 IFRS is a set of international accounting standards stating how particular

types of transactions and other events should be reported in financial

statements.

 IFRS are generally principles-based standards and seek to avoid a rule-

book mentality. Application of IFRS requires exercise of judgment by the
preparer and the auditor in applying principles of accounting on the basis
of the economic substance of transactions.

 IFRS are issued by the International Accounting Standards Board.

 Presently, the Accounting Standards Board (ASB) of the
Institute of Chartered accountants of India (ICAI) formulates
Accounting Standards (ASs) based on the IFRSs keeping in
view the local conditions including legal and economic
environment, which have recently been notified by the
Central Government under the Companies Act, 1956.

 Accordingly, the ASs depart from the corresponding IFRSs to

maintain consistency with legal, regulatory and economic
environment, and keeping in view the level of preparedness
of the industry and the accounting professionals.

 In some cases, departures are made on account of

conceptual differences with the treatments prescribed in the
IFRSs.
 Income Tax MCA

Core Group
Study Group jointly
constituted by CBDT • 2 separate sets of
& ICAI Accounting Standards
• Phased Convergence
RBI

Working Committee IRDA

constituted to draw up
IFRS guidelines SEBI
Report on IFRS compliance in
Indian Insurance Industry
Option to listed companies to
prepare CFS under IFRS
The IASB structure has the following main
features:

IASC Foundation: An independent

organization having two main bodies - the
Trustees and the IASB

Standards Advisory Council [SAC]

International Financial Reporting

Interpretations Committee [IFRIC]
Contents of IFRS Literature

IFRS

International International
International Standing Financial
Financial
reporting
Accounting Interpretations Reporting
Committee (SIC) Interpretations
Standard (IFRS) Standard (IAS)
Committee (IFRIC)

 Preface to IFRS
 Framework for the Preparation and Presentation of Financial Statements
 37 : Main Standards i.e. 8 IFRS + 29 IAS (Total 41)
 26 Interpretations i.e. 15 IFRIC(Total 18) + 11 SIC(Total 33)
 LIST OF IFRS
1. IFRS 1 First-time Adoption of International Financial
Reporting Standards
2. IFRS 2 Share-based Payment
3. IFRS 3 Business Combinations
4. IFRS 4 Insurance Contracts
5. IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations
6. IFRS 6 Exploration for and evaluation of Mineral Resources
7. IFRS 7 Financial Instruments: Disclosures
8. IFRS 8 Operating Segments
International Accounting standards [IAS]
1. IAS 1 Presentation of Financial Statement
2. IAS 2 Inventories
3. IAS 7 Statement of Cash Flow
4. IAS 8 Accounting policies, Changes in Accounting
Estimates and Errors
5. IAS 10 Events after Reporting Period
6. IAS 11 Construction Contracts
7. IAS 12 Income Tax
8. IAS 16 Plant, Property and Equipment
9. IAS 17 Leases
10. IAS 18 Revenue
11. IAS 19 Employee Benefits
 Index…………….
12. IAS 20 Accounting for Government Grants and Disclosure
of Government Assistance
12. IAS 21 The Effect of Change in Foreign Exchange Rates
13. IAS 23 Borrowing Costs
14. IAS 24 Related Party Disclosures
15. IAS 26 Accounting and Reporting by Retirement Benefit
Plans
12. IAS 27 Consolidated and Complete Financial Statements
13. IAS 28 Investment in Associates
14. IAS 29 Financial Reporting in Hyper Inflationary
Economies
15. IAS 31 Interest in Joint Venture
Index…………….
21. IAS 32 Financial Instrument: Presentation
22. IAS 33 Earning per Share
23. IAS 34 Interim Financial Reporting
24. IAS 36 Impairment of Assets
25. IAS 37 Provisions, Contingent Liability and Contingent
Assets
21. IAS 38 Intangible Assets
22. IAS 39 Financial Instrument: Recognition and
Measurement
21. IAS 40 Investment Property
22. IAS 41 Agriculture
Index of Interpretations
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities

IFRIC 2 Members’ Share in Co-operative Entities and Similar Instruments

IFRIC 4 Determining whether an Arrangement contains Lease

IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental

Rehabilitation Funds
IFRIC 6 Liabilities arising from Participation in a Specific Market- Waste Electrical and Electronic
Equipment
IFRIC 7 Applying restatement approach under IAS 29

IFRIC 8 Scope of IFRS 2

IFRIC 9 Reassessment of Embedded Derivative

IFRIC 10 Interim Financial Reporting and Impairment

IFRIC 11 IFRS 2- Group and Treasury Share Transaction

IFRIC 12 Service Concession Arrangements

IFRIC 13 Customer Loyalty Programmes

Index of Interpretations……..
IFRIC 14 IAS 19- The Limit on a Defined Benefit Asset, Minimum Funding Requirement
and their Interaction

IFRIC 15 Agreements for the Construction of Real Estate

IFRIC 16 Hedges of a Net Investment in a Foreign Operation

Index of Interpretations……..
SIC 7 Introduction of the EURO

SIC 10 Government Assistance- No Specific Relation to Operating Activities

SIC 12 Consolidation- Special Purpose Entities

SIC 13 Jointly Controlled Entities- Non Monetary Contribution by Venturers

SIC 15 Operating Lease- Incentives

SIC 21 Income Taxes- Recovery of Revalued Non Depreciable Assets

SIC 25 Income Taxes- Change in Tax Status of an Entity or its Shareholders

SIC 27 Evaluating the Substance of Transaction Involving the Legal Form of a Lease

SIC 29 Service Concession Arrangements: Disclosures

SIC 31 Revenue: Barter Transaction Involving Advertising Services

SIC 32 Intangible Assets- Web Site Costs

Road Map for Convergence
Meaning of Convergence with IFRS
 Convergence means to achieve harmony with IFRSs; in precise terms
convergence can be considered “to design and maintain national
accounting standards in a way that financial statements prepared in
accordance with national accounting standards draw unreserved
statement of compliance with IFRSs”, i.e., when the national
accounting standards will comply with all the requirements of IFRS.

 But convergence doesn‟t mean that IFRS should be adopted word by

word, e.g., replacing the term „true & fair‟ for „present fairly‟, in IAS 1,
„Presentation of Financial Statements‟. Such changes do not lead to
non-convergence with IFRS.

 The IASB accepts in its „Statement of Best Practice: Working

Relationships between the IASB and other Accounting Standards-
Setters‟ that “adding disclosure requirements or removing optional
treatments do not create noncompliance with IFRSs. But additional
disclosures or removing of optional treatment should be made clear
so that users of the IFRS are aware of the changes.
Why Convergence to IFRS?

 It would also permit international capital to flow more freely,

enabling companies to develop consistent global practices on
accounting problems.

 It would be beneficial to regulators too, as a complexity

associated with needing to understand various reporting
regimes would be reduced.

 The use of a single set of high quality accounting standards

would facilitate investment and other economic decisions
across borders, increase market efficiency, and reduce the
cost of raising capital.
IFRS in India
 ICAI is coming up with the Accounting Standards
convergant with IFRS.

 Therefore IFRS issued by IASB directly would not

apply to Indian Companies

 However the Separate Set of Accounting Standards

would be applied which would be in compliance of
IFRS
Benefits of Convergence
Single Reporting
•Convergence with IFRS
eliminates multiple
reporting such as Indian
GAAP, IFRS, US GAAP
IFRS balance sheet will be
closer to economic value
•Historical cost will be
substituted by fair values for
several balance sheet items,
which will enable a
corporate to know its true
worth
Increase Comparability
•IFRS will give more
comparability among sectors,
countries and companies.
•This will result in more
transparent financial reporting
of a company’s activities which
will benefit investors, customers
and other key stakeholders in
India and overseas
Benefits to the
accounting professional
•Convergence to IFRS
will increase the
opportunities for Indian
professionals in abroad
as they will be able to
sell their services as
experts in different parts
of the world
Access to Global
Capital Markets
•Convergence with IFRS will
enable Indian entities to have
easier access to global capital
markets and eliminates barriers
to cross-border listings.
• It encourages international
investing and thereby leads to
more foreign capital flows to
the country.
Benefits for the
Industry
•Currently companies need to
prepare additional financial
statements based on multiple
reporting formats to arise
capital in global market.
•Convergence with IFRS will
eliminate the requirement for
dual set of financials
statements and thereby
reduces the cost of raising
funds by the companies
Benefits for
Investors
•Financial statements
prepared using a common
set of accounting standards
help investors better
understand investment
opportunities as opposed to
financial statements
prepared using a different
set of national accounting
standards
Improvement in
financial reporting
•Better quality of financial
reporting due to consistent
application of accounting
principles and improvement in
reliability of financial
statements.
•This, in turn, will lead to
increased trust and reliance
placed by investors, analysts
and other stakeholders in a
company’s financial statements
 Challenges of Convergence
Change to regulatory
environment
•For the success of convergence in
India, certain regulatory amendment is
required.
•For example, The Companies Act
(Schedule VI) prescribes the format for
presentation of financial statements for
Indian companies, whereas the
presentation requirements are
significantly different under IFRS. So, the
companies act needs to be amended in
line with IFRS.
Complexity in the
financial reporting
process
•Under IFRS, companies
would need to
increasingly use fair value
measures in the
preparation of financial
statements. Companies,
auditors, users and
regulators would need to
get familiar with fair
value measurement
techniques
Educating
Lack of Preparedness Significant cost
Stakeholders
•Adoption of IFRS by •Educating Stakeholders
•Significant one-time costs
approximately 5000 listed comprising of investors,
of converting to IFRS
companies by 2011 would result lenders, employees,
(including costs of internal
in a significant demand for IFRS auditors, audit committee
personnel time, adapting IT
resources. Corporate India and and etc would be a big
systems, implementing
accounting professionals need to challenge as this would
revised reporting policies
be trained for effective migration require a considerable time
and processes, training
to IFRS. Additionally auditors and effort
personnel and educating
would need to train their staff to
investors, analysts and
audit under IFRS environment
members of the board)
Impact on financial Communication of Impact Conceptual
performance of IFRS to investors differences
•For example, the Indian
•Due to the significant
•Companies also need to standard on intangibles is
differences between Indian
communicate the impact of based on the concept that all
GAAP and IFRS, adoption of
IFRS convergence to their intangible assets have a
IFRS is likely to have a
investors to ensure they definite life, which cannot
significant impact on the
understand the shift from generally exceed 10 years;
financial position and
Indian GAAP to IFRS. while IFRS acknowledge that
financial performance of
certain intangible assets may
most Indian companies
have indefinite lives and useful
lives in excess of 10 years are
not unusual
 The Global Move Towards IFRS

Canada
2009/11
Europe
2005
United States
(2014/15/16?) China Japan
2007 (2016)

India
2011

Brazil
2010
Chile
2009
South Africa
2005 Australia
2005

Current or anticipated requirement

or option to use IFRS (or equivalent)
Year 2011 – (Phase I)
Companies other than Insurance companies, Banking companies and NBFC
• BSE – Sensex (30)
• NSE – Nifty (50)
• companies whether listed or not and which have a net
worth in excess of Rs. 1,000 crores
• companies whose shares or other securities are listed on
stock exchanges outside India
Year 2012
Insurance Companies (approx 40)
Year 2013 - Phase II
• Companies other than Insurance companies, Banking companies and NBFC
• Net worth in excess of 500 crores
• Banking Companies
• Scheduled Commercial Banks (approx 50)
• Urban Co-operative Banks with a net worth in excess of 300 crores
• Non Banking Financial Companies
• BSE – Sensex
• NSE – Nifty

Year 2014 – Phase III

• Companies other than Insurance companies, Banking companies and NBFC
• Listed
• Banking Companies
• Urban Co-operative Banks with a net worth in excess of 200 crores
• Non Banking Financial Companies
• Listed
• Non-listed with net worth in excess of Rs. 500 crores
 Certain Terms
Some Important Dates

For financial year – 2011-12

Transition Date Convergence Date Reporting Date

1st April 2010 1st April 2011 31st March 2012

opening IFRS statement of financial position means an entity’s statement of financial

position at the date of transition to IFRSs.
IFRS Reporting In India: Proposed Timelines
 Reporting under IFRS, as proposed by ICAI, would be applicable for
accounting periods beginning on or after April 1,2011.

 The first set of IFRS financial statements for the year ending March 31, 2012
would require preparation of:
 Opening balance sheet as on April 1, 2010

 Comparative financial statements – year ending March 31, 2011

 Reporting enterprises would need to ensure preparedness for IFRS reporting

as early as April 2010.
 Statements to be prepared
Reporting date-31st March 2012

2 2
2 2 Statements of Change in
3 Statements Separate
Balance- Statements Statements equity and related notes
of income of Cash including comparative
Sheets of income
(if presented) Flows information

1. As at 31st March 2011

As at 1st April
2. As at 31st March 2012
2010
LET US THE BREAK THE NUT & BOLT
OF IFRS
Structure of IFRS
 Introduction

 Main Text- Objective, scope, Definitions, Recognition & measurements,

Disclosures, Effective dates and Transition provisions

 Illustrative Examples(IE)

 Application Guidance(AG)

 Basis for Conclusions(BC) summaries the main consideration in

reaching the conclusions.

 Dissenting Opinions
Component of Financial Statement
IFRS IGAAP

Statement of Financial Position Balance Sheet

Current / Non-Current
Liquidity

Statement of Comprehensive Income Profit & Loss Account

Function of Expense
Nature of Expense

Statement of Change in Equity Schedule of Share Capital & Reserves &

Surplus
Statement of Cash Flows Cash Flow Statement

Notes comprising significant accounting Schedules to Balance Sheet & Profit &
policies and other information Loss Account & Accounting Policies &
Notes to Accounts.
An Overview of IFRS
(what we are moving towards)
Proposed Current
Global Approach vs Indian Approach
Fair Value A/cing vs Historical Value A/cing
Group vs Standalones

Substance over Form

Principles over Rules
Grouping of IFRSs into 11 Parts
1. Preface and framework
2. Other literature
3. Presentation of Financial Statements
4. IFRSs on Interim Financial Statements
5. IFRSs on Group Reporting
6. IFRSs on Assets
7. IFRSs on Expenses and Liabilities
8. IFRSs on Income
9. IFRs on Disclosure
10. IFRSs on Industry
11. IFRSs on First time adoption – IFRS 1
IFRSs for SME
Preface and framework, Literature
 1. Preface
 Objectives of the IASB
 Scope and authority of IFRSs
 Due process
 Timing of application of IFRSs
 Language

 2. Framework
 Introduction
 Qualitative characteristics of financial statements
 The elements of financial statements
 Recognition of the elements of financial statements
 Measurement of the elements of financial statements
 Concepts of capital and capital maintenance
 Other literature

 3. Other Literature
 IASC Foundation Constitution
 Due process Handbook of IASB
 Due process Handbook of IFRIC
 Glossary
3.Presentation of Financial Statements
Standard Number Standard Name
IAS 1 Presentation of Financial Statements
IAS 7 Statement of Cash Flows
IAS 33 Earnings Per Share
IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors
IAS 10 Events after the Reporting period
IAS 21 The effects of changes in foreign exchange rates
IAS 29 Financial Reporting in Hyperinflationary economies
SIC 7 Introduction of the EURO
IFRIC 7 Applying the restatement approach under IAS 29
Financial Reporting in Hyper inflationary Economies
4. IFRSs on Interim Financial Statements
IAS 34 – Interim Financial Reporting

5. IFRSs on Group Reporting

Standard Standard Name
Number
IFRS 3 Business Combinations
IAS 27 Consolidated and separate financial statements
IAS 28 Investment in Associates
IAS 31 Interest in joint ventures
6. IFRSs on Assets
Standard Standard Name
Number
IAS 2 Inventories
IAS 16 Property, Plant & Equipment
IAS 40 Investment Property
IAS 38 Intangible Assets
IAS 32, IAS Financial Assets / Financial Instruments
39, IFRS 7
IAS 41 Biological assets
IFRS 5 Non-Current Assets held for sale & Discontinued operations
IAS 17 Leases
IFRS 6 Exploration and Evaluation of Mineral Assets
7. IFRSs on Expenses and Liabilities
IAS 19 – Employee Benefits
IFRIC 14- IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction
IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
IFRIC 1 -Changes in Existing Decommissioning, Restoration and Similar Liabilities
IFRIC 5- Rights to Interests Arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds
IFRIC 6- Liabilities Arising from Participating in a Specific Market - Waste
Electrical and Electronic Equipment
IAS 12- Income Taxes
SIC 21 - Income Taxes – Recovery of Revalued Non-Depreciable Assets
SIC 25- Income Taxes – Changes in the Tax Status of an Enterprise or its
Shareholders
IFRS 2- Share-based Payment
Financial liabilities / Financial Instruments
IAS 32 Financial Instruments: Presentation
IAS 39 Financial Instruments: Recognition and Measurement
IFRS 7 Financial Instruments: Disclosure
8. IFRS on Income
•Construction contracts (IAS 11)
•Revenue (IAS 18)
•Agriculture income (IAS 41)
•Service concession arrangements - IFRIC 12 & SIC 29
•Customer loyalty programmes – Customer reward credit or points IFRIC 13

9. IFRSs on Disclosure
•IAS 24 Related Party Disclosures
•IFRS 8 Operating Segments

10.IFRSs on Industry
IFRS 4 Insurance Contracts
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRIC 12 & SIC 29 Service Concession Arrangements
11. IFRSs on First time adoption – IFRS 1
Framework of Financial Statements
 Fundamental Assumptions
 Qualitative Characteristics of Financial Statements
 Components of Complete set of Financial
Statements
 Elements of Financial Statements
Benchmark for Fair Presentation
 Explicit and Unreserved Statement of Compliance of IFRS
 Inappropriate Accounting Policies are not rectified by disclosure
or explanations.
 Departures allowed in extremely rare conditions when
management concludes that the compliance would be
misleading with the objective of financial statement.
 In case of departure the standard, nature, reasons and financial
impact need to be disclosed.
 Consistency of presentation
 Accrual Basis
 Going Concern
 Comparative information
 In case of reclassification nature, amount and reason need to be
disclosed.
Structure of Financial Statements
 Name of Reporting Entity
 Consolidate / Standalone
 Clear Identification of statement
 Date or period Covered
 Reporting Currency
 Level of Rounding
Balance Sheet
 Presentation:
 Current & Non Current
Or
 Liquidity
Or
 Combination of Above

In case presentation of Balance Sheet as Current & Non

Current Deferred Tax Assets (Liabilities) Shall not be
classified as current assets (liabilities)
Balance Sheet – Current / Non Current
 Current Assets :
 Expected to be realised, sold or consumed in the entity’s normal operating cycle
 Held primarily for the purpose of being traded
 Expected to be realised within 12 month from the balance sheet date or
 Cash & Cash Equivalent (unless restricted for use for at least 12 months)
All other assets are non current assets.
 Current Liabilities:
 Expected to be settled in the entity’s normal operating cycle
 Held primarily for the purpose of being traded
 Due to be settled within 12 months after the balance sheet date.
 Entity does not have an unconditional right to defer the settlement for at least 12
months after the balance sheet date.
All other liabilities to be classified as non current.
Balance Sheet
 Information to be presented on the face of Balance Sheet:
Property Plant & Equipment Investment Property
Intangible Assets Financial Assets
Investments accounted on equity Biological Assets
method
Inventories Trade & Other Receivables
Cash & Cash Equivalents Trade & Other Payables
Provisions Financial Liabilitires
Liabilities & Assets for current Tax Deferred Tax (assets / liabilities)

Minority Interest (presented within Issued Capital & Reserves

equity) attributable to parent.
Balance Sheet
 Information to be disclosed either on Face of Balance
Sheet or Notes to Accounts:
 Sub classification of line items stated above
 Share Capital:
 Authorised Capital

 Number of Shares Issued & fully paid up and not fully paid up

 Reconciliation of shares outstanding at beginning and at end of

reporting period.
 Rights, Preferences, restrictions attached to class of shares

 Shares in the entity held by the entity, its subsidiaries or

associates
 Shares reserved for issue under options and contract including
terms and amounts.
Profit & Loss Account
 Minimum Information to be disclosed on Face:
 Revenue
 Finance Cost
 Share of Profit /Loss of Associations, Joint Ventures accounted using
equity method.
 Tax Expense
 Post Tax profit / loss of discontinued operations
 Post tax gain /loss recognised on fair value less cost to sell of assets or
disposal groups constituting the discontinued operations.
 Profit / Loss
 Allocation of profit or loss for the period:
 Attributable to minority interest

 Attributable to the equity holders of the parent

 Material Incomes & Expenses shall be disclosed separately.

 Analysis of expenses shall be presented based on either nature or

function of expenses.
Statement of Change in Equity
 Mandatory to present on face of statement:
 Profit & Loss for the period
 Income & expenses required to be recognised in statement of equity
 Total income and expense for the period (sum of above) showing
separately the total amounts attributable to equity holders of the parent
and to minority interest.
 Effect of change in accounting policies and correction in errors for each
component of equity.

 Information to be disclosed either on Face or in Notes:

 Amount of transaction with equity holders acting as equity holders.
 Balance of retained earnings at the beginning and at balance sheet date
and changes during the period.
 Reconciliation between carrying amount at beginning and at end of
period for contributed equity and reserves.
Accounting Policies & Notes
 Accounting Policies:
 Measurement basis used in preparing Financial statement
 Other accounting policies
 Notes to Accounts:
 Background consisting:
 domicile and legal form of entity, country of incorporation,
address of registered office,
 nature of operations of entity and principle activity,

 name of parent and the ultimate parent group

 Key Assumptions, key source of estimation of uncertainties at the

balance sheet date that have a significant risk of causing a material
adjustment to the carrying amounts of the assets and liabilities within
the next financial years. Notes shall include the following:
 Their Nature

 The carrying amounts as at balance sheet date

Future ahead
 Converge and Grow or Diverge and perish

 Free flow of capital – need for a common accounting

language

 IFRS provide benchmark treatment and Alternative

treatment. Alternative treatment is now removed. Ex.
Expense out treatment of borrowing cost not allowed.

 Huge cost of following standards

Critical success factors for IFRS
conversion projects
Leadership

Strategy Communication

Critical Success
Factors

Time Resources

Project Management Knowledge

IFRS Conversion Approach
An IFRS assessment and conversion utilizes a three-phase approach
Phase 1
Assess
Determine business case & future state
Objective
vision for IFRS adoption
Key Tasks  Analyze impact of IFRS statutory and
regulatory requirements
 Determine tax reporting & method
implications of IFRS adoption
 Analyze impact to accounting,
reporting, close consolidation, and
reconciliation processes and controls
 Evaluate the impact upon financial
systems and architecture
 Assess magnitude of change upon
stakeholders and operating model
Key  Technical Accounting Country
Deliverables Assessment
 High Level Tax Impact Assessment
 Current State Process and Controls
Assessment
 Current State Systems Assessment
 Business Case and Roadmap
Phase 2
Convert
Perform comprehensive IFRS
conversion
 Convert to IFRS at the consolidated
and/or statutory reporting level
 Perform tax conversion
 Design future state accounting,
reporting, close consolidation, and
reconciliation processes and controls
 Design future state IT systems to
incorporate IFRS reporting
 Develop change management
strategy and revised operating model
 IFRS Accounting Policies and
Procedures
 IFRS Compliant Reports
 Future State Process Flows and
Narratives
 Change and Risk Mitigation Plan
 Revised Operating Model
Phase 3
Sustain
Enable continued IFRS reporting and
perform knowledge transfer
 Configure, test, and deliver
production environment and
monitor system enhancements
 Execute change management
activities and implement revised
operating model
 Deploy future state accounting,
reporting, close consolidation, and
reconciliation processes & controls
 Continue monitoring and application
of the changing standards
environment
 Facilitate knowledge transfer for
ongoing IFRS reporting
 Finalized IFRS Policies
 Revised processes
 Training Workshops
 Detailed Transition Plan
 IFRS Conversion Summary
 Steps
Parallel run and test
systems
Implement business
decisions
Train staff

Design and implement

systems
Plan the
implementation
Think of business
issues
Scope the
impact
  Shareholders’ Equity
• Compulsorily convertible debentures - in
• Redeemable preference shares –out
• Equity portion of Compound Financial Instrument
• Recoup from revaluation reserve
• Minority Interest

 Liabilities
• Current and Non-current
• Compulsorily convertible debentures – out
• Redeemable preference shares –in
• Liability portion of Compound Financial Instrument
• Proposed dividends

New concepts under IFRS

  Fixed Assets
• Component Accounting

• Cost model and Revaluation model

• Useful life

 Investment Property
• Cost model and Fair value model

 Financial Instruments (Investments)

• Classification & Measurement

• Effective Interest Rates

• Embedded Derivatives

New concepts under IFRS

 Deferred Tax
• Temporary differences vs. Timing Differences

 Business Combination
• Applicable to all ‘business’ purchased

• Purchase method only

• Negative Goodwill

• Purchase Price Allocation (PPA) / Bargain Purchase

 Consolidation
• Potential Voting Rights

 Revenue
• Multiple arrangement contracts

New concepts under IFRS

  First-time adoption of IFRS
 Restatement of Financial Statements
• Prior Period Errors

• Change in accounting policies

 Disclosures
• Critical management judgements

• Capital management policies

• Risk management policies

New concepts under IFRS

WAY FORWARD