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INDIAN ACCOUNTING STANDARDS (IND AS)

KNOW ABOUT GAAP


National GAAP: International GAAP:

These are country’s own These are other than country’s


accounting principles, Policies, own accounting principles,
and procedures adopted for the Policies, and procedures adopted
purpose of preparation and for the purpose of preparation
presentation of Financial and presentation of Financial
Statements where the Statements where the
entity/organization established. entity/organization established.

Examples: Example:

 In India, Accounting  IFRS/IAS, USGAAP,


Standards.

 In US, USGAAP.

 In UK, IFRS.
IFRS COMPLIANCE
IFRS on Adaption basis:

 If a country directly adopt/opt IFRS standards for the purpose of Financials Reporting it is
called as IFRS on adaption basis.

 Example: In Bangladesh it follows IFRS on adaption basis

IFRS on Convergence basis:

 If a country prepare its own Accounting standards inline with IFRS with respect to
business conditions then it is called as converged Standards.

 In India IFRS follows on convergence basis. Because Ind AS are prepared inline with IFRS
by considering Indian Business conditions.
WHAT IS IND AS…
These are new set of accounting standards notified and issued by
Central Government through Companies (Indian Accounting
Standards) Rules 2015

These are applicable only for specified class or classes of companies

These standards are Prepared from International Financial Reporting


Standards (IFRS) & International Accounting Standards (IAS) as
Converged Indian Accounting Standards (Ind AS)

IND AS 101 to 115 IND AS 1 to 41


Converged from Converged from IAS
IFRS 1 to 15 1 to 41
WHY IND AS
Economy & Industry
Globalization - Moving towards global standards
Standardization – Standard policy initiation
New policies – New governmental policies

Enterprise
Expansion – Expanding to global markets, Global funding
Competitiveness – Competitive edge between enterprises
Quality & Transparency – More Transparent financial reporting process
Reduced cost - It reduces the cost of conversion of financial statements for
local companies which makes investments, raising capital, listing abroad etc.

Investors
Reliable – Financial Statements are more reliable
Easy comparison – Easy comparison for investment in other foreign
companies
APPLICABILITY

Voluntary Basis

Any company may comply with the Indian Accounting Standards (Ind AS)
for financial statements for accounting periods beginning on or after
1stApril, 2015, with the comparatives for the period ending on 31st
March, 2015, or thereafter;
MANDATORY BASIS

On or after 1st April, On or after 1st April,


2016 2017
Listed companies or companies Companies whose equity or debt
which are in the process of being securities are listed or are in the
listed on any stock exchange in process of being listed on any stock
India or outside India and having exchange in India or outside India
net worth of rupees ≥ 500 Cr. and having net worth of less than
rupees 500 crore;
Unlisted companies having net
worth of rupees ≥ 500 Cr. Or Unlisted companies having net
worth of rupees ≥ 250 Cr. but < 500
Holding, subsidiary, joint venture or Cr.
associate companies of the above
class of companies. Holding, subsidiary, joint venture or
associate companies of above class
of companies
SPECIAL BODIES

BANKS NBFC INSURANCE

Special bodies governing by regulatory authorities IND AS applicable With effect from F.Y 2018-19
Except for RRBs
FINANCIAL STATEMENTS

Balance
Sheet as at
Statement of Notes the
Balance Statement of Cash Flow
Changes In forming part beginning of
Sheet Profit & Loss statement
Equity of accounts the
preceding
period

Profit & Loss Other Comprehensive Income


CHANGES IN STATEMENT OF PROFIT & LOSS
IND AS SCHEDULE III SCHEDULE III

Sl.No. Particulars Sl.No. Particulars


Amount Amount
I Revenue From Operations I Revenue From Operations
Other Income II Other Income
Total Revenue (I) III Total Revenue (I)
II EXPENSES IV EXPENSES
Cost of materials consumed Cost of materials consumed
Purchases of Stock-in-Trade Purchases of Stock-in-Trade

Changes in inventories of finished goods, Changes in inventories of finished goods,


Stock-in -Trade and work-inprogress Stock-in -Trade and work-inprogress

Employee benefits expense Employee benefits expense


Finance costs Finance costs

Depreciation and amortization expenses Depreciation and amortization expenses

Other epenses Other epenses


Total expenses (II) Total expenses
Profit before exceptional items and tax (I- Profit before exceptional items and
III V
II) extraordinary items and tax (III-IV)
IV Exceptional Items VI Exceptional Items
V Profit/(loss) before tax (III-IV) VII Profit before extraordinary items and tax (V-VI)
VI Tax expense: VIII Extraordinary items
(1) Current tax IX Profit/(loss) before tax (VII-VIII)
(2) Deferred tax X Tax expense:
Profit (Loss) for the period from
VII (1) Current tax
continuing operations (V-VI)
Profit/(loss) from discontinued
VIII (2) Deferred tax
operations
Profit (Loss) for the period from continuing
IX Tax expense of discontinued operations XI
operations (VII-VIII)
Profit/(loss) from Discontinued
X XII Profit/(loss) from discontinued operations
operations (after tax) (VIII-IX)

XI Profit/(loss) for the period (VII+ X) XIII Tax expense of discontinued operations
Profit/(loss) from Discontinued operations
XII Other Comprehensive Income XIV
(after tax) (XII-XIII)
A (i) Items that will not be reclassified to
XV Profit/(loss) for the period (XI+XIV)
profit or loss
(ii) Income tax relating to items that will
XVI Earnings per equity share
not be reclassified to profit or loss
B (i) Items that will be reclassified to
(1) Basic
profit or loss
(ii) Income tax relating to items that will
(2) Diluted
be reclassified to profit or loss

Total Comprehensive Income for the


period (XI + XII) (Comprising Profit
XIII
(Loss) and Other Comprehensive Income
for the period)
Earnings per equity share (for continuing
XIV
operation):
CHANGES IN BALANCE SHEET
IND AS SCHEDULE III SCHEDULE III
SL. No. Particulars Amount SL. No. Particulars Amount
ASSETS ASSETS
1 Non-current assets 1 Noncurrentassets
(a) Property, Plant and Equipment (a) Fixed assets
(b) Capital work-in-progress (i) Tangible assets
(c) Investment Property (ii) Intangible assets
(d) Goodwill (iii) Capital workinprogress
(e) Other Intangible assets (iv) Intangible assets under development
(f) Intangible assets under development (b) Noncurrent investments
(g) Biological Assets other than bearer plants (c) Deferred tax assets (net)
(h) Financial Assets (d) Longtermloans and advances
(i) Non-current investments (e) Other noncurrentassets
(ii) Long-term loans and advances 2 Current assets
(iii) Others (a) Current investments
(i) Deferred tax assets (net) (b) Inventories
(j) Other non-current assets (c) Trade receivables
2 Current assets (d) Cash and cash equivalents
(a) Inventories (e) Shorttermloans and advances
(b) Financial Assets (f) Other current Assets
(i) Current investments
(ii) Trade and other receivables
(iii) Cash and cash equivalents
(iv) Short-term loans and advances
(c) Assets for Current Tax (Net)
(d) Other current assets
IND AS SCHEDULE III SCHEDULE III
Sl.no. Particulars Amount Sl.no. Particulars Amount
1 Equity I EQUITY AND LIABILITIES
(a) Equity Share capital 1 Shareholders’ funds
(b) Other Equity (a) Share capital
(i) Equity component of other financial instruments (b) Reserves and surplus
(ii) Retained Earnings (c) Money received against share warrants
(iii) Reserves 2 Share application money pending allotment
1.1 Reserves representing unrealised gains/losses
1.2 Other Reserves 3 Noncurrent liabilities
(iv) Money received against share warrants (a) Longterm borrowings
(v) Others (b) Deferred tax liabilities (Net)
2 Share application money pending allotment (c) Other Long term liabilities
3 Non-current liabilities (d) Longterm provisions
(a) Financial Liabilities 4 Current liabilities
(i) Long-term borrowings (a) Shortterm borrowings
(ii) Other financial liabilities (b) Trade payables
(b) Long-term provisions (c) Other current liabilities
(c) Deferred tax liabilities (Net) (d) Shortterm provisions
(d) Other non-current liabilities
4 Current liabilities
(a) Financial Liabilities
(i) Short Term Borrowings
(ii) Trade and other payables
(iii) Other financial liabilities
(b) Other current liabilities
(c) Short-term provisions
(d) Liabilities for Current Tax (Net)