1. Recent Change in Accounting
Journey from AS to Ind -AS

2. What are IFRS/US GAAP/AS
Like we are governed by our Core Values….. Accounting is Governed by Accounting Standards (i.e AS)
Accounting Standards are the guidelines as to :-
Recognition
Measurement and
Disclosures
Of Income, Expenditure, Assets and Liabilities

3. Globally Acceptable Accounting Formats
IFRS
UK and Europe Based
US GAAP
Applicable in USA
Indian AS
Applicable in India

4. Why IFRS? Globally accepted Accounting Standards
In case of any company doing International Listing or raising funds overseas, accounts were to be restated under IFRS/US GAAP.
Considered to be superior in terms of the guidance available with respect to the recognition and measurement principles while recording the financial / non financial transactions impacting the relevant entity.
Helps in comparison of results with companies around the Globe

5. IFRS - Now a truly global standard
International Financial Reporting Standards (IFRS) is viewed as a global standard with more than 100 countries having already converged/ adopted IFRS
Recent Adopters of IFRS
Japan
China
Canada
IASB-FASB convergence program meme
While the joint project is on-going for certain critical topics, the future of further convergence remains uncertain.

6. India on the move ! In effect On the anvil
Indian regulatory and reporting framework has seen a host of changes in the recent times.
2014 to 2017 – years of change – impacting all aspects
In effect
Largely effective from 1st April 2014
Companies Act 2013
Mandatory from for certain categories of companies
Indian Accounting Standards converged with IFRS (‘Ind AS’)
Final ICDS notified on 31st March 2015
Income Computation and Disclosure Standards (‘ICDS’)
On the anvil
Expected to be implemented from 1st Oct 2016
Goods and Services Tax (GST)
Expected to be implemented in the coming months
Companies Act 2013 – remaining sections
Requires implementation and transition efforts over many years

7. 39 Standards under Ind (AS)
AS and Ind AS
Difference between AS & Ind –AS :- Where as AS were formulated in India, Ind-AS are adoption of IFRS ( International Financial Reporting Standards) with some “Carve Outs”
32 Standards under AS
39 Standards under Ind (AS)

8. Ind AS implementation in India: Story so far
Previous plan– 1 April 2011
Finance minister’s speech in July 2014
January 2015 – press release on revised roadmap issued by the MCA
February 2015 – roadmap for transition to Ind AS notified and 39 converged (final) standards issued
March Tax issues addressed separately through issuance of Income Computation and Disclosure Standards (ICDS)
Way forward?
Companies Act, 2013 and ICDS – steps in the right direction

9. GHCL is covered in Phase I
IFRS Convergence in India: Implementation roadmap
GHCL is covered in Phase I
Phase I
Phase II
Voluntary adoption
Year of adoption FY FY
FY or thereafter
Comparative year FY
FY or thereafter
Covered companies
(a) Listed companies
All companies with net worth >= INR500 crore
All companies listed or in the process of being listed
Any company could voluntarily adopt Ind AS
(b) Unlisted companies
Companies having a net worth >= INR250 crore
(c) Group companies
Applicable to holding, subsidiaries, joint ventures, or associates of companies covered in (a) and (b) above. This may also impact fellow subsidiary companies while preparing CFS of the holding company.
The Ind AS would apply to stand-alone and consolidated financial statements.
The net worth for implementation of Ind AS calculated based on the stand-alone financial statements as on 31 March 2014.
No roll back is permitted.
Banks, NBFCs and Insurance companies may be required to prepare Ind AS financials for consolidation by covered group entity.

10. First time implementation: When and how to start
Mandatory implementation
1 April 2015
31 March 2016
30 September
2015
31 December
30 June 2015
2016
30 June 2016
31 March 2017
Date of transition Ind AS opening balance sheet
For interim reporting, Ind AS may first be applicable from quarter ending 30 June 2016
First Ind AS financial statements
Comparative period
Reporting date

11. Significant carve outs and key impact areas

12. Elimination of policy choices
Key carve-outs 1
Mandatory deviations 2
Optional carve-outs
Use of government bond rate for employee benefit accounting
Accounting for bargain purchases (acquisition of Promptec)
Presentation/classification of loans with covenant breaches
Straight lining of lease rentals in certain situations
Deemed cost exemption for PPE – carrying value as per Indian GAAP on date of transition
Option not to align accounting policies for associates 3
Elimination of policy choices 4
Additional guidance
Presentation of income statement by nature
Investment property – only cost model to be applied
Option to recognize non-monetary grants at nominal value has been removed
Specific guidance on common control transactions
Previous GAAP for the purposes of first time adoption specifically identified to be Indian GAAP
Law to override Ind AS – impact on court schemes and other similar arrangements to be considered

13. Key impact areas Form and components of financial statements
Property, plant and equipment
Revenue recognition
Financial Instruments
Deferred taxes
Leases
First time adoption and transition
Employee benefits
Segment reporting

14. Key impact areas: Presentation of financial statements
Form and components of financial statements
Components of financial statements include the following:
Balance Sheet
Income Statement
Statement of Other Comprehensive Income
Cash Flow Statement
Statement of Change in Equity ( SOCIE)
Notes to financial statements
Ind AS requirements partly adopted by introduction of revised Schedule VI / Schedule III of Companies Act 2013
Draft of the new Schedule III conforming to the requirements of Ind AS released by ICAI, comment period over on January 20, 2015

15. Thank You