Based on the International Financial Reporting Standards and the Ministry of Corporate Affairs (MCA) has notified Indian Accounting Standards (Ind -AS) which are applicable on certain entities on mandatory basis. As a part of review process and in public interest, the International Accounting Standard Board (IASB) keeps on issuing certain amendments to these standards on timely basis in order to improve its effective implementation. The Ind- ASs are basically harmonized with the principles stated in IFRSs and to keep them aligned with the globally accepted standards, the Accounting Standard Board (ASB) proposes amendments to corresponding Ind ASs which is then kept open for public comments.<\/p>\n\n\n\n
In line of above review procedure, certain amendments has been\nproposed by ASB in three Indian Accounting Standards (Ind ASs); Ind AS 37 Provisions,\nContingent Liabilities and Contingent Assets<\/em>; Ind AS 16 Property,\nPlant and Equipment<\/em>; and Ind AS 103 Business Combination <\/em>including\nproposal of some annual amendments to Ind AS 109, Ind AS 101, Ind AS 41 as a\npart of improvement.<\/p>\n\n\n\n Amendments proposed in the draft are highlighted below:-<\/strong><\/p>\n\n\n\n 1.Ind AS 37 Provision, Contingent Liabilities and Contingent Assets<\/strong> – The amendment proposed in the draft relates to specifying the costs that is directly relatable to the fulfillment of a contract which an entity should be determining for the purpose of assessing whether the contract is onerous.<\/p>\n\n\n\n 2.Ind AS 16 Property, Plant and Equipment –<\/strong> Further, para 20A is added to the Standard proposing recognition\nof proceeds from sale of those items in the Statement of Profit and Loss. In\ncase, it is not recognized in the statement of profit and loss requirements as\nstated in newly incorporated para 74A should be complied with.<\/p>\n\n\n\n
The amendment proposed in Ind AS 16 relates to the determination of directly attributable costs of PPE providing non- deduction of proceeds from selling of items produced in test runs while bringing the asset to its present location and condition. <\/p>\n\n\n\n