Change of Nomenclature of the Committee from Ind AS (IFRS) Implementation Committee to Ind AS Implementation Committee

  No.1-CA(2)/Misc./2017 29th May, 2017 ALL MEMBERS OF THE COUNCIL Madam/Dear Sir, This is to inform you that the Council at its last (365th) meeting held on 17th to 19th May, 2017, has decided the following changes with regard to the Ind AS (IFRS) Implementation Committee: Change in the nomenclature of the Committee from ‘Ind AS (IFRS) Implementation Committee’ to ‘Ind AS Implementation Committee’. Change in the name of the Certificate course being organized by the Committee from ‘Certificate Course on IFRS’ to ‘Certificate Course on Ind AS’. Removal of ‘IFRS’ at all places from the Terms of Reference of the Committee including email id and other deliverables. Accordingly, henceforth, the name of the Committee in all communications may please be referred to as ‘Ind AS Implementation Committee’ and the

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Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 8

  Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 8 ‘Ind AS Transition Facilitation Group’ (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted for providing clarifications on timely basis on various issues related to the applicability and /or implementation of Ind AS under the Companies (Indian Accounting Standards) Rules, 2015, raised by preparers, users and other stakeholders. Ind AS Transition Facilitation Group (ITFG) considered some issues received from members and decided to issue following clarifications1 on May 5, 2017: Issue1: Whether provision for unspent Corporate Social Responsibility expenditure is required to be made as per Ind AS? Response: Paragraph 14 of Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets states: “A provision shall be recognised when: (a) an entity has a present obligation (legal or constructive) as

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Exposure Draft of Recognition of Deferred Tax Assets for Unrealised Losses (Amendments in Ind AS 12, Income taxes) (January 2017)

  Identification of a deductible temporary difference at the end of Year 2: Entity A purchases for Rs. 1,000, at the beginning of Year 1, a debt instrument with a nominal value of Rs. 1,000 payable on maturity in 5 years with an interest rate of 2% payable at the end of each year. The effective interest rate is 2%. The debt instrument is measured at fair value. At the end of Year 2, the fair value of the debt instrument has decreased to Rs. 918 as a result of an increase in market interest rates to 5%. It is probable that Entity A will collect all the contractual cash flows if it continues to hold the debt instrument. Any gains (losses) on the debt instrument are taxable (deductible) only

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Exposure Draft of Ind AS Taxonomy for Comments

  As per the roadmap issued by the Ministry of Corporate Affairs (MCA) in February 2015, certain class of companies have to prepare their financial statements as per Indian Accounting Standards (Ind AS) which are converged with International Financial Reporting Standards (IFRS) w.e.f F.Y. 2016-17. MCA has also notified Ind AS compliant format of financial statements (i.e. Division II of Schedule III to the Companies Act, 2013). Accordingly, XBRL taxonomy, based on the Ind AS and Ind AS compliant Schedule III requirements, has been developed for the companies other than insurance or banking company or any company engaged in the generation or supply of electricity, or to any other class of company for which a form of financial statement has been specified in or under the Act governing such class

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Guidance Note on Accounting for Oil and Gas Producing Activities (Ind AS)

  The Indian economy has performed robustly over the last few years. This speedy economic growth has led to a major increase in demand for crude oil and natural gas, to the extent that India is currently the sixth largest consumer of oil and gas. Upstream oil and gas activity in India has substantially grown post liberalization. As India imports about twothirds of its crude oil requirement, acquisition, exploration, development and production of oil and gas is critical for India’s energy security and economic growth. The roadmap issued by the Ministry of Corporate Affairs (MCA) for the adoption of IndAS converged with the International Financial Reporting Standards(IFRS) as issued by the International Accounting Standards Board(IASB) are expected to upgrade corporate financial reporting in India to that of other developed economies.

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Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 6 : ICAI

  Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 6 ‘Ind AS Transition Facilitation Group’ (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted for providing clarifications on timely basis on various issues related to the applicability and/or implementation of Ind AS under the Companies (Indian Accounting Standards) Rules, 2015, raised by preparers, users and other stakeholders. Ind AS Transition Facilitation Group (ITFG) considered some issues received from members and decided to issue following clarifications [note 1] on November 29, 2016: Issue 1 A debt-listed company has net worth for the last 3 years as follows: (i) Net worth as on 31.03.2014 is Rs. 1260.83 crores (ii) Net worth as on 31.03.2015 is Rs. 1411.43 crores (iii) Net worth as on 31.03.2016 is Rs. 485.22 cores Whether Company A

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FAQ on Elaboration of terms ‘infrequent number of sales’ or ‘insignificant in value’ used in Ind AS 109

  FAQ on Elaboration of terms ‘infrequent number of sales’ or ‘insignificant in value’ used in Ind AS 109 Question Ind AS 109, Financial Instruments, requires an entity to classify financial assets on the basis of the entity’s business model for managing the financial assets. In this regard, under a business model whose objective is to hold assets in order to collect contractual cash flows, the Standard provides that for this purpose, it is necessary to consider the frequency, value and timing of sales in prior periods. Ind AS 109 appears to envisage sale of assets held under the amortised cost category before maturity, the application guidance of Ind AS 109 states that such sales may be consistent with a business model whose objective is to hold financial assets in

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Exposure Draft on Amendments to Ind AS 7, Statement of Cash Flows (November 2016)

  Amendments to Ind AS 7, Statement of Cash Flows Changes in liabilities arising from financing activities 44A An entity shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes. 44B To the extent necessary to satisfy the requirement in paragraph 44A, an entity shall disclose the following changes in liabilities arising from financing activities: (a) changes from financing cash flows; (b) changes arising from obtaining or losing control of subsidiaries or other businesses; (c) the effect of changes in foreign exchange rates; (d) changes in fair values; and (e) other changes. 44C Liabilities arising from financing activities are liabilities for which cash flows were, or future cash flows will be, classified

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Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 5

  ‘Ind AS Transition Facilitation Group’ (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted for providing clarifications on timely basis on various issues related to the applicability and/or implementation of Ind AS under the Companies (Indian Accounting Standards) Rules, 2015, raised by preparers, users and other stakeholders. At the 5th meeting of Ind AS Transition Facilitation Group (ITFG) held on September 19, 2016 at Mumbai, certain issues received from members were discussed. The Group after due deliberations decided to issue following clarifications1 on the issues considered at the meeting: Issue 1 ABC Ltd. is a listed company. The net worth of ABC Ltd. as on 31st March 2014 was Rs. 200 crores. ABC Ltd. had a subsidiary, namely, XYZ Ltd. as at 31st March, 2015 whose net worth,

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Handbook by ICAI on IND AS

  This publication contains an overview of various aspects related to IFRS-converged Indian Accounting Standards (Ind AS) such as Roadmap for the applicability of Ind AS, carve-outs from IFRS/IAS, Changes in financial reporting under Ind AS compared to financial reporting under existing Accounting Standards, Summary of all the Ind AS etc. It also captures all the recent amendments to Ind AS notified by the MCA in March 2016. The Ministry of Corporate Affairs (MCA) had notified IFRS-converged Indian Accounting Standards (Ind AS) as Companies (Indian Accounting Standards) Rules, 2015 vide Notification dated February 16, 2015 and also the roadmap for the applicability of Ind AS for certain class of companies from financial year 2016-17. Recently, the MCA has also notified the roadmap for applicability of Ind AS for Banks, Insurance

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