Surana Maloo & Co. · out of revaluation of assets, write-back of depreciation and amalgamation. Ind AS will apply to both consolidated as well as standalone financial statements

Copyright © 2017 Surana Maloo and Co. | Chartered Accountants, All rights reserved.

Surana Maloo & Co. CHARTERED ACCOUNTANTS


Note:

From Financial year 2018-19, Ind AS(s) shall be applied if Net worth exceeds

Rs.250 crores.

Voluntary Adoption of Ind-AS is always encouraged as in the future nearly

all entities will be required to prepare their financial statements using Ind AS.

ROAD MAP TO INDIAN ACCOUNTING STANDARDS


As per Section 2(57) of Companies Act, 2013, Net worth means the aggregate

value of the paid-up share capital and all reserves created out of the profits and

securities premium account, after deducting the aggregate value of the

accumulated losses, deferred expenditure and miscellaneous expenditure not

written off, as per the audited balance sheet, but does not include reserves created

out of revaluation of assets, write-back of depreciation and amalgamation.

Ind AS will apply to both consolidated as well as standalone financial statements

of a company. While overseas subsidiary, associate or joint venture companies are

not required to prepare standalone financial statements under Ind AS, they will

need to prepare Ind AS adjusted financial information to enable consolidation by

the Indian parent.

In case of conflict between Ind AS and the law, the provisions of law will prevail

and financial statements are to be prepared in compliance with the law.

ROAD MAP TO INDIAN ACCOUNTING STANDARDS


Ind AS Description

Ind AS - 101 First-time Adoption of Indian Accounting Standards

Ind AS - 102 Share-based Payment

Ind AS - 103 Business Combinations

Ind AS - 104 Insurance Contracts

Ind AS - 105 Non-current Assets Held for Sale and Discontinued Operations

Ind AS - 106 Exploration for and Evaluation of Mineral Resources

Ind AS - 107 Financial Instruments: Disclosures

Ind AS - 108 Operating Segments

Ind AS - 109 Financial Instruments

Ind AS - 110 Consolidated Financial Statements

Ind AS - 111 Joint Arrangements

Ind AS - 112 Disclosure of Interests in Other Entities

Ind AS - 113 Fair Value Measurement

Ind AS - 114 Regulatory Deferral Accounts

Ind AS - 115 Revenue from Contracts with Customers

NOTIFIED INDIAN ACCOUNTING STANDARDS


Ind AS Description

Ind AS - 1 Presentation of Financial Statements

Ind AS - 2 Inventories

Ind AS - 7 Statement of Cash Flows

Ind AS - 8 Accounting Policies, Changes in Accounting Estimates and Errors

Ind AS - 10 Events after the Reporting Period

Ind AS - 12 Income Taxes

Ind AS - 16 Property, Plant and Equipment

Ind AS - 17 Leases

Ind AS - 19 Employee Benefits

Ind AS - 20 Accounting for Government Grants and Disclosure of Government Assistance

Ind AS - 21 The Effects of Changes in Foreign Exchange Rates

Ind AS - 23 Borrowing Costs

Ind AS - 24 Related Party Disclosures

Ind AS - 27 Separate Financial Statements

Ind AS - 28 Investments in Associates and Joint Ventures



Ind AS Description

Ind AS - 29 Financial Reporting in Hyperinflationary Economies

Ind AS - 32 Financial Instruments: Presentation

Ind AS - 33 Earnings per Share

Ind AS - 34 Interim Financial Reporting

Ind AS - 36 Impairment of Assets

Ind AS - 37 Provisions, Contingent Liabilities and Contingent Assets

Ind AS - 38 Intangible Assets

Ind AS - 40 Investment Property

Ind AS - 41 Agriculture



Ind AS Description

Ind AS - 101 First-time Adoption of Indian Accounting Standards

Ind AS - 108 Operating Segments

Ind AS - 1 Presentation of Financial Statements

Ind AS - 2 Inventories

Ind AS - 7 Statement of Cash Flows

Ind AS - 8 Accounting Policies, Changes in Accounting Estimates and Errors

Ind AS - 10 Events after the Reporting Period

Ind AS - 12 Income Taxes

Ind AS - 16 Property, Plant and Equipment

Ind AS - 18 Revenue

Ind AS - 19 Employee Benefits

Ind AS - 36 Impairment of Assets

Ind AS - 37 Provisions, Contingent Liabilities and Contingent Assets

Ind AS - 38 Intangible Assets

KEY IND-AS RELEVANT FOR FINANCIAL STATEMENTS


Application:

First Ind-AS financial statements

Each interim financial report, if any, that an entity presents in accordance with

Ind AS 34 Interim Financial Reporting for part of the period, covered by its first

Ind-AS financial statements.

Layout of First Ind AS Financial Statements:

Retrospective Application:

Ind AS(s) are to be applied retrospectively to the comparative financial statements

except as are provided through mandatory exceptions and voluntary exemptions for

preparation of First Ind As financial statements.

Profit and Loss for the year ended

on 31.03.2018 on 31.03.2017

Closing Balance Sheet Opening Balance Sheet

as on 01.04.2016 As on 31.03.2018 As on 31.03.2017

IND AS 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

IND AS - 108

IND AS - 101

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IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18


For preparing Opening Ind As Balance Sheet:

Recognise all assets and liabilities whose recognition is required by Ind-As.

Derecognise items as assets or liabilities if Ind-ASs do not permit such

recognition.

Reclassify items that it recognised in accordance with previous GAAP as one

type of asset, liability or component of equity, but are a different type of asset,

liability or component of equity in accordance with Ind-ASs

Apply Ind-ASs in measuring all recognised assets and liabilities.

Financial Effect of Changes:

While adopting Ind AS, the retrospective application may result in changes in the

line items of Balance Sheet and Profit and Loss which shall be recognised in

Retained Earnings.

Reconciliations:

An entity shall explain how the transition from previous GAAP to Ind-ASs affected

its reported financial position, financial performance and cash flows through

reconciliations as provided by Ind AS 101.

IND AS 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18


Key Comparisons : Ind AS and AS

Existing AS 17 requires

identification of two sets of

segments—one based on related

products and services, and the

other on geographical areas

based on the risks and returns

approach. One set is regarded as

primary segments and the other

as secondary segments.

Identification of segments

under Ind AS 108 is based on

‘management approach’ i.e.

operating segments are

identified based on the internal

reports regularly reviewed by

the entity’s Chief Operating

Decision Maker (CODM).

Reportable Segments

For each segment disclosed as per Ind AS, entities are required to

provide a measure of profit or loss in the format viewed by the

CODM, as well as a measure of assets and liabilities if such

amounts are regularly provided to the CODM. Other segment

disclosures include revenue from customers for each group of

similar products and services, revenue by geography and

dependence on major customers. Additional detailed disclosures of

performance and resources are required if the CODM reviews these

amounts. A reconciliation of the total amount disclosed for all

segments to the primary financial statements is required for revenue,

profit and loss, and other material items reviewed by the CODM.

IND AS 108 OPERATING SEGMENTS

IND AS - 108

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IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS - 101


Components of Financial Statements:

A balance sheet as at the end of the period.

A statement of profit and loss for the period.

A statement of cash flows for the period.

Notes, comprising a summary of significant accounting policies and other

explanatory information.

A balance sheet as at the beginning of the earliest comparative period when an

entity applies an accounting policy retrospectively or makes a retrospective

restatement of items in its financial statements, or when it reclassifies items in its

financial statements.

New Components introduced:

Statement of Changes in Equity ( as a part of Balance Sheet)

Statement of Other Comprehensive Income ( as a part of Profit and loss)

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 1 PRESENTATION OF FINANCIAL STATEMENTS


Statement of Changes in Equity

An entity shall present a statement of changes in equity as a part of balance sheet

containing following information:

total comprehensive income for the period, showing separately the total amounts

attributable to owners of the parent and to non-controlling interests;

for each component of equity, the effects of retrospective application or

retrospective restatement recognised in accordance with Ind AS 8

for each component of equity, a reconciliation between the carrying amount at

the beginning and the end of the period, separately disclosing each changes

resulting from:

i) profit or loss;

ii) each item of other comprehensive income;

iii) transactions with owners in their capacity as owners, showing separately

contributions by and distributions to owners and changes in ownership

interests in subsidiaries that do not result in a loss of control and

iv) any item recognised directly in equity such as amount recognised directly in

equity as capital reserve with paragraph 36A of Ind AS 103.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18



Other Comprehensive Income

Types of Income recognised as Other Comprehensive Income

Changes in revaluation surplus (as per Ind AS 16 Property, Plant and Equipment

and Ind AS 38 Intangible Assets);

Actuarial gains and losses on defined benefit plans recognised in accordance

with Ind AS 19 Employee Benefits;

Gains and losses arising from translating the financial statements of a foreign

operation (as per Ind AS 21 The Effects of Changes in Foreign Exchange Rates)

Gains and losses on remeasuring available-for-sale financial assets (as Ind AS 39

Financial Instruments: Recognition and Measurement);

the effective portion of gains and losses on hedging instruments in a cash flow

hedge (as per Ind AS 39).

Presentation of Other Comprehensive Income

An entity may present components of other comprehensive income either:

(a) net of related tax effects, or

(b) before related tax effects with one amount shown for the aggregate amount of

income tax relating to those components.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18




As per Ind AS, if the cost of materials purchased includes a

component for deferred settlement payment (i.e., interest) the same

shall be excluded from the carrying amount of inventory and be

recognised as interest expense.

Existing AS does not contain such provision.

Cost of Inventory (excluding interest)

Specific Provision for reversal of write-down

As per Ind AS, write down of inventory is reversed, if circumstances

that previously caused inventories to be written down below cost no

longer exists or when there is clear evidence of an increase in the

net realizable value because of changes in economic circumstances.

The amount of reversal is limited to the amount of original write

down.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 2 VALUATION OF INVENTORIES



Existing AS does not provide

any specific treatment for Bank

Overdraft.

Ind AS Specifically includes

bank overdrafts which are

repayable on demand as a part

of cash and cash equivalents.

Bank Overdrafts

Amounts pertaining to obtaining or losing Control

Ind AS 7 requires to disclose the amount of cash and cash

equivalents and other assets and liabilities in the subsidiaries or other

businesses over which control is obtained or lost. Ind AS 7 also

requires to report the aggregate amount of the cash paid or received

as consideration for obtaining or losing control of subsidiaries or

other businesses in the statement of cash flows, net of cash and cash

equivalents acquired or disposed of as a part of such transactions,

events or changes in circumstances.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 7 STATEMENT OF CASH FLOWS



As per AS, Extraordinary Items

were separately disclosed on

the face of financial statements.

Ind AS, prohibits the presenta-

tion of Extraordinary Items in

financial statements.

Extraordinary Items

Accounting Treatment for Change in an Accounting Policy

As per AS, accounting

treatment for Change in an

accounting policy is not

prescribed. Further, restatement

of financial statements was

subject to certain conditions as

a result of which changes in

accounting policies were

effected prospectively.

Ind AS requires retrospective

application of changes in

accounting policies by

adjusting the opening balance

of each affected component of

equity for the earliest prior

period presented and other

comparative amounts for each

prior period presented as if the

new accounting policy has

always been applied, subject to

certain limitations.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS



Accounting for Prior Period Items

Existing AS requires the

rectification of prior

period items with

prospective effect.

Ind AS requires rectification of material

prior period errors with retrospective

effect subject to limited exceptions viz.,

where it is impracticable to determine the

period specific effects or the cumulative

effect of applying a new accounting

policy.

Prior Period Items

Existing AS 5 defines prior

period items as incomes or

expenses which arise in the

current period as a result of

errors or omissions in the

preparation of financial

statements of one or more

prior periods .

Prior period errors are omissions from,

and misstatements in the entity’s financial

statements for one or more prior periods

arising from a failure to use, or misuse of,

reliable information that:

a) was available when financial statements

for those periods were approved for

issue; and

b) could reasonably be expected to have

been obtained and taken into account in

the preparation and presentation of

those financial statements.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS



As per AS, material

non-adjusting events are

required to be disclosed in the

report of approving authority

As per IND AS, material

non-adjusting events are required

to be disclosed in the financial

statements

As per IND AS, proposed or

declared dividends are disclosed

in notes to accounts and not

recognised in financial

statements.

As per AS, proposed or

declared dividends are

recognised in the financial

statements,

Non-Adjusting Events

Dividends proposed or declared after reporting period

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 10 EVENTS AFTER THE REPORTING PERIOD



As per AS, deferred taxes are

recognised for the tax effect of

timing differences between

accounting income and taxable

income for the year i.e.,

income statement approach.

As per Ind AS, deferred taxes

are recognised for future tax

consequences of temporary

differences between the

carrying value of assets and

liabilities in books and their

respective tax base i.e.,

balance sheet approach

Computation Approach

Ind AS requires a more detailed disclosure as compared to the

existing accounting standard

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 12 INCOME TAXES


REVALUATION MODEL

After recognition as an asset, an item of property, plant and

equipment whose fair value can be measured reliably shall be carried

at a revalued amount, being its fair value at the date of the

revaluation less any subsequent accumulated depreciation and

subsequent accumulated impairment losses. Revaluations shall be

made with sufficient regularity to ensure that the carrying amount

does not differ materially from that which would be determined

using fair value at the end of the reporting period.

COST MODEL

After recognition as an asset, an item of property, plant and

equipment shall be carried at its cost less any accumulated

depreciation and any accumulated impairment losses.

Cost or Fair Value

IND AS - 108

IND AS - 101

IND AS - 1

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IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 16 PROPERTY, PLANT AND EQUIPMENT


Upward Revaluation

If an asset’s carrying amount is increased as a result of a revaluation,

the increase shall be recognised in other comprehensive income and

accumulated in equity under the heading of revaluation surplus.

However, the increase shall be recognised in profit or loss to the extent

that it reverses a revaluation decrease of the same asset previously

recognised in profit or loss.

Downward Revaluation

If an asset’s carrying amount is decreased as a result of a revaluation,

the decrease shall be recognised in profit or loss. However, the

decrease shall be recognised in other comprehensive income to the

extent of any credit balance existing in the revaluation surplus in

respect of that asset. The decrease recognised in other comprehensive

income r educes the amount accumulated in equity under the heading

of revaluation surplus.

Effects of Revaluation IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18



Emphasis on Mandatory

Component Approach

Under IND AS, each major part of

an item of property plant and

equipment with a cost that is

significant in relation to the total

cost of the item is depreciated

separately.

Further, it has been emphasized

that assets identifiable as separate

components be depreciated

separately.

Approach to Capitalisation & Depreciation

Voluntary Approach

Under AS, fixed assets are gen-

erally recorded at the

consolidated price paid for an

asset without allocating costs

to individually identifiable

components.

Component approach is

encouraged, but not

emphasized.

Under Ind AS, subsequent

expenditure on materials is

capitalized if the material is

expected to be used for a period

more than one year. (Subject to

materiality).

Costs incurred for services or

inspections of non-recurring

nature is to be capitalised.

Capitalization of Subsequent Expenditure

As per existing AS 10,

subsequent expenditures related

to an item of fixed asset are

capitalised only if they increase

the future benefits from the

existing asset beyond its

previously assessed standard of

performance.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18



Ind AS 16 requires that the cost of major inspections should be

capitalised with consequent derecognition of any remaining

carrying amount of the cost of the previous inspection. If the cost of

previous inspection is not available, the same needs to be worked

out in a manner similar to physical component

Cost of Major Inspections

Ind AS requires interest cost inherent in the purchase price to be

recognised as interest expense using effective interest rate method,

unless the same qualifies for capitalization as per Ind AS 23

‘Borrowing Costs’.

Interest Component Capitalisation

Dismantling Costs

Ind AS 16 requires that the initial estimate of the costs of dismantling

and removing the item and restoring the site on which it is located

should be included in the cost of the respective item of property plant

and equipment. Also, a corresponding provision is required to be made

as per Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent

Assets’.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18



The carrying amount of an item of property, plant and

equipment shall be derecognised:

a) on disposal; or

b) when no future economic benefits are expected from its use or

disposal.

The gain or loss arising from the derecognition of an item of property,

plant and equipment shall be included in profit or loss when the item is

derecognised Gains shall not be classified as revenue.

The cost of replacing those parts which have not been depreciated

separately is also capitalised with the consequent derecognition of the

replaced parts. If it is not practicable for an entity to determine the

carrying amount of the replaced part, it may use the cost of the

replacement as an indication of what the cost of the replaced part was

at the time it was acquired or constructed.

Derecognition of Assets IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18




As per AS, Revenue is

recognised at the Nominal

value of the consideration.

Interest component, even if

inherent in the transaction is

not required to be recognised

separate from the

consideration for sale of

goods.

As per Ind AS, Revenue is

recognised at Fair Value of the

consideration, which means if the

consideration includes the

element of interest, revenue from

sale is recognised at fair value

(without interest impact) and the

interest component is recognised

using effective interest rate

method

Measurement and Recognition of Sale Revenue

Measurement and recognition of Interest Revenue

As per AS, interest is

recognised using the Effective

Interest rate method.

As per Ind AS, interest is

recognised on time proportion

basis.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 18 REVENUE



As per AS, revenue from

rendering of services may be

recognised using either

completed service contract

method or percentage of

completion method.

As per Ind AS, Revenue from

rendering of service is

mandatorily recognised by using

Percentage of Completion

method.

Revenue from Rendering of Services

Presentation of Excise Duty

As per AS, Revenue from sale

of goods is presented net of

excise duty.

As per Ind AS, Revenue from

sale of goods is to be disclosed

inclusive of Excise Duty in the

statement of profit and loss,

which implies that excise duty is

to be shown as an expense.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 18 REVENUE



As per AS, all actuarial gains

and losses shall be

recognised immediately in

the statement of profit and

loss.

As per Ind AS, actuarial gains or

losses representing changes in the

present value of the defined

benefit obligation resulting from

experience adjustment and effect

of changes in actuarial

assumptions are recognised in

Other Comprehensive Income

and not reclassified to profit or

loss in a subsequent period.

Actuarial Gains/Losses

As per Ind AS, description of funding arrangements and policy that

affects future contributions and maturity profile of defined benefit

obligation (for instance, weighted average duration) needs to be

disclosed.

Existing AS does not require such disclosure.

Information about Future Cash Flows

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 19 EMPLOYEE BENEFITS



AS for impairment does not

apply to subsidiaries, associates

and joint ventures.

Ind AS applies to financial assets

classified as subsidiaries, associates

and join ventures.

Applicability

Ind AS 36 requires annual

impairment testing for an

intangible asset with an indefinite

useful life or not yet available for

use and goodwill acquired in a

business combination

Annual Impairment Testing for certain class of assets

Existing AS does not require

the annual impairment testing

for the goodwill unless there is

an indication of impairment

Ind AS 36 prohibits the

recognition of reversals of

impairment loss for good-

will.

Reversal of Impairment Loss on Goodwill

Existing AS requires that the

impairment loss recognised for

goodwill should be reversed in a

subsequent period when it was caused

by a specific external event of an

exceptional nature that is not expected

to recur and subsequent external events

that have occurred that reverse the

effect of that event .

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 36 IMPAIRMENT OF ASSETS



As per Ind AS, the provisions

may be discounted using an

appropriate pre-tax rate, if the

effect of Time Value of Money

is Material.

Carrying Amount of Provisions

As per AS, discounting of

provisions is not permissible.

As per Ind AS, disclosure of

contingent assets in the

financial statements is required

when the inflow of economic

benefits is probable

Contingent Assets

As per AS, contingent assets

may be disclosed in the report

of approving authority, but not

in the financial statements.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 37 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS



As per IND AS, an intangible

asset shall be recognised, if and

only if it can be identified

separately from Goodwill. Ind

AS also provides a guidance

with respect to identifiability.

Separability from Goodwill

Existing AS does not define

‘identifiability’, but states that

an intangible asset could be

distinguished clearly from

goodwill if the asset was

separable, but that separability

was not a necessary condition

for identifiability.

As per Ind AS, in the case of

separately acquired

intangibles, the criterion of

probable inflow of expected

future economic benefits is

always considered satisfied,

even if there is uncertainty

about the timing or the amount

of the inflow.

Probability of Inflow of Economic Resources

As per AS, probability of

inflow of economic resources

is required to be assessed

before an asset could be

recognised. As contains no

such deeming fiction.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 38 INTANGIBLE ASSETS



Ind AS recognizes that the

useful life of an intangible asset

can even be indefinite subject to

fulfillment of certain

conditions, in which case it

should not be amortised but

should be tested for

impairment.

Useful Life and Amortisation

Existing AS states that the

useful life of an intangible

asset is always finite, and

includes a rebuttable

presumption that the useful

life cannot exceed ten years

from the date the asset is

available for use.

As per Ind AS, the intangible

asset may be recognised at cost

or revalued figure.

Valuation Approach

As per AS, revaluation of

Intangibles is not permissible.

IND AS - 108

IND AS - 101

IND AS - 1

IND AS - 2

IND AS - 7

IND AS - 8

IND AS - 10

IND AS - 12

IND AS - 16

IND AS - 19

IND AS - 36

IND AS - 37

IND AS - 38

IND AS - 18

IND AS 38 INTANGIBLE ASSETS


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Reader's feedback / observation are welcomed and would be appreciated. [email protected], [email protected], [email protected]

CA VIDHAN SURANA (FOUNDER PARTNER)

CA SUNIL MALOO (PARTNER)

Key Professionals for Transition to and Implementation of Ind AS

CA URVISH SANGHAVI CA ZEEL SALOT

Documents

Surana Maloo & Co. · out of revaluation of assets, write-back of depreciation and amalgamation. Ind AS will apply to both consolidated as well as standalone financial statements