difference between ind as 115 and ind as 18

<> 0000034476 00000 n <> Essentially, lessee accounting undergoes major change, while lessor accounting largely remains unchanged. 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 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. <>stream Sr. No. 8 A. for determining 0000006857 00000 n WHAT IS REVENUE (OLD) GROSS inflow of ECONOMIC BENEFITS 1. 0000001914 00000 n This standard will change the manner in which companies will recognise and report revenues. endobj [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] Taxes?? 0000033209 00000 n Ind AS 115 supersedes and replaces Ind AS 11 and Ind AS 18. trailer <<02383106C4FE4029B1F80B642F41FDCA>]/Prev 431654>> startxref 0 %%EOF 153 0 obj <>stream AS VS. IND AS Topic AS6, AS 10 Ind AS 16 Change in method of depreciatio n … 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. endobj endobj 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 … 0000004276 00000 n endobj Revenue Recognition criteria as per Ind AS 18 are to be applied separately for each transaction. Ind AS … Ind AS 18, Revenue. 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. REVENUE – WHAT? 0000000996 00000 n <> %PDF-1.7 %���� 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. 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 … 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. <> 0000027050 00000 n Appendix A – Operating Lease Incentive 3. endobj 0000003012 00000 n 2018-03-30T09:09:50.000-04:00 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 … 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. endobj Ind AS 18. 81 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 0000005767 00000 n 94 0 obj 0000010649 00000 n 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. 525428 Ind AS 11 deals with revenue arising from construction contracts. 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. 0000004536 00000 n 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. 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 18 requires the revenue to be recognised at fair value of … endobj endobj 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 … 0000034863 00000 n 471 0 obj IND-AS 108 OPERATING SEGMENTS. AGENDA • Operating segments • Related party transactions • Provisions, Contingent Liabilities and Contingent Assets • Revenue • Construction contracts . IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS - Anand Banka 2. Microsoft® Word 2013 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 … 0000034233 00000 n 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. 512 0 obj Use of entity assets yielding Interest, Royalties or Dividends 425 0 obj 510 0 obj 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. [291 0 R 293 0 R 293 0 R 293 0 R 295 0 R 296 0 R 296 0 R 296 0 R 301 0 R 305 0 R 307 0 R 308 0 R 313 0 R 313 0 R 313 0 R 313 0 R 313 0 R 317 0 R 318 0 R 323 0 R 323 0 R 323 0 R 323 0 R 323 0 R 327 0 R 328 0 R 333 0 R 333 0 R 333 0 R 333 0 R 333 0 R 337 0 R 339 0 R 340 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 345 0 R 349 0 R 350 0 R 355 0 R 355 0 R 355 0 R 355 0 R 355 0 R 355 0 R 359 0 R 360 0 R 365 0 R 365 0 R 365 0 R 365 0 R 365 0 R 369 0 R 371 0 R 373 0 R 374 0 R 379 0 R 379 0 R 379 0 R 379 0 R 379 0 R 379 0 R 381 0 R 382 0 R 387 0 R 387 0 R 387 0 R 387 0 R 387 0 R 387 0 R 389 0 R 392 0 R 394 0 R 396 0 R 398 0 R 399 0 R] Microsoft® Word 2013 Property taxes and insurance: 39 : Example … 491 0 obj 0000035106 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. 445 0 obj 504 0 obj Ind AS 17 Leases: 19. Paragraphs in bold type indicate the main principles.) Lindsey Norman 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. 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. 1 0 obj 0000034330 00000 n However, components of the transactions which are required to be assessed … endobj �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���. 57f7fc4eac681e36279a2d327db5f6afd535c773 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 … 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. 91 0 obj Ind AS 16 Property, Plant and Equipment: 18. endobj [213 0 R 215 0 R 217 0 R 218 0 R 219 0 R 222 0 R 223 0 R 225 0 R 226 0 R 229 0 R 229 0 R 230 0 R 232 0 R 233 0 R 261 0 R 262 0 R 263 0 R 267 0 R 268 0 R 268 0 R 268 0 R 270 0 R 271 0 R 271 0 R 271 0 R 276 0 R 280 0 R 282 0 R 284 0 R 286 0 R 287 0 R 234 0 R 235 0 R 236 0 R 237 0 R 238 0 R 239 0 R 240 0 R 241 0 R 242 0 R 243 0 R 244 0 R 245 0 R 246 0 R 247 0 R 248 0 R 249 0 R 250 0 R 251 0 R 252 0 R 253 0 R 254 0 R 255 0 R 256 0 R 257 0 R 258 0 R 259 0 R 260 0 R] 119 0 obj <> endobj xref Ind AS 18. Difference Between AS 18 and Ind AS 24. 119 35 Appendix B – Evaluating the substance of transaction involving legal form of lease 4. Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 & IAS 11 2. 0000003535 00000 n [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] 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. 0000004162 00000 n Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors: 14. 0000001870 00000 n 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. <> 0000013735 00000 n Core principle of Ind AS 115, Revenue from Contracts with Customers. 508 0 obj 80 0 obj 0000009473 00000 n endobj 0000003619 00000 n 214 0 obj 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. two companies agree to collaborate on the development of a new drug, from its scope. endobj Following diagram illustrates the requirements of the model. 0000003572 00000 n 89 0 obj endobj 0000012737 00000 n date of disposal of an item of PPE is the date the recipient … Certain sectors where revenue comes in tranches such as real estate, telecom, construction … Revenue is recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably. The new revenue standard is expected to be applicable to Indian companies following the Ind AS road map framework from 1 April 2018. 473 0 obj 104 0 obj 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 … This Standard should be applied in accounting for revenue arising from the following transactions: 1. AGENDA •Property, Plant and Equipment (PP&E) •Intangible Assets •Investment Property •Non-current Assets Held for Sale and Discontinued Operations •Impairment of Assets. Significant differences between Ind AS 115 and AS 9 For hindi version of this video Please click the link below AS 9 requires the revenue to be recognised at nominal value of consideration received or receivable. Indian Accounting Standard (Ind AS) 18, Revenue, prescribes the recognition and measurement principles for revenue arising from certain types of transactions and events. 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 [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] %PDF-1.5 %���� Revenue Recognition criteria as per Ind AS 18 are to be applied separately for each transaction. endobj 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 . Apart from AS-19 contents 2. A lessor uses IND AS 115 to allocate consideration between: Lease components: and. Grant Thornton India invites you to join one day workshop on new accounting standards IndAS 115/ IFRS 15 and IndAS116 / IFRS 16. AS 9: Ind AS 18: AS 9 does not excludes the same from its scope. <> endobj Ind AS 12 Income Taxes: 17. Ind AS 109 outlines a ‘three-stage’ model (‘general model’) for impairment based on changes in credit quality since initial recognition. 482 0 obj In addition, the general Ind AS 115 model applies only when or if: Readymade Garments Shop Returnable Only Exchange Flight Tickets Sales on CIF basis 3. 407 0 obj Conversel… application/pdf Discounts?? Microsoft® Word 2013 [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] 436 0 obj 0000033603 00000 n endobj KEY DIFFERENCES- AS VS. IND AS 1. <> 8.268333333333334 0000001699 00000 n 2018-03-30T09:09:50.000-04:00 Core principle of Ind AS 115, Revenue from Contracts with Customers. 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. 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. Identify the Contract with a customer. Rendering of Services 3. <> Summary – IFRS 15 vs IAS 18. 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. [93 0 R 96 0 R 97 0 R 98 0 R 99 0 R 101 0 R 102 0 R] endobj for determining the date of sale of Property, Plant and Equipment (PPE) i.e. 2018-03-30T18:39:50.000+05:30 y �����GP�=�"I -�`�%���+03�qH�N�:�M`IH�K�� ���4�R?�c=�� �Ũ�>!�����#mq��w�2�K�.$4. �+�z���N2JD�*}r.�y�ܻ��^`G�Wz�ޘGw�4K9�[Z�G&-+"P��k��}��•>R��[t��L#�-� 2018-04-02T01:09:21.659-04:00 Ind AS 18 Revenue: 20. 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 … 534 0 obj endobj 416 0 obj <> endobj 0000033700 00000 n Sale of goods 2. 0000033846 00000 n Ind AS 115 specifically excludes collaborative (and certain other) agreements, e.g. endobj Objective. Following are the GAAP differences between AS – 19 and IND AS 17. 505 0 obj 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). endobj Difference between IFRS 15, Ind AS 115, ASC 606 and IAS 18 & IAS 11 2. Ind AS 11 Construction Contracts: 16. <> 511 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 … ���C#��< � `��� LbG��((�� 88 0 obj Ind AS 16, Property, Plant and Equipment . endobj Topic AS – 19 IND AS – 17 1 Matters contained Leases – Operating, Finance, Sale & Lease back Transactions 1. The recognition criteria in this Standard are usually applied separately to each transaction. As for lessee, the existing distinction between financial and operating leases (whereby the former was on the balance sheet, and the latter … 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 … 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. 506 0 obj 503 0 obj 11.695 0000011812 00000 n Ind AS 115 is applicable to contracts with customers to provide goods or services in the ordinary course of business. 128 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 … 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 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 … 0000034960 00000 n endobj <> endobj endobj References to “Indian GAAP” are to the standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006 (applicable to all … Ind AS 115 is somewhat similar in that the model applies only if collection is probable. This standard also modifies other Ind AS for e.g. A customer obtains control when it has the ability to direct the use of and obtain the benefits from the good or service. Ind AS 24: AS 18: Related Party Disclosures: Related Party Disclosures : 1: … <>/Metadata 534 0 R/Pages 2 0 R/StructTreeRoot 88 0 R/Type/Catalog>> <>stream <> Agenda . Ind AS 18, Revenue. 2. 2018-04-02T01:07:53.341-04:00 <>/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>> 507 0 obj 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]� Appendix C – Determining whether an arrangement … IFRS 15/ Ind AS 115 1. 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 … <> 2 0 obj <> <> endobj The first step for revenue recognition is identifying a contract … With this notification the earlier existing revenue standards and related guidance has also been withdrawn. 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. Revenue recognition: The change is here 509 0 obj endstream 0000026795 00000 n Lindsey Norman [127 0 R 129 0 R 133 0 R 134 0 R 136 0 R 137 0 R 138 0 R 141 0 R 142 0 R 144 0 R 145 0 R 148 0 R 148 0 R 149 0 R 151 0 R 152 0 R 155 0 R 155 0 R 156 0 R 158 0 R 159 0 R 160 0 R 163 0 R 163 0 R 164 0 R 166 0 R 167 0 R 168 0 R 169 0 R 170 0 R 171 0 R 172 0 R 173 0 R 174 0 R 175 0 R 176 0 R 177 0 R 178 0 R 179 0 R 180 0 R 181 0 R 182 0 R 183 0 R 184 0 R 185 0 R 186 0 R 187 0 R 188 0 R 189 0 R 190 0 R 191 0 R 192 0 R 193 0 R 194 0 R 195 0 R 196 0 R 197 0 R 198 0 R 199 0 R 200 0 R 201 0 R 202 0 R 203 0 R 204 0 R 205 0 R 206 0 R 207 0 R 208 0 R 209 0 R] <> Ind AS 10 Events after the Reporting Period: 15. 0000033170 00000 n 0000035497 00000 n 401 0 obj Difference Between AS 9 and Ind AS 18. KEY DIFFERENCES- AS VS. IND AS October 2016 1 Titre de la présentation. 514 0 obj endobj Ind AS 16, Property, Plant and Equipment. 0000024146 00000 n WHEN? 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. 454 0 obj endobj The Ind AS 115 like all other accounting standards has been formulated based on ICAI recommendations. This standard also modifies other Ind AS for e.g. 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. Ind AS 7 Statement of Cash Flows: 13. This is a common practice when nature of the business transactions are becoming more complex day by day. The new standard also replaces guidance notes <> HOW MUCH? 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 … 0000000016 00000 n 292 0 obj <> endobj 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.

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