ICAI’s Revised Overview (2016) of Indian Accounting Standards (Ind AS)
The ICAI has released a publication which contains an overview of various aspects related to IFRS-converged Indian Accounting Standards (Ind AS) such as Roadmap for the applicability of Ind AS, carve-outs from IFRS/ IAS, Changes in financial reporting under Ind AS compared to financial reporting under existing Accounting Standards, Summary of all the Ind AS etc. It also captures all the recent amendments to Ind AS notified by the MCA in March 2016.
With the beginning of financial year 2016-17, the era of implementation of Ind AS in India has also begun for the companies falling under Phase I of the MCA roadmap for implementation of Ind AS. The MCA has also laid down roadmap for implementation of Ind AS for banks, NBFCs and insurance companies from the financial year 2018-19 onwards. These developments are a significant step in bringing the financial reporting framework in India at par with the global financial reports.
The Ind AS (IFRS) Implementation Committee of the ICAI has been working relentlessly to provide guidance to the members and other stakeholders on these notified Ind AS. For this purpose, Educational Materials on Ind AS covering various issues are being formulated by the Committee. For addressing transition related queries in a timely and speedy manner, an Ind AS Transition Facilitation Group (ITFG) of the Committee is working hard in providing timely clarifications to members and others concerned. The Committee also organises IFRS Certificate Course, various workshops, seminars, awareness programmes, webcasts etc., to impart knowledge about Ind AS/IFRS.
Initially, India decided to adopt Ind AS 115 corresponding to IFRS 15 two years ahead of the world. However, after the same were notified by the MCA, many representations were being received from various organisations, industry associations etc. for deferring the applicability of Ind AS 115. Considering the difficulties being faced various industries, it was decided to defer the applicability of Ind AS 115 and to bring Ind AS 11 and Ind AS 18 in its place. Further, there were certain amendments that were made in IFRS/IAS issued by the IASB. The Institute of Chartered Accountants of India (ICAI) to keep up the pace with the global developments, revised the notified Ind AS in line with the amendments made in IFRS/IAS issued by the IASB. MCA had notified the amendments to the Ind AS vide notification dated March 30, 2016, as Companies (Indian Accounting Standards) Amendment Rules, 2016.