The MCA vide notification dated 30 March 2016 issued the Companies (Accounting Standards) Amendment Rules, 2016 , amending the Companies (Accounting Standards) Rules, 2006 for companies following Indian GAAP accounting standards. These changes are relevant for companies that will prepare financial statements for FY 2016-17 under Indian GAAP. The Amendment Rules contain following key changes:
- The amendment rules have replaced AS 10 Accounting for Fixed Assets and AS 6 Depreciation Accounting, with a new AS 10 Property, Plant and Equipment
- AS 2 Valuation of Inventories
- AS 4 Contingencies and Event Occurring After Balance Sheet Date
- AS 13 Accounting for Investments
- AS 14 Accounting for Amalgamations
- AS 21 Consolidated Financial Statements
- AS 29 Provisions, Contingent Liabilities and Contingent Assets
This newsflash provides an overview of key changes and their implications on Indian companies.
These amendments are not relevant for companies that are covered by phase 1 of Ind AS (Indian Accounting Standards) roadmap i.e. companies with net worth of more than Rs.500 crore along with their subsidiary, holding, joint venture and associate companies, that will be preparing their FY 2016-17 financial statements under Ind AS.