1. CA Krishanu Bhattacharyya
BY:
CA Krishanu Bhattacharyya

2. AN OVERVIEW

3. Presentation of Final Statements IAS 1 IND AS 1 Inventories IAS 2
DESCRIPTION
IAS / IFRS
IND AS
Presentation of Final Statements
IAS 1
IND AS 1
Inventories
IAS 2
IND AS 2
Statement of Cash Flow
IAS 7
IND AS 7
Accounting Policy, Change in Accounting Estimates & Errors
IAS 8
IND AS 8
Events After The Reporting Period
IAS 10
IND AS 10
Income Taxes
IAS 12
IND AS 12

4. Property, Plant & Equipments IAS 16 IND AS 16 Leases IAS 17 IND AS 17
DESCRIPTION
IAS / IFRS
IND AS
Property, Plant & Equipments
IAS 16
IND AS 16
Leases
IAS 17
IND AS 17
Employee Benefits
IAS 19
IND AS 19
Accounting for Govt. Grants & Disclosure of Govt. Assistant
IAS 20
IND AS 20
Effect of Changes in Foreign Exchange Rates
IAS 21
IND AS 21
Borrowing Costs
IAS 23
IND AS 23

5. Related Party Disclosures IAS 24 IND AS 24
DESCRIPTION
IAS / IFRS
IND AS
Related Party Disclosures
IAS 24
IND AS 24
Separate Financial Statements
IAS 27
IND AS 27
Investment in Associates & Joint Ventures
IAS 28
IND AS 28
Financial Reporting in Hyperinflationary Economics
IAS 29
IND AS 29
Financial Instruments : Presentation
IAS 32
IND AS 32

6. Interim Financial Reporting IAS 34 IND AS 34 Impairment of Assets
DESCRIPTION
IAS / IFRS
IND AS
Earnings per Share
IAS 33
IND AS 33
Interim Financial Reporting
IAS 34
IND AS 34
Impairment of Assets
IAS 36
IND AS 36
Provisions, Contingent Liabilities & Contingent Assets
IAS 37
IND AS 37
Intangible Assets
IAS 38
IND AS 38
Investment Property
IAS 40
IND AS 40
Agriculture
IAS 41
IND AS 41

7. First Time Adoption Of Indian Accounting Standards IFRS 1 Ins As 101
DESCRIPTION
IAS / IFRS
IND AS
First Time Adoption Of Indian Accounting Standards
IFRS 1
Ins As 101
Share – Based payments
IFRS 2
IND AS 102
Business Combinations
IFRS 3
IND AS 103
Insurance Contracts
IFRS 4
IND AS 104
Non – Current Asset held for sale & Discontinued Operations
IFRS 5
IND AS 105
Exploration for & Evaluation of Mineral Resources
IFRS 6
IND AS 106

8. Financial Instruments : Disclosures IFRS 7 IND AS 107
DESCRIPTION
IAS / IFRS
IND AS
Financial Instruments : Disclosures
IFRS 7
IND AS 107
Operating Segments
IFRS 8
IND AS 108
Financial Instruments
IFRS 9
IND AS 109
Consolidated Financial Statements
IFRS 10
IND AS 110
Joint Arrangements
IFRS 11
IND AS 111
Disclosure of Interests In Other Entities
IFRS 12
IND AS 112
Fair Value Measurement
IFRS 13
IND AS 113

9. Regulatory Deferral Accounts Revenue From Contracts with Customers
DESCRIPTION
IAS / IFRS
IND AS
Regulatory Deferral Accounts
IFRS 14
IND AS 114
Revenue From Contracts with Customers
IFRS 15
IND AS 115

10. IND AS 101

11. FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS

12. OBJECTIVE
To ensure that an entity’s first Ind-AS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that:

13. can be generated at a cost that does not exceed the benefits
is transparent for users and comparable over all periods presented;
provides a suitable starting point for accounting in accordance with IndAS;
can be generated at a cost that does not exceed the benefits

14. SCOPE An entity shall apply this Ind-AS in:
its first Ind-AS financial statements
each interim financial report, if any, that it presents in accordance with Ind AS 34 Interim Financial Reporting for part of the period covered by its first Ind-AS financial statements.

15. An entity’s first Ind-AS financial statements are the first annual financial statements in which the entity adopts Ind-ASs, in accordance with Ind-ASs notified under the Companies Act, 1956 and makes an explicit and unreserved statement in those financial statements of compliance with Ind As

16. RECOGNITION AND MEASUREMENT
Opening Ind-AS Balance Sheet (Para 6)
Accounting policies
Estimates (Para 14)

17. PRESENTATION & DISCLOSURE
Comparative Information (Para 21)
Entity’s First Ind As Financial Statements shall include:
At least 3 Balance Sheets
2 Statements of Profit & Loss
2 Statements of Cash Flow
2 Statements of changes in Equity
Related Notes

18. Reconciliations Explanation of Transition to Ind As (Para 23)
Non –Ind As Comparative information & Historical Summaries
Explanation of Transition to Ind As (Para 23)
Reconciliations
Designation of Financial Assets or Financial Liabilities (Para 29)

19. Use of Deemed Cost for Oil & Gas Assets
Use of Fair Value as Deemed Cost (Para 30)
Use of Deemed Cost for Investments in Subsidiaries, Joint Ventures & Associates.
Use of Deemed Cost for Oil & Gas Assets
Use of Deemed Cost for Operations subject to Rate Regulations.

20. Interim Financial Reports.
Use of Deemed Cost After Severe Hyperinflation
Interim Financial Reports.

21. EXEMPTIONS FROM OTHER IND AS(s)
share-based payment transactions
insurance contracts
deemed cost
leases
employee benefits

22. cumulative translation differences and accumulated exchange differences
investments in subsidiaries, jointly controlled entities and associates
assets and liabilities of subsidiaries, associates and joint ventures
compound financial instruments
designation of previously recognized financial instruments

23. fair value measurement of financial assets or financial liabilities at initial recognition
decommissioning liabilities included in the cost of property, plant and equipment
financial assets or intangible assets accounted for in accordance with Appendix A to Ind AS 11
borrowing costs
transfers of assets from customers

24. non-current assets held for sale and discontinued operations
extinguishing financial liabilities with equity instruments
non-current assets held for sale and discontinued operations
Severe hyperinflation
Joint Arrangements

25. Designation of contracts with customers
stripping costs in the production phase of a surface mine
Designation of contracts with customers
Revenue from contracts with customers.

26. Mandatory Exceptions (From Retrospective Application of Other IND As (S)
Estimates
De-recognition of financial assets & financial liabilities

27. Non-Controlling Interests
Hedge Accounting
Non-Controlling Interests
Classification & Measurement of Financial Assets
Impairment of Financial Assets
Embedded Derivatives
Government Loans

28. IND AS 101 VS
IFRS 1

29. CHALLENGES OF FIRST TIME ADOPTION
Re-grouping / Re-classification
Industry Comparatives
Introduction of Fair Value Concept
Introduction of Time Value of Money Concept.

30. External communications Internal Changes Accounting Policy Changes
Awareness at Board Level
External communications
Internal Changes
Accounting Policy Changes

31. SYSTEMATIC APPROACH
TO IMPLEMENT
IND AS 101

32. PHASE-II: Impact Analysis & Quantification
PHASE -I: Plan Conversion
PHASE-II: Impact Analysis & Quantification
PHASE-III: Redefine / Redesign
PHASE-IV: Opening Balance Sheet as per IND AS
PHASE-V: Reporting Date – the IND AS financial statements

33. PRACTICAL PROBLEMS
What will not amount to first time adoption?
What are the steps involved in first time adoption of Ind As?
How should opening Ind As balance sheet be prepared?

34. Is it mandatory to publish opening Ind As balance sheet?
How should the effects of adjustments be recorded in the opening Ind As balance sheet?
Is it mandatory to publish opening Ind As balance sheet?
Whether Ind As 101 is a transitional standard for India?

35. IND AS 115

36. Revenue from contracts with customers

37. OBJECTIVE
To establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

38. CORE PRINCIPLE
An entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

39. An entity shall consider the terms of the contract and all relevant facts and circumstances when applying this Standard. An entity shall apply this Standard, including the use of any practical expedients, consistently to contracts with similar characteristics and in similar circumstances.
When accounting for a portfolio, an entity shall use estimates & assumptions that reflect the size & composition of the portfolio.

40. This Standard specifies the accounting for an individual contract with a customer. However, as a practical expedient, an entity may apply this Standard to a portfolio of contracts (or performance obligations) with similar characteristics if the entity reasonably expects that the effects on the financial statements of applying this Standard to the portfolio would not differ materially from applying this Standard to the individual contracts (or performance obligations) within that portfolio.

41. SCOPE (PARA 5 & 6)
An entity shall apply this Standard to all contracts with customers, except the following:
Lease contracts within the scope of Ind AS 17
insurance contracts within the scope of Ind AS 104

42. financial instruments and other contractual rights or obligations within the scope of Ind AS 109, Ind AS 110, Ind AS 111, Ind AS 27, and Ind AS 28.
non-monetary exchanges between entities in the same line of business to facilitate sales to customers or potential customers.

43. An entity shall apply this Standard to a contract (other than a contract listed in preceding slides) only if the counterparty to the contract is a customer.
A customer is a party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.

44. A counterparty to the contract would not be a customer if, for example, the counterparty has contracted with the entity to participate in an activity or process in which the parties to the contract share in the risks and benefits that result from the activity or process (such as developing an asset in a collaboration arrangement) rather than to obtain the output of the entity’s ordinary activities.

45. IMPORTANT DEFINATIONS
CONTRACT:
An agreement between two or more parties that creates enforceable rights and obligations
CONTRACT LIABILITIES :
An entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.

46. CONTRACT :
An entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance).
CUSTOMER:
A party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.

47. Income arising in the course of an entity’s ordinary activities.
Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.
REVENUE:
Income arising in the course of an entity’s ordinary activities.

48. PERFORMANCE OBLIGATION:
A promise in a contract with a customer to transfer to the customer either:
a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

49. STAND ALONE SELLING PRICE:
The price at which an entity would sell a promised good or service separately to a customer.
TRANSACTION PRICE:
The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

50. RECOGNIZATION Identifying the contract Definition of contract
Duration of Contract

51. Contract remains wholly unperformed if both the following criteria are met:
entity has not yet transferred any promised goods or services to the customer ,
and
entity has not yet received & is not yet entitled to receive any consideration in exchange for promised goods or services.

52. If criteria above not met & entity receives consideration, such consideration shall be recognized as revenue if either of the following events have occurred:
The entity has no remaining obligations to transfer goods or services to customers & all or substantially all of the consideration promised by the customer has been received & is non-refundable. or
The contract has been terminated & the consideration received from the customer is non refundable.

53. Satisfied at a point of time
Combination of contract
Contract modifications
Identifying performance obligations
Definition of distinct goods & services
Satisfaction of performance obligations
Satisfied over time
Satisfied at a point of time
Measuring progress towards complete satisfaction

54. MEASUREMENT Determining the transaction price
Determinants of transaction price
Variable consideration
Existence of a significant financing component in the contract

55. Non cash consideration
Consideration payable to a customer
Allocating the transaction price to performance obligation
Allocation based on stand-alone selling price
Allocation of discount to stand-alone price
Changes in transaction price
Contract cost

56. PRESENTATION (PARA 105)
When either party to a contract has performed, an entity shall present the contract in the balance sheet as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. An entity shall present any unconditional rights to consideration separately as a receivable.

57. DISCLOSURE Objective of Disclosure Requirements
Contracts with Customers
Disaggregation of Revenue
Contract Balances

58. Performance Obligation
Transaction Price Allocated To The Remaining Performance Obligation
Determining The Timing Of Satisfaction Of Performance Obligations
Determining The Transaction Price and The Amounts Allocated to Performance Obligations
Assets Recognized From The Costs To Obtain Or Fulfill a Contract with the Customer.

59. APPLICATION GUIDANCE
This application guidance is organized into the following categories:
performance obligations satisfied over time
methods for measuring progress towards complete satisfaction of a performance obligation

60. sale with a right of return
warranties
principal versus agent considerations
customer options for additional goods or services
customers’ unexercised rights
non-refundable upfront fees (and some related costs)

61. repurchase agreements consignment arrangements
licensing
repurchase agreements
consignment arrangements
bill-and-hold arrangements
customer acceptance
disclosure of disaggregated revenue

62. Five Step Model Framework
STEP-I: Identify the contract with a customer
STEP-II: Identify the performance obligations in the contract

63. STEP-III: Determine the transaction price
STEP-IV: Allocate the transaction price to the performance obligations in the contracts
STEP-V: Recognize revenue when (or as ) the entity satisfies a performance obligations.

64. IND AS 115 VS
IFRS 15

65. Particulars IND AS 115 IFRS 15 Terminology
Balance Sheet & Statement of Profit & Loss
Statement of Financial Position & Statement of Comprehensive Income
Transitional Provision
Not Given
Given
Para 109AA
Inserted for excise duty
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