Hi there!!
This write-up is for people who have heard about the term IndAS but are yet to get into the scheme of things. This is the first in a series of articles that will walk you through the basics of the standards.
CAVEAT: The objective is to get the concepts and in the process the reader may not find the technical jargons and linguistic mumbo-jumbo.
Let's begin the ride then.. A ride into the IndAS!
What's IndAS?
Hi there!!
This write-up is for people who have heard about the term IndAS but are yet to get into the scheme of things. This is the first in a series of articles that will walk you through the basics of the standards.
CAVEAT: The objective is to get the concepts and in the process the reader may not find the technical jargons and linguistic mumbo-jumbo.
Let's begin the ride then. A ride into the IndAS!
What's IndAS?
IndAS is simply IFRS packed with a different punch, an Indian punch!!
They are the "converged" version of IFRS. By "converged" we mean to say that they are IFRS that are modified into Indian context. They are IFRS that are made more "desi".
The modifications that are made are named "Carve-Outs". So this is where the famous equation is born== "IFRS - Carve Outs = IndAS"
Fine. So when are we going to go onboard?
The MCA has given a notification for the roadmap. Simply putting it, large companies will begin the journey w.e.f 2016-17 and smaller ones form 2017-18. As the financial statements would also need comparitives, the journey has to actually start from 2015-16 and 2016-17 respectively.
That means, the clock is already ticking for large companies.
How drastic is the change going to be?
Most of the standards being practiced in India are already in line with IFRS. Having said that we have to quickly add that there are places where the whole thing has been re-written. So the change is coming with a bang as well.
What are these 'bangs'?
The biggest change the standards would bring is pitted to be in Revenue Recognition. IndAS 115 is the desi version of IFRS 15 and deals about the revenue recognition. Financial Instruments is the other area that is creating ripples.
These bangs are even more special because India is adopting these standards much before the rest of the world!! The corresponding IFRS dealing with revenue recognition and financial instruments are not yet in effect! Kudos to ICAI for that!!
How do we start then?
The companies are gearing up for the change; as a change in this scale would impact the entire business right from information systems, people management, contracts and agreements.
The inevitable question, how many standards are there?
There are 39 IndAS in all. And they are not given sweet and cute numbering like IndAS 1, IndAS2 etc. They are grouped based on the areas they deal with.
So this is a quick, short introduction about the Ind AS.
The next article in the bINDAS journey will give you a bird's eye view into how the standards are actually grouped and coded.
After all, as my mentor always says "Accounting Standards are basic accounting principles that are codified".
So, let us also get into the journey and take part in this memorable event of being witnesses to one of the landmark events in the history of Indian Financial Reporting!!
Happy Reading and best wishes!!
IndAS is simply IFRS packed with a different punch, an Indian punch!!
They are the "converged" version of IFRS. By "converged" we mean to say that they are IFRS that are modified into Indian context. They are IFRS that are made more "desi".
The modifications that are made, are named "Carve-Outs". So this is where the famous equation is born== "IFRS - Carve Outs = IndAS"
Fine. So when are we going to go onboard?
The MCA has given a notification for the roadmap. Simply putting it, Large companies will begin the journey w.e.f 2016-17 and smaller ones form 2017-18. As the financial statements would also need comparitives, the journey has to actually start from 2015-16 and 2016-17 respectively.
That means, the clock is already ticking for large companies.
How drastic is the change going to be?
Most of the standards being practised in India are already in line with IFRS. Having said that we have to quickly add that there are places where the whole thing has been re-written. So the change is coming with a bang as well.
What are these 'bangs'?
The biggest change the standards would bring is pitted to be in Revenue Recognition. IndAS 115 is the desi version of IFRS 15 and deals about the revenue recognition. Financial Instruments is the other area that is creating ripples.
These bangs are even more special because India is adopting these standards much before the rest of the world!! The corresponding IFRS dealing with revenue recognition and financial instruments are not yet in effect!!. Kudos to ICAI for that!!
How do we start then?
The companies are gearing up for the change as a change in this scale would impact the entire business right from information systems, people management, contracts and agreements.
The inevitable question, How many standards are there?
There are 39 IndAS in all. And they are not given sweet and cute numbering like IndAS 1, IndAS2 etc.. They are grouped based on the areas they deal with.
So this is a quick, short introduction about the Ind AS.
The next article in the bINDAS journey will give you a bird's eye view into how the standards are actually grouped and coded.
After all, as my mentor always says "Accounting Standards are basic accounting principles that are codified".
So, let us also get into the journey and take part in this memorable event of being witnesses to one of the landmark events in the history of Indian Financial Reporting!!
Happy Reading and best wishes!!
CAclubindia
