ICAI's Checklist on MCA's IND AS Disclosure Requirements

The ICAI has issued an updated publication titled “Indian Accounting Standards (Ind AS): Disclosures Checklist (2022 Edition),” which includes approximately 3000 disclosures for companies preparing Ind AS-based financial statements and serves as a compilation/checklist of all the disclosure requirements under Ind AS issued by MCA, for the benefit of its members/other stakeholders.

ICAI’s Checklist on MCA’s IND AS Disclosure Requirements (November, 2022)

Accounting and financial reporting have changed over the past two decades to fulfil user needs. Business and financial markets are more demanding due to more sophisticated business models, risk sources, and risk management.

These new difficulties demand user-relevant, subjective information sharing. Disclosures in financial reporting have had to adapt to these problems by providing more thorough disclosures, including assumptions, estimations, business models, alternative measurement bases, and sources of estimated uncertainty. Also the enhanced disclosures in financial reporting have increased the auditors’ role and responsibilities in supporting their opinion on financial statements as a whole.

In this context, the Accounting Standards Board of the ICAI has prepared a compilation/checklist of all the Ind AS disclosures applicable to businesses filing their financial statements voluntarily or mandatorily from FY 2016-17. This updated checklist on IND AS disclosure requirements is based on Ind ASs effective as of 01/04/2022, as per the Companies Ind AS Amendment Rules notified by MCA from time to time. This publication is for guidance and should be read in conjunction with the appropriate Ind AS. It should not be considered an alternative to the Ind AS.

This disclosure checklist actually doesn’t contain other regulatory requirements, such Schedule III of the Companies Act 2013. This publication only contains disclosure requirements that must be made. To comprehend the precise requirements regarding recognition, measurement, and other issues, it is crucial to consult the pertinent Standards. Reference must also be made to the relevant regulatory requirements, such as Schedule III’s requirements under the 2013 Companies Act. The checklist should therefore be studied alongside the Standards, the legal requirements, and the relevant guidance materials.

The disclosure checklist table is presented in a way that helps the compilation of Ind AS disclosures, with all requirements referencing the paragraph number of Ind AS that mandates such disclosures.

The disclosure checklist shows that Ind AS has many disclosures (more than 3000). Some Standards provide a disclosure objective along with examples of the type of material that might achieve the objective. When selecting what information to reveal, consider materiality and the Ind AS disclosure disclosures.