Ind-As Transition Facilitation Group (ITFG) BULLETIN -12
Some key points-
1- An Asset classified as PPE will have option/ policy choice to use either revaluation modal or cost modal , However if this is Investment property then only COST modal is allowed as per Ind-As 40,
2- In case government grant was received related to asset and it was deducted from the asset value under previous GAAP, and if entity now wants to use FAIR VALUE as deemed cost then balance of such grant will be considered as deferred income and will adjust within RE,
3- COMFORT letter Issued by a Parent to its subsidiary may fall under FINANCIAL GUARANTEE as per Ind-As 109 if it meets the definition including a feature to compensate with payment in case of default etc,
4- Any Unamortized PROCESSING FEES or ANY PREPAYMENT fees paid to settle existing loan will be charged to PL,
5- Any unrealized intra group profits will required to be eliminated first before applying deemed cost exemptions during transition to Ind-As,
6- Branch office of a FOREGIN Co will not be liable to comply IND-AS even reaches to threshold limits given by MCA,
7- Loan taken from Government below market rate being a government grant will be measured at its carrying value as per previous GAAP at the time of transition and then EIR will required to be used prospectively , if it is required,
8- In case NCLT approves effective date of any amalgamation which is different from ACQUISITION DATE as per Ind-As 103, then NCLT approved date will be considered for the purpose of accounting,
9- Unless there is a transitional relief given in Ind-As 101, all financial Instruments will be measured retrospectively,
10- Deemed cost option taken by an entity is not allowed to adjust anything in this cost unless some very specific cases as allowed in the standard,
For reading full text of the bulletin please refer - https://resource.cdn.icai.org/47468indas37250.pdf
No comments:
Post a Comment