ICAI has issued revised/updated Guidance Notes (2022 Edition) on Ind AS Compliance by ‘Non Ind AS Companies’ (Division I), ‘Ind AS Companies’ (Division II), and ‘NBFCs’ (Division III) for the preparation and presentation of Financial Statements in accordance with the requirements of amended Schedule III of the Companies Act 2013.
MCA has recently revised Divisions I, II, and III of Schedule III to the Companies Act, 2013, prescribing several additional requirements, vide Notification dt. 24/03/2021, applicable w.e.f. 01/04/2021. These new requirements take into account the disclosure of Ageing Schedule of Trade Receivables, Trade Payables, Capital Work in Progress (CWIP), Intangible Assets under development, Promoters’ Shareholding Pattern/ Ratios in Subsidiaries, Undisclosed Incomes, Crypto Currency, Willful Defaulters, CSR, reconciliation of statements filed with banks soliciting working capital, mandatory rounding off, reclassification of certain line items, etc. These guidelines are intended to improve the information in the financial statements.
As a result, the ICAI has released the updated/revised Guidance Notes to provide suitable guidance to Non-Ind As/Ind As Companies and NBFCs, enabling these businesses to properly satisfy the new/additional requirements of Ind AS Compliance under Schedule III. Additionally, comprehensive notes have been supplied on a number of Schedule III items, as well as the problems and nuances they raise. These comments will undoubtedly aid readers and stakeholders in understanding the aforementioned revisions.:
ICAI’s Revised Guidance Notes on Ind AS Compliance by Companies/ NBFCs (Divisions I, II & III of Schedule III to CA 2013): 2022 Edition
The ICAI has released it’s revised Guidance Notes (2022 Edition) on IND AS Compliance of Divisions I, II & III of Schedule III to the Companies Act, 2013 for preparation of financial statements by the Companies/ NBFCs, as under:
i) Compliance by Non Ind AS Companies under Division I of Schedule III to CA 2013
ii) Compliance by Ind AS Companies under Division II of Schedule III to CA 2013
iii) Ind AS Compliance by NBFCs under Division III of Schedule III to CA 2013