On the 1st of November, 2023, the Accounting Standards Board (ASB) of The Institute of Chartered Accountants of India (ICAI) released an Exposure Draft concerning amendments to Ind AS 21, titled “Lack of Exchangeability.” These amendments aim to align Indian Accounting Standards (Ind AS) with the evolving International Financial Reporting Standards (IFRS) by the International Accounting Standards Board (IASB).
Detailed Analysis:
1. Background: Ind AS in India are closely linked to IFRS standards issued by the IASB. As IFRS standards evolve over time, there is a need to adapt Ind AS accordingly to maintain convergence. The ASB plays a pivotal role in considering and implementing amendments or new IFRS standards into the corresponding Ind AS.
2. Exposure Draft Overview: The Exposure Draft titled “Lack of Exchangeability – Amendments to Ind AS 21” addresses specific changes required in Ind AS 21 to ensure harmonization with IFRS. Exchangeability issues in financial reporting are of paramount importance in a globalized economy, and these amendments seek to address them effectively.
3. Public Participation: To ensure the highest level of transparency and stakeholder involvement, the ASB has invited public comments on this Exposure Draft. The comment period is open until December 1, 2023. This allows experts, practitioners, and interested parties to provide valuable input.
4. Accessing the Exposure Draft: Interested individuals and organizations can access the full Exposure Draft document for a detailed understanding of the proposed amendments. The document is available for download at the following link: Exposure Draft PDF.
5. How to Submit Comments: Comments can be submitted through various channels:
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- Electronically: The preferred method is to submit comments online at ICAI Comment Submission.
- Email: Comments can be emailed to commentsasb@icai.in.
- Postal: If preferred, comments can be sent via mail to the Secretary, Accounting Standards Board, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002.
6. Seeking Clarifications: For any inquiries or clarifications related to the Exposure Draft, interested parties can contact the ASB via email at asb@icai.in.
Conclusion: The Exposure Draft for the “Lack of Exchangeability – Amendments to Ind AS 21” signifies the commitment of the Accounting Standards Board to maintain alignment with international financial reporting standards. Public participation is highly encouraged, as it ensures a comprehensive and well-informed decision-making process. Stakeholders are urged to review the Exposure Draft, provide their valuable insights, and actively contribute to the development of accounting standards that reflect the dynamic nature of the global financial landscape. This collaborative approach will ultimately result in more robust and globally relevant Ind AS. The deadline for submitting comments is December 1, 2023, making it imperative for all interested parties to participate and make their voices heard.
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Accounting Standards Board
The Institute of Chartered Accountants of India
1st November, 2023
Exposure Draft of Lack of Exchangeability – Amendments to Ind AS 21
Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB). In this regard, it may be noted that IFRS Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Standards, Ind AS may be issued/revised corresponding to the IFRS Standards. Accordingly, whenever any amendments are made or new IFRS Standard by the IASB, the Accounting Standards Board (ASB) of the ICAI considers amendments for inclusion in corresponding Ind AS.
In this regard, the Accounting Standards Board has issued the following Exposure Draft for public comments with the last date of comments being December 1, 2023:
- Lack of Exchangeability – Amendments to Ind AS 21
The downloadable version of the Exposure Draft is available at: https://resource.cdn.icai.org/76933asb61951.pdf
Comments on the abovementioned Exposure Draft may be submitted through any of the following modes:
1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method)
2. Email: Comments can be sent to: commentsasb@icai.in
3. Postal: Secretary, Accounting Standards Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002
Further clarifications on the Exposure Draft may be sought by e-mail to asb@icai.in.
