Basics of IndAS - Ind AS - Indian Accounting Standards - Companies Law

Basics of IndAS Complete set of an IndAS Financial Statements It includes: A balance sheet as at the end of the period; (BS) A statement of profit and loss for the period (P L statement) along with statement of other comprehensive income (OCI); Statement of changes in equity for the period; (SOCE) Statement of cash flows for the period; Notes, comprising significant accounting policies and other explanatory information; A balance sheet as at the beginning of the preceding period when an entity applies an accounting poilices retrospectively, make retro when it reclassifies items in its financial statements. Other Comprehensive Income Other Comprehensive Income refers to items of income and expenses that are not recognized as a part of the profit and loss account. This includes realized and unrealized gains or profits example revaluation gain it is an income but it won t be routed through the statement of P L. This Income appears as a line item below the income statement. In simple words it is gain or loss that has not been realized. For example, gain or loss on an investment can be realized when it is sold. Hence for investments classified as Available for Sale , the unrealized income or loss will be reported under Other Comprehensive income. Examples of Other Comprehensive income are: Unrealized gain or loss on bonds Unrealized gain or loss on investments that are available for sale Foreign currency translation gains or loss Pension plans gain or losses Reclassification adjustment Reclassify amounts that were recognized in OCI in current or previous periods to the statement of profit or loss. example Foreign currency translation reserve (FCTR), which arises due to foreign currency changes in translating a foreign operation financial statement into functional currency of the entity. Items that will not be reclassified to profit or loss Changes in revalusation surplus Re-measurement of the defined benefit plans Fair value changes relating to own credit risk of financial liabilities designated as FVTPL Share of OCI in Associates and Joint Ventures, to the extent not be classified into P L; and Others (Specify Nature) Items that will be reclassified to profit or loss Exchange differences in translating the financial statemennts of a foreign operation; Debt instruments through other comprehensive Income; The effective portion of ains and loss on hedging instruments in a cash flow hedge; Share of OCI in Associates and Joint Ventures, to the extent to be classified into P L; and Others (Specify Nature)