The Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) released a notification on 25th August 2020 which notified some critical amendments to Ind AS that were the part of Companies (Indian Accounting Standards) Amendment Rules, 2020, which got announced by the Ministry of Corporate Affairs (MCA) on recommendations of the ICAI.
The Ministry of Corporate Affairs (MCA), notified Ind AS in the year 2015 that applies to large entities as specified in its Roadmap for implementation of Ind AS. Also, the ICAI regularly monitors the developments on globally accepted IFRS Standards which play a critical role in formulating new Ind ASs or makes amendments to existing Ind ASs.
The notification intends to provide additional clarification to stakeholders about the amendments made in following critical areas:
- “definition of terms “Material” and “Business” under Ind AS to provide better clarity and guidance;
- accounting relief (simplification) in Ind AS 116 for lessees consequent to the Covid-19 pandemic;
- exception in context of specific hedge accounting requirements under Ind AS due to the uncertainty arising during the period interest rate benchmarks are undergoing reforms.”
These amendments mentioned above are applicable for the accounting year beginning on or after April 01, 2020.
The ICAI keeping in view the dynamic nature of Ind AS issues a compilation of the version of Ind AS that is applicable as on date every year.
The notification also said, “This Compendium of Ind AS is an endeavor of ICAI to facilitate ease of reference and ready source of comprehensive literature for all those entities that are preparing financial statements under Ind AS, either mandatorily or voluntarily. This Compendium contains updated Ind ASs applicable for accounting period beginning 1st April 2020.”
To access the Compendium of Indian Accounting Standards please click on this link- https://www.icai.org/post/compendium-of-indian-accounting-standards.
With Warm Regards,
CL Bureau.
