Ind AS : Indian Accounting Standards

Indian Accounting Standard : Ind AS 1: Presentation of Financial Statements

Indian Accounting Standard 1 sets out the overall framework and responsibilities for the presentation of financial statements, guidelines for their structure and minimum requirements for the content of the financial statements. It does not however prescribe any fixed format for presentation of Financial Statements. It applies to all general purpose financial statements based on Ind AS.

To meet that objective, financial statements provide information about an entity's Assets; Liabilities; Equity; Income and expenses, including gains and losses; Other changes in equity; and Cash flows. This information, along with other information in the notes, assists users of financial statements in predicting the entity's future cash flows and, in particular, their timing and certainty.

Components of financial statements

Indian Accounting Standard 1 defines a complete set of Financial Statements to include the following:

 a Balance Sheet as at the end of the period;

 a Statement of Profit and Loss for the period;

 a statement of changes in equity for the period;

 a statement of cash flows for the period; (earlier referred to as cash flow statement)

 notes, comprising significant accounting policies and other explanatory information; and

 comparative information in respect of the preceding period;

 a Balance Sheet as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements
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Indian Accounting Standard - Ind AS 113 Fair Value Measurement

Objective and Scope

The objective of Indian  Accounting Standard i.e Ind AS 113 is to define fair value and set out a single framework for measurement of fair value. It also prescribes disclosure requirements about fair value measurement. 

It applies when another Ind AS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements)

The essential features of fair value as set out in Ind AS 113 are as follows:

The Indian Accounting Standard 113 explains how to measure fair value for financial reporting.

Fair value is a market-based measurement, not an entity-specific measurement.

Fair value should be determined based on the Exit price i.e. the price to sell the asset or to transfer the liability (from the perspective of a market participant that holds the asset or owes the liability).

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Indian Accounting Standard - Ind AS 18: Revenue

Revenue is defined as the gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an enterprise (such as sales of goods, sales of services, interest, royalties, and dividends). Revenue excludes:

 Lease agreements (Indian Accounting Standard 17 Leases);

 Dividends arising from investments which are accounted for under the Equity method (Ind AS 28 Investments in Associates);

 Insurance contracts within the scope of Ind AS 104 Insurance Contracts;

 Changes in the fair value of financial assets and financial liabilities or their Disposal (Indian Accounting Standard109 Financial Instruments: Recognition and Measurement);

 Changes in the value of other current assets;
 Initial recognition and from changes in the fair value of biological assets Related to agricultural activity (Ind AS 41 Agriculture);

Initial recognition of agricultural produce (Ind AS 41); and

The extraction of mineral ores.
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