Taxmann's Illustrated Guide to Indian Accounting Standards (Ind AS)

Preface to Ninth Edition

We all know that a few years have elapsed after International Financial Reporting Standards (IFRSs) have reached the shores of India in its new avatar in the form of Indian Accounting Standards (Ind ASs).

After initial notification of Ind ASs, Ministry of Corporate Affairs have come up with amendments from time to time with a view to ensure that these Ind ASs are internalised and tailored to Indian conditions and there is a clear roadmap going forward. The impact of the implementation of Ind ASs in various industry sectors have been varied as has been borne out of publications and reports in the public domain from various institutions.

This edition of the book professes to address the following areas:

( ) incorporate the latest amendments under Companies (Indian Accounting Standards) (Amendment) Rules, 2023,

( ) come up with process flow diagrams of major Ind ASs to help the reader understand and comprehend the nuances of each Ind AS in its simplest form,

( ) deep dive into Indian Accounting Standards (Ind ASs) and its convergence with IAS/IFRSs updated with latest notified amendments in each of the Ind ASs with charts, illustrations and case studies,

( ) incorporate definitions and application guidance in critical chapters,

( ) provide detailed comparison of Indian Accounting Standards (Ind ASs) with amended Accounting Standards (AS) where applicable,

( ) short questions and answers on Ind ASs.

( ) more than 150 Multiple Choice Questions on Ind ASs.

In developing this work, references have been made from time to time to the notified text on Ind ASs and AS published by Ministry of Corporate Affairs, The Institute of Chartered Accountants of India publications on Indian Accounting Standards (Ind AS), and adaptations from ACCA UK.

We have also added a lot more illustrations under respective chapters based on practical issues and questions.

We would like to take this opportunity to thank our readers for providing overwhelming support in the first seven editions of this book.

While considerable care has been taken to ensure that the contents of the book are accurate, a few errors and omissions might have crept in, for which we would request our readers with all humility to bear with us.

We would like to dedicate this book to our family members without whose constant inspiration this would not have been possible.

B.D. CHATTERJEE JINENDER JAIN

ANNEXURES

ANNEXURE 1 : COMPARATIVE SUMMARY BETWEEN IND AS AND AS 1613

ANNEXURE 2 : COMPARISON OF INDIAN ACCOUNTING STANDARDS WITH IFRS 1691

CHAPTER

41.1 Objective

41.2 Meeting the objective

41.3 Scope

a Leases

b Insurance Contracts

c Financial Instruments

Consolidated Financial Statements Joint Arrangements Separate Financial Statements Investments in Associates and Joint Ventures

d -

Recognition

Identify the contract Identify Performance obligations Determine Transaction price Allocate Transaction price Recognise revenue

41.4.1 Identifying the contract

(

a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations;

(

b) the entity can identify each party’s rights regarding the goods or services to be transferred;

(

c) the entity can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); and

(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer.

ILLUSTRATION 1: PRODUCT DELIVERED WITHOUT WRITTEN CONTRACT

Analysis

i.e.

41.4.1.1 Combination of contracts

ILLUSTRATION 2

SOLUTION

41.4.1.2 Contract modifications

ILLUSTRATION 4: EXTENSION OF CONTRACT

(a) a good or service (or a bundle of goods or services) that is distinct; or

(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

41.4.2.1 Promises in contracts with customers

41.4.2.2 Distinct goods or services

ILLUSTRATION 5: IDENTIFYING PERFORMANCE OBLIGATIONS

Illustrated Guide to Indian Accounting Standards (Ind AS)

AUTHOR : B.D. CHATTERJEE, JINENDER JAIN

PUBLISHER : TAXMANN

DATE OF PUBLICATION : MAY 2024

EDITION : 9TH EDITION

ISBN NO : 9789357784580

NO. OF PAGES : 1720

BINDING TYPE : HARDBOUND

Description

This book provides a comprehensive commentary on Indian Accounting Standards (Ind AS) and a detailed analysis of the amended Schedule III of the Companies Act 2013. It addresses the implementation and adaptation of Ind AS in India, reflecting their convergence with International Financial Reporting Standards (IFRS).

An essential resource for accounting professionals, students, and anyone seeking to understand and implement Ind AS in financial reporting.

The Present Publication is the 9th Edition, and the law stated in the book is amended up to 15th May 2024. It incorporates the Companies (Indian Accounting Standards) (Amendment) Rules, 2023. This book is authored by B.D. Chatterjee & Jinender Jain, with the following noteworthy features:

u [Simplified Process Flow Diagrams] The book includes numerous diagrams to help readers understand and comprehend the nuances of each Ind AS in a simplified and lucid language

u [Extensive Visual Aids] Over 200 process flow diagrams, charts, illustrations, and case studies are provided to analyse the Ind AS and its convergence with IAS/IFRS. These are updated with the latest notified amendments based on practical issues and questions

u [Definitions and Application Guidance] Critical chapters incorporate essential definitions and application guidance for better clarity

u [Detailed Comparative Analysis] The book offers a comprehensive comparison of Ind AS with amended Accounting Standards (AS).

u [Case Studies] Practical case studies on the disclosure of accounting policies are included to provide real-world examples

u [Global Perspective] Each chapter highlights the convergence of Ind AS with IFRS, providing a global context

u [References] The book references notified texts on Ind AS and AS published by the Ministry of Corporate Affairs, ICAI publications, and adaptations from ACCA UK

u [Additional Content] The 9th Edition also includes short questions and answers, over 150 multiple-choice questions on Ind AS, and additional illustrations based on practical issues and questions