Chartered accountants’ body ICAI on May 2 said it has released the e-version of compendium of revised Indian Accounting Standards that incorporates new standard on leases among other amendments.
As part of annual improvements, the Ind AS (Indian Accounting Standards), which is based on International Financial Reporting Standards (IFRS), undergoes regular upgradation due to issuance of new standards or amendments in existing standards by IFRS, the accounting body said in a release.
The e-version of compendium of Ind AS includes amendments that were made in Companies (Indian Accounting Standards) Amendment Rules and became effective on April 1.
“During the previous year there have been certain amendments to Ind AS which have all been incorporated in appropriate places and relevant standards in this updated version of compendium,” the release said.
The existing standard on leases has been replaced in the new accounting standards (Ind AS 116).
“In the new lease accounting model for lessees, leases will be recognised on balance sheet by recognising a lease liability with a corresponding ‘right-of use’ asset,” it said.
Ind AS 116 will have an impact on the financial statements of the firms. The extent of impact would vary across industries depending on the financing and leasing structures prevalent in an industry, the release added.
Similarly, the compendium also includes changes that provide guidance as to how uncertainty about a tax treatment should be reflected in the accounting for income tax.
“The compendium of Ind AS will be highly useful to all stakeholders in particular prepares and auditors of financial statements. ICAI will also continue to engage in disseminating knowledge of these standards and the changes through a series of initiatives including webcasts, workshops, training programmes and certificate courses,” Institute of Chartered Accountants (ICAI) President Prafulla P Chhajed said.