Explained: Ind AS

The transition to the Indian Accounting Standards (Ind AS) regime is a landmark for Indian industry, bringing about a paradigm shift in reporting and disclosures, besides improving transparency of financial statements, benchmarking them to global standards and accounting practices. It is said that “no matter how great the talent or efforts, some things just take time.” The standards have been adopted, but the transition and implementation in the industry ecosystem will take some gestation time. As per the ICAI study “Ind AS Impact Analysis and Industry Experience”, a key driver of the impact for participant businesses in financial markets has been ‘Ind AS 109 Financial Instruments’ and 58% respondents acknowledged that ‘Hedge Accounting’ has been highly challenging to understand and implement. Hence, an attempt has been made herewith to evaluate the upgrade introduced in ‘Hedge Accounting’ by Ind AS 109 over AS 30 and IAS 39. Banks were supposed to be covered under Ind AS from April 1, 2019 but RBI has postponed its implementation in banking sector indefinitely. The video discusses the issue in brief. CTSY: Financial Express