Monday, 20 May 2024

Do You Know Under INDS AS

·       Transactions controlled by the Companies Act, 2013 may in most of the cases remain material accounting policy information   

·       ICDS reconciliation in Clause 13 of Form 3CD also gets triggered due to the differences in the accounting policies

·         CSR Projects should not be considered as operating segments 

·       All the actuarial gains or losses on employee benefits are not recognizable in 'Other Comprehensive Income' 

·       Section 8 Company as a subsidiary is not consolidated   

·       Lease modification is different from lease renewal

·        Material Accounting Policy Information needs to be distinguished but coordinated with Overall Materiality per se

·       Depreciation method needs to be chosen on the basis of consumption pattern of the PPE and yes, Schedule II doesn't prescribe any such method  

·       Disclosures in the Notes also include disclosures about the date on which financial statements were approved by the Board

·       Non current trade receivables will be shown under Other Non Current Assets. There is no separate heading as "non current trade receivables"

·       Current maturities of long term borrowings will be shown under Short-term Borrowings. Do not show them under "Other Current Liabilities"

·        Security deposits will be shown under Other non-current Assets. Do not show them as "Loans and Advances".

·        Disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating. 

·       Accounting policies for crypto currency can be developed in accordance with principles laid down in Ind AS 8.

·       Consolidation of Section 8 subsidiary is not required under Ind AS 110.

·       Material Accounting Policy Information only needs to be provided w.e.f. FY 2023-2024.

·       There is a difference between cost model for investment property of the associate and fair value model for investment property of such associate when it comes to standalone financial statements vs. consolidated financial statements

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