CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

CA P.S. Beniwal
Faculty of CA Inter-Accounting and Advance Accounting
CA Final-Financial Reporting & Global FRS
 Member of IND AS Implementation Committee of ICAI
 Awarded by Vice president of ICAI and Chairman of NIRC for,
“COMMENDABLE CONTRIBUTION IN ACTIVITIES OF THE
PROFESSION.”

Important IND AS Summary for May 19

INDIAN ACCOUNTING STANDARDS (IND AS)
1. Meaning:- Indian Accounting Standards (abbreviated as Ind AS) are a set of accounting standards notified by the
Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS) (IND AS
is notified by NACAS on 25th Feb 2011.) (NFRA= National Financial Reporting Authority U/s 132)

2. Applicability of IND AS:- The Ind AS shall be applicable to the companies as follows: As notified by MCA as on
16/02/15 in Companies (Indian Accounting Standards) Rules, 2015.
Obligation to comply with Indian Accounting Standards (Ind AS). - (1) The Companies and their auditors
shall comply with the Indian Accounting Standards (Ind AS) specified in Annexure to these rules in preparation of
their financial statements and audit respectively, in the following manner.

On mandatory basis
(i) On voluntary (ii) Accounting periods beginning on or (iii) Accounting periods beginning on or
basis after 1/4/16(For 31/3/17) with the after 01/04/17(For 31/3/18), with the
comparatives. comparatives.
Accounting (a) Companies whose equity and/or debt (a) Companies whose equity and/or debt
periods beginning securities are listed or are in the process of listing securities are listed or are in the process of being
on or after April on any stock exchange in India or outside India listed on any stock exchange in India or outside
1, 2015, with the and having net worth* of Rs. 500 Crore or more. India.
comparatives for (b) Companies other than those covered in (ii) (a) (b) Unlisted companies having net worth of 250
the periods above, having net worth of Rs. 500 Crore or crore or more but less than rupees 500 Crore.
ending 31st more.
March, 2015 or (c) Holding, subsidiary, joint venture or associate (c) Holding, subsidiary, joint venture or associate
thereafter; above. companies of above.

* NET WORTH: “NET WORTH” shall have the meaning assigned to it in clause (57) of section 2 of the Act
“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.

Note:-
1. Companies listed on SME exchanges shall not be required to apply Ind AS.
2. Once Ind AS are followed by the company, it shall be required to follow, for all the subsequent financial statements.
3. This press realise do not apply on Banking Companies, Insurance Companies and NBFC’s
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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

IND AS ROADMAP FOR BANKS, INSURANCE COMPANIES AND NBFCS

A) Scheduled commercial banks (excluding RRBs) and insurers/insurance companies:- Mandatory for accounting
periods beginning from 1 April 2018 onwards (With Comparative)
a. Scheduled commercial banks (excluding RRBs), Insurers/insurance companies
b. Holding, subsidiary, joint venture or associate companies of scheduled commercial banks
** Extension on banking Company:- Applicable from 01st April 19 (19-20) as notified as on 06/04/18 by RBI
*** Further extension but new date for applicability is still pending.

B) NBFCs: NBFCs will be required to prepare Ind AS based financial statements in two phases.
Phase 1: Mandatory for accounting periods beginning from 1 April 2018 onwards (With Comparative)
a. NBFCs (Whether listed or unlisted) having a net worth of Rs. 500 crore or more
b. Holding, subsidiary, joint venture or associate companies of the above, other than those companies already
covered under the corporate roadmap announced by MCA
* On insurance Company:- Applicable from 01st April 2020(20-21) as notified as on 28/6/17 by IRDA

Phase 2:Mandatory for accounting periods beginning from 1 April 2019 onwards (With Comparative)
a. NBFCs whose equity and/or debt securities are listed or are in the process of listing on any stock exchange.
b. NBFCs that are unlisted companies, having a net worth of 250 crore INR or more but less than 500 crore INR
c. Holding, subsidiary, joint venture or associate companies of companies covered above, other than those companies
already covered under the corporate roadmap announced by MCA

C) Voluntary adoption not permitted to BANKS, INSURANCE COMPANIES AND NBFCS

D) Companies/entities not covered in the roadmap

a. NBFCs having a net worth below 250 crore INR .
b. Urban cooperative banks (UCBs) and RRBs.

NUMBER AND NAME OF IND AS, WITH RESPECTIVE IFRS OR IAS.

S.N. Name of Ind AS with Number IFRS IAS
1. Ind AS 101 First-time Adoption of Indian Accounting Standards 1
2. Ind AS 102 Share based Payment 2
3. Ind AS 103 Business Combinations 3
4. Ind AS 104 Insurance Contracts 4
5. Ind AS 105 Non current Assets Held for Sale and Discontinued Operations 5
6. Ind AS 106 Exploration for and Evaluation of Mineral Resources 6
7. Ind AS 107 Financial Instruments: Disclosures 7
8. Ind AS 108 Operating Segments 8
9. Ind AS 109 Financial Instruments: Recognition and Measurement issued. 9
10. Ind AS 110 Consolidated Financial. 10
11. Ind AS 111 Joint Arrangements. 11
12. Ind AS 112 Disclosure of Interest in Other. 12
13. Ind AS 113 Fair Value Measurement. 13
14. Ind AS 114 Regulatory Deferral Accounts. 14
15. Ind AS 1 Presentation of Financial Statements 1
16. Ind AS 2 Inventories 2
17. Ind AS 7 Statement of Cash Flows 7
18. Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors 8
19. Ind AS 10 Events after the Reporting Period 10
20. Ind AS 11 Construction Contracts * 11
21. Ind AS 12 Income Taxes 12
22. Ind AS 16 Property, Plant and Equipment 16
23. Ind AS 17 Leases 17
24. Ind AS 18 Revenue* 18
25. Ind AS 19 Employee Benefits 19
26. Ind AS 20 Accounting for Government Grants and Disclosure of Government 20
Assistance
27. Ind AS 21 The Effects of Changes in Foreign Exchange Rates 21
28. Ind AS 23 Borrowing Costs 23

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29. Ind AS 24 Related Party Disclosures 24

30. Ind AS 27 Consolidated and Separate Financial Statements 27
31. Ind AS 28 Investments in Associates 28
32. Ind AS 29 Financial Reporting in Hyperinflationary Economies 29
33. Ind AS 31 Interests in Joint Ventures 31
34. Ind AS 32 Financial Instruments: Presentation 32
35. Ind AS 33 Earnings per Share 33
36. Ind AS 34 Interim Financial Reporting 34
37. Ind AS 36 Impairment of Assets 36
38. Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets 37
39. Ind AS 38 Intangible Assets 38
40. Ind AS 40 Investment Property 40
41. Ind AS 41 Agriculture. Exposure Draft has been issued. The standard is yet to be 41
finalized

PART I: CARVE OUT

Ind AS 1 : Presentation of Financial Statements (IAS 1)
This carve-out is due to difference in application of accounting principles and practices and economic conditions prevailing in
India.
IAS 1 requires that in case of a loan liability, if any condition of the loan agreement which was classified as non-current is
breached on the reporting date, such loan liability should be classified as current. Where the breach is rectified after the
balance sheet date IAS requires loans to be classified as current.
Carve Out: Ind AS 1 clarifies that where there is a breach of a material provision of a long - term loan arrangement on
or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting
date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the
approval of the financial statements for issue, not to demand payment as a consequence of the breach.
Reason: Under Indian banking system, a long-term loan agreement generally contains a large number of conditions. Some
of these conditions are substantive, such as, recalling the loan in case interest is not paid, and some conditions are
procedural and not substantive, such as, submission of insurance details where the entity has taken the insurance but not
submitted the details to the lender at the end of the reporting period. Generally, customer-banker relationships are
developed whereby in case of any procedural breach, a loan is generally not recalled. Also, in many cases, a breach is
rectified after the balance sheet date and before the approval of financial statements. Carve out has been made on the basis
of above mentioned reason.

Ind AS 10: Events after the Reporting Period (IAS 10)

As per IFRS: Rectification of any breach after the end of the reporting period is a non - adjusting event.
Carve Out: As a consequence to carve-out (resulted in carve out) stated in Ind AS 1 above, Ind AS 10 provides, in the
definition of Events after the reporting period‘ that in case of breach of a material provision of a long-term loan arrangement
on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting
date, if the lender, before the approval of the financial statements for issue, agrees to waive the breach, it shall be
considered as an adjusting event.

Ind AS 17: Leases (IAS 17)

As per IFRS: IAS 17 requires all leases rentals to be charged to statement of profit and loss on straight-line basis in case of
operating leases unless another systematic basis is more representative of the time pattern of the user‘s benefit even if the
payments to the lessor are not on that basis.
Carve out: A carve-out has been made to provide that lease rentals, in case of operating leases, shall be charged to the
statement of profit and loss in accordance with the lease agreement unless the payments to the lessor are structured to
increase in line with expected general inflation to compensate for the lessor‘s expected inflationary cost increases. If
payments to the lessor vary because of factors other than general inflation, then this condition is not met.
Reason: Companies enter into various kinds of lease agreements to get the right to use an asset of the lessor. Considering
the Indian inflationary situation, lease agreements contain periodic rent escalation. Accordingly, where there is periodic rent
escalation in line with the expected inflation so as to compensate the lessor for expec ted inflationary cost increases, the
rentals shall not be straight-lined.

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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

Ind AS 115: Revenue from Contracts with Customers

IFRS 15 provides that all types of penalties which may be levied in the performance of a contract should be considered
in the nature of variable consideration for recognising revenue.

Carve out: Ind AS 115 has been amended to provide that penalties shall be accounted for as per the substance of the
contract.
Where the penalty is inherent in determination of transaction price, it shall form part of variable consideration,
otherwise the same should not be considered for determining the consideration and the transaction price shall be
considered as fixed.

Ind AS 28: Investments in Associates and Joint Ventures (IAS 28)

As per IFRS: IAS 28 requires that for the purpose of applying equity method of accounting in the preparation of investor‘s
financial statements, uniform accounting policies should be used. In other words, if the associate‘s accounting policies are
different from those of the investor, the investor should change the financial statements of the associate by using same
accounting policies.

Carve out 1: In Ind AS 28, the phrase, unless impracticable to do so‘ has been added in the relevant requirements, i.e.,
paragraph 35.
Reasons: Certain associates, e.g., regional rural banks (RRBs), being associates of nationalized banks, are not in a position
to use the Ind AS as these may be too advanced for the RRBs. Accordingly, the above-stated words have been included to
exempt such associates.

Carve out 2: Further, in IAS 28, Capital Reserve when Investors share in Net Assets exceeds Cost of Investment is
recognised in profit or loss while in Ind AS 28, Paragraph 32 (b) has been modified on the lines of Ind AS 103, ‘Business
Combinations’, to transfer excess of the investor‘s share of the net fair value of the investee‘s identifiable assets and
liabilities over the cost of investment in capital reserve.

Ind AS 32 : Financial Instruments: Presentation (IAS 32)

As per IFRS :As per accounting treatment prescribed under IAS 32, equity conversion option in case of foreign currency
denominated convertible bonds is considered a derivative liability which is embedded in the bond. Gains or losses arising on
account of change in fair value of the derivative need to be recognised in the statement of profit and loss as per IAS 32.
Carve out : In Ind AS 32, an exception has been included to the definition of „financial liability‟ in paragraph 11 (b) (ii),
whereby conversion option in a convertible bond denominated in foreign currency to acquire a fixed number of entity‟s own
equity instruments is classified as an equity instrument if the exercise price is fixed in any currency.
Reasons :This treatment as per IAS 32 is not appropriate in instruments, such as, FCCBs since the number of shares
convertible on the exercise of the option remains fixed and the amount at which the option is to be exercised in terms of
foreign currency is also fixed; merely the difference in the currency should not affect the nature of derivative, i.e., the
option. Further, the fair value of the option is based on the fair value of the share prices of the company. If there is
decrease in the share price, the fair value of derivative liability would also decrease which would result in recognition of gain
in the statement of profit and loss. This would bring unintended volatility in the statement of profit and loss due to volatility
in share prices. This will also not give a true and fair view of the liability as in this situation, when the share prices fall, the
option will not be exercised. However, it has been considered that if such option is classified as equity, fair value changes
would not be required to be recognised. Accordingly, the exception has been made in definition of financial liability in Ind AS
32.

Ind AS 101: First time Adoption of Indian Accounting Standards (IFRS 1)

(i) Definition of Previous GAAP under Ind AS 101

As per IFRS: IFRS 1 defines previous GAAP as the basis of accounting that a first -time adopter used immediately
before adopting IFRS.
Carve out: Ind AS 101 defines previous GAAP as the basis of accounting that a first-time adopter used for its
reporting requirement in India immediately before adopting Ind ASs.
Reason: The change makes it mandatory for Indian companies to consider the financial statements prepared in
accordance with existing Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 as
previous GAAP when it transitions to Ind AS as the law prevailing in India recognises the financial statements prepared
in accordance with the Companies Act.

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(ii) Allowing the use of Carrying Cost of Property, Plant and Equipment (PPE) on the Date of Transition of
Ind AS 101.
As per IFRS: IFRS 1 First time adoption of International Accounting Standards provides that on the date of transition
either the items of Property, Plant and Equipment shall be determined by applying IAS 16 ‘Property, Plant and
Equipment’ retrospectively or the same should be recorded at fair value.
Carve out:Ind AS 101 provides an additional option to use carrying values of all items of property, plant and
equipment on the date of transition in accordance with previous GAAP as an acceptable starting point under Ind AS.
Reason: In case of old companies, retrospective application of Ind AS 16 or fair values at the date of transition to
determine deemed cost may not be possible for old assets. Accordingly, Ind AS 101 provides relief to an entity.

(iii) Long-term Foreign Currency Monetary Items As per IFRS:

No provision in IFRS 1.
Carve out: Ind AS 101 provides that a first -time adopter may continue the policy adopted for accounting for
exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial
statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per
the previous GAAP. Consequently, Ind AS 21 also provides that it does not apply to long-term foreign currency
monetary items for which an entity has opted for the exemption given in paragraph D13AA of Appendix D to Ind AS
101. Such an entity may continue to apply the accounting policy so opted for such long - term foreign currency
monetary items.
Reason: Para 46A of AS 11 provides an option to recognise long term foreign currency monetary items in the
statement of profit and loss as a part of the cost of property, plant and equipment or to defer its recognition in the
statement of profit and loss over the period of loan in case the loan is not related to acquisition of fixed assets. To
provide transitional relief, such entities have been given an option to continue the capitalisation or deferment of
exchange differences, as the case may be, on foreign currency borrowings obtained before the beginning of First IFRS
reporting period.

Ind AS 103: Business Combinations (IFRS 3)

As per IFRS: IFRS 3 requires bargain purchase gain arising on business combination to be recognised in profit or loss as
income.
Carve out: Ind AS 103 requires the bargain purchase gain to be recognised in other comprehensive income and
accumulated in equity as capital reserve, unless there is no clear evidence for the underlying reason for classification of the
business combination as a bargain purchase, in which case, it shall be recognised directly in equity as capital reserve. A
similar carve-out is made in Ind AS 28, Investments in Associates and Joint Ventures
Reasons: At present, since bargain purchase gain occurs at the time of acquiring a business, these are considered as
capital reserve. Recognition of such gains in profit or loss would result into recognition of unrealised gains, which may get
distributed in the form of dividends. Moreover, such a treatment may lead to structuring through acquisitions, which may
not be in the interest of the stakeholders of the company.
Resulting in Carve-in
As per IFRS:-IFRS 3 excludes from its scope business combinations of entities under common control.
Carve-in:- Appendix C of Ind AS 103 Business Combinations gives guidance in this regard.

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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

PART II : Differences between IND AS and Existing AS

AS 1 : Presentation of Financial Statements
SN Basis of Differences IND AS 1: Presentation of Financial Statements AS 1 : Disclosure of
Accounting Policy
1 Scope Deals in presentation of Financial Statements (FS). Deals with Disclosure of
(Wider scope) Accounting Policy (Limited Scope)
2 Explicit Statement of Ind AS are complied in the FS. Ind AS 1 allows
Compliance deviation from a requirement of an IND AS in case the
management concludes that compliance with Ind ASs No Such Provision
will be misleading and if the regulatory framework
requires does not prohibit such a departure.
3 Current and Non-current Explained Not explained
Classification
4 Extraordinary Items Prohibits presentation of any item as Extraordinary Permits presentation of any item
Item as Extraordinary Item
5 Disclosure of Required No such disclosure explicit.
Judgements and
Assumptions made
6 Classification of Presented based on nature of expenses No Such Provision
Expenses
7 Presentation of Balance Ind AS 1 requires, when
Sheet at the beginning of (a) Applies an accounting policy retrospectively or
the earliest period (b) makes a retrospective restatement of items in the Not Required
financial statements, or
(c)when it reclassifies items in its financial statements.
8 Disclosure of Reclassified Required Not Required
of Items with reason.
9 Statement of Changes in Required Not Required
Equity
10 Statement of Other Required Not Required
Comprehensive Income
in two sections
11 Inclusion of Comparative Required Not Required
Information
12 Classification of Long- Long term loan arrangement need not be classified as
term Loan Arrangement current on account of breach of a material provision,
for which the lender has agreed to waive before the No Such Provision
approval of financial statements.

Ind AS 2: Valuation of Inventory

SN Basis of Differences Ind AS 2: Valuation of Inventory AS 2: Valuation of Inventory
1. Subsequent Recognition Subsequent recognition of cost/carrying amount of Does not provide the same
inventories as an expense.
2 Inventory of Service Explanation with regard to inventories of service Does not contain such an
Provider providers explanation.
3 Machinery Spares Does not contain specific explanation in respect of The existing AS 2 explains that
such spares as this aspect is covered under Ind AS 16. inventories do not include spare
parts, servicing equipment and
standby equipment which meet
the definition of PPE as per AS
10. Such items are accounted for
in accordance with AS 10.
4 Inventory held by Measure their inventories at fair value less costs to This aspect is not in AS 2.
Commodity Broker- sell.
traders
5 Definition of Fair Value Explanation in respect of distinction between net Does not contain the definition of
and Distinction Between realisable value and fair value. fair value and such explanation.
NRV and Fair Value
6 Subsequent Assessment Provides detailed guidance in case of subsequent Does not deal with such reversal.
of NRV assessment of NRV. It also deals with the reversal of

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the write-down of inventories to NRV to the extent of

the amount of original write-down, & the recognition
and disclosure thereof in the financial statements.
7 Inventories Acquired on A difference between the purchase price for normal No such treatment.
Deferred Settlement credit terms and the amount paid, is recognised as
Terms interest expense
8 Cost Formula Requires the use of consistent cost formula in Does not specifically requires the
determining the cost of an item of inventory. use of consistent cost formulas

Ind AS 7: Cash Flow Statement

SN Basis of Differences Ind AS 7: Cash Flow Statement AS 3: Cash Flow Statement
1. Bank Overdraft Repayable Bank overdrafts which are repayable on demand as a No Such provision
on Demand part of cash and cash equivalents
2 Adjustment of the Profit or
Loss for the Effects of
Undistributed Profits of Requires such adjustment under Indirect Method No such provision
Associates and Non-
controlling Interests
3 Cash Flows associated No items are classified as Extraordinary Activities. Extraordinary activities to be
with Extraordinary separately classified as arising
Activities from operating, investing and
financing activities
4 Disclosure of Cash and Disclose the amount of cash & cash equivalents and
Cash Equivalents in other assets & liabilities in the subsidiaries or other No such provision
Specific Situations businesses over which control is obtained or lost
5 New Examples of Cash  cash payments to owners to acquire or redeem the
Flows arising from entity‘s shares
Financing Activities  cash proceeds from mortgages Not included
 cash payments by a lessee for the reduction of the
outstanding liability relating to a finance lease.
6 Investment in  Mentions the use of equity or cost method
Subsidiaries, Associates  Specifically deals by using equity method Not contain such requirements.
and JVs (Investees)
7 Use of Different Functional currency Reporting currency
Terminology and
Translation of Cash Flows
of a Foreign Subsidiary.
8 Disclosures Requires more disclosures No disclosures.

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

SN Basis of Differences IND AS 8: (Accounting Policies, Changes in AS 5 (Net Profit or Loss for
Accounting Estimates and Errors) the Period, Prior Period Items
and Changes in Accounting
Policies (Revised))
1 Objective Prescribe the criteria for selecting and changing Prescribe the classification and
accounting policies, together with the accounting disclosure of certain items in the
treatment and disclosure of changes in accounting statement of profit and loss.
policies, changes in accounting estimates and
corrections of errors
2 Basis Intends to enhance the relevance and reliability of an Classification and disclosure of
entity‘s financial statements and the comparability of certain items in the statement of
those financial statements over time and with the profit and loss for uniform
financial statements of other entities preparation and presentation of
financial statements
3 Presentations of Prohibits Provide
Extraordinary Items
4 Definition of Accounting Broadens the definition to include bases, conventions, Restricts the definition to the
Policies rules and practices (in addition to principles) applied specific accounting principles &
by an entity in the preparation and presentation of the methods of applying those
financial statements. principles
5 Change in Accounting Not included. Included.
Policies if required by

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statute
6 Retrospective Accounting Requires that changes in accounting policies should be Not specify how change in
of Changes in Accounting accounted for with retrospective effect. accounting policy should be
Policies accounted for.
7 Rectification of Material Rectification of material prior period errors with Prospective effect
Prior Period Errors retrospective effect except where it is impracticable to
determine the period specific effects.

Ind AS 10: Events after the Reporting Period.

SN Basis of Differences IND AS 10: Events after the Reporting Period. Amended AS4: Contingencies
and EOABS Date
1 Non Adjusting Events if Disclosed in the financial statements (Disclosed in Disclosed in the report of
Material notes to account.) approving authority.
2 Proposed Dividend Dividend proposed or declared after the reporting Now Same.
period, cannot be recognised as a liability. Disclosed in
notes to account.
3 Distribution of non-cash Guideline Given. No Guidelines.
assets to owners
4 Impact of non-adjusting Basis of accounting changes from going concern to No Such Requirement.
event in case of a question liquidation.
mark on going concern.
5 In case of breach of a Considered as an adjusting event No Such Provisions.
material provision of a (Referred IND AS 1)
long term loan
arrangement

Ind AS 12: Income Taxes-(IMPORTANT)

SN Basis of Differences Ind AS 12: Income Taxes AS 22: Accounting for Taxes
on Income
1 Approach for creating Based on balance sheet approach Based on income statement
Deferred Tax approach
2 Recognition of DTA for Same criteria for recognising deferred tax arising from DTA are recognised only if there
unabsorbed depreciation unabsorbed depreciation or carry forward of losses as should be virtual certainty
or carry forward of losses in case of deductible temporary differences. supported by convincing evidence
3 Disclosure of DTA and DTL Does not deal with this aspect except in accordance Deals with disclosure of DTA and
in Balance Sheet with the requirements of Ind AS 1. DTL.
4 DTA/DTL arising out of Shall be measured on the basis of tax consequences Does not deal with this aspect.
Revaluation of Assets. from the sale of asset rather than through use.
5 Guidance for Recognition Does not specifically deal with these situations. Specially Provides guidance
of Deferred Tax in a Tax regarding recognition of DT in
Holiday Period Tax Holiday under Sec 80-IA, 80-
IB, 10A & 10B
6 Disclosure Requirements More detailed. Less detailed.

IND AS 16:- Property, Plant and Equipment

SN Basis of Differences IND AS 16:- Property, Plant and Equipment Amended AS 10:- PPE
1. Fixed Assets retired from Ind AS 16 does not deal with the assets ‘held for sale’ Deals with accounting for items of
Active Use and Held for because the treatment of such assets is covered in Ind fixed assets retired from active
Sale AS 105, Non-current Assets Held for Sale and use and held for sale.
Discontinued Operations.
2. Stripping Costs in the Provides guidance on measuring ‘Stripping Costs in the Does not contain this guidance.
Production Phase of a Production Phase of a Surface Mine’.
Surface Mine

Ind AS 17: Leases

SN Basis of Differences Ind AS 17: Leases AS 19: Leases
1 Excludes leases of land Does not have exclusion land and has specific Excludes leases of land from its
from its scope provisions dealing with leases of land and building. scope
2 Residual Value definition Deleted Given
3 Inception of Lease and Makes a distinction between inception of lease and No distinction.
Commencement of Lease commencement of lease.
4 Current/Non-current Requires current/non-current classification of lease No such provision.
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Classification Liabilities
5 Method of amortisation in No amortisation method is given Deferred profit/loss and
case of Sale and amortised in the ratio of
Leaseback as finance lease depreciation.
6 Accounting for Incentives Guidelines given No guidelines is given
in the Case of Operating
Leases
7 Escalation treatment In case of lease rental, is in the line with inflation No provision.

Ind AS 19 : Employee Benefits

SN Basis of Differences Ind AS 19 : Employee Benefits AS 15 : Employee Benefits
1 Constructive Obligations Employee benefits arising from constructive Not deal.
obligations are also covered
2 Definition of Employee Includes directors Includes whole-time directors
3 Contractual Agreement Deals with situations where surplus in the plan will be Does not deal
between a Multi- distributed to the participants
employer Plan and its
Participants
4 Qualified Actuary Encourages, but does not require, involving a qualified Does not specifically encourage
actuary in the measurement of DBO. the same
5 Actuarial Gains and Losses Shall be recognised in other comprehensive income Recognised in the profit & loss
6 Financial Assumptions Shall be based on market expectations. Does not clarify the same.
7 Timing of Recognition of More guidance has been given. ------
Termination Benefits

Ind AS 20: Accounting for Government Grants and Disclosure of Government Assistance
SN Basis of Differences Ind AS 20: Accounting for Government Grants AS 12 : Accounting for
and Disclosure of Government Assistance Government Grants
1 Grant in respect of Non Grants should be recognised as income over the Shown as capital reserve which is
Depreciable Assets periods which bear the cost of meeting the obligation. a part of shareholders‘ funds
2 Government Grants in Grants should be recognised as income over the Shown as capital reserve which is
the Nature of Promoters periods which bear the cost of meeting the obligation. a part of shareholders‘ funds
Contribution
3 Grant in kind given Free Recorded either at a Fair value or at nominal value Recorded at a nominal value
or at a Concessional Rate
4 Government Assistance Deals with Government Assistance Not deals
5 Return of grant. Considered as change in Accounting Estimates. Treated as extraordinary items
6 Loans at Concessional A below-market rate of interest should be recognised No provision given.
Rate as grant.

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

SN Basis of Differences Ind AS 21 : The Effects of Changes in Foreign AS 11: The Effects of Changes
Exchange Rates in Foreign Exchange Rates
1 Forward Exchange Excludes from its scope forward exchange contracts Does not such exclude accounting
Contracts & other similar and other similar financial instruments, which are for such contracts.
Financial Instruments treated in accordance with Ind AS 109.
2 Exchange Differences Does not apply to long-term foreign currency Gives an option to recognise such
arising on Translation of monetary items recognised in the financial statements exchange differences directly in
Certain Long-term before the beginning of the first Ind AS financial equity, to be transferred to profit
Monetary Items from reporting period as per the previous GAAP, i.e. AS 11. or loss over the life of the
Foreign Currency to However, as provided in Ind AS 101, such an entity relevant liability/asset if such
may continue to apply the accounting policy so opted
Functional Currency. items are not related to
for such long-term foreign currency monetary items as
per the previous GAAP. acquisition of fixed assets. The
FED related to fixed assets can be
recognised as part of the cost of
the asset.
3 Approach for Translation Based on the functional currency approach. Based on IFO & NIFO approach
for accounting for a foreign
operation.
4 Presentation Currency Presentation currency can be different from local Does not explicitly state so.
currency and it gives detailed guidance in this regard

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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

Ind AS 23: Borrowing Costs

SN Basis of Differences Ind AS 23 : Borrowing Costs AS 16 : Borrowing Costs
1 Scope (Relaxation in Borrowing cost need not be capitalised Does not provide for such
Capitalisation )  If qualifying asset measured at Fair Value and relaxation scope
 Inventories that are manufactured or otherwise
produced, in large quantities on a repetitive basis.
2 Reporting in Part of the borrowing costs that compensates for No Such Standard in India.
Hyperinflationary inflation should be expensed, not capitalized in respect
Economies of qualifying assets.
3 Capitalisation Rate Requires Disclosure of Capitalisation Rate Does not require
4 Effective interest Method Interest expenses to be computed by using of No Such Requirement.
effective interest Method.

Ind AS 24: Related Party Disclosures

SN Basis of Differences Ind AS 24: Related Party Disclosures AS 18: Related Party
Disclosures
1. Definition of Relative Uses the term ― a close member of the family of a Uses the term ― relatives of an
person. individual.
2 Relative covers Children, spouse or domestic partner, brother, sister, Covers the spouse, son,
father and mother; children of that person‘s spouse or daughter, brother, sister, father
domestic partner; and dependants of that person or and mother
that person‘s spouse or domestic partner.
3 KMP Covers KMP of the parent as well KMP of the entity only
4 Related Parties in case of Co-venturers or co-associates are related to each Co-venturers or co-associates are
Joint Venture other. not related to each other
5 Post-employment Benefits Specifically includes post-employment benefit plans for Does not specifically cover
the benefit of employees of an entity or its related entities that are post-employment
entity as related parties. benefit plans, as related parties
6 Next Most Senior Parent Additional disclosure is required for such parent. No such provision.
7 Disclosure for Extended disclosures for compensation of KMP under Not required.
Compensation different categories.
8 Disclosure of ‘Amount of The amount of the transactions need to be disclosed Option to disclose the - Volume of
the Transactions’ vs the transactions either as an
‘Volume of the amount or as an appropriate
Transactions proportion
9 Government Related Disclosures of certain information by the government Presently exempts the disclosure
Entities related entities. of such information

Ind AS 33 : Earnings Per Share

SN Basis of Differences Ind AS 33 : Earnings Per Share AS 20 : Earnings Per Share
1 Disclosure of EPS with & No Requirement Requirement
without Extraordinary
Items
2 Basic and Diluted EPS from Requires presentation of basic and diluted EPS from Not require any such disclosure
Continuing and continuing and discontinued operations separately
Discontinued Operations
3 Options held by the Entity Specifically deal with options held by the entity on its Not deals.
on its Shares shares

Ind AS 34 : Interim Financial Reporting

SN Basis of Differences Ind AS 34 : Interim Financial Reporting AS 25 : Interim Financial
Reporting
1. Condensed statement of Required with condensed BS, PL and Cash Flow. Not Required with condensed BS,
change in equity PL and Cash flow.
2 Reversal of Impairment Prohibits reversal of impairment loss recognised in a No such Provision
Loss previous interim period in respect of goodwill or an
investment.
3 Parent’s Separate Neither requires nor prohibits the inclusion of the It included the consolidated
Statements & the parent’s separate statements in the entity’s interim financial statements in addition to
Consolidated Financial report prepared on a consolidated basis. the separate financial statements
Statements in the Entity’s in the interim financial report.
Interim Report
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4 Accounting Policies Ind AS 34 requires requirements of AS 25 plus Notes of interim financial

additionally requires the information in respect of statements require, containing a
methods of computation followed. statement that the same
accounting policies are followed
in the interim financial
statements.
5 Contingent Liabilities and Requires information on both contingent liabilities and Requires information on
Contingent Assets contingent assets, if they are significant. contingent liabilities only
6 Extraordinary Items Not Required Required
7 Change in Accounting Restatement of prior interim financial statement and Restating of prior interim periods
Policy annual financial statement. financial statement.

Ind AS 36 : Impairment of Assets

SN Basis of Differences Ind AS 36 : Impairment of Assets AS 28 : Impairment of Assets
1 Applies to Financial Applies to financial assets classified as subsidiaries, Not Applicable
Assets joint ventures and associates.
2 Exclude biological assets Specifically excludes biological assets related to Not specifically exclude biological
agricultural activity assets
3 Mandatory Annual An intangible asset with an indefinite useful life No annual impairment testing
Impairment Testing. Intangible asset not yet available for use unless there is an indication of
Goodwill acquired in a business combination. impairment.
4 Reversal of Goodwill Prohibits the recognition of reversals of impairment Reversed in a subsequent period
loss for goodwill. when it was caused by a specific
external event
5 Bottom up and Top Down No Bottom up and Top Down Test for allocation of Bottom up and Top Down Test
Test Goodwill. for allocation of Goodwill.
6 Guidance for the value in Additional guidlines given. Brief guidelines given.
use of an asset, using PV
techniques
7 Disclosures More Disclosure Less Disclosure

Ind AS 37: Provisions, Contingent Liabilities and Contingent Assets

SN Basis of Differences Ind AS 37: Provisions, Contingent Liabilities and AS 29: Provisions, Contingent
Contingent Assets Liabilities & Contingent
Assets.
1 Constructive obligations  “Legal obligation” and “constructive obligation” Provision can be created only in
and Change in the have been inserted and defined in Ind AS 37. case of Business practice.
Definition of Provision  Provision can be created from Constructive
and Obligating Event obligation.
2 Discounting Provisions Discounting provisions, if effect of the time value of Prohibits discounting the amounts
money is material. of provisions except in case of
decommissioning, restoration and
similar liabilities that are
recognised as cost of PPE under
AS-10.
3 Disclosure of Contingent Disclosure of contingent assets in the financial Disclosure in the report of the
Assets statements approving authority.
4 Impairment loss An entity should recognise any impairment loss that No Such Provision.
has occurred on assets dedicated to Onerous contract.

Ind AS 38 : Intangible Assets

SN Basis of Differences IND AS 38: Intangible Assets AS 26 : Intangible Assets
1 Exclusions Ind AS 38 does not include any exclusion in relation to Does not apply to accounting for
accounting for discount or premium relating to discount or premium relating to
borrowings and ancillary costs incurred in. borrowings and ancillary costs
incurred in.
2 Removed from Definition The requirement for the asset to be held for use in the
of Intangible Assets production or supply of goods or services, for rental to Included
others, or for administrative purposes has been
removed from the definition.
3 Payment Deferred Difference between cash amount and the total
payments is recognised as interest expense over the
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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

beyond Normal Credit period of credit unless it is capitalised in Ind AS 23 No such provision
Terms
4 Acquired in Business Deals in detail in respect of intangible assets acquired Acquired in an amalgamation in
Combination in a business combination the nature of purchase is dealt.
5 Subsequent Expenditure Gives guidance for the treatment of such expenditure No guidance
on R&D Project Process
6 Intangible Assets Should be recognised at the fair value of the asset Fair market value of the asset
Acquired in Exchange given up. acquired or surrendered which
has more clearly evident.
7 Useful Life. The useful life can even be indefinite. Cannot exceed 10 years
8 Valuation Model as Permits an entity to choose either the cost model or Revaluation model is not
Accounting Policy the revaluation model permitted
9 Legal Life Useful life shorter than the legal life No such Provision
10 Change in Method of Change in accounting estimate. Change in accounting policy
Amortization
11 Annual Impairment Annual impairment testing of an intangible asset not No such requirement
Testing yet available for use

12 Disclosures More Disclosure Less Disclosure

Ind AS 103: Business Combinations

SN Basis of Differences Ind AS 103: Business Combinations AS 14: Amalgamations
1 Scope A Business combination has a wider scope. Deals only with amalgamation.
2 Methods for Accounting Prescribes only the acquisition method for every Two methods (a) the pooling of
business combination. interest method and
(b) the purchase method
3 Assets and Liabilities At fair value under acquisition method At their existing book values or at
fair values under the purchase
method
4 Amortisation of Goodwill Goodwill is not amortised but tested for impairment on If amalgamation in the nature of
annual basis in accordance with Ind AS 36 purchase, amortised over a
periods not exceeding five years.
5 Contingent Consideration Deals with an obligation of the acquirer to transfer Does not provide specific
in case of business additional assets or equity interests to the former guidance on this aspect.
combination owners of an acquire if specified future events occur or
conditions are met.
6 Bargain Purchase Gain Bargain purchase gain arising on business combination The excess amount is treated as
to be recognised in other comprehensive income and capital reserve
accumulated in equity as capital reserve.

Ind AS 105: Non-current Assets Held for Sale and Discontinued Operations
SN Basis of Differences Ind AS 105: Non-current Assets Held for Sale AS 24 : Discontinuing
and Discontinued Operations. Operations
1. Scope and Objective The accounting for non-current assets held for sale, Principles for reporting
and the presentation and disclosure of discontinued information about discontinuing
operations operations
2 Cash Flow Statement Does not mention so. Requirements related to CFS are
applicable when the enterprise
presents a CFS
3 Discontinued v/s A discontinued operation is a component of an entity There is no concept of
Discontinuing Operations that either has been disposed of or is classified as held discontinued operations but it
for sale deals with discontinuing
operations.
4 Time Period Within one year from the date of classification with Does not specify any time period
certain exceptions in this regard as it relates to
discontinuing operations
5 Initial Disclosure Event Does not mention so as it relates to discontinued AS 24 specifies about the initial
operation. disclosure event in respect to a
discontinuing operation
6 Measurement Measured at the lower of carrying amount and fair Requires to apply the principles
value less costs to sell. set out in other relevant
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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

Accounting Standards
7 Abandonment of Assets is Not classified as a discontinuing operation. Classified as a discontinuing
a discontinuing operation operation
8 Guidance Regarding Provides guidance. Does not give any specific
Measurement of Changes guidance regarding this aspect
to a Plan of Change

Ind AS 108: Operating Segments

SN Basis of Differences Ind AS 108: Operating Segments AS 17 : Segment Reporting
1 Identification of Segments Based on ‘management approach’, whose operating Two sets of segments; Business
results are regularly reviewed by the entity’s chief and Geographical segment based
operating decision maker. on the risks and returns
approach.
2 Measurement of Amounts On the same basis as that used by the chief operating Segment information to be
to be Reported in decision maker for the purposes of allocating prepared in conformity with the
Segments resources to the segments and assessing its accounting policies adopted for
performance preparing & presenting the FS.
3 Aggregation criteria. Two or more segments can be aggregated if they No specific guidelines
have similar economic characteristics
4 Single Reportable Requires certain disclosures even in case of entities Not required to be disclosed.
Segment having single reportable segment (Disclosed by way of footnote)

Ind AS 115: Revenue from Contracts with Customers

SN Basis of Differences Ind AS 115: Revenue from Contracts with AS 7: Construct Contracts and
Customers AS 9: Revenue Recognition
1 Framework of Gives a framework, which specifies the core principle Do not provide any such
Revenue for revenue recognition which requires the ‘revenue overarching principle to fall upon
Recognition to depict the transfer of promised goods or services to in case of doubt.
customers in an amount that reflects the
consideration to which the entity expects to be entitled
in exchange for those goods or services’
2 Comprehensive Guidance Gives comprehensive guidance. Do not provide comprehensive
on Recognition and guidance.
Measurement of Multiple
Elements within a Contract
with Customer:
3 Coverage Deals with all types of performance obligation AS 7 covers only revenue
contract with customer. However, it does not deal from construction contracts which
with revenue from ‘interest’ and ‘dividend’ which are is measured at consideration
covered in financial instruments standard. received / receivable.
AS 9 deals only with recognition
of revenue from sale of goods,
rendering of services, interest,
royalties and dividends.
4 Measurement of Revenue Revenue is measured at transaction price, i.e., the As per AS 9, Revenue is the gross
amount of consideration to which an entity expects to inflow of cash, receivables or
be entitled in exchange for transferring promised other consideration arising in the
goods or services to a customer, excluding amounts course of the ordinary activities.
collected on behalf of third parties. Revenue is measured by the
charges made to customers or
clients for goods supplied and
services rendered to them and by
the charges and rewards arising
from the use of resources by
them.
As per AS 7, revenue from
construction contracts is
measured at consideration
received/receivable and to be
recognised as revenue as
construction progresses, if certain
conditions are met.
5 Recognition of Revenue Revenue is recognised when the control is transferred As per AS 9, revenue is

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 CA PS Beniwal:- Important IND AS Quick Revision Summary for Nov 19 9990301165

to the customer. recognised when significant risks

and rewards of ownership is
transferred to the buyer.
As per AS 7, revenue is
recognised when the outcome of
a construction contract can be
estimated reliably, contract
revenue should be recognised by
reference to the stage of
completion of the contract
activity at the reporting date.
6 Capitalisation of Costs Provides guidance on recognition of costs to obtain Do not deal with such
and fulfill a contract, as asset. capitalisation of costs.
7 Guidance on Service Gives guidance on service concession arrangements AS does not provide such
Concession Arrangements and disclosures thereof guidance.
8 Disclosure Requirements Contains detailed disclosure requirements. Less disclosure required

Ind AS 28: ‘Investments in Associates and Joint Ventures’

SN Basis of Differences Ind AS 28 ‘Investments in Associates and Joint AS 23 ‘Accounting for
Ventures’ Investments in Associates in
CFS’
1 Significant Influence Power to participate in policy decisions but not Power to participate in
control or joint control over those policies. policy decisions but not
control over those policies.
2 Potential Voting Rights Are considered for determining significant Are not considered for
influence (SI). determining SI
3 Accounting of investment Equity method should be applied, even if there Equity method, only if there is
in associates in the C&SFS is no subsidiary. a subsidiary.
4 Exception to equity No exception to equity method Exceptions to equity method
method are available
5 Option where a part of The part so held could be measured at fair No Such exemption
the investment in value. Equity method to be applied to the
associate is held indirectly remaining portion.
through certain specific
modes.
6 Share of losses in entity Carrying amount of investment with long term Only carrying amount of
interests shall be considered. Discontinue when interest shall be considered.
such carrying amount becomes Nil.
7 Loss of SI over an Should be recognized in OCI, and reclassified to No specific guidance
associate SPL on disposal.
8 Capital reserve/ negative Should be recognized directly in equity, on any Should be included in carrying
goodwill acquisition amount of associate but
disclosed separately.
9 Uniform accounting To be followed unless it is impracticable to do If not practicable, facts to be
policies so. disclosed.
10 Reporting date The difference in reporting dates should not be No specific guidance
more than 3 months
11 Impairment Objective evidence. Recognize any decline other
than temporary.

Ind AS 111- Joint Arrangements

SN Basis of Differences Ind AS 111- Joint Arrangements AS 27- Financial Reporting of
Interests in JV
1 Defined Terms Joint control, Joint arrangement Joint control, Joint venture
2 Accounting Method Can either be JO or JV, the classification Prescribes 3 forms of joint
depends on rights and obligations of parties to venture: JCO, JCA, JCE.
arrangement.
3 Accounting of interest in Accounted for either at cost or as per Ind AS As per AS 13 at cost less
jointly controlled entity in 109. If classified as held for sale, should be provision for other than
the separate financial accounted for as per Ind AS 105. Equity method temporary decline
statements should be applied if venture does not prepare
separate financial statements

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4 Explanation on the term It is deleted because it is covered under Ind AS Explanation given in Ind AS27
near future 105.
5 Disclosure of ventures No specific guidance Shown separately under the
share in post- acquisition relevant reserve while
reserves of a jointly applying proportionate
controlled entity consolidation method.
6 Accounting in case of JC No recognition of such cases Consolidated under AS 21.
over an entity which is a
subsidiary of the entity.

Ind AS 110 Consolidated Financial Statements

SN Basis of Differences Ind AS 110: Consolidated Financial AS 21 Consolidated
Statements Financial Statements
1 Scope Mandates the preparation of CFS for a Parent Not mandatory for a parent.
2 Control Principle based: Investor controls investee when Rule based:
it is exposed or has rights to variable returns •Ownership of more than half
from involvement with investee and has ability voting power.
to affect those returns through its power over •Control of composition of
investee. board
3 Potential Voting Rights Needs to be considered for control assessment. Are not considered for control
assessment.
4 Uniform Accounting To be followed and no recognition of situation If not considered for control
Policies of impracticability assessment.
5 Notes to consolidated No such clarification Notes necessary for true & fair
financial statements view and notes involving
material items
6 Exclusion of subsidiary All subsidiaries are consolidated If subsidiary acquired with
from consolidation intention to dispose of within
12 months or it operates
under severe long term
restrictions which impair its
ability to transfer funds to
parent, then subsidiaries
need not be consolidated.
7 Treatment in case of more Each investor would account for its interest in Both need to consolidate the
than one parent of a the investee in accordance with relevant Ind AS. financial statement of that
subsidiary Such as Ind AS 111, 28, 109 entity as per AS 21.
8 Difference in Reporting Should not be more than 3 months Should not be more than 6
Dates months
9 Presentation of minority Should present within equity, separately Presented separately from
interest from the equity of the owners of the parent liabilities & equity of the
parent’s shareholder.

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