |
| Accounting Standards (AS) 21 Consolidated Financial Statements |
| Accounting Standards (AS) 29 Provisions, Contingent Liabilities and Contingent Assets |
The amended Rules shall come into force on the date of their publication in the Official Gazette, i.e. 30/03/2016:
MCA Notification dt 30/03/2016 : Companies (Accounting Standards) Amendment Rules, 2016
ICAI’s opinion on Date of Applicability of MCA’s Amended Accounting Standards
1. The Ministry of Corporate Affairs, Government of India, vide Notification No. G.S.R. 739(E), dated 01/12/2006, notified Companies (Accounting Standards) Rules 2006, in the Official Gazette Rule 1, sub-rule (2), provided that the said Rules “shall come into force on the date of their publication in the Official Gazette”. Rule 3, sub-rule (2), of the said Rules provided that the Accounting Standards viz., AS 1 to AS 7 and AS 9 to AS 29, prescribed therein “shall come into effect in respect of accounting periods commencing on or after the publication of these Accounting Standards.”
2. Ministry of Corporate Affairs, vide its Notification No. G.S.R. 364 (E) dated 30/03/2016, has issued Companies (Accounting Standards) Amendment Rules 2016, amending AS 2, AS 4, AS 13, AS 21 and AS 29; and replacing the existing AS 6 and AS 10 with revised AS 10. While sub-rule (2) of Rule 1 of the aforesaid Amendment Rules provides that these Rules shall come into force on the date of their publication, these Rules do not specify in respect of which accounting periods the amended Accounting Standards shall come into effect. It is noted that Rule 3, sub-rule (2), of the 2006 Rules, the relevant extract of which is reproduced in paragraph 1 above, has not been amended by the said Amendment Rules. In view of this, many stakeholders have approached the Institute of Chartered Accountants of India, to seek guidance on the applicability of the amended Accounting Standards particularly in the case of listed companies who prepared their financial results of preceding quarters based on the unamended Accounting Standards.
3. With a view to have consistent approach by companies on the applicability of the Accounting Standards as amended by the Companies (Accounting Standards) Amendment Rules, amended Accounting Standards should be followed for accounting periods commencing on or after the date of publication of the notification in the Official Gazette.
ICAI Announcement dt. 26/04/2016 : Clarification on Applicability of Companies Accounting Standard Amendment Rules 2016 notified by MCA on 30/03/2016
MCA Clarification on Date of Applicability of MCA’s Amended Accounting Standards
Stakeholders have sought clarifications from MCA with regard to the accounting period for which the accounts would need to be prepared using the Accounting Standards, as amended through the Companies (Accounting Standards) Amendment Rules, 2016.
The matter has been examined by the MCA and it has been clarified that the amended Accounting Standards should be used for preparation of accounts for accounting periods commencing on or after the date of notification, i.e. 30/03/2016. So effectively, the amended accounting standards are applicable from Financial Year 2016-17 onwards.
MCA General Circular 04/2016 dt. 27/04/2016: Clarification on Effective Date/ Applicability of Companies Accounting Standard Amendment Rules 2016
Related Posts:
Companies (Accounting Standards) Amendment Rules, 2018 notified by MCA: AS 11 amended
List of Accounting Standards (AS 1~32) of ICAI with Revisions
ICAI has issued 32 AS, out of which AS 8 is withdrawn by AS 26. AS 30, 31 and 32 are non mandatory; so remaining AS are 28. Then why we consider current accounting standards as 27 in total?