IND AS

• The requirements for presentation of financial statements are set out in Schedule III of Companies Act 2013.
• Comparative figures are presented for one year.
• Some items such as revaluation surplus which are treated as OCI in IND AS are directly recognised in equity

• IND AS 1 does not include any illustrative format for presentation of financial statements. The ICAI has issued an exposure draft of the IND AS-compliant Schedule III.
• Comparative figures are presented for one year. When a change in accounting policy has been applied retrospectively or items in financials are restated/reclassified, a balance sheet is required as at the beginning of the earliest period presented
• An entity is required to present all items of income and expense including components of other comprehensive income in a period in a single statement of profit and loss

• Cash Discounts received from Creditors are shown as Discount received in P&L
• Subsequent upward and Downward Revaluation of Inventory Impacts Inventory.
• Inventories purchased on deferred settlement terms are not explicitly dealt with in AS 2

• Trade Discounts, rebates and other similar items are to be deducted in determining Cost of Purchases.
• Initial downward revaluation and subsequent upward revaluation is to be reduced from Stock expense booked for the year in the year of upward revaluation.
• Difference between the purchase price for normal credit period and the amount paid for deferred settlement terms is recognised as interest expense

• Prior Period items are included in determination of profit or loss of the period in which the error was discovered
• Does not consider Constructive Obligations

• Prior Period items are corrected by restating the comparative amounts for prior periods presented in which the error occurred
• Provisions for constructive obligations must be created

• Currently spare parts are held as inventories and as and when it is consumed it is treated as Consumption.
• Special Tools are held as Other Current Assets
• Component Approach
• Components which increases the capacity is capitalized
• Fixed Assets are depreciated together with the all the major components
• Dismantling Cost: Treated as Expense during the year incurred
• Replacements: Are capitalised at cost
• Derecognition: Derecognized when the asset is disposed

• Spare Parts and Servicing: Major spare part, must be recognized as Property, Plant and Equipment
• Component Approach: Components must be treated as a separate PPE and depreciation is charged as per the useful life of the component
• Dismantling Cost: Estimation of the cost of dismantling must be done and added to cost of the Asset, for which depreciation will be charged along with the Asset
• Replacements:
• Carrying amount of the existing part replaced should be derecognized
• New part must be recognized as per the Cost/Fair Value
• Derecognition:
• Can be derecognized on disposal
• Derecognized when there are no future economic benefits

• This standard requires inclusion of excise duty in revenue.
• Excise duty will be added to cost of raw material consumed.

• AS 12 requires that government grants in the form of nonmonetary assets, given at a concessional rate, should be accounted for on the basis of their acquisition cost.
• In case a non-monetary asset is given free of cost, it should be recorded at a nominal value

• IND AS 20 requires to value non-monetary grants at their fair value, since it results into presentation of more relevant information and is conceptually superior as compared to valuation at a nominal amount.

Provisions: Provisions are not recognised based on constructive obligations

Contingent Asset: Contingent assets are neither recognised nor disclosed in the financial statements.

• Provisions for constructive obligations should also be recognised
• A constructive obligation is an obligation that derives from an entity's actions where, by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.
• Contingent Asset: Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

• Measurement: Measured only at cost.
• Useful Life: Useful life of an intangible asset will not exceed ten years

• Measurement: Intangible assets can be measured at either cost or revalued amounts
• Useful Life: Useful life may be finite or indefinite

• Definition: AS 13 defines investment property as an investment in land or buildings that are not intended to be occupied substantially for use by, or in the operations.
• Measurement: Measured at cost less impairment

• Definition: Investment property is land or building (or part thereof) or both held (whether by owner or by a lessee under a finance lease) to earn rentals or for capital appreciation or both.
• Measurement: Measured using the cost model. Fair value model is not permitted. Detailed disclosures pertaining to fair value must be given.

• Entities have an option to use previous GAAP carrying values of property, plant and equipment, intangible assets and investment properties as on the date of transition as deemed cost under IND AS
• Non-Current Assets Held for Sale or discontinued Operations: Under IND AS 101, an entity may measure such assets or operations at the lower of carrying value and fair value less cost to sell
• Leases: Also, if there is any land lease newly classified as finance lease then the first-time adopter may recognize assets and liability at fair value on the transition date; any difference between those fair values is recognised in retained earnings.