PwC ReportingPerspectives - July 2018

The Ministry of Corporate Affairs (MCA) notified Ind AS 115, ‘Revenue from contracts with customers’, on 28 March 2018 as part of the Companies (Indian Accounting Standards) Amendment Rules, 2018. Ind AS 115 is applicable for accounting periods commencing on or after 1 April 2018 for all Ind AS compliant companies. This edition discusses in depth the five-step revenue model of Ind AS 115.

Ind AS 109, ‘Financial instruments’, requires entities to recognise expected credit losses for all financial assets held at amortised cost, including most inter-company loans from the perspective of the lender. Under Ind AS 109, lenders of inter-company loans will be required to consider forward-looking information to calculate expected credit losses, regardless of whether there has been an impairment trigger. In this edition, we share our insights on Ind AS 109’s impairment requirements for inter-company loans.

This edition also summarises the FAQs issued by the Institute of Chartered Accountants of India (ICAI) on Standard on Auditing (SA) 570 (Revised), ‘Going Concern’ applicable to the audits of financial statements for the periods beginning on or after 1 April 2017 and the revised norms for capital market transactions approved by the Securities and Exchange Board of India (SEBI) in its board meeting held on 21 June 2018.