A Quick Snapshot of Concepts of AS/IND-AS/IFRS
Accounting standards deal with recognition of events and transactions, measurement of transactions and events, presentation of transactions and events and disclosure requirements. In India ICAI issues accounting standards on the relevant subject for non-corporate bodies and The Central Government of India issues the accounting standards for the corporate bodies.
Indian Accounting Standards converged with IFRS (IND-AS) are the new set of Accounting Standards which India has started to adopt in phased Manner from year 2016 onwards.
Earlier we were following 27 Accounting standards (AS) issued by Institute of Chartered Accountants of India in the year 2000.IND-AS has 41 new standards which replaces our 27 standards.
The International Financial Reporting Standards, also known by its acronym IFRS, issued by International Accounting Standard Board(IASB) are a set of global accounting standards which are already adopted by more than 150 countries across the globe. IND-AS is 98 percent inspired from IFRS. If you are adopting IND-AS, you are almost at par with IFRS.
The IFRS include
Idea of migrating to IND-AS is to facilitate:
Concept of Carve-Out/Carve-In
Components of Financial Statements (IND-AS Vs IFRS)
|Balance Sheet||Statement of Financial Position|
|Profit and Loss account/Statement of Profit and Loss||Statement of Profit and Loss and other comprehensive Income|
|Cash Flow Statement||Statement of cash flows for the period|
|Statement of changes in Equity||Statement of Changes in Equity for the period|
|Notes to Accounts/Financial Statements and Disclosure of significant accounting policies|
Applicability of IND-AS
Once Applicable on a company, its holding, subsidiary, joint venture or associate companies shall also be required to apply the IND-As from the same period
Consequences of non compliance
In pursuance of Section 134 (5) of the companies Act, 2013 the directors have to be confirmed and ensure that the compliance of all applicable laws have been fulfilled. In pursuance of section 134 (8) if a company contravenes the provisions of this section,
Impact of implementation of IND-As on Indian companies: