COUNCIL YEAR 2020-21 - Ca Parivaar

The Institute of Chartered Accountants of India(Set up by an Act of Parliament)

COUNCIL YEAR

2020-21

ANNUAL REPORTOF ACCOUNTING STANDARDS BOARD, ICAI

AnnuAl RepoRt of Accounting StAndARdS BoARd of

council yeAR 2020-21

Accounting Standards Board (ASB)the institute of chartered Accountants of india

(Set up by an Act of Parliament)



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Annual Report

COUNCIL YEAR 2020-21

coMpoSition of Accounting StAndARdS BoARd (ASB) 2020-21

CA. M P Vijay Kumar, ChairmanCA. (Dr.) Sanjeev Kumar Singhal, Vice ChairmanCA. Atul Kumar Gupta, President (Ex-officio)CA. Nihar Niranjan Jambusaria, Vice-President (Ex-officio)CA. Jay ChhairaCA. Prafulla Premsukh ChhajedCA. Tarun Jamnadas GhiaCA. Nandkishore Chidamber HegdeCA. Dheeraj Kumar KhandelwalCA. Chandrashekhar Vasant ChitaleCA. Durgesh Kumar KabraCA. Aniket Sunil TalatiCA. Babu Abraham KallivayalilCA. Dayaniwas Sharma

co-opted Members

CS. Hitender Mehta, The Institute of Company Secretaries of IndiaCA. Sanjay Vij, Federation of Indian Chambers of Commerce and IndustryCMA. (Dr.) K. Ch. A.V.S. N. Murthy, The Institute of Cost Accountants of IndiaCA. Amarvir Saran Das, Reserve Bank of IndiaCA. (Dr.) Ashok Haldia, Associated Chambers of Commerce & IndustryCA. Samir Ramnik ShahCA. Sudhir SoniCA. Yagnesh DesaiCA. Mukesh Singh Kushwah

cA. Atul Kumar guptaPresident, ICAI

cA. nihar n JambusariaVice President, ICAI

cA. M. p Vijay KumarChairman

Accounting Standards Board

cA.(dr.) Sanjeev SinghalVice Chairman


CA. Prasanna Kumar DCA. G SekarCA. Rajendra Kumar PCA. Ranjeet Kumar AgarwalCA. (Dr.) Debashis MitraCA. Manu AgrawalCA. Anuj GoyalCA. Kemisha SoniCA. Satish Kumar GuptaCA. Hans Raj ChughCA. Rajesh SharmaShri Manoj PandeyAdv. Vijay Kumar Jhalani

Accounting Standards Board (ASB)the institute of chartered Accountants of india(Set up by an Act of Parliament)

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Special invitees

Shri Atma Sah, Ministry of Corporate AffairsProf. Sobhesh Kumar Agarwalla, Indian Institute of Management AhmedabadShri SanjeevShrivastava, Controller General of AccountsMs. B. Padmaja, Insurance Regulatory and Development Authority of IndiaShri Ramesh Gopalaratnam, Indian Banks’ AssociationCA. R Sankaraiah, Confederation of Indian IndustryCA. (Dr.) S. B. ZawareCA. Abhay MehtaCA. Ajay MittalCA. Alok GargCA. Aparajita SarkarCA. Gopalakrishnan RamachandranCA. Rohit AgarwalaCA. Rakesh AgawalCA. Smriti Goyal

year 2020-21 at a glance - ASB leading the march towards excellence

Number of ASB meeting held during 2020-21 11Number of Ind AS/amendments to Ind AS recommended to MCA for notification 5Number of Ind AS/amendments to Ind AS recommended to NFRA 3Number of Revised Accounting Standards recommended to NFRA 11Number of Publications issued 4Number of documents on which comments are submitted to IASB 9Number of Technical Paper/Guidance issued on Covid-19 3Number of batches of Online Certificate Course on Ind AS 18Number of members attended the Online certificate Course on Ind AS 2250 membersNumber of Webinars/ Refresher Course/ VCM conducted 13Number of members attended the Webinars/ Refresher Course/ VCM Approx. 70,000 members

CA. Vikas BainganiCA. Nitin GuptaCA. Vineet MittalCA. Archana BhutaniCA. (Dr.) Ashish K. BhattacharyyaDr. Avinash ChanderCA. Vivek AgarwalCA. Ashutosh PednekarCA. Gokul DixitCA. Lokesh VasudevanCA. S. RaviCA. Parveen KumarCA. Kamal GargShri Vidya Bhushan Relan



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Technical Contribution

(I) Achieving convergence with IFRS Standards by formulating Ind AS

In order to enable Indian entities to derive benefits of globally acceptable framework, it was decided in 2007, to converge with International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB). Accordingly, IFRS-converged Indian Accounting Standards (Ind AS) have already been implemented successfully in the country by the companies including NBFCs with networth more than Rupees 250 crores. The ASB is engaged continuously with MCA, RBI and IRDAI for the banks and insurance companies to adopt Ind AS. To remain converged with IFRS Standards the Ind AS are amended or new Ind AS are formulated corresponding to amendments or new IFRS or IFRICs issued by the IASB from time to time.

Amendments to Ind AS corresponding to new IFRS or IFRICs recommended to MCA, notified on July 24, 2020:

Covid-19-Related Rent Concessions (Amendment to Ind AS 116, Leases) Interest Rate Benchmark Reform (IBOR) – Phase I (Amendments to Ind AS 109,

Financial Instruments, Ind AS 107, Financial Instruments: Disclosures and Ind AS 116, Leases)

Definition of Business (Amendments to Ind AS 103) Definition of Material (Amendments to Ind AS 1 and Ind AS 8) Annual Improvements to Ind AS (2018) (Corresponding to Annual Improvements to

IFRS Standards 2015–2017 Cycle issued by the IASB)

Amendments to Ind AS, recommended to NFRA, due for notification by MCA soon: Interest Rate Benchmark Reform (IBOR) – Phase II (Amendments to Ind AS 109,

Financial Instruments, Ind AS 107, Financial Instruments: Disclosures, Ind AS 104, Insurance Contracts and Ind AS 116, Leases)

Amendments to Ind AS consequent to Conceptual Framework for Financial Reporting under Ind AS.

Editorial corrections in Ind AS corresponding to those issued by IASB in IFRS/IAS and otherwise.

Amendments to Ind AS, recommended to Council of ICAI Amendments to Ind AS 117, Insurance Contracts, recommended for being applicable

from 1.4.2023. This comprehensive Ind AS 117 to deal with accounting of insurance contracts is being finalised for submission to NFRA.

Amendments to Ind AS 40, Investment Property, with regard to allowing fair value model for measuring investment property. These amendments are being finalised for submission to NFRA.


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Conceptual Framewor for Financial Reporting under Indian Accounting Standards (Conceptual Framewor ):

The Conceptual Framework was issued with applicability date as April 1st, 2020, for Standard-setting activity. The Amendments to Ind AS consequent to Conceptual Framework are recommended to NFRA, due for notification by MCA. The Conceptual Framework including the amendments in other Ind AS shall be applicable to the preparers of Financial Statements when the amendments are notified by MCA.

(II) Revision of isting Accounting Standards (AS)

On the basis of the discussions held at various standard setting forums, such as, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI), NACAS and the Ministry of Corporate Affairs (MCA), it has been decided to revise the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006, and those issued by the ICAI. Accordingly, the ASB has initiated the process of revision of these standards which will be applicable to the entities to whom Ind AS are not applicable. While formulating these Standards, it was decided to maintain the consistency with the numbering of Standards of the Ind AS. During the period, the approach Paper for formulation of revised AS was considered and finalised by the Council. The revised set of AS will consist of 32 standards. The status of the same is as below:

S No Status of Revision of e isting Accounting Standards

1. AS 1, AS 2, AS 7, AS 8, AS 10, AS 16, AS 20, AS 23, AS 24, AS 34, AS 37

Approved by the Council of ICAI and submitted to NFRA on October 8, 2020

11

2. AS 17, AS 21, AS 40, AS 41, AS 109

Approved by the Council of ICAI to be submitted to NFRA

5

3. AS 11, AS 18 Approved by ASB and placed for approval by Council of ICAI

2

4. AS 19, AS 38, AS 102 Pending for consideration by the ASB

3

5. AS 12, AS 33, AS 36, AS 103 To be reviewed by Study Group for consideration by the ASB

4

6. AS 101, AS 105, AS 108, AS 110, AS 111,AS 113, AS 28

Preliminary drafts under preparation by Study Groups

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Total Revised AS 32

(III) ther significant initiatives in the area of Standard Setting

On behest of MCA, drafting of new Rules under Companies Act, 2013 mirroring existing Companies (Accounting Standards) Rules, 2006, was finalised and submitted to NFRA.

Recommendation to Council for : o Revision in Criteria for classification of entities for applicability of Accounting

Standards (AS) o AS mandatory for Non-Profit Organisations (NPOs)



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Need of simplification of Accounting Standards for Micro and Small NonCompany ntities (MSNC s):

The Council, ICAI at its 391st meeting held on March 20, 2020 while considering approach for revision of AS, decided to pursue outreach events to evaluate and decide the approach for formulation of 3rd (third) set of Accounting Standards for MSNCE, such as, sole proprietorship, partnership firms, HUFs, Association of Persons, Trust, Society, NGO etc.

(I ) Interactions with Regulators on accounting issues and discharging advisory role

ICAI being premier accounting body, discharged its advisory role in accounting area through ASB by interacting with MCA, RBI, IRDAI, etc., from time to time. Some of the important submissions/ activities of the ASB during the period were: Recommendations submitted to MCA regarding changes in Division I, II and III of

Schedule III of the Companies Act, 2013, on the basis of the issues advised by the stakeholders and also issues referred by MCA arising due to revision in CARO.

Self-contained Note including ICAI’s views/suggestions on the Ind AS Roadmap for Insurance industries submitted to MCA.

Reply submitted on the issue received from RBI on Declaration of Dividend by the Banks in context of proviso to Section 123 of the Companies Act 2013.

Reply submitted to MCA on the representation forwarded received Industry regarding applicability of Ind AS to NBFCs and HFCs.

A number of representations forwarded by MCA during COVID-19 pandemic lock down for review. Issued were replied consistently with the position and policy direction taken in the past by ASB and ICAI.

Amendments to Schedule III to the Companies Act, 2013 were submitted to the MCA.

Training rogram for NFRA officials - 5 days training session on selected Ind AS for NFRA officials was conducted. The program was fully coordinated by CA. (Dr.) Sanjeev Singhal, Vice Chairman ASB. Shri R. Sridharan, Chairperson, NFRA, deeply appreciated the excellent training session and congratulated CA. (Dr.) Sanjeev Singhal for the selection of the most appropriate faculty members for the sessions. He also conveyed gratitude to the President and Vice President and appreciation to the entire faculty as well as ICAI for the training program.

International Initiatives

ASB contributes to and collaborates with International Accounting Standards Board for developing high quality global accounting standards. It participates in the annual World Standards-Setters meetings organized by IASB and is member of various international groups such as Asian-Oceanian Standard-Setters Group (AOSSG), Emerging Economies Group (EEG) and International Forum of Accounting Standards Setters (IFASS).


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(A) ICAI played leading Roles at International Forums

IFRS Advisory Council (IFRS AC): Chairman, ASB, has been appointed as a member of IFRS Advisory Council by IFRS Foundation Trustees to represent SAFA with effect from January 1, 2019 for 3 years.

SME Implementation Group (SMEIG): Chairman ASB, has been appointed as a member of the SME Implementation Group (SMEIG) for a three-year term starting from 1 July 2020 by IFRS Foundation.

AOSSG - CA. Dr. S. B. Zaware, Past Council Member, ICAI, and Past Chairman, ASB, took-over as Chair, AOSSG, for a period of two years commencing November 2019 to November 2021.

( ) articipation at International Meetings:

2th Annual A SS Meeting ICAI hosted the first ever virtual meeting, i.e., the 12th

Annual AOSSG Meeting on November 24-25, 2020, which was chaired by CA. (Dr.) S B Zaware, Chair, AOSSG. The meeting was attended by 21 member standard-setters of AOSSG. The meeting was also attended by Ms. Sue Lloyd, Vice Chair, IASB and delegates of the IASB, IFRS Foundation and participants from member jurisdictions. ICAI’s representatives presented on Issues involved in preparation of Separate Financial Statements.

th bi annual merging conomies roup ( ) meeting Held on May 11-12, 2020 via video- conference. ICAI representatives attended the said meeting. Various important matters, such as, Business Combinations—Disclosures, Goodwill and Impairment; IFRS 17 Insurance Contracts; Comprehensive Review of the IFRS for SMEs Standard; Primary Financial Statements; Management Commentary were discussed.

irtual SAFA Forum Held on July 27, 2020 via video-conference. CA. (Dr.) Sanjeev Singhal, Vice Chairman, ASB made a presentation on the topic "Challenges in Financial Reporting and Way Forward with COVID 19 Outbreak".

IFASS meeting - Held on September 30-October 1, 2020, wherein Italy, Korea and Brazil presented on one of the topic related to issues involved in Separate Financial Statements (SFS) and some examples of the problems being faced in applying IFRS Standards to SFS were highlighted and asked the IFASS participants to send any issues related to SFS. ICAI representatives attended the meeting.

IFRS Advisory Council meeting Held on 3rd and 4th November 2020 via video-conference and focused on IFRS Foundation Consultative paper of setting up a Sustainability Standards Board (SSB) similar to IASB. ICAI representatives attended the said meeting.



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20th bi annual merging conomies roup ( ) meeting – Held from 30 November-1 December 2020 via video-conference. The meeting provided a platform for discussing specific accounting topics from the perspective of emerging economies, which is helpful in supporting the IFRS Foundation’s mission to develop IFRS Standards that bring transparency, accountability and efficiency to financial markets around the world. ICAI representatives attended the said EEG meeting.

ICAI joined the Working Group on SFS alongwith Italy, Korea and Brazil.

SM I meeting: The mission of the SME Implementation Group is to support the international adoption of the IFRS for SMEs Standard and monitor its implementation. The SMEIG has two main responsibilities are to consider implementation questions raised by users of the IFRS for SMEs Standard and to consider, and make recommendations to the Board on the need to amend the SMEs Standard for implementation issues that cannot be addressed by Q&As, and for new and amended IFRS Standards that have been adopted since the IFRS for SMEs Standard was issued or last amended. CA. M.P. Vijay Kumar attended the Virtual SMEIG meeting held on February 4-5, 2021.

(C) articipation in Standard setting process at International level

Comments submitted on IAS s posure rafts on: Exposure Draft on Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16, Leases) Exposure Draft of Interest Rate Benchmark Reform (IBOR) – Phase II Request for Information: Comprehensive Review of the IFRS for SMEs Standards Exposure Draft on General Presentation and Disclosures (Primary Financial Statements) Discussion Paper on Business Combinations Disclosures, Goodwill and Impairment

Comments submitted to IFRS Interpretations Committee (IFRS IC) on Tentative

Agenda ecisions (TA ): Supply Chain Financing Arrangements—Reverse Factoring Sale and Lease back of an Asset in a Single-Asset Entity (IFRS 10 and IFRS 16) Sale and Leaseback with Variable Payments (IFRS 16) Deferred Tax Related to a Subsidiary’s Undistributed Profits (IAS 12)

Comments on following TA are being finalised for submission to IFRS IC: Attributing Benefit to Periods of Service (IAS 19)Classification of Debt with Covenants as Current or Non-current (IAS 1)Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38)Hedging Variability in Cash Flows Due to Real Interest Rate (IFRS 9)


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( ) utreach meetings:

In order to get Indian concerns addressed at the international level, various outreach meetings were conducted on IAS consultative documents to understand Indian concerns from the industry and other sta eholders irtual utreach with ASS C AM Companies: June , 2020 ( M to 4 0

M)

In order to explain the proposals set out in the Exposure Draft on Primary Financial Statements issued by the IASB and to gather preliminary views thereon, an Outreach was organised with the Associated Chambers of Commerce of India (ASSOCHAM) on June 19, 2020 under guidance and support of Dr. Ashok Haldia, Member ASB. The Outreach was attended by more than 60 participants comprising CFOs, Finance Controllers and senior officials involved in accounting and financial reporting area.

irtual utreach on etter Communication in Financial Reporting IAS posure raft on rimary Financial Statements with other Sta eholders: June

2 , 2020 ( M to M)

A Virtual Outreach event on “Better Communication in Financial Reporting- IASB Exposure Draft on Primary Financial Statements” was organised under the aegis of ASB on June 23, 2020 from 3 PM to 6 PM for Accounting and Finance Professionals, Investors, preparers etc. Overwhelming participation was received from length and breadth of the Country along with many international participants from across the globe including UK, US, South Korea, Singapore, UAE, Germany, France and other jurisdictions.

The Outreach was slotted into 4 sessions, an inaugural session, one technical session on Overview of IASB proposals in Exposure Draft, followed by two panel discussions. Along with Chairman, ASB and Vice-Chairman, ASB, inaugural session was graced by Vice-President ICAI, whereat he shared nuggets of wisdom with the participants. Panel members comprised eminent professionals having rich experience and knowledge in the field of financial reporting.



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lobal ebinar on etter Communication in Financial Reporting: IAS on rimary Financial Statements (Sep , 2020)

in : https://drive.google.com/file/d/1q9jX0oy3g-NJbYcEjBKhEq3-kfrek9c7/view

On 17th December 2019, the International Accounting Standards Board (IASB) issued an Exposure Draft titled as ‘General Presentation and Disclosures’ for comments. Given the pervasive effect of proposed changes, a Global Webinar was organised jointly with International Accounting Standards Board (IASB) of IFRS Foundation on September 11, 2020.

From IASB, Ms. Sue Llyod, Vice Chair, IFRS Foundation and other Technical Staff participated. The webinar was structured into 3 sessions, each one started by technical discussion by IASB followed by panel discussion amongst eminent panel speakers comprising renowned professionals from auditor, investor and user category.

Around 1750 participants attended the global webinar from India, UK, US, Dubai, Nepal, Philippines, Singapore and Hongkong.

( ) ASIAN C ANIAN STAN AR S TT RS R (A SS )

The Asian-Oceanian Standard-Setters Group (AOSSG) is a group of 27 National Accounting Standard-Setters in the Asian-Oceanian region. The group has been formed in 2009 to discuss issues and share experiences on the adoption/convergence of International Financial Reporting Standards (IFRS) and to contribute to the development of a high-quality set of global accounting standards. The AOSSG plans to play an important role in encouraging the adoption/convergence of IFRSs in the Asian Oceanian region (AO).

Objectives of the AOSSG include:

Enhancing the standard-setting and financial reporting technical capabilities of national accounting standard setters in the AO region;

Contributing to the development and consistent application of IFRS Standards and addressing financial reporting issues of concern to the AO region;

Working with governments and regulators in the AO region and relevant international organisations such as the IASB, to uphold and/or enhance the quality of financial reporting.

Establishing efficient and effective organization and governance structures and operating policies and procedures to support delivery of AOSSG’s vision


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INITIATI S AN ACTI ITI S N RTA N

(I) ICAI successfully hosted the 2th Annual A SS Meeting in November 2020 First ever irtual Annual Meeting

On November 23-25, 2020, ICAI hosted the first ever virtual Annual AOSSG Meeting. The meeting was chaired by CA. (Dr.) S. B. Zaware, who is also the official representative of ICAI at AOSSG. The meeting was attended by 21 member standard-setters of AOSSG. Mr. Vinod Rai, Trustee IFRS Foundation was the Chief Guest in inauguration session.

From ICAI, the inauguration session was attended by

CA. Atul Kumar Gupta, Hon’ble President; CA. Nihar N Jambusaria, Hon’ble Vice-President; CA. Prafulla Chhajed, Hon’ble Past President

From the Accounting Standards Board of ICAI, the three days meeting was attended by

CA. M. P. Vijay Kumar, Chairman CA. (Dr.) Sanjeev Singhal, Vice-Chairman CA. Parminder Kaur, Secretary Other Staff member

Ms. Sue Lloyd, Vice Chair, IASB and key delegates of the IASB and the IFRS Foundation also attended the Annual Meeting representing the International Accounting Standards Board (IASB). IASB Chair, Mr. Hans Hoogervorst presented a farewell speech at the meeting.

The participating jurisdictions were Australia, Bangladesh, Brunei, China, Dubai, Hong Kong, India, Indonesia, Japan, Korea, Macao, Malaysia, Mongolia, Nepal, New Zealand, Pakistan, Philippines, Saudi, Singapore, Sri Lanka and Vietnam.



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(II) Redesign and Refurbishment of the A SS website

Post taking over the position of Chair, AOSSG, ICAI represented by CA. (Dr.) S. B. Zaware, undertook the project of redesigning and refurbishing of the AOSSG website. The website was upgraded taking into consideration various factors such as clear site architecture and navigation, visual appeal, comprehensive content and mobile compatibility. This project was successfully completed on September 12, 2020. The website now contains complete information about the Group including, the details of the various upcoming and concluded meetings and events along with the meeting papers and photographs; details on the background and history of AOSSG; submissions to IASB and IFRS foundation. Within a short period of time after completing the project, the new version of the website has been viewed by close to 1,339 users spread across 72 countries.

ebsite lin - https://aossg.org/

Images of refurbished AOSSG website:

(III) Submissions to the International Accounting Standards oard (IAS )

AOSSG aims to play an active role in the technical activities of the IASB and contribute to a single set of high quality global financial reporting standards. The strength of the AOSSG is in its capacity to bring together the knowledge and experience across the region and to provide input to the global standard-setting process. While commenting on IASB Discussion Paper (DP) or Exposure Draft (ED) or Request for Information (RIF), AOSSG‘s views reflect the collective views of group members.

Comments on the following projects were submitted by AOSSG to IASB during 2020

•The IASB's Request for Information Comprehensive Review of the IFRS for SMEs Standard

ctober , 2020

•The IASB’s Exposure Draft on General Presentation and Disclosures

September 2 , 2020

•The IASB’s Discussion Paper on Business Combinations—Disclosures, Goodwill and Impairment

ecember 2 , 2020


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(I ) reliminary Research on Financial Ratios

For the IASB’s 2020 Agenda Consultation project, ICAI requested the IASB to initiate a project on “Standardisation of Ratios” presented by the companies in their financial statements. The listed companies across the globe, voluntarily present financial ratios as a part of their Annual Report. However, there is no standardisation on ratio working and such information provided to stakeholders is not based on the standardised inputs. Hence, this project has been undertaken to study the financial ratios of companies across the globe for the benefit of users of financial statement. The AOSSG Chair along with the Secretariat presented findings on Preliminary Research on “Financial Ratios” during AOSSG Working Group Meeting held on November 23, 2020. The research was conducted encompassing presentation of selected ratios across six jurisdictions viz. Australia, China, India, Japan, Malaysia and Sri Lanka. The purpose of this presentation was to seek opinion of AOSSG members on this project and to provide initial inputs to IASB for standardisation of financial ratios.

( ) Amendments to the roup s official documents

Since taking over as Chair, AOSSG, CA. (Dr.) S. B. Zaware along with the AOSSG Secretariat has taken up the task of updating the AOSSG formal documents with the current information

Memorandum of nderstanding

(Mo )

•Two major amendments to the MoU were undertaken by Secretariat:•Revision of the AOSSG objectives and vision•Revision to hold the Annual Meeting through virtual mode

A SS Strategic lan

•AOSSG strategic plan has a four-year timeframe and it is intended to periodically update the plan. This document consist of AOSSG Objectives and Corresponding KPIs

A SS ision aper

•This paper outlines how the AOSSG might evolve in the future to meet its objectives. This paper consist of various sections including Vision towards the future and Achivements to date.



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ublications A Research Initiative Compendium of Indian Accounting Standards

About publication:

In view of this dynamic nature of Ind AS, ICAI issues every year, a compilation of the version of Ind AS that are applicable as on date. This Compendium of Ind AS is an endeavour of ICAI to facilitate ease of reference and ready source of comprehensive literature for all those entities that are preparing financial statements under Ind AS, either mandatorily or voluntarily. This Compendium contains updated Ind ASs applicable for accounting period beginning 1st April 2020.

Ind AS are derived from IFRS Standards issued by the IFRS Foundation. In view of this, it is useful and appropriate to read Ind AS along with the following background material of IFRS Standards (namely; IFRS Part B (Accompanying Guidance) and IFRS Part C (Bases for Conclusions)). Therefore, along with updated Ind AS, every year e-version of guidance material is also released which is hosted on ICAI website. This guidance material has to be read in the context of differences between Ind AS and IFRS Standards.

ICAI Accounting Auditing Advisory

About ublication:

To guide the preparers and auditors, the Accounting Standards Board (ASB) and Auditing & Assurance Standards Board (AASB) of ICAI, has developed an Advisory on “Impact of Coronavirus on Financial Reporting and the Auditors Consideration” highlighting few important areas which require particular attention in respect of financial statements for the year 2019-20.


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ICAI C I FA S N Ind AS

About ublication:

COVID 19 pandemic brought in severe concerns around health and safety of humanity around the globe and it had consequential impact on the economic environment and the financial reporting. While the high quality Ind AS Framework has comprehensive and robust accounting principles, a need was felt to provide application guidance in certain areas of accounting in the form of Frequently Asked Questions (FAQs) in the context of contraction in economic activity, disruptions in financial markets and a series of actions by government, monetary and prudential authorities. The guidance offered in this document is applicable for annual financial statements prepared in Ind AS framework for the ending March 31, 2020.

Indian Accounting Standards: An verview (Revised 2020)

About publication:

This is the fifth edition of our earlier issued publication which gives a glance on the basic aspects of applicable Ind AS in a summarised manner, differences between Ind AS and AS and Ind AS and IFRS. The said publication captures all the amendments to Ind ASs notified by the MCA vide notification dated 24 July 2020, as Companies (Indian Accounting Standards) Amendment Rules, 2020, comprising critical amendments to Ind AS which are applicable for the accounting year beginning on or after April 1, 2020.

ducational Material on Ind AS , Intangible Assets

About publication:

Ind AS 38 prescribes the accounting treatment for intangible assets that are not dealt with specifically in another Ind AS. It sets out the criteria for recognising and measuring intangible assets and requires disclosures about them. The standard provides guidance on treatment of costs incurred to generate intangible assets as well as those acquired separately or as part of business combinations or acquired by way of government grant. The Standards also deals with other aspects related to intangible assets, such as, amortisation, impairment, etc.

The Educational Material on Ind AS 38, Intangible Assetsaddresses certain relevant aspects envisaged in the Standard by way of brief summary of the Standard and Frequently Asked

Questions (FAQs) which are being/expected to be encountered while implementing the Standard.



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Contributors: CA. Sanjeev Singhal, Vice-Chairman, ASB and Convenor, Study Group, CA. Sarika Gosain, CA. Ghanshyam Daga, CA. Atul Seksaria, CA. Sumit Agarwal and CA. Manish Gupta

ducational Material on Ind AS 2 , Borrowing Costs

About publication:

Ind AS 23 prescribes the accounting treatment for recognising the borrowing costs incurred by entities. It sets out the criteria for capitalising the borrowing costs or for charging the borrowing costs as expense to the statement of profit and loss.

The Educational Material on Ind AS 23, Borrowing Costs addresses certain relevant aspects envisaged in the Standard by way of brief summary of the Standard and Frequently Asked Questions (FAQs) which are being/expected to be encountered while implementing the Standard.

Contributors: CA. Sanjeev Singhal, Vice-Chairman, ASB and Convenor, Study Group, CA. Nikhil Agrawal, CA. Neeraj Bansal, CA. Kulbhushan Sharma, CA. Hari Nagrani, CA. Charan Gupta, CA. Anuradha Jain and CA. Shabadjeet Singh Soin

ducational Material on Ind AS 0 , Non-current Asset Held for Sale and Discontinued Operations

About ublication:

Ind AS 105 prescribes the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. It lays down the criteria for classification of non-current assets as held for sale, how such assets should be recognised, measured and presented in the Financial Statements of an entity. It also lays down the presentation and disclosure requirements for discontinued operations in the Financial Statements.

The Educational Material on Ind AS 105, Non-current Asset Held for Sale and Discontinued Operations provides a brief summary of the Standard and Frequently Asked Questions (FAQs) which are being/expected to be encountered while implementing the Standard.

Contributors: CA. Aniket Sunil Talati, Convenor, Study Group and CA. Chintan N. Patel, CA. Rinkesh Shah, CA. Kartikey Rawal, CA. Shreyans Ravrani, CA. Kaushik C. Patel and CA. Uday Surendra Ranpara


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Capacity uilding initiatives Certificate Course on Ind AS, ebinars, Refresher Courses etc

(A) Certificate Course on Ind AS

As a part of Ind AS Implementation initiatives, during COVID-19 pandemic times of unusual distant operating and working era, eighteen ( ) batches of Online course on Ind AS have been conducted through the Digital Learning Hub (DLH) platform of ICAI. Online lecture sessions for all the twelve batches have been successfully completed wherein around 2250 members had been trained. The online Assessment tests for the Certificate Course on Ind AS was successfully conducted on December 17, 2020, January 24, 2021 and February 7, 2021 after 2 mock tests A total of 855 and 406 participants appeared for the test on December 17, 2020 and January 24, 2021 respectively. A total of 709 and 310 members successfully passed the first and second test respectively.

ey note address was given by:

CA. Anil bhandari, CCM CA. G. Ramaswamy Past President

CA. Jaydeep Narendra Shah Past President

CA. K. Raghu, Past President

CA. Manoj Fadnis, Past President

ist of Faculties

CA. Achal Jain CA. Akshat Kedia CA. Alok Garg CA. Amit Chugh CA. Amit Garg CA. Amit Jain CA. Anand Banka CA. Anjani Kumar Khetan CA. Chinnsamy Ganesan CA. Deepak Mittal CA. Dilip Jain CA. D S Rawat CA. Manish Goyal CA. Mohan R Lavi CA. Naman Aggarwal CA. Naresh Oala CA. Parveen Kumar CA. Parveen Tulshan CA. Praveen kumar Jallan CA. Pratiq Shah CA. Raghuraman Krishna Iyer CA. Rahul Arora CA. R. Venkata Subramani CA. Sandeep Karnani CA. Sanjay Bachchani CA. Sandhya Kapur CA. Sarika Gosain CA. Dr. S B Zawre CA. Shreyans Ravrani CA. Surender Jain CA. Tanmoy Dasmahapatra CA. Vikas Kutty CA. Vinod Balachandran CA. Vishal Bansal CA. Yagnesh Desai



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( ) ther Capacity uilding Initiatives

To create awareness and necessary dissemination of the knowledge on Accounting Standards and Ind AS formulated by the ASB, various initiatives were taken up under the leadership of CA. (Dr.) Sanjeev Singhal, Vice Chairman, ASB, during the period.

ebcast on Coronavirus (C I ) Its Impact on Financial Statements (March 0, 2020)

COVID 19 pandemic brought in severe concerns around health and safety of humanity around the globe and it had consequential impact on the economic environment and the financial reporting. While the high quality Ind AS Framework has comprehensive and robust accounting principles, a need was felt to conduct a webcast on impact of Covid -19 on Financial Staments. Vice Chairman ASB and Shri. Sandip Khetan addressed the participants.

ey Focus Area: Impact of Covid -19 on Financial Staments in : http://ecpl.live/icai/30032020/

Two webcasts on Panel Discussion on Accounting and Auditing Issues on Coronavirus (COVID-19) (April 17 and April 30, 2020)

ey Focus Area: Discussion of Impact of Covid -19 on Financial reporting Panel discussion on Accounting and Auditing Issues on Coronavirus (COVID-

19)

in : (April 17, 2020): http://ecpl.live/icai/asb/17042020/

in : (April 30, 2020): http://ecpl.live/icai/asb/30042020/


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1. Panel Discussion on Accounting and Auditing Issues on Coronavirus (COVID-19) jointlywith Auditing & Assurance Standards Board of ICAI was conducted on April 17, 2020 from 11:00 A.M. to 2:00 P.M. The webcast was viewed by 3142 participants. The opening address was given by CA. M. P. Vijay Kumar, Chairman, ASB and CA. G. Sekar, Chairman, Auditing & Assurance Standards Board. CA. (Dr.) Sanjeev Singhal, Vice Chairman, ASB, conducted the webcast as moderator with the following panellists:

CA. Amarjit Chopra, Past President, ICAI CA. Debashis Mitra, Vice-Chairman, Auditing & Assurance Standards Board CA. Shriniwas Yeshwant Joshi, Chairman, Professional Development Committee CA. Govind Ahuja CA. Rohit Agarwala

2. Second webcast on Panel Discussion on Accounting and Auditing Issues on Coronavirus

(COVID-19) jointly with Auditing & Assurance Standards Board of ICAI was conducted on April 30, 2020 from 10:30 A.M. – 12:30 P.M. The webcast was viewed by 3503 participants. The opening address was given by CA. G. Sekar, Chairman, Auditing & Assurance Standards Board. CA. Ranjeet Aggarwal, Chairman, Committee on Capital Market and Investors protection, addressed the participants on Capital market perspective on COVID-19. CA. (Dr.) Sanjeev Singhal, Vice Chairman, ASB, conducted the webcast as moderator with the following panellists:

CA. Amarjit Chopra, Past President, ICAI CA. Debashis Mitra, Vice-Chairman, Auditing & Assurance Standards Board CA. Shriniwas Yeshwant Joshi, Chairman, Professional Development Committee CA. Govind Ahuja CA. Rohit Agarwala

nline Refresher course on Accounting Standards to refresh and enrich the nowledge of members, specifically small and medium si ed practioners, in a critical

and fundamental role of accountancy professionals (May 2020 September 2020)

ey focus area:

Refreshing the knowledge of members of profession with a quick source of

reference

Enhancing the quick e-learning database Accounting Standards

Enrichment of knowledge on Accounting Standards

in : http://ecpl.live/icai/asb/



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ebinar held ointly with FRR on commonly observed errors in application of Accounting Standards (June 4 , 2020)

In preparation of financial statements under Accounting Standards, various errors are commonly observed in context of application of Accounting Standards. Accordingly, it was found appropriate to conduct a programme on Commonly Observed Errors in Application of Accounting Standards to enhance the knowledge of members of the ICAI in the critical area of application of Accounting Standards.

Vice Chairman, ASB, CA. Aniket Sunil Talati Chairman Financial Reporting Review Board (FRRB), CA. Babu Abraham Kallivayalil , Chairman, Expert Advisory Committee (EAC), CA. Shriniwas Yeshwant Joshi, Chairman, Professional Development Committee (PDC) and CA. Amarjit Chopra, Past President ICAI &Member NFRA addressed the participants. Other eminent speakers were CA. Archana Bhutani, CA. Khushroo B. Panthaky and CA. Chintan Naresh Kumar Patel.

in : http://ecpl.live/icai/asb_frrb/

ebinar on Master class on Ind AS (Impairment of Non Financial Assets and pected Credit oss ( C ) Model (July , 2020)

ey Focus areas: To enrich the knowledge of members in a critical area of impairment of assets under

Ind AS: • Determining recoverable amount of asset • Impairment of goodwill • Consideration of contraction in economic activity due to the outbreak of COVID-

19 for impairment testing • Assumptions used for impairment testing, discount rate for measuring recoverable

amount etc. • Recognition of 12 months ECL versus Lifetime ECL • Measurement of ECL • Developing more than one scenario considering Covid -19 situations for ECL

computation etc.


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The key note address of the session was delivered by Shri Sunil Kanoria, Government Nominee, ICAI and the technical session was taken by staff member and CA. Charanjit Attra. The panel members were CA. Amarjit Chopra, Past President, ICAI & Member, NFRA, CA. R. Sankaraiah, CA. Rahul Chattopadhyay and Shri. Paresh Mehta.

in : http://icaitv.com/video/1242/master-class-ind-impairment-non-financial-assets-and-expected-credit-loss-ecl-model

irtual utreach on Recent Amendments in Ind AS Navigating changes under Companies (Ind AS) Amendment Rules, 2020 (August 02, 2020, Sunday)

in : https://drive.google.com/file/d/1FWCISEi0Qg02KM_rTeuOqCyBzNvxMP2E/view

To continue to achieve this global level playing field, Ind ASs need to be revised corresponding to the IFRS Standards. In this direction, on July 24th, 2020, Ministry of Corporate Affairs has notified Companies (Ind AS) Amendment Rules, 2020. This notification comprises the following critical amendments to Ind AS in 4 areas that are applicable for the accounting year 2020-21:

1. Definition of a Business (Amendments to Ind AS 103, Business Combinations)

2. Definition of Material (Amendments to Ind AS 1, Presentation of Financial Statements and Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors)

3. Interest Rate Benchmark Reform (Amendments to Ind AS 109, Financial Instruments and Ind AS 107 Financial Instruments: Disclosures)

4. COVID-19 Related Rent Concessions (Amendments to Ind AS 116, Leases)



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ebinar for See ing iews on Simplification of Accounting Standards (AS) for Micro and Small Non Company

ntities (MSNC ) on (Saturday), August 22, 2020 from :00 A M to :00 M

Under the dynamic leadership of Vice-Chairman, ASB, virtual outreaches were conducted in all the regions for discussing the way forward for the formulation of Approach for 3rd (third) set of AS for MSNCE. A National level webinar was conducted for seeking views on Simplification of Accounting Standards (AS) for Micro and Small Non-Company Entities (MSNCE). CA. Atul Kumar Gupta President, ICAI, CA. Nihar N Jambusaria, Vice President, ICAI, addressed the members along with Chairman and Vice Chairman ASB. Other eminent speakers were CA. (Dr.) Debashis Mitra, Chairman, BOS, CA. Aniket Sunil Talati, Chairman FRRB and CA. Prasanna Kumar, Vice Chairman, CMP.

in : http://icaitv.com/video/1255/live-webinar-seeking-views-simplification-accounting-standards-micro-and-small-non


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ebinar on Indian Accounting Standards ( ecember 0 , 2020) and January 0, 202 :

The webinar on Ind AS was held on December 30-31, 2020 and January 9-10, 2021. The key note address for the webinar was addressed by CA. Amarjit Chopra, Past President, ICAI on December 30, 2020, thereafter eminent faculties on Ind AS took sessions on various Ind AS.

in : https://live.icai.org/indas/recorded.php

Conclave on Indian Accounting Standards (January 2 2 , 202 )

A Virtual CPE meeting on Çonclave on Ind AS was held on January 27 and 28,

2021. The VCM was addressed by Vice Chairman, ASB and CA. Amarjit Chopra, Past President, ICAI and following three technical sessions were held:

Technical Session (I) : Transformation of Financial Reporting under Ind AS Era and Better Communication in Financial Reporting

CA. Manoj Fadnis, Past President, ICAI- Chair of session CA. Amit Chugh CA. Vinod Balachandran, Special Invitee, ASB

Technical Session (II) : Impact of Ind AS 115, Revenue from Contracts with Customers and Ind AS 116, Leases, on Financial Statements

CA. Sanjay Vasudeva, Past CCM- Chair of session CA. Rahul Chatopadhyay CA. Anjani Khetan CA. Archana Bhutani, Special Invitee, ASB

Technical Session (III): Fair Value Measurement- Benefits and Challenges

CA. Sandeep Shah, Special Invitee, ASB- Chair of session CA. Chinnsamy Ganesan Shri. Sandip Khetan



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IT Initiatives

ICAI igital earning ub – The Publications of the ASB have been uploaded on Digital Learning Hub which can be assessed anywhere, anytime to provide continuous learning for different stakeholders. Also, Video Lectures on Accounting Standards and Ind AS are uploaded on this Digital Learning platform for the benefits of stakeholders.

ICAI Digital Learning Hub is an integrated Learning Management System (LMS) which brings a new knowledge ecosystem in a collaborative pedagogical model and with participatory learning to improve learner outcomes. The platform brings professional and academic content in multiple formats which can be used in a self-paced manner. The content is tailored to suit each niche learner segment. For example, it can help members earn CPE hours or help students understand a concept.

The platform is a single source of knowledge and functions as a central repository of both professional and academic learning material for members and students, containing publications, guidance notes and courses facilitated by an ICAI committee or department. Accounting Standards Board of ICAI has also launched various publications and self-paced courses on Accounting Standards and Indian Accounting Standards which are listed below.


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Annual Report


O J CTI

To enable the members of profession with a quick source of reference

To enhance the e-learning database on Accounting Standards

To facilitate ease of doing profession by providing 24*7 learning facility at the

doorstep of the members

Enrichment of stakeholders knowledge through training

C RA

AS applicable to companies & non-corporate entities (not following Ind AS) including

SMCs & SMEs

I CT R S N ACC NTIN STAN AR S

S F ASS SSM NT T ST (MC s)

CASTS N ACC NTIN STAN AR S

IN F R ACC SS:

https: learning icai org committee accounting standards board lectures onaccounting standards

N A MINIM M TIM S NT F 0 RS AN 0 MAR S IN S F ASS SSM NT



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Annual Report


J CTI

To enable the members of profession with a quick source of reference

To enhance the e-learning database on Indian Accounting Standards

To facilitate ease of doing profession by providing 24*7 learning facility at the

doorstep of the members

Enrichment of stakeholders knowledge through training

C RA

Ind AS mandatory as on April 1, 2020

40 modules of average duration 30 minutes covering Ind AS 1 to Ind AS 41 and

Ind AS 101 to Ind AS 116

About ICAI

The Institute of Chartered Accountants of India (ICAI) is a statutory body established on 1st July, 1949 by an Act of Parliament, viz., The Chartered Accountants Act, 1949 for regulating the profession of Chartered Accountants in the country. ICAI’s sagacious journey of more than 71 years has seen it expand nationally and globally establishing 164 branches in India, 39 Chapters overseas and 25 Representative offices spread into 43 Countries. ICAI has its headquarters in New Delhi and 5 Regional offices in Chennai, Kanpur, Kolkata, Mumbai and New Delhi.

About AS

The Accounting Standards Board (the Board) of the ICAI, since its establishment in 1977, has been involved in the formulation of Accounting Standards through a process that is robust, comprehensive, and inclusive with a view to assisting the Council of the ICAI in issuing Accounting Standards to discharge its role as a National Standard-Setter. The Board in its endeavour to establish sound financial reporting system in India has accomplished various goals in Accounting Standards, viz.-a-viz., formulation of Indian Accounting Standards and Accounting Standards, reviewing and revising the standards in accordance with changing situations, providing interpretations/guidance on accounting standards and propagating use of

I CT R S N IN IAN ACC NTIN STAN AR S

IN F R ACC SS: https: learning icai org committee asb lectures on indian accounting standards


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standards and their consistent application with initiatives such as issuance of Education material, training programs, etc.

AS s role in ICAI s ision 20 0

ICAI ision 20 0 emphasi es four elements:

a. To be orld s leading accounting body: ICAI envisions becoming the world’s leading accounting body by playing a predominant role in setting world class standards in identified service areas developing thought leadership and research that addresses concerns of countries, developed, developing and under-developed.

b. A regulator and developer of Trusted and Independent rofessionals: ICAI will lay further thrust on its regulatory and developmental role that sets the highest standards of professional and ethical conduct of its members as a core value. Each and every member of ICAI will not only have the obligation to maintain exacting standards of clarity, transparency and disclosure and present an independent, informed and balanced opinion but ICAI will make examples of delinquent members to ensure this core value is embedded in the DNA of its members.

c. ith orld Class Competencies: ICAI will ensure that members have the right skills to serve global markets which are regularly updated and are relevant in the changing economic order. ICAI will provide holistic education, effective practical training and continuous professional development to ensure that the knowledge base of the profession keeps pace with emerging global practices and innovations.

d. In accounting, assurance, ta ation, finance and business advisory services: ICAI will strengthen facilities available for providing education, training and continuous updation of knowledge as also research and development relevant in current times to establish thought leadership in these areas where members of ICAI have been providing services.

Terms of Reference of Accounting Standards oard

To conceive of and suggest areas in which Accounting Standards need to be developed.

To formulate Accounting Standards through a process that is robust, comprehensive, and inclusive with a view to assisting the Council of the ICAI in evolving and establishing Accounting Standards to discharge its role of national standard-setter as follows:

To recommend Accounting Standards (Indian Accounting Standards (Ind AS) and Accounting Standards (AS)) for companies to Government of India for notification under section 133 of the Companies Act 2013;

To issue Accounting Standards for entities other than companies incorporated under Companies Act 2013.



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To review, at regular intervals, the Accounting Standards from the point of view of changed conditions, practical challenges and implementation experience of the Accounting Standards, if any, and revise the same appropriately.

To provide, from time to time, interpretations and guidance to support implementation of Accounting Standards, including publishing education material, guidance notes, technical guides, implementation guide, e-learning tools, etc.

To take adequate steps to enhance knowledge of the members and other stakeholders for effective implementation of Accounting Standards by conducting workshops, seminars, train the trainers programs and conducting certificate course on Ind AS in India and on International Financial Reporting Standards (IFRS Standards) abroad.

To contribute to the development of a single set of high quality globally accepted financial reporting standards for international use by IFRS Foundation.

To collaborate and develop mutually beneficial partnerships with other national standard-setters and various consultative/advisory forums of IFRS Foundation such as Asian-Oceanian Standard-Setters Group(AOSSG), Emerging Economies Group (EEG), International Forum of Accounting Standard-setters (IFASS), Accounting Standards Advisory Forum (ASAF), IFRS Advisory Council, Financial Accounting Standards Board of US (FASB), European Financial Reporting Advisory Group (EFRAG), etc.

To carry out such other functions relating to Accounting and Accounting Standards.

Robust rocess of Accounting Standards setting

ASB constitutes Study Group to formulate preliminary draft

ASB considers the preliminary draft and issues Exposure draft (ED) for public comments. ED is also specifically sent for comments to specified bodies such as industry associations, regulators, stock exchanges and others. Outreach meetings are conducted, if required.

ASB considers comments received on ED and finalises the draft AS for consideration of Council

Draft approved by council is recommended to NFRA

Government of India (MCA) notifies the AS/Ind AS

For Non-Company entities, ICAI issues the AS


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Annual Report


Meetings of Accounting Standards oard (2020 2 )

268th meeting of ASB held on February 1-2, 2021 267th meeting of ASB held on December 21-22, 2020 266th meeting of ASB held on October 26-27, 2020 265th meeting of ASB held on September 21 and 22, 2020 Adjourned 264th meeting held on August 28, 2020 264th meeting of ASB held on August 19-20, 2020 263rd meeting of ASB held on June 12, 2020 262nd meeting of ASB held on June 3, 2020 Adjourned 261st meeting of ASB held on May 20, 2020 261st meeting held on May 6-7, 2020 260th meeting of ASB held on March 5, 2020

Ac nowledgements

We are thankful to CA. Atul Kumar Gupta, President, ICAI, CA. Nihar N Jambusaria, Vice- President, ICAI and all our Council colleagues for reposing their trust in us for steering the Accounting Standards Board. We thank all the members of Board, Co-opted Members, Special Invitees, faculty members for their substantial involvement and contribution in meetings, preparation/ vetting of publications, training the members etc. and supporting in all the endeavours of the Board. We would also like to thank the Convenors and members of Study Groups who have always supported various initiatives of the Board.

We are grateful to MCA, NFRA, RBI, MCA, IRDAI, and other regulators for providing us wonderful opportunities to serve them and work with them towards creation of better financial reporting regime. Lastly, we would like to thank Secretariat, Accounting Standards Board for their dedication and support towards all the activities and initiatives of the Board.

CA M i ay umar Chairman Accounting Standards Board

CA ( r ) San eev SinghalVice Chairman


The Institute of Chartered Accountants of India(Set up by an Act of Parliament)

COUNCIL YEAR

2020-21

ANNUAL REPORTOF ACCOUNTING STANDARDS BOARD, ICAI

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