Indian Accounting STD (Old) Vs IND AS (New) : CA Sandesh Mundra

Indian Accounting Std (old) vs IND AS (New)
CA Sandesh Mundra
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Consolidation Process
Currency
Adjustment
One time
activity Fixed Assets
Schedule
JV Proportion LBLA
Setup
Master
Minority Goodwill
Balance
Consolidation Sheet
Intra Group
Equity Impact
Transactions
Upload Accounting Policies

Trial Adjustment
Profit and
Balances Loss Account
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Overview of Significant
Differences between IND AS and
Current Indian GAAP
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TOPICS COVERED
Differences with respect to:
• Conceptual Accounting Framework

• Accounting Differences
• Carve Outs
CA Sandesh Mundra
ACCOUNTING FRAMEWORK
Historical cost
IFRS:
Historical cost, but intangible assets, property plant and equipment (PPE) and
investment property may be revalued. Derivatives, biological assets and most
securities must be revalued.
Indian GAAP:
Historical cost, but fixed assets, other than intangibles, may be revalued.
CA Sandesh Mundra
ACCOUNTING FRAMEWORK
First-time adoption of accounting frameworks
IFRS:
Full retrospective application with some optional exemptions.
Indian GAAP:
particular standards specify the transitional treatment upon the first-time
application of those standards
CA Sandesh Mundra
LIST OF IND AS, IFRS AND AS
CA Sandesh Mundra
Ind AS IFRS AS
Ind AS 1 Presentation IAS 1 Presentation of AS 1 Disclosures of
of Financial Financial Statements Accounting Principles
Statements and Policies
Ind AS 2 Inventories IAS 2 Inventories AS 2 Valuation of
Inventories
Ind AS 7 Statement of IAS 7 Statement of Cash AS 3 Cash Flow
Cash Flows Flows Statements
Ind AS 8 Accounting IAS 8 Accounting AS 4 Contingencies and
Policies, Changes in Policies, Changes in Events occurring after
Accounting Estimates Accounting Estimates and Balance Sheet Date
and Errors Errors
Ind AS 10 Events after IAS 10 Events after the AS 5 Net Profit or Loss for
the Reporting Period Reporting Period the period, Prior Items
Ind AS 10 Appendix A IFRIC 17 Distribution of and Changes in
Non-cash Assets to Accounting Policies
owners
Ind AS 11 Construction IAS 11 Construction AS 7 Construction
Contracts Contracts Contracts
Ind AS 11 Appendix A IFRIC 12 Service
(deferred) Concession Arngmt
Ind AS 11 Appendix B SIC 29 Disclosure – Service
(deferred) Concession Arrangements
Ind AS 12 Income Taxes IAS 12 Income Taxes AS 22 Accounting for Taxes
Ind AS 12 Appendix A SIC 21 Income Taxes – on Income
Recovery of Revalued Non-
Depreciable Assets
Ind AS 12 Appendix B SIC 25 Income Taxes –
Changes in the Tax Status
of an Enterprise or its
Shareholders
Ind AS 16 Property, Plant IAS 16 Property, Plant and AS 10 Accounting for Fixed
and Equipment Equipment Assets
AS 6 Depreciation
Accounting
Ind AS 16 Appendix A IFRIC 1 Changes in Existing
Decommissioning, Restoration
and Similar Liabilities
Ind AS 17 Leases IAS 17 Leases AS 19 Leases
Ind AS 17 Appendix A SIC 15 Operating Leases –
Incentives
Ind AS 17 Appendix B SIC 27 Evaluating the Substance of
Transaction involving the Legal
Form of a Lease
IFRIC 4 Determining Whether an
Ind AS 17 Appendix C Arrangement contains a Lease
(Deferred)
Ind AS 18 Revenue IAS 18 Revenue AS 9 Revenue
Ind AS 18 Appendix A SIC 31 Revenue – Barter Recognition
Transactions Involving Advertising
IFRIC 13 Customer Loyalty
Ind AS 18 Appendix B Programmes
IFRIC 18 Transfer of Assets from
Customers
Ind AS 18 Appendix C
Ind AS 19 Employee Ind AS 19 Employee AS 15 Employee Benefits
Benefits Benefits
Ind AS 19 Appendix A Ind AS 19 Appendix A
Ind AS 20 Accounting For Ind AS 20 Accounting For AS 12 Accounting for
Government Grants and Government Grants and Government Grants
Disclosure of Government Disclosure of Government
Assistance Assistance
Appendix A Government Appendix A Government
Assistance – No Specific Assistance – No Specific
Relation in Operating Relation in Operating
Activities Activities
Ind AS 21 The Effects of Ind AS 21 The Effects of AS 11 The Effects of
Changes in Foreign Changes in Foreign Changes in Foreign
Exchange Rates Exchange Rates Exchange Rates
Ind AS 23 Borrowing Costs Ind AS 23 Borrowing Costs AS 16 Borrowing Costs

Ind AS 24 Related IAS 24 Related Party Disclosure AS 18 Related Party
Party Disclosure Disclosures
No Near Final Draft IAS 26 Accounting and No standard
Reporting by Reporting by
Retirement Benefits Plans
Ind AS 27 / IFRS 10 IAS 27 Consolidated Separated AS 21 Consolidated Financial
Consolidated and and Financial Statements Statements
Separated Financial
Statements SIC 12 Consolidation – Special
Ind AS 27 Appendix Purpose Entities
A
Ind AS 28 Investment IAS 28 Investment in Associates AS 23 Accounting for
in Associates Investments in Associates in
Consolidated Financial
Statements
Ind AS 29 Financial IAS 29 Financial Reporting in No standard
Reporting in Hyperinflationary Economies
Hyperinflationary
Economies IFRIC 7 Applying the
Ind AS 29 Appendix Restatement Approach under
A IAS 29 Financial Reporting in
Hyperinflationary Economies
Ind AS 31 Interest in Joint IAS 31 Interest in Joint Ventures AS 27 Financial
Ventures / IFRS 11 Reporting of Interests in
Ind AS 31 Appendix A SIC 13 Jointly Controlled Entities Joint Ventures
– Non-Monetary Contributions
by Venturers
Ind AS 32 Financial IAS 32 Financial Instruments: AS 31 Financial
Instruments: Presentation Presentation Instruments :
Ind AS 32 Appendix B Presentation
Ind AS 33 Earning Per IAS 33 Earning Per Share AS 20 Earnings per Share
Share
Ind AS 34 Interim IAS 34 Interim Financial AS 25 Interim Financial
Financial Reporting Reporting Reporting
Ind AS 34 Appendix A
IFRIC 10 Interim Financial
Reporting and Impairment.
Ind AS 36 Impairment Of IAS 36 Impairment Of Assets AS 28 Impairment of
Assets Assets
Ind AS 38 Intangible IAS 38 Intangible Assets AS 26 Intangible Assets
Assets
Ind As 38 Appendix A SIC 32 Intangible Assets –
Website Costs
Ind AS 37 Provisions, IAS 37 Provisions, Contingent AS 29 Provisions, Contingent
Contingent Liabilities Liabilities and Contingent Assets Liabilities and Contingent
and Contingent Assets Assets
Ind AS 37 Appendix A IFRIC 5 Rights to Interest Arising
from Decommissioning,
Restoration and Environmental
Rehabilitation Funds
Ind AS 37 Appendix B IFRIC 6 Liabilities Arising from
Participating in a Specific Market
– Waste Electrical and Electronic
Equipment
Ind AS 39 Financial IAS 39 Financial Instruments : AS 30 Financial Instruments
Instruments : Recognition and Measurement : Recognition and
Recognition and Measurement
Measurement IFRIC 9 Reassessment of
Ind AsS39 Appendix C Embedded Derivatives
IFRIC 16 Hedges of a net
Ind AS 39 Appendix D Investment in Foreign Operation
IFRIC 19 Extinguishing Financial
Ind AS 39 Appendix E liabilities with Equity
instruments
Ind AS 40 Investment IAS 40 Investment Property No standard
Property
No near Final Draft IAS 41 Agriculture No standard
Ind AS 101 First Time IFRS 1 First Time Adoption No standard

Adoption of Indian of International Financial
Accounting Standards Reporting Standards
Ind AS 102 Share Based IFRS 2 Share Based Payment No standard
Payment
Ind AS 103 Business IFRS 3 Business No standard
Combination Combination
Ind AS 39 Insurance IFRS 4 Insurance Contracts No standard
Contracts
Ind AS 105 Non-Current IFRS 5 Non-Current Assets No standard
Assets Held for Sale and Held for Sale and
Discontinuing operations Discontinuing operations
Ind AS 106 Exploration for IFRS 6 Exploration for and No standard

and Evaluation of Mineral Evaluation of Mineral
Resources Resources
Ind AS 107 Financial IFRS 7 Financial No standard
Instruments : Disclosures Instruments : Disclosures
Ind AS 108 Operating IFRS 8 Operating Segments No standard
Segments
Not covered in Ind AS IFRIC 2 Members’ Share in No standard
It was earlier covered in Co-operative Entities and
Exposure Draft Similar Instruments
Not covered in Ind AS SIC 7 Introduction of Euro No standard
Not Relevant in India
Major Carve Outs
• Revenue Recognition (IND AS 18)

– IFRIC 15 – Agreement for construction of real estate has
not been adopted
CA Sandesh Mundra
Major Carve Outs
• Effects of changes in Foreign Exchange Rates

(IND AS 21)
– Option to recognise exchange differences on translation of
long term monetary items in equity
CA Sandesh Mundra
Major Carve Outs
• Related Party Disclosures (IND AS 24)

– Overriding nature of statue
– Definition of relative as per Co.s Act
CA Sandesh Mundra
Major Carve Outs
• Business Combinations (IND AS 103)

– Recognition of gain on day one accounting for a business
combination in capital reserve as opposed to income
statement under IFRS 3
– Guidance on Common Control Transactions
CA Sandesh Mundra
Major Carve Outs
• Employee Benefits (IND AS 19)

– Government bond rate as discount rate
– Recognition of acturial gains and losses – Other long term
employee benefits – only in OCI and not P&L or P&L
amort
– Frequency of Acturial Valuation
CA Sandesh Mundra
Major Carve Outs
• Financial Instruments – Rec and Msrmt (IND

AS 39)
– Change in fair value of a financial liability due to entitiy’s
own credit risk.
CA Sandesh Mundra
Major Carve Outs
• Investment in Associates (IND AS 28)

– Different accounting periods and policies of associates
CA Sandesh Mundra
Major Carve Outs
• Investment Property (IND AS 40)

– Only Cost Model
CA Sandesh Mundra
Major Carve Outs
• EPS (IND AS 33)

– Both Standalone and CFS
CA Sandesh Mundra
Major Carve Outs
• Govt Grants (IND AS 20)

– Non-monetary government grants only at fair value and not at nominal
value
CA Sandesh Mundra
Inventories
IND AS 2 VS AS 2
CA Sandesh Mundra
IND-AS 2 - Inventories
Fair value of purchases
CA Sandesh Mundra
Timing of recognition of purchases
CA Sandesh Mundra
Cost of inventories of a service

provider
CA Sandesh Mundra
Changes in Accounting Policies, Estimates, Prior Period Itesm
IND AS 8 VS AS 5
CA Sandesh Mundra
IND AS 8 - Acc pol., changes in acc est., errors
Changes in accounting policies
CA Sandesh Mundra
Changes in method of depreciation
CA Sandesh Mundra
Prior period items

- errors or omissions arising from a failure to use or
misuse of reliable information
- Retro
CA Sandesh Mundra
extraordinary items
CA Sandesh Mundra
Events after Balance Sheet Date
IND AS 10 VS AS 4
CA Sandesh Mundra
IND AS 10 - Events after reporting date
• Proposed dividend
CA Sandesh Mundra
Construction Contracts
IND AS 11 VS AS 7
CA Sandesh Mundra
IND AS 11 - Construction Contracts
Service Concession Arrangements (Ex)
CA Sandesh Mundra
Ex – Service Concession Agrmt.
• A incurs cost of INR 1,000,000 for construction
of a road.
• In consideration, A receives a right to charge
toll of INR 30 on each vehicle plying on that
road for 30 years
CA Sandesh Mundra
Construction Contracts
Agreements for construction of real estate
CA Sandesh Mundra
Revenue Recognition
IND AS 18 VS AS 9
CA Sandesh Mundra
IND AS 18 – Revenue Recognition
Multiple element arrangements (Ex)
CA Sandesh Mundra
Example
• A sells a machine with a two year
maintenance service for INR 1,000,000 to a
customer.
• A two year maintenance service is provided to
other customers at a consideration of INR
200,000.
CA Sandesh Mundra
Linked transactions
Examples –
Loan origination fees charged by banks
CA Sandesh Mundra
Customer loyalty programmes
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Extended credit
CA Sandesh Mundra
Barter transactions
• Recognition of transactions that were
previously not recognised (for example,
certain advertising barter transactions);
• Non-recognition of transactions that are
currently being recognised (for example,
certain oil barter transactions).
CA Sandesh Mundra
• Percentage Completion
CA Sandesh Mundra
Business Combination and Consolidations
IND AS 27/28/31/103 VS
AS 14/21/23/27
CA Sandesh Mundra
Business Combination / Consolidation
Definition of Control
– Substance over form
– Temporary
– SPE
CA Sandesh Mundra
Contingent Consideration / Acq Date
CA Sandesh Mundra
• Goodwill
– Fair Value of assets & liabilities acquired
– Amortisation
CA Sandesh Mundra
• Minority
– Fair Value
– Negative
CA Sandesh Mundra
Uniform Accounting Policy & Time Gaap
CA Sandesh Mundra
Proportionate Consolidation
CA Sandesh Mundra
Step up and Step down
CA Sandesh Mundra
Property, Plant & Equipment
IND AS 16 VS AS 10
CA Sandesh Mundra
IND AS 16 –Property, Plant & Eqpmt
• Overhead allocation
• Component approach
CA Sandesh Mundra
Site Restoration
CA Sandesh Mundra
• Revaluation of assets
• Depreciation on the same
CA Sandesh Mundra
• Cash Price Equivalent
CA Sandesh Mundra
• Residual Value and Useful life
CA Sandesh Mundra
Borrowing Costs
IND AS 23 VS AS 16
CA Sandesh Mundra
IND AS 23 - Borrowing Costs (BC)
No period as 12 months
CA Sandesh Mundra
IND AS 23 - Borrowing Costs (BC)
Consolidation :-
– Special case of capitalisation of BC
– Group Average borrowing rate
CA Sandesh Mundra
Cash Flow Statement
IND AS 7 VS AS 3
CA Sandesh Mundra
IND AS 7 - Cash Flow
• Undistributed profits of associates and non-

controlling interests’ under operating
activities.
CA Sandesh Mundra
IND AS 7 - Cash Flow
• Ind AS 7 requires to report the aggregate

amount of the cash paid or received as
consideration for obtaining or losing control
CA Sandesh Mundra
Deferred Tax
IND AS 12 VS AS 22
CA Sandesh Mundra
IND AS 12
Balance sheet approach (Ex)
CA Sandesh Mundra
IND AS 12
Examples
– on revaluation of PPE;
– indexation benefits for freehold land and
investments;
– fair value changes for available for sale securities;
CA Sandesh Mundra
IND AS 12
Deferred Taxes arising in consolidation
CA Sandesh Mundra
IND AS 12
Reconciliation of current tax as per actual
basis and as per applicable statutory rate
CA Sandesh Mundra
Leases
IND AS 17 VS AS 19
CA Sandesh Mundra
IND AS 17 - Lease
Embedded leases (Ex)
CA Sandesh Mundra
Ex of an Embedded Lease
• A enters in a purchase contract with B to
purchase 1,000 units of product every month at
INR 25 per unit.
• Product can only be manufactured on a specific
machine owned by B.
• In case of any shortfall in procurement, A will
compensate B at the rate of INR 25 per unit of
shortfall.
• The entire output from machine is availed by A.
CA Sandesh Mundra
IND AS 17 - Lease
Leases of land
CA Sandesh Mundra
IND AS 17 - Lease
• Lease incentives
– Initial rent free period ?
CA Sandesh Mundra
IND AS 17 - Lease
• Lease deposits
CA Sandesh Mundra
Employee Benefits
IND AS 19 VS AS 15
CA Sandesh Mundra
IND AS 19 - Employee Benefits
• Actuarial gains and losses in OCI
– defined benefit plans and other long term
employment benefit plans.
CA Sandesh Mundra
Foreign Exchange
IND AS 21 VS AS 11
CA Sandesh Mundra
IND AS 21 – Foreign Exchange
• Functional Currency vs Domicile Currency
CA Sandesh Mundra
• Permits FE diff on long term monetary items
to be posted to equity. The accumulated diff
can be transferred to P/L over the term of
such item
CA Sandesh Mundra
• Existing AS 11 permits capitalisation / deferral
of Fe Gain/Loss arising from long term
monetary items
CA Sandesh Mundra
Government Grants
IND AS 20 VS AS 12
CA Sandesh Mundra
IND AS 20 – Govt Grants
• No credit to Reserves
• No credit to PPE
• Concessional Loans
• Non-Monetary Grants
CA Sandesh Mundra
Related Party
IND AS 24 VS AS 18
CA Sandesh Mundra
IND AS 18 – Related Party
• Defines close members of family
• KMP of parents
• Non-executive directors
• Group companies
CA Sandesh Mundra
Earning Per Share
IND AS 33 VS AS 20
CA Sandesh Mundra
IND AS 33 – EPS
• Amounts debited to Share Premium
• Compulsory convertible instruments
• Shares held by Trust
CA Sandesh Mundra
Share Based Payments
• Fair Value Model
• Grants to employees of Parent
• Shares Held in Trust
CA Sandesh Mundra
• Intangibles – Life – Finite or Indefinite
• Investment Property – Classification
• Financial Instruments
• Segments
• Provisions
• Impairments
CA Sandesh Mundra
Contact Details
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Email: info@aarnasoft.net
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CA Sandesh Mundra

Indian Accounting STD (Old) Vs IND AS (New) : CA Sandesh Mundra

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Indian Accounting STD (Old) Vs IND AS (New) : CA Sandesh Mundra

Enviado por

Direitos autorais:

Formatos disponíveis

Indian Accounting Std (old) vs IND AS (New)

• We have developed a software to automate

Upload Accounting Policies

Differences with respect to:

• Conceptual Accounting Framework

Ind AS 23 Borrowing Costs Ind AS 23 Borrowing Costs AS 16 Borrowing Costs

Ind AS 101 First Time IFRS 1 First Time Adoption No standard

Ind AS 106 Exploration for IFRS 6 Exploration for and No standard

• Revenue Recognition (IND AS 18)

• Effects of changes in Foreign Exchange Rates

• Related Party Disclosures (IND AS 24)

• Business Combinations (IND AS 103)

• Employee Benefits (IND AS 19)

• Financial Instruments – Rec and Msrmt (IND

• Investment in Associates (IND AS 28)

• Investment Property (IND AS 40)

• EPS (IND AS 33)

• Govt Grants (IND AS 20)

Fair value of purchases

Timing of recognition of purchases

Cost of inventories of a service

Changes in accounting policies

Changes in method of depreciation

Prior period items

Agreements for construction of real estate

Customer loyalty programmes

Contingent Consideration / Acq Date

Uniform Accounting Policy & Time Gaap

Step up and Step down

• Undistributed profits of associates and non-

• Ind AS 7 requires to report the aggregate

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