TMI BlogCompanies (Indian Accounting Standards) Amendment Rules, 2023.X X X X Extracts X X X X X X X X Extracts X X X X ..... ph B1 and added paragraph B14. An entity shall apply these amendments for annual reporting periods beginning on or after 1 April 2023. ; (ii) in Appendix B, (a) in paragraph B1, for items (f) and (g), the following shall be substituted, namely:- (f) embedded derivatives (paragraph B9); (g) government loans (paragraphs B10 B12); (h) [Refer Appendix 1]; and (i) deferred tax related to leases and decommissioning, restoration and similar liabilities (paragraph B14). ; (b) after paragraph B12, the following paragraphs shall be inserted, namely:- B13 [Refer Appendix 1] Deferred tax related to leases and decommissioning, restoration and similar liabilities B14 Paragraphs 15 and 24 of Ind AS 12, Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Ind ASs, a first-time adopter shall recognise a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised and a deferred tax liability for all deductible and taxable temporary differences associated with: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in preparing the financial statements. For financial instruments, such disclosure may include: (b) for the closing paragraph, the following shall be substituted, namely:- Paragraph 122 of Ind AS 1 also requires entities to disclose, along with material accounting policy information or other notes, the judgements, apart from those involving estimations, that management has made in the process of applying the entity s accounting policies and that have the most significant effect on the amounts recognised in the financial statements. ; (E) in Indian Accounting Standard (Ind AS) 109, in Appendix B, in paragraph B4.3.12, for item (b), the following item shall be substituted, namely:- (b) a combination of entities or businesses under common control as described in Appendix C of Ind AS 103; or ; (F) in Indian Accounting Standard (Ind AS) 115, in Appendix 1,- (i) in paragraph 2, for the words and figure paragraph of 15 , the word and figure paragraph 51 shall be substituted; (ii) in paragraph 5, for the word and letter Appendix D the word and letter Appendix B shall be substituted.; (G) in Indian Accounting Standard (Ind AS) 1, - (i) in paragraph 7, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eloped in accordance with Ind AS 8 in the absence of an Ind AS that specifically applies; (d) the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or (e) the accounting required for them is complex and users of the entity s financial statements would otherwise not understand those material transactions, other events or conditions such a situation could arise if an entity applies more than one Ind AS to a class of material transactions. 117C Accounting policy information that focuses on how an entity has applied the requirements of the Ind ASs to its own circumstances provides entity-specific information that is more useful to users of financial statements than standardised information, or information that only duplicates or summarises the requirements of the Ind ASs. 117D If an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information. 117E An entity s conclusion that accounting policy informatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to achieve the objective set out by the accounting policy. Developing accounting estimates involves the use of judgements or assumptions based on the latest available, reliable information. Examples of accounting estimates include: (a) a loss allowance for expected credit losses, applying Ind AS 109, Financial Instruments; (b) the net realisable value of an item of inventory, applying Ind AS 2 Inventories; (c) the fair value of an asset or liability, applying Ind AS 113, Fair Value Measurement; (d) the depreciation expense for an item of property, plant and equipment, applying Ind AS 16; and (e) a provision for warranty obligations, applying Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets. 32A An entity uses measurement techniques and inputs to develop an accounting estimate. Measurement techniques include estimation techniques (for example, techniques used to measure a loss allowance for expected credit losses applying Ind AS 109) and valuation techniques (for example, techniques used to measure the fair value of an asset or liability applying Ind AS 113). 32B The term estimate in Ind AS sometimes refers to an estimate that is not an ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (vii) after paragraph 54H, the following paragraph shall be inserted, namely:- 54I Definition of Accounting Estimates, amended paragraphs 5, 32, 34, 38 and 48 and added paragraphs 32A, 32B and 34A. An entity shall apply these amendments for annual reporting periods beginning on or after 1 April 2023. An entity shall apply the amendments to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the first annual reporting period in which it applies the amendments. ; (I) in Indian Accounting Standard (Ind AS) 12, - (i) in paragraph 15, in item (b),- (a) in sub-item (i), the word and shall be omitted.; (b) for sub-item (ii), the following shall be substituted, namely:- (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss); and (iii) at the time of the transaction, does not give rise to equal taxable and deductible temporary differences. ; (ii) in paragraph 22, for items (b) and (c), the following items shall be substituted, namely:- (b) if the transaction affects either accounting profit or taxable profit, or gives rise to equal taxable and deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendments in accordance with paragraphs 98K 98L for annual reporting periods beginning on or after 1 April 2023. 98K An entity shall apply Deferred Tax related to Assets and Liabilities arising from a Single Transaction to transactions that occur on or after the beginning of the earliest comparative period presented. 98L An entity applying Deferred Tax related to Assets and Liabilities arising from a Single Transaction shall also, at the beginning of the earliest comparative period presented: (a) recognise a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised and a deferred tax liability for all deductible and taxable temporary differences associated with: (i) right-of-use assets and lease liabilities; and (ii) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset; and (b) recognise the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date. ; (J) in Indian ..... 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