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IND AS

Published in: Accountancy | Accounts
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  • Mahesh B

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Presentation On the Applicability of IND AS.

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    : mca furthering aspira ions INDIAN ACCOUNTING STANDARDS (IND AS) (A NEW ERA IN INDIAN FINANCIAL REPORTING)
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    KNOW ABOUT GAAP National GMP: country's own These are accounting principles, Policies, and procedures adopted for the purpose of preparation and of Financial presentation where the Statements entity/organization established. mca furthering aspirations International GAAP: These are other than country's principles, accounting own Policies, and procedures adopted for the purpose of preparation and presentation of Financial Statements where the Examples: India, Standards. + In US, USGAAP. + In UK, IFRS. Accounting entity [organization established. Example: IFRS/IAS, USGAAP,
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    IFRS COMPLIANCE IFRS on Adaption basis: mca furthering aspirations v/ If a country directly adopt/opt IFRS standards for the purpose of Financials Reporting it is called as IFRS on adaption basis. v/ Example: In Bangladesh it follows IFRS on adaption basis IFRS on Convergence basis: v/ If a country prepare its own Accounting standards inline with IFRS with respect business conditions then it is called as converged Standards. v/ In India IFRS follows on convergence basis. Because Ind AS are prepared inline with IFRS by considering Indian Business conditions.
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    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 Conver ed Indian Accountin Standards Ind AS mca furthering aspirations IND AS 101 to 115 Converged from IFRS 1 to 15 IND AS 1 to 41 Converged from IAS I to 41
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    WHY IND AS Best Investment mca furthering aspirations 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
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    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; mca furthering aspirations
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    MANDATORY BASIS On or after 1st April, 2016 OListed companies or companies which are in the process of being listed on any stock exchange in India or outside India and having net worth of rupees 2 500 Cr. QUnlisted companies having net worth of rupees 2 500 Cr. Or OHolding, subsidiary, joint venture or associate companies of the above class of companies. : mca furthering aspirations On or after 1st April, 2017 QCompanies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of less than rupees 500 crore; QUnlisted companies having net worth of rupees 2 250 Cr. but < 500 Cr. OHolding, subsidiary, joint venture or associate companies of above class of companies
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    SPECIAL BODIES -BAN BANKS )IIFL LIGÄRE
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    DEFINITIONS Listed Company: • "listed company" means a company which has any of its securities listed on any recognised stock exchange; Securities: • "securities" include shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate; Net worth: • "net worth" means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation; mca furthering aspirations
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    FINANCIAL STATEMENTS Balance Sheet Statement of Changes In Equity Profit & Loss Statement of Profit & Loss Cash Flow statement Notes forming part of accounts mca furthering aspirations Balance Sheet as at the beginning of the preceding period Other Comprehensive Income Other Comprehensive Income : It is a part of Statement of Profit & Loss It is used only for recognition of notional and unrealised gains On Actual realisation/certainty the balances transferred to Profit & Loss Revaluation reserve, Actuarial gain or losses are few examples
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    CHANGES IN STATEMENT OF PROFIT & LOSS sl.No. 1 11 111 IND AS SCHEDULE 111 Particulars Revenue From Operations Other Income Total Revenue (I) EXPENSES Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods, Stock-in -Trade and work-inprogress Employee benefits expense Finance costs Depreciation and amortization expenses Other epenses Total expenses (Il) Profit before exceptional items and tax (I- Exceptional Items Amount sl.No. 1 11 111 SCHEDULE 111 Particulars Amount Revenue From Operations Other Income Total Revenue (I) EXPENSES Cost of materials consumed Purchases of Stock-in-Trade Changes in inventories of finished goods, Stock-in -Trade and work-inprogress Employee benefits expense Finance costs Depreciation and amortization expenses Other epenses Total expenses Profit before exceptional items and extraordinary items and tax (Ill-IV) Exceptional Items mca furthering aspirations Cont.
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    mca furthering aspirations Vll Vlll x Xll Xlll XIV Profit/ (loss) before tax (Ill-IV) Tax ex ense: (1) Current tax 2 Deferred tax Profit (Loss) for the period from continuing operations (V-VI) Profit/(loss) from discontinued o erations Tax expense of discontinued operations Profit/ (loss) from Discontinued operations (after tax) (VIII-IX) Profit/(loss) for the period (VII+ X) Other Comprehensive Income A (i) Items that will not be reclassified to rofit or loss (ii) Income tax relating to items that will not be reclassified to profit or loss B (i) Items that will be reclassified to rofit or loss (ii) Income tax relating to items that will be reclassified to profit or loss Vll Vlll x Xll Xlll XIV xv XVI Profit before extraordinary items and tax (V-VI) Extraordinary items Profit loss before tax Il-VIII Tax ex ense: (1) Current tax (2) Deferred tax Profit (Loss) for the period from continuing o erations Il-VIII Profit/(loss) from discontinued operations Tax expense of discontinued operations Profit/(loss) from Discontinued operations after tax XII-XIII Profit/(loss) for the period (XI+XIV) Earnings per equity share (1) Basic (2) Diluted Total Compr come for the period (XI + XII) (Comprising Profit (Loss) and Other Comprehensive Income for the period) Earnings per equity share (for continuing o eration
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    CHANGES IN BALANCE SHEET SL. No. 1 2 IND AS SCHEDULE 111 Particulars SSETS Non-current assets (a) Property, Plant and Equipment (b) Capital work-in-progress I(c) Investment Property (d) Goodwill (e) Other Intangible assets (f) Intangible assets under development (g) Biological Assets other than bearer plants Financial Assets (i) Non-current mvestments (ii) Long-term loans and advances iii Others i Deferred tax assets net Other non-current assets Current assets a Inventories (i Curren 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 mount SL. No. 1 2 SCHEDULE 111 Particulars SSETS Noncurrentassets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital workinprogress (iv) Intangible assets under development (b) Noncurrent investments (c) Deferred tax assets (net) (d) Longtermloans and advances e Other noncurrentassets Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Shorttermloans and advances (f) Other current Assets Amount mca furthering aspirations Cont.
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    mca furthering aspirations Sl.no. 1 IND AS SCHEDULE 111 Particulars E uit (a) Equity Share capital mount Sl.no. 1 1 2 3 4 SCHEDULE 111 Particulars E UITY AND LIABILITIES Shareholders' funds (a) Share capital (b) Reserves and surplus c Mone received a ainst share warrants Sharea lication mone endin allotment Noncurrent liabilities (a) Longterm borrowings (b) Deferred tax liabilities (Net) (c) Other Long term liabilities d Lon term rovisions Current liabilities (a) Shortterm borrowings (b) Trade payables (c) Other current liabilities d Shortterm rovisions mount A(b) Other Equity (i) Equity component of other financial instruments (ii) Retained Earnings (iii) Reserves 1.1 Reserves representing unrealised gains/losses 1.2 Other Reserves (iv) Money received against share warrants v Others 2 Sharea lication mone endin allotment 3 Non-current liabilities Financial Liabilities (i) Long- ernfborrowings (ii) Other financial liabilities (b) Long-term provisions (c) Deferred tax liabilities (Net) d Other non-current liabilities 4 Current liabilities 0 ernvyor wmgs (ii) Trade and other payables (iii) Other financial liabilities (b) Other current liabilities (c) Short-term provisions d Liabilities for Current Tax Net
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    FINANCIAL INSTRUMENTS Contract that gives rise to a - (a) Financial Asset of one Entity, and (b) Financial Liability / Equity Instrument of another Entity. , Cash • Equity instrument of another entity Financial Asset • Contractual right to receive cash, another financial asset from another entity • Contractual obligation to deliver • Cash & Another financials asset Financial Liability • Contract that will or may be settled in the entity's own equity instruments eee mca furthering aspirations
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    NEW CHANGES IN IND AS 16 Property, Plant & Equipment: No major change in definition, except it shall be used for >1 year : mca furthering aspirations To be measured initially at cost however at year end it shall be at Fair Value v/ No separate Standard for Depreciation v/ Clarity on how to recognition Spares v/ In case of finance lease recognition is as per Ind As 17 (Leases) however depreciation it is to be complied in accordance with Ind As 16 only v/ Assets held for sale & Biological assets other than bearer plant out o scope of this standard In detailed disclosure during First time adoption
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    NEW CHANGES IN IND AS 8 mca furthering aspirations Accounting policies, Changes in Accounting Estimates and Errors: v/ No change in definition for Accounting policies Transition provisions for Change in accounting policies 1)As specified in that Ind As 2) If not specified then it shall comply retrospectively except as specified in In 101 First time Adoption of Indian Accounting Standards 3) If it is impracticable to comply retrospectively then it shall disclose e/ ct Clear Clarity provided on prior period items If there is no clarity on whether it is change in Accounting Policy & Accounting Estimate then it shall be treated as Change in Accounting Estimate only. s
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    e: mca furthering aspirations Standard Wise Discussion will be in the upcoming weeks
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    Presented by Mahesh Babu Alapati

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