A brief write up about the Manual/Key features
On 16 February 2015, the MCA notified the Companies (Indian Accounting Standards) Rules, 2015 that set out the text of 39 Ind ASs and the dates of implementation of Ind AS by various classes of companies. These were amended on 30 March 2016 by the issuance of the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. Specified classes of companies will be required to adopt Ind ASs for their financial statements from accounting periods beginning on or after 1 April 2016 with comparatives for periods ending 31 March 2016.
The implementation of Ind ASs involves a new way of thinking about accounting and financial reporting with greater emphasis on interpretation and application of principles – with particular focus on the substance and underlying economics of a transaction, and on transparency of financial information. Transitioning from Indian GAAP to Ind AS is not simply a policy change; it is a pervasive change that impacts many aspects of a business and starting early is the key to a successful transition.
To that end, this manual compiled by Deloitte Touche Tohmatsu India LLP sets out comprehensive guidance for entities who will be reporting under Ind AS. This manual provides invaluable assistance by:
- Focusing on the practical issues faced by reporting entities
- Explaining clearly the requirements of Ind ASs indicating clearly the ‘carve outs’ in the Ind ASs from IFRS
- Including interpretation and commentary when Ind ASs are silent, ambiguous or unclear
- Including a separate volume on financial instruments
- Providing many illustrative examples
Volume A of the manual covers all Ind ASs notified by the MCA other than those dealing exclusively with financial instruments, which are addressed in Volume B. It also includes guidance on the application of Ind AS 115 Revenue from Contracts with Customers, which although not currently effective, will considerably impact reporting entities in the future.
Volume B of the manual provides guidance on the application of the complex Indian Accounting Standards dealing with financial instruments. The Standards covered are Ind AS 109 Financial Instruments; Ind AS 107 Financial Instruments: Disclosures; Ind AS 32 Financial Instruments: Presentation; and Ind AS 113 Fair Value Measurement.
Requirements are based on the text of the Ind ASs at 31 March 2016.