Exposure Draft

Accounting Standard (AS) 18, Revenue

(The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February, 2015, have been applicable to the specified class of companies. Accounting Standards are applicable to entities other than those to whom Ind AS are applicable. However, the Ministry of Corporate Affairs has requested the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) to update Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, to bring them nearer to Indian Accounting Standards.  Accordingly, the Accounting Standards Board, ICAI, initiated to update these standards which will be applicable to all entities to whom Ind AS are not applicable. While formulating these Accounting Standards, the Accounting Standards Board, ICAI, decided to maintain the consistency with the paragraph numbers and with the numbering of Standards of the Indian Accounting Standards.)

As per the Approach Paperfor upgradation of existing Accounting Standards to bring them nearer to the Ind AS as finalised by the ICAI, AS on Construction Contracts, and Revenue Recognition, based on Ind AS 11, Construction Contracts, and Ind AS 18, Revenue, respectively are required to be upgraded and not based on recently issued new standard on Revenue, viz., Ind AS 115, Revenue from Contracts with Customers. However, revenue measurement shall be based on concept of transaction price.In this direction, following is the Exposure Draft of the updated Accounting Standard (AS) 18, Revenue, issued by the Accounting Standards Board of the ICAI, for comments. Major differences between draft AS 18 and Ind AS 18 are given in Appendix 1 of draft AS 18.  Similarly, major differences between draft AS 18 and AS 9 are given in Appendix 2 of draft AS 18. AS 18 refer to the following standards which are under formulation:

(i)           AS 17, Leases

(ii)         AS 28, Investments in Associates and Joint Ventures

(iii)       AS 41, Agriculture

 Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments can be submitted using one of the following methods so as to receive not later than                                 February 4, 2019.

Further clarifications on any aspect of this Exposure Draft may be sought by e-mail to asb@icai.in.