The Ministry of Corporate Affairs\n(MCA) vide Notification dated 18 June 2021 has issued new Companies (Indian\nAccounting Standard) Amendment Rules, 2021 in consultation with the National\nFinancial Reporting Authority (NFRA).<\/p>\n\n\n\n
The notification states that\nthese rules shall be applicable with immediate effect from the date of the\nnotification. This means that the amendments are effective for the financial\nyear ended 31 March 2022 onwards and also for interim financial periods i.e.\nquarters ending 30 June 2021, 30 September 2021, 31 December 2021.<\/p>\n\n\n\n
The amendments are intended to\nkeep the Ind ASs aligned with the amendments made in IFRS. While, largely, the\namendments are clarificatory or editorial in nature, there are significant\namendments relating to the extension of COVID 19 related to practical expedient\nunder Ind AS 116 for lease concessions and practical expedient due to the\ninterbank offered rate (IBOR) interest rates for financial instruments.<\/p>\n\n\n\n
The amendments to Ind ASs are in terms of insertion of\ncertain paragraphs, substituting the definition of certain terms used in the\nstandard along with aligning the bare text of Standards with Conceptual\nFramework of Financial reporting under Ind ASs.<\/p>\n\n\n\n
Companies (Indian\nAccounting Standards) Amendment Rules, 2021<\/strong><\/p>\n\n\n\n Major amendments notified in the Companies (Ind AS)\nAmendment Rules, 2021 are provided below:-<\/p>\n\n\n\n (a) Ind AS 116 | Leases \u2013 The amendments extend the benefits\nof the COVID 19 related rent concession that were introduced last year (which\nallowed lessees to recognize COVID 19 related rent concessions as income rather\nthan as lease modification) from 30 June 2021 to 30 June 2022.<\/p>\n\n\n\n (b) Ind AS 109 | Financial\nInstruments \u2013 The amendment provides a practical expedient for assessment of\ncontractual cash flow test, which is one of the criteria for being eligible to\nmeasure a financial asset at amortized cost, for the changes in the financial\nassets that may arise as a result of Interest Rate Benchmark Reform along. An\nadditional temporary exception from applying hedge accounting is also added for\nInterest Rate Benchmark Reform.<\/p>\n\n\n\n (c) Ind AS 101 | Presentation of\nFinancial Statements \u2013 The amendment substitutes the item (d) mentioned in\nparagraph BI as \u2018Classification and measurement of financial instruments\u2019. The\nterm \u2018financial asset\u2019 has been replaced with \u2018financial instruments\u2019.<\/p>\n\n\n\n (d) Ind AS 102 | Share-Based\nPayment \u2013 The amendments to this standard are made in reference to the\nConceptual Framework of Financial Reporting under Ind AS in terms of defining\nthe term \u2018Equity Instrument\u2019 which shall be applicable for the annual reporting\nperiods beginning on or after 1 April 2021.<\/p>\n\n\n\n (e) Ind AS 103 | Business\nCombinations \u2013 The amendment substitutes the definition of \u2018assets\u2019 and\n\u2018liabilities\u2019 in accordance with the definition given in the framework for the\nPreparation and Presentation of Financial Statements in accordance with Ind AS\nfor qualifying the recognition criteria as per acquisition method.<\/p>\n\n\n\n (f) Ind AS 104 | Insurance Contracts \u2013 The amendment covers\nthe insertion of certain paragraphs in the standard in order to maintain\nconsistency with IFRS 4 and also incorporates the guidance on accounting\ntreatment for amendments due to Interest Rate Benchmark Reform.<\/p>\n\n\n\n (g) Ind AS 105 | Non-current\nassets held for sale and discontinued operations \u2013 The amendment substitutes\nthe definition of \u2015 \u201cfair value less costs to sell\u201d with \u201cfair value less costs\nof disposal\u201d<\/p>\n\n\n\n (h) Ind AS 106 | Exploration for\nand evaluation of mineral resources \u2013 The amendment has been made in reference\nto the Conceptual Framework for Financial Reporting under Indian Accounting\nStandards in respect of expenditures that shall not be recognized as\nexploration and evaluation assets.<\/p>\n\n\n\n (i) Ind AS 107 | Financial\nInstruments: Recognition, Presentation and Disclosure \u2013 The amendment clarifies\nthe certain additional disclosures to be made on account of Interest Rate\nBenchmark Reform like<\/p>\n\n\n\n (i) the nature and extent of risks to which the entity is\nexposed arising from financial instruments subject to interest rate benchmark\nreform;<\/p>\n\n\n\n (ii) the entity\u2018s progress in completing the transition to\nalternative benchmark rates, and how the entity is managing the transition.<\/p>\n\n\n\n (j) Ind AS | 111 Joint Arrangements \u2013 In order to maintain\nconsistency with the amendments made in Ind AS 103, respective changes have\nbeen made in Ind AS 111.<\/p>\n\n\n\n (k) Ind AS 114 | Regulatory Deferral Accounts \u2013 The\namendment clarifies that an entity may only change its accounting policies for\nthe recognition, measurement, and impairment & derecognition of regulatory deferral account\nbalances if the change makes the financial statements more relevant to the\neconomic decision-making needs of users and no less reliable. <\/p>\n\n\n\n (l) Ind AS 115 | Revenue from Contracts with Customers \u2013\nCertain amendments have been made in order to maintain consistency with number\nof paragraphs of IFRS 15.<\/p>\n\n\n\n (m) Ind AS 8 | Accounting Policies, Changes in Accounting\nEstimates and Errors \u2013 In order to maintain consistency with the amendments\nmade in Ind AS 114 and to substitute the word \u2018Framework\u2019 with the \u2018Conceptual\nFramework of Financial Reporting in Ind AS\u2019, respective changes have been made\nin the standard.<\/p>\n\n\n\n (n) Ind AS 16 | Property, Plant and Equipment \u2013The amendment\nhas been made by substituting the words \u201cRecoverable amount is the higher of an\nasset\u2019s fair value less costs to sell and its value in use\u201d with \u201cRecoverable\namount is the higher of an asset\u2019s fair value less costs of disposal and its\nvalue in use\u201d.<\/p>\n\n\n\n (o) Ind AS 34 | Interim Financial Reporting \u2013The amendments\nto this standard are made in reference to the conceptual framework of Financial\nReporting in Ind AS.<\/p>\n\n\n\n (p) Ind AS 37 | Provisions, Contingent Liabilities and\nContingent Assets \u2013 The amendment substitutes the definition of the term\n\u2018Liability\u2019 as provided in the Conceptual Framework for Financial Reporting\nunder Indian Accounting Standards.<\/p>\n\n\n\n (q) Ind AS 38 | Intangible Assets \u2013 The amendment\nsubstitutes the definition of the term \u2018Asset\u2019 as provided in the Conceptual Framework\nfor Financial Reporting under Indian Accounting Standards.<\/p>\n\n\n\n For Details refer Link= http:\/\/ebook.mca.gov.in\/Default.aspx?page=notification<\/p>\n","protected":false},"excerpt":{"rendered":" The Ministry of Corporate Affairs (MCA) vide Notification dated 18 June 2021 has issued new Companies (Indian Accounting Standard) Amendment Rules, 2021 in consultation with the National Financial Reporting Authority (NFRA). The notification states that these rules shall be applicable with immediate effect from the date of the notification. This means that the amendments are effective for the financial year […]<\/p>\n","protected":false},"author":3,"featured_media":569,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[17,14],"tags":[137,87],"class_list":["post-568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-assurance","category-general","tag-companies-amendment-rules-2021","tag-ind-as"],"yoast_head":"\n