IND AS

The institute of Chartered Accountants of India (ICAI) being the accounting standards- setting body in India, way back in 2006, initiated the process of moving towrads the International Finanacial Reporting Standards(IFRS) issued by the Interanational Accounting Standards Baord (IASB) with a view to enhance acceptability and transparency of the financial information communicated by the Indian corporates through their financial statements. This move towrads IFRS was subsequently accepted by the Government of India.

The Government of India in consultation with the ICAI decided to converge and not to adopt IFRS issued by the IASB. Accordingly, while formulating IFRS- converged Indian Accounting Standards (Ind AS), efforts have been made to keep these Standards, as far as possible , in line with the corresponding IAS/IFRS and departures have been made where considered essential.

The entities’ general purpose financial statements give information about performance, position and cash flow that is

useful to a range of users in making financial decisions. These users include shareholders, creditors, employees and the general public.

A complete set of financial statements under Ind AS comprises the following:

• Balance sheet at the end of the period;

• Statement of profit and loss for the period;

• Statement of changes in equity for the period;

• Statement of cash flows for the period;

• Notes, comprising a summary of significant accounting policies and other explanatory information

• Comparative financial information in respect of the preceding period as specified, and

• Balance sheet as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements having an impact on the balance sheet as at the beginning of the preceding period.

It also prescribes the information to be prescribed in statement of profit and loss, other comprehensive income section and statement of changes in equity.

Other Comprehensive Income comprises items of income and expenses (including reclassification adjustments) that are not recognize in profit or loss as required or permitted by other Ind AS.