Indian, Corporate Affairs Ministry amended the Indian Accounting Standards (Ind-AS) related to leasing. The Ind-AS 103, 116 and other standards have been amended by MCA (P. P. Chaudhary hold office).
The Ind-AS 103 is related to business combinations. On the flip side, Ind-AS 116 standard is related to principles for presentation, recognition and disclosure of leases.
Due to COVID-19 pandemic, many lessors have extended rent concessions to lessees. With Ind-AS 116, applying changes to lease payments in the current situation will be practically difficult. Hence, it has been amended.
The IAS amendments are being made in consultation with the NFRA.
National Financial Reporting Authority is an independent regulator that acts under Companies Act, 2013. It was Founded on 1 October 2018. The former Indian Administrative Service officer Rangachari Sridharan appointed as first chief and current the chairperson of NFRA.
The authority is in charge for investigations, sanctions and auditing firms.
Indian Accounting Standards
IAS is issued and supervised by the Accounting Standards Board. In 1977, The board was constituted. It consists of representatives from CII (Confederation of Indian Industry), ASSOCHAM (Associated Chambers of Commerce and Industry) and FICCI (Federation of Indian Chambers of Commerce and Industry).
Points To Note
The standards included in Ind-As are for the following
- Insurance Contracts (IC)
- Financial Disclosures (FD)
- Financial instruments (FI)
- Non-Current Assets held for discontinued operations (NCADO)
- Consolidated Financial Statements (CFS)
- Joint Arrangements (JA)
- Disclosure of Interests In other entities
- Construction Contracts (CC)
- Employee Benefits
- Income Taxes (IT)
- Property, Equipment and Plant (PEP)
- Statement of Cash flows
- Accounting for Government Grants (AGG)
- Investment Property (IP)
- Intangible Assets (IA)
Indian Accounting Standards amended Indian Accounting Standards amended