Exposure Draft of ICAI on Clarifications to ‘Ind AS 115: Revenue from Contracts with Customers’
The Accounting Standards Board (ASB) of ICAI has issued Exposure Draft of ‘Clarifications to Ind AS 115, Revenue from Contracts with Customers’, for comments on any aspect thereof, latest by 16 May, 2017, as under:
Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.
|3. Post:||Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002|
Any further clarifications may be sought by e-mail from ICAI using firstname.lastname@example.org
Background of Ind AS 115, Revenue from Contracts with Customers
Ind AS 115, Revenue from Contracts with Customers corresponding to IFRS 15, Revenue from Contracts with Customers, was notified by Ministry of Corporate Affairs (MCA) vide notification no G.S.R 111 (E) dated February 16, 2015, along with other Ind AS. Internationally, the IASB had formed a ‘Transition Resource Group (TRG)’ in June 2014, to support implementation of IFRS 15. One of the objectives of the TRG was to inform IASB about implementation issues to help the IASB to determine whether any, action should be undertaken to address those issues. The IASB noted that implementation issues referred to TRG were sufficiently addressed by IFRS 15. However, the IASB decided to clarify its intentions while developing the requirements of IFRS 15 but not to change the underlying principles of IFRS 15. Accordingly, in July 2015 the IASB issued Exposure draft of clarificatory amendments to IFRS 15. In the light of these proposed amendments, the IASB, in September 2015 deferred effective date of IFRS 15 by one year to January 1, 2018. In view of the above international developments, Ind AS 115 was omitted and was replaced by Ind AS 11, Construction Contracts and Ind AS 18, Revenue, by MCA vide notification no G.S.R 365 (E) dated March 30, 2016.
Finally, in April 2016 the IASB issued clarificatory amendments and provided transition relief to IFRS 15. Now, it has been proposed to issue Exposure draft of clarificatory amendments for incorporating the same in Ind AS 115, Revenue from Contracts with Customers, earlier notified by MCA through notification no G.S.R 111 (E) dated February 16, 2015. The consequential changes to other Ind ASs arising due to reinstatement of Ind AS 115 which were part of notification dated February 16, 2015 will also be made accordingly.