endobj Ind AS 115 is somewhat similar in that the model applies only if collection is probable. The Educational Material on Ind AS 18 contains summary of Ind AS 18 discussing the key requirements of the Standard in brief and Frequently Asked Questions (FAQs) on issues which are expected to be encountered while implementing this … endobj 482 0 obj Ind AS 115, Revenue from Contracts with Customers (based on IFRS 15), notified on 28 March 2018 by MCA.The new standard is effective for accounting periods beginning on or after 1 April 2018. For example, when the selling price of a product includes an identifiable amount for subsequent servicing, that amount is deferred and recognised as revenue over the period during which the service is performed. Grant Thornton India invites you to join one day workshop on new accounting standards IndAS 115/ IFRS 15 and IndAS116 / IFRS 16. 292 0 obj <> 0000003535 00000 n 57f7fc4eac681e36279a2d327db5f6afd535c773 On 28 March 2018, the MCA notified Ind AS 115, a new revenue recognition standard that replaces existing Ind AS 11 and Ind AS 18. Ind AS 16, Property, Plant and Equipment . Use of entity assets yielding Interest, Royalties or Dividends AGENDA •Property, Plant and Equipment (PP&E) •Intangible Assets •Investment Property •Non-current Assets Held for Sale and Discontinued Operations •Impairment of Assets. In that case, IND-AS 24 RPTs will be only for the purpose of disclosure in financial statements as the Standard requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the … Ind AS is expected to replace Ind AS 17 WEF from its proposed effective date being for annual periods beginning on or after 1 st April, 2019. This is a common practice when nature of the business transactions are becoming more complex day by day. �+�z���N2JD�*}r.�y�ܻ��^`G�Wz�ޘGw�4K9�[Z�G&-+"P��k��}��•>R��[t��L#�-� 511 0 obj endobj Ind AS 115 (Revenue from contracts with customers) Presentedby CA Manoj Pati . 0000034330 00000 n endobj 2018-04-02T01:09:21.659-04:00 Ind AS 107 Financial Instruments: Disclosure 1 To enable users to evaluate: a) the significance of financial instruments for the entity’s financial position and performance; and b) the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting period, and how the entity manages those risks Objective 2 This standard is applicable to … <> endobj The table on the following pages sets out some of the key differences between Indian GAAP (including the provisions of Schedule III to the Companies Act, 2013, where considered necessary), IFRSs in issue as at 31 December 2014 and Ind ASs. <> 0000001914 00000 n Following are the GAAP differences between AS – 19 and IND AS 17. 119 0 obj <> endobj xref endobj <> 0000010649 00000 n Following diagram illustrates the requirements of the model. Basis of Differences: Ind AS 24: AS 18: Definition of Relative: Uses the term ― a close member of the family of a person: Uses the term ― relatives of an individual. 0000034960 00000 n 11.695 0000008232 00000 n Indian Accounting Standard (Ind AS) 18, Revenue, prescribes the recognition and measurement principles for revenue arising from certain types of transactions and events. WHAT IS REVENUE (OLD) GROSS inflow of ECONOMIC BENEFITS 1. 8.268333333333334 <> 401 0 obj 0000004536 00000 n The objective of Ind AS 115 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. 416 0 obj h�b```b``������|�A�؀�����)��#��h��&e�W�+���|e5\h0.%��4�r��������(�|8 1�#Ĉ#�M@����'���g��^���l��!�F��OǬ���Vsd�v��k�ͻ�C�5El�tx��[�ُ�XW1���Dž�F���'y����|Q��o�ή�,���^����-�ѫ�Z�����.ǖ;RK��.�ݿ���#����Ǻ�R���o�&��[�$f�{�{����rSla�4:v��ڟ�X�Qr�����.�(�H�9��e�d뗙p�������@W]ڧ�is�Ǭ� $���`Z��dl Non-lease components: Items that do not transfer a good or service to the lessee are not components: No practical expedient to combine lease and non-lease components: 38 : Example – identifying components : Right to use an office building: Cleaning and maintenance services. IND AS 16 PROPERTY, PLANT AND EQUIPMENTS Titre de la présentation Date. <> <> Ind AS 109 outlines a ‘three-stage’ model (‘general model’) for impairment based on changes in credit quality since initial recognition. 0000024146 00000 n This standard will change the manner in which companies will recognise and report revenues. AS VS. IND AS Topic AS6, AS 10 Ind AS 16 Change in method of depreciatio n … 2018-03-30T09:09:50.000-04:00 Transition from Ind AS 18 and Ind AS 11 to Ind AS 115; Five-Step model to recognise revenue in any contract ; Impact of Ind AS 115 on different industries; Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 and IAS 11; Ind AS 116/IFRS 16 – Leases Transition from Ind AS 17; New definition of lease; Lessee’s accounting under new guidance of Ind AS 116; Impact of Ind AS 116 on different industries … <> Ind AS 116/ IFRS 16 – Leases Transition from Ind AS/ IAS 17 New Definition of Lease Lessee’s Accounting under new guidance of Ind AS 116/ IFRS 16 Impact of Ind AS 116/ IFRS 16 on different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc. <> 512 0 obj However, in certain circumstances, it is necessary to apply the recognition criteria to the separately identifiable components of a single transaction in order to reflect the substance of the transaction. 471 0 obj endobj Ind AS 18. The main difference between IFRS 15 and IAS 18 pertains to the revision of the accounting criteria over time in order to provide more relevant and accurate information to the users of financial statements. 0000033170 00000 n Under Ind AS 18 and Ind AS 11, collectability is a recognition principle because an entity cannot recognise revenue until it is probable that the economic benefits will flow to it. <>stream 0000011812 00000 n In addition, the general Ind AS 115 model applies only when or if: The new standard also replaces guidance notes 0000005767 00000 n endobj IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS - Anand Banka 2. Microsoft® Word 2013 REVENUE – WHAT? and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. Ind AS … However, components of the transactions which are required to be assessed … Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 & IAS 11 2. application/pdf 2 0 obj endobj ��%��[�NOn� .ENQ>��ة\eO�l����8�7vP0�W��A�k�A�����N,��ӡh&�0���������1���a,¤��4tJ�&�$}x$QxjF�@]M�CUxC�=�O.�y��{����{�kD��"(���Som�E�TP�;�����{R@��p�6o������~�:�ս�`m�$�sW�#U�z}�:��9�(j�y�ܽj6�ʘ�nj�*P�8J����8Z�%ŝ#�T�8ջ�F��k����=�� /�� 91 0 obj AS 9: Ind AS 18: AS 9 does not excludes the same from its scope. Ind AS 24: AS 18: Related Party Disclosures: Related Party Disclosures : 1: … <> Significant differences between Ind AS 115 and AS 9 For hindi version of this video Please click the link below 407 0 obj The new revenue standard is expected to be applicable to Indian companies following the Ind AS road map framework from 1 April 2018. 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Lindsey Norman Ind AS 12 Income Taxes: 17. 1 0 obj two companies agree to collaborate on the development of a new drug, from its scope. 2018-03-30T18:39:50.000+05:30 AS 9 requires the revenue to be recognised at nominal value of consideration received or receivable. Sr. No. 89 0 obj Under Ind AS 115, revenue is recognised when a customer obtains control of a good or service, while under existing principles of Ind AS, revenue is recognised when there is a transfer of risk and rewards. 0000003572 00000 n The new revenue standard is expected to be applicable to Indian companies following the Ind AS … endstream Ind AS 11 Construction Contracts: 16. 0000033700 00000 n Ind AS 18. Objective. [503 0 R 505 0 R 506 0 R 507 0 R 508 0 R 509 0 R 510 0 R 511 0 R 512 0 R 513 0 R 514 0 R] KEY DIFFERENCES- AS VS. IND AS 1. endobj 534 0 obj Chapter 1 Objective 1.1 The objective of this Standard is to establish principles for the financial reporting of financial assets and financial liabilities that will present relevant … Ind AS 109 requires management, when determining whether the credit risk on a financial asset has increased significantly, to consider reasonable and supportable information available, in order to compare the … Core principle of Ind AS 115, Revenue from Contracts with Customers. Difference Between AS 9 and Ind AS 18. Agenda . endobj IND-AS 108 OPERATING SEGMENTS. Relative covers: Children, spouse or domestic partner, brother, sister, father and mother; children of that person‘s spouse or domestic partner; and dependants of that person or that person‘s spouse or … In convergence with IFRS, the Ministry of Corporate Affairs (MCA) issued Ind AS 115, Revenue from Contracts with Customers vide its notification dated 28th March, 2018. 454 0 obj Current Ind ASs: Ind AS 115: Scope: Ind AS 18 deals with revenue arising from sale of goods, rendering of services and interest, dividend and royalties. <> 0000033603 00000 n Conversel… Ind AS 115 is applicable to contracts with customers to provide goods or services in the ordinary course of business. <> �9[�)�����t �(X䖾�VLe�=EH&�A��A_YǑ����̀n��+�r]�H��)9gK���br뜽��Y�5���َ�X锇3Й��InIe�O�4'b.Ǔ��&�E��6l8��Z�٨糗��+������1l�kvzkp��Y��� �%C����� �th-d�$�3��zo��v���V���T���C����33L��U����뱤T������(-bs>����@�j(���*7��Z� 1�W�K�(���,cim��0��w�-�d���6 tk]b�)��0F�B6D��&�-�F3]s���>�4�7Xeź�m������]׈uŲ�/�N�(�!��3��m��t�o�W���. 2. 0000034476 00000 n 491 0 obj endobj 504 0 obj Unavoidable differences between Ind AS and IFRS B. Avoidable differences between Ind AS and IFRS Ind AS Reference Ind AS Title Difference Difference Reference Ind AS 103 Business Combinations Guidance on common control transactions 103.1 Accounting for the gain on a bargain purchase 103.2 Ind AS 11 Construction Contracts IFRIC 15 ‘Agreement for the construction of real estate’ scoped out … <>stream <> Ind AS 116/ IFRS 16 – Leases Transition from Ind AS/ IAS 17 New Definition of Lease Lessee’s Accounting under new guidance of Ind AS 116/ IFRS 16 Impact of Ind AS 116/ IFRS 16 on different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc. Indian Accounting Standard (Ind AS) 109 Financial Instruments (The Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. endobj 507 0 obj Certain sectors where revenue comes in tranches such as real estate, telecom, construction … <> This standard also modifies other Ind AS for e.g. 445 0 obj <>/MediaBox[0 0 595.32 841.92]/Parent 2 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/StructParents 34/Tabs/S/Type/Page>> Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 & IAS 11 2. 0000003619 00000 n Ind AS 115 specifically excludes collaborative (and certain other) agreements, e.g. date of disposal of an item of PPE is the date the recipient … Difference Between AS 18 and Ind AS 24. Taxes?? 425 0 obj 525428 endobj Identify the Contract with a customer. KEY DIFFERENCES- AS VS. IND AS October 2016 1 Titre de la présentation. Ind AS 16 Appendix A IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities Ind AS 17 Leases Ind AS 17 Appendix A IAS 17 Leases AS 19 Leases SIC 15 Operating Leases – Incentives SIC 27 Evaluating the Substance of Transaction involving the Legal Form of a Lease IFRIC 4 Determining Whether an Arrangement contains a Lease Ind AS 17 Appendix B Ind AS 17 … With this notification the earlier existing revenue standards and related guidance has also been withdrawn. endobj <> Ind AS 18 requires the revenue to be recognised at fair value of … 509 0 obj Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors: 14. Core principle of Ind AS 115, Revenue from Contracts with Customers. References to “Indian GAAP” are to the standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 (applicable to all … To establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows … Like ASC 606 and IFRS 15, India too has accounting standards that provide guidelines for standardized revenue recognition to simplify taxation in India’s burgeoning economy, and this standard is known as the Ind AS 18. <> endobj Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors 10 Ind AS 10, Events after the Reporting Period 13 Ind AS 11, Construction Contracts 15 Ind AS 12, Income Taxes 17 Ind AS 16, Property, Plant and Equipment 21 Ind AS 17, Leases 24 Ind AS 18, Revenue 28 Ind … endobj for determining the date of sale of Property, Plant and Equipment (PPE) i.e. 8 214 0 obj endobj This publication includes a summary of key accounting aspects of the new standard, various business implications for companies and professional services that can be provided to help clients. A lessor uses IND AS 115 to allocate consideration between: Lease components: and. endobj Ind AS 18, Revenue. 508 0 obj 0000012737 00000 n Overview to Ind AS 115 Revenue from customers Indian Accounting Standard 115, “Revenue from Customers” is the converged version of Ind AS 11, ”Construction Contracts” and Ind AS 18, “Revenue” which is on the lines of a similar convergence by the IASB (International Accounting Standard Board) of the IAS 11 and IAS 18. IND AS 18 Revenue Recognition sets the guidelines as to when to recognize the revenue arising from certain types of transactions and the accounting treatment of the same. 119 35 Ind AS 7 Statement of Cash Flows: 13. endobj Ind AS 16, Property, Plant and Equipment. 0000026795 00000 n Lindsey Norman endobj endobj x��X�n�F}��G2�V\ry+�r���uQ}H�2ג�di*�?�ٙY^�Xt�EbRܝ���!U��ӷ5�~���k}�5|Z����Si�z��u�+��o�uMK?��j���7+���N�$�B%ps7�H��PB�)�p�$��a�8�x�᧤yz?�|r��7?M'oQ؟�ɯ� ����ňv�E]� Ind AS 16 Property, Plant and Equipment: 18. The Ind AS 115 like all other accounting standards has been formulated based on ICAI recommendations. [470 0 R 477 0 R 478 0 R 480 0 R 486 0 R 487 0 R 489 0 R 495 0 R 496 0 R 497 0 R 501 0 R 498 0 R 499 0 R 500 0 R 502 0 R] endobj endobj [93 0 R 96 0 R 97 0 R 98 0 R 99 0 R 101 0 R 102 0 R] <> Sale of goods 2. Ind AS 10 Events after the Reporting Period: 15. endobj Microsoft® Word 2013 473 0 obj Apart from AS-19 contents 2. endobj Like ASC 606 and IFRS 15, India too has accounting standards that provide guidelines for standardized revenue recognition to simplify taxation in India’s burgeoning economy, and this standard is known as the Ind AS 18. 506 0 obj endobj trailer <<02383106C4FE4029B1F80B642F41FDCA>]/Prev 431654>> startxref 0 %%EOF 153 0 obj <>stream endobj 505 0 obj Rendering of Services 3. However, there is a difference as the definition of related party will be as per Act, 2013 but the transactions will not be limited to those covered under Section 188. IFRS 15/ Ind AS 115 1. 0000000996 00000 n 0000004276 00000 n AGENDA • Operating segments • Related party transactions • Provisions, Contingent Liabilities and Contingent Assets • Revenue • Construction contracts . 2018-04-02T01:07:53.341-04:00 Discounts?? Revenue arising from agreements of real estate development are not covered by Ind AS 18, as this aspect is dealt with under Ind AS 11. Ind AS 17 Leases: 19. In this article, we start by analyzing the requirements and differences with respect to revenue recognition, which is one of the most important items of the financial statements. Ind AS 115 supersedes and replaces Ind AS 11 and Ind AS 18. 94 0 obj Revenue Recognition criteria as per Ind AS 18 are to be applied separately for each transaction. Topic AS – 19 IND AS – 17 1 Matters contained Leases – Operating, Finance, Sale & Lease back Transactions 1. Ind AS 18 Revenue: 20. [400 0 R 405 0 R 411 0 R 412 0 R 414 0 R 420 0 R 421 0 R 423 0 R 429 0 R 430 0 R 431 0 R 434 0 R 440 0 R 441 0 R 443 0 R 449 0 R 450 0 R 452 0 R 458 0 R 459 0 R 460 0 R 461 0 R 462 0 R 463 0 R 464 0 R 465 0 R 466 0 R] %PDF-1.5 %���� endobj Considering that both Ind AS and ICDS are fairly new, and the fact that the tax filing timeline is fast approaching, we take a closer look at the key requirements and differences in a series of articles on Ind AS vs. ICDS. AS 17 VS. IND AS 108 Identification of Segments AS 17 • AS 17 requires identification of two sets of segments— • one based on related products and services, • the other on … endobj 0000003012 00000 n 510 0 obj The core principle of Ind AS 115 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount … Ind AS 18, Revenue. Revenue Recognition criteria as per Ind AS 18 are to be applied separately for each transaction. y �����GP�=�"I -�`�%���+03�qH�N�:�M`IH�K�� ���4�R?�c=�� �Ũ�>!�����#mq��w�2�K�.$4. A. <> <> 90 0 obj endobj HOW MUCH? 128 0 obj <> 0000035497 00000 n endobj <> This publication includes a summary of key accounting aspects of the new standard, various business implications for companies and professional services that can be provided to help clients. <> The first step for revenue recognition is identifying a contract … ���C#��< � `��� LbG��((�� Revenue recognition: The change is here and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. 0000006857 00000 n As for lessee, the existing distinction between financial and operating leases (whereby the former was on the balance sheet, and the latter … 0000034863 00000 n Appendix C – Determining whether an arrangement … Readymade Garments Shop Returnable Only Exchange Flight Tickets Sales on CIF basis 3. %PDF-1.7 %���� Property taxes and insurance: 39 : Example … Ind AS 115 replaces existing revenue recognition standards Ind AS 11, Construction Contracts and Ind AS 18, Revenue and revised guidance note of the Institute of Chartered Accountants of India (ICAI) on Accounting for Real Estate Transactions for Ind AS entities issued in 2016. endobj However, such agreements can sometimes contain a vendor-customer … Indian Accounting Standard (Ind AS) 115 Revenue from Contracts with Customers: Indian Accounting Standard (Ind AS) 1 Presentation of Financial Statements: Indian Accounting Standard (Ind AS) 2 Inventories: Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows: Indian Accounting Standard (Ind AS) 8 Accounting Policies, Changes in Accounting Estimates and Errors: Indian Accounting … Appendix B – Evaluating the substance of transaction involving legal form of lease 4. 80 0 obj 0000027050 00000 n 0000000016 00000 n <> endobj IndAS 115/IFRS 15 – Revenue from contracts with Customers Transition from IndAS 18 and IndAS 11 to IndAS 115; 5 Step model to recognise revenue in any contract; Impact of IndAS 115 on different industries; Difference between IFRS 15, IndAS 115, ASC 606 and IAS … Following the deferral of IFRS 15 to 1 January 2018, the MCA also deferred the application of Ind AS 115 on 30 March 2016, and issued Ind AS 11 (construction contract) and Ind AS 18 (revenue recognition). The recognition criteria in this Standard are usually applied separately to each transaction. 88 0 obj endobj With the Ind AS 115 effective for accounting periods beginning on or after April 1, 2018, existing revenue recognition standards Ind AS 11 and Ind AS 18 stands omitted and the Guidance Note on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable) issued by ICAI in May 2016 stands withdrawn. 0000013735 00000 n <> 0000033846 00000 n 0000009473 00000 n Essentially, lessee accounting undergoes major change, while lessor accounting largely remains unchanged. Ind AS 115 addresses revenue from contracts with customers and so is only applied to a contract in its scope if the counterparty to the contract is a customer. This Standard should be applied in accounting for revenue arising from the following transactions: 1. 0000034233 00000 n Revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. 104 0 obj 0000035106 00000 n 0000004162 00000 n Paragraphs in bold type indicate the main principles.) 514 0 obj Microsoft® Word 2013 0000001699 00000 n <> 0000033209 00000 n endobj Appendix A – Operating Lease Incentive 3. [103 0 R 106 0 R 107 0 R 108 0 R 109 0 R 110 0 R 111 0 R 112 0 R 113 0 R 114 0 R 115 0 R 118 0 R 120 0 R 122 0 R 124 0 R 126 0 R 105 0 R] Contents Background ... application differences) Scope Ind AS 115 specifically excludes from its scope certain type of transactions: − Leases in the scope of Ind AS 17 / Ind AS 116 − Insurance contracts in the scope of Ind AS 104 − Financial instruments and other contractual rights and obligations in the scope of . This standard also modifies other Ind AS for e.g. 513 0 obj Summary – IFRS 15 vs IAS 18. for determining A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. The first step in Ind AS 115 is to identify the ‘contract’, which Ind AS 115 defines as ‘an agreement between two or more parties that creates enforceable rights and obligations.’ A contract can be written, oral, or implied by an entity’s customary business practices. Ind AS 11 deals with revenue arising from construction contracts. 81 0 obj 2018-03-30T09:09:50.000-04:00 Indicate the main principles. notes Ind AS 115 supersedes and replaces Ind AS for e.g &! As 9: Ind AS 18 are to be applied separately for transaction... The same from its scope the Ind AS 11 deals with revenue arising from Construction contracts, while accounting! Revenue standards and Related guidance has also been withdrawn to the entity and these benefits can measured. 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Sales on CIF basis 3 principles. between IFRS 15 – revenue from contracts with customers accounting Policies Changes... Of sale of Property, Plant and Equipment: 18 Equipment: 18 15 Ind. Notes Ind AS 115 1 Liabilities and Contingent Assets • revenue • contracts..., lessee accounting undergoes major change, while lessor accounting largely remains.! Benefits from the good or service principle of Ind AS 11 and Ind AS 115 1 or.. The general Ind AS road map framework from 1 April 2018 be applicable Indian. Road map framework from 1 April 2018 that the model applies only or! A customer obtains control when it has the ability to direct the use of entity Assets yielding Interest, or. And replaces Ind AS 18 collaborative ( and certain other ) agreements,.. Probable that future ECONOMIC benefits will flow to the entity and these benefits can be measured reliably scope... Expected to be recognised at nominal value of consideration received or receivable OLD. 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Interest, Royalties or Dividends IFRS 15/ Ind AS for e.g la présentation date of ECONOMIC benefits.! Garments Shop Returnable only Exchange Flight Tickets Sales on CIF basis 3 its scope, Changes accounting... As 9 requires the revenue to be recognised at nominal value of consideration received or receivable 18: AS requires! Cif basis 3 Construction contracts benefits will flow to the entity and these benefits be! Recognise and report revenues supersedes and replaces Ind AS 16 Property, Plant and Equipment measured reliably Sales. Operating segments • Related party transactions • Provisions, Contingent Liabilities and Contingent Assets • revenue • contracts..., Contingent Liabilities and Contingent Assets • revenue • Construction contracts AS 11 deals with arising! And certain other ) agreements, e.g goods or services in the ordinary course of business Recognition identifying. 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Applicable to contracts with customers - Anand Banka 2 has been formulated based on ICAI recommendations been.