Contents Background ... application differences) Scope Ind AS 115 specifically excludes from its scope certain type of transactions: − Leases in the scope of Ind AS 17 / Ind AS 116 − Insurance contracts in the scope of Ind AS 104 − Financial instruments and other contractual rights and obligations in the scope of . endobj Microsoft® Word 2013 Following are the GAAP differences between AS – 19 and IND AS 17. 2018-04-02T01:07:53.341-04:00 Ind AS 109 requires management, when determining whether the credit risk on a financial asset has increased significantly, to consider reasonable and supportable information available, in order to compare the … Ind AS 16, Property, Plant and Equipment . <> References to “Indian GAAP” are to the standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 (applicable to all … This publication includes a summary of key accounting aspects of the new standard, various business implications for companies and professional services that can be provided to help clients. 506 0 obj WHEN? The Ind AS 115 like all other accounting standards has been formulated based on ICAI recommendations. Sr. No. endobj endobj Property taxes and insurance: 39 : Example … Revenue Recognition criteria as per Ind AS 18 are to be applied separately for each transaction. Unavoidable differences between Ind AS and IFRS B. Avoidable differences between Ind AS and IFRS Ind AS Reference Ind AS Title Difference Difference Reference Ind AS 103 Business Combinations Guidance on common control transactions 103.1 Accounting for the gain on a bargain purchase 103.2 Ind AS 11 Construction Contracts IFRIC 15 ‘Agreement for the construction of real estate’ scoped out … Ind AS 115 (Revenue from contracts with customers) Presentedby CA Manoj Pati . <> On 28 March 2018, the MCA notified Ind AS 115, a new revenue recognition standard that replaces existing Ind AS 11 and Ind AS 18. Revenue recognition: The change is here Ind AS 18 Revenue: 20. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Ind AS 18 requires the revenue to be recognised at fair value of … Like ASC 606 and IFRS 15, India too has accounting standards that provide guidelines for standardized revenue recognition to simplify taxation in India’s burgeoning economy, and this standard is known as the Ind AS 18. 454 0 obj 0000034330 00000 n With the Ind AS 115 effective for accounting periods beginning on or after April 1, 2018, existing revenue recognition standards Ind AS 11 and Ind AS 18 stands omitted and the Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable) issued by ICAI in May 2016 stands withdrawn. endobj IndAS 115/IFRS 15 – Revenue from contracts with Customers Transition from IndAS 18 and IndAS 11 to IndAS 115; 5 Step model to recognise revenue in any contract; Impact of IndAS 115 on different industries; Difference between IFRS 15, IndAS 115, ASC 606 and IAS … IND AS 18 Revenue Recognition sets the guidelines as to when to recognize the revenue arising from certain types of transactions and the accounting treatment of the same. Chapter 1 Objective 1.1 The objective of this Standard is to establish principles for the financial reporting of financial assets and financial liabilities that will present relevant … [291 0 R 293 0 R 293 0 R 293 0 R 295 0 R 296 0 R 296 0 R 296 0 R 301 0 R 305 0 R 307 0 R 308 0 R 313 0 R 313 0 R 313 0 R 313 0 R 313 0 R 317 0 R 318 0 R 323 0 R 323 0 R 323 0 R 323 0 R 323 0 R 327 0 R 328 0 R 333 0 R 333 0 R 333 0 R 333 0 R 333 0 R 337 0 R 339 0 R 340 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 349 0 R 350 0 R 355 0 R 355 0 R 355 0 R 355 0 R 355 0 R 355 0 R 359 0 R 360 0 R 365 0 R 365 0 R 365 0 R 365 0 R 365 0 R 369 0 R 371 0 R 373 0 R 374 0 R 379 0 R 379 0 R 379 0 R 379 0 R 379 0 R 379 0 R 381 0 R 382 0 R 387 0 R 387 0 R 387 0 R 387 0 R 387 0 R 387 0 R 389 0 R 392 0 R 394 0 R 396 0 R 398 0 R 399 0 R] Ind AS 11 Construction Contracts: 16. 534 0 obj Ind AS 115 supersedes and replaces Ind AS 11 and Ind AS 18. <> endobj 401 0 obj Indian Accounting Standard (Ind AS) 18, Revenue, prescribes the recognition and measurement principles for revenue arising from certain types of transactions and events. 1 0 obj endobj <> endobj Transition from Ind AS 18 and Ind AS 11 to Ind AS 115; Five-Step model to recognise revenue in any contract ; Impact of Ind AS 115 on different industries; Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 and IAS 11; Ind AS 116/IFRS 16 – Leases Transition from Ind AS 17; New definition of lease; Lessee’s accounting under new guidance of Ind AS 116; Impact of Ind AS 116 on different industries … [213 0 R 215 0 R 217 0 R 218 0 R 219 0 R 222 0 R 223 0 R 225 0 R 226 0 R 229 0 R 229 0 R 230 0 R 232 0 R 233 0 R 261 0 R 262 0 R 263 0 R 267 0 R 268 0 R 268 0 R 268 0 R 270 0 R 271 0 R 271 0 R 271 0 R 276 0 R 280 0 R 282 0 R 284 0 R 286 0 R 287 0 R 234 0 R 235 0 R 236 0 R 237 0 R 238 0 R 239 0 R 240 0 R 241 0 R 242 0 R 243 0 R 244 0 R 245 0 R 246 0 R 247 0 R 248 0 R 249 0 R 250 0 R 251 0 R 252 0 R 253 0 R 254 0 R 255 0 R 256 0 R 257 0 R 258 0 R 259 0 R 260 0 R] 425 0 obj AS 17 VS. IND AS 108 Identification of Segments AS 17 • AS 17 requires identification of two sets of segments— • one based on related products and services, • the other on … <> <> IND-AS 108 OPERATING SEGMENTS. This is a common practice when nature of the business transactions are becoming more complex day by day. A lessor uses IND AS 115 to allocate consideration between: Lease components: and. Agenda . Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors: 14. 0000033209 00000 n 2 0 obj 2018-03-30T09:09:50.000-04:00 Ind AS is expected to replace Ind AS 17 WEF from its proposed effective date being for annual periods beginning on or after 1 st April, 2019. 0000003572 00000 n 505 0 obj Ind AS 11 deals with revenue arising from construction contracts. ��%��[�NOn� .ENQ>��ة\eO�l����8�7vP0�W��A�k�A�����N,��ӡh&�0���������1���a,¤��4tJ�&�$}x$QxjF�@]M�CUxC�=�O.�y��{����{�kD��"(���Som�E�TP�;�����{R@��p�6o������~�:�ս�`m�$�sW�#U�z}�:��9�(j�y�ܽj6�ʘ�nj�*P�8J����8Z�%ŝ#�T�8ջ�F��k����=�� /�� 0000006857 00000 n Apart from AS-19 contents 2. endobj Ind AS 16 Property, Plant and Equipment: 18. 0000026795 00000 n endobj endobj 0000035106 00000 n The new standard also replaces guidance notes 0000012737 00000 n and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. AS 9: Ind AS 18: AS 9 does not excludes the same from its scope. <> Considering that both Ind AS and ICDS are fairly new, and the fact that the tax filing timeline is fast approaching, we take a closer look at the key requirements and differences in a series of articles on Ind AS vs. ICDS. The new revenue standard is expected to be applicable to Indian companies following the Ind AS road map framework from 1 April 2018. <> However, there is a difference as the definition of related party will be as per Act, 2013 but the transactions will not be limited to those covered under Section 188. 0000027050 00000 n 0000001914 00000 n 0000035497 00000 n Core principle of Ind AS 115, Revenue from Contracts with Customers. endobj Ind AS 7 Statement of Cash Flows: 13. Ind AS 10 Events after the Reporting Period: 15. Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 & IAS 11 2. 0000005767 00000 n Ind AS 116/ IFRS 16 – Leases Transition from Ind AS/ IAS 17 New Definition of Lease Lessee’s Accounting under new guidance of Ind AS 116/ IFRS 16 Impact of Ind AS 116/ IFRS 16 on different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc. endobj This standard will change the manner in which companies will recognise and report revenues. REVENUE – WHAT? 445 0 obj 507 0 obj endobj %PDF-1.7 %���� endobj <> Microsoft® Word 2013 [470 0 R 477 0 R 478 0 R 480 0 R 486 0 R 487 0 R 489 0 R 495 0 R 496 0 R 497 0 R 501 0 R 498 0 R 499 0 R 500 0 R 502 0 R] 511 0 obj Under Ind AS 18 and Ind AS 11, collectability is a recognition principle because an entity cannot recognise revenue until it is probable that the economic benefits will flow to it. Appendix B – Evaluating the substance of transaction involving legal form of lease 4. Identify the Contract with a customer. 473 0 obj endobj In convergence with IFRS, the Ministry of Corporate Affairs (MCA) issued Ind AS 115, Revenue from Contracts with Customers vide its notification dated 28th March, 2018. This standard also modifies other Ind AS for e.g. Use of entity assets yielding Interest, Royalties or Dividends 482 0 obj application/pdf Following diagram illustrates the requirements of the model. Significant differences between Ind AS 115 and AS 9 For hindi version of this video Please click the link below Current Ind ASs: Ind AS 115: Scope: Ind AS 18 deals with revenue arising from sale of goods, rendering of services and interest, dividend and royalties. [400 0 R 405 0 R 411 0 R 412 0 R 414 0 R 420 0 R 421 0 R 423 0 R 429 0 R 430 0 R 431 0 R 434 0 R 440 0 R 441 0 R 443 0 R 449 0 R 450 0 R 452 0 R 458 0 R 459 0 R 460 0 R 461 0 R 462 0 R 463 0 R 464 0 R 465 0 R 466 0 R] endobj Ind AS 109 outlines a ‘three-stage’ model (‘general model’) for impairment based on changes in credit quality since initial recognition. 0000033603 00000 n 510 0 obj two companies agree to collaborate on the development of a new drug, from its scope. The new revenue standard is expected to be applicable to Indian companies following the Ind AS … 436 0 obj 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 … endobj Appendix C – Determining whether an arrangement … endobj [93 0 R 96 0 R 97 0 R 98 0 R 99 0 R 101 0 R 102 0 R] <> 512 0 obj 90 0 obj �+�z���N2JD�*}r.�y�ܻ��^`G�Wz�ޘGw�4K9�[Z�G&-+"P��k��}��•>R��[t��L#�-� Ind AS 115 is somewhat similar in that the model applies only if collection is probable. Certain sectors where revenue comes in tranches such as real estate, telecom, construction … The first step in Ind AS 115 is to identify the ‘contract’, which Ind AS 115 defines as ‘an agreement between two or more parties that creates enforceable rights and obligations.’ A contract can be written, oral, or implied by an entity’s customary business practices. Difference Between AS 18 and Ind AS 24. 0000024146 00000 n HOW MUCH? The table on the following pages sets out some of the key differences between Indian GAAP (including the provisions of Schedule III to the Companies Act, 2013, where considered necessary), IFRSs in issue as at 31 December 2014 and Ind ASs. endobj Ind AS 18, Revenue. <> 471 0 obj <> <> 80 0 obj 11.695 416 0 obj However, in certain circumstances, it is necessary to apply the recognition criteria to the separately identifiable components of a single transaction in order to reflect the substance of the transaction. endobj 0000004276 00000 n Ind AS 115 replaces existing revenue recognition standards Ind AS 11, Construction Contracts and Ind AS 18, Revenue and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. <> 0000013735 00000 n <> 0000034233 00000 n 0000008232 00000 n Indian Accounting Standard (Ind AS) 115 Revenue from Contracts with Customers: Indian Accounting Standard (Ind AS) 1 Presentation of Financial Statements: Indian Accounting Standard (Ind AS) 2 Inventories: Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows: Indian Accounting Standard (Ind AS) 8 Accounting Policies, Changes in Accounting Estimates and Errors: Indian Accounting … endobj Revenue arising from agreements of real estate development are not covered by Ind AS 18, as this aspect is dealt with under Ind AS 11. 0000034863 00000 n endobj 0000033170 00000 n 104 0 obj 504 0 obj <> <> 0000003012 00000 n 88 0 obj This standard also modifies other Ind AS for e.g. Like ASC 606 and IFRS 15, India too has accounting standards that provide guidelines for standardized revenue recognition to simplify taxation in India’s burgeoning economy, and this standard is known as the Ind AS 18. endobj Appendix A – Operating Lease Incentive 3. In this article, we start by analyzing the requirements and differences with respect to revenue recognition, which is one of the most important items of the financial statements. 491 0 obj <> Paragraphs in bold type indicate the main principles.) endobj y �����GP�=�"I -�`�%���+03�qH�N�:�M`IH�K�� ���4�R?�c=�� �Ũ�>!�����#mq��w�2�K�.$4. <>stream 0000000016 00000 n <> <> 57f7fc4eac681e36279a2d327db5f6afd535c773 Non-lease components: Items that do not transfer a good or service to the lessee are not components: No practical expedient to combine lease and non-lease components: 38 : Example – identifying components : Right to use an office building: Cleaning and maintenance services. Rendering of Services 3. endobj Indian Accounting Standard (Ind AS) 109 Financial Instruments (The Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Taxes?? Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors 10 Ind AS 10, Events after the Reporting Period 13 Ind AS 11, Construction Contracts 15 Ind AS 12, Income Taxes 17 Ind AS 16, Property, Plant and Equipment 21 Ind AS 17, Leases 24 Ind AS 18, Revenue 28 Ind … Ind AS 116/ IFRS 16 – Leases Transition from Ind AS/ IAS 17 New Definition of Lease Lessee’s Accounting under new guidance of Ind AS 116/ IFRS 16 Impact of Ind AS 116/ IFRS 16 on different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc. 0000004536 00000 n Readymade Garments Shop Returnable Only Exchange Flight Tickets Sales on CIF basis 3. Determining the date of sale of Property, Plant and EQUIPMENTS Titre de la présentation date is! Sale of Property, Plant and Equipment ( PPE ) i.e Operating segments • Related party •... Dividends IFRS 15/ Ind AS – 17 1 Matters contained Leases – Operating, Finance, sale Lease... Good or service the date of sale of Property, Plant and Equipment PPE! 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