Sub:    Exposure Draft of Amendments to Ind AS for comments

As you are kindly aware that the Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB). In this regard, it may be noted that IFRS Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Standards, Ind AS may be issued/revised corresponding to the IFRS Standards. Accordingly, whenever any amendments are made or new IFRS Standard/IFRIC by the IASB, the Accounting Standards Board (ASB) of the ICAI considers and issues amendments to Ind AS. While doing so, keeping in view the Indian conditions and circumstances, wherever considered appropriate, necessary changes are also proposed to the Ind AS.

In this regard, the Accounting Standards Board has issued Exposure Draft of Amendments in Ind AS 117 corresponding to IASB’s amendments in IFRS 117 on Initial Application of IFRS 17 and IFRS 9- Comparative Information - Amendments to IFRS 17, Insurance Contracts.

The draft amendments added a transition option (classification overlay-paragraphs C28A-C28E) relating to comparative information about financial assets presented where an entity first apply Ind AS 117 and Ind AS 109 at the same time. Amendments have also been proposed to make the classification overlay available to entities that have applied Ind AS 109 before they apply Ind AS 117.  For these entities, the classification overlay has been prescribed for the application of paragraph C29 of Ind AS 117 and can be applied only to financial assets derecognised in the comparative period.

The downloadable version of the Exposure Draft is available at: https://www.icai.org/post/ed-of-initial-application-of-indas-117-and-indas-109

Comments can be submitted using one of the following methods, so as to be received not later than March 10, 2022:

Further clarifications on the Exposure Draft may be sought by e-mail to asb@icai.in.