<h1>IndAS alignment: draft amendment requires cost records and audit to reflect IndAS recognition and measurement, affecting spares, grants and depreciation.</h1> The draft amendments align cost record recognition, measurement and disclosure with Indian Accounting Standards and Companies Act provisions by: treating qualifying spare parts and standby equipment as property, plant and equipment for recognition and depreciation under IndAS; requiring that subsidies, grants or incentives related to specific cost elements be reduced from those costs and, where recognised as deferred income under IndAS, be reduced in the financial year when the deferred income is recognised; clarifying employee cost to include employer cost of retirement benefits while excluding re-measurements in other comprehensive income for IndAS entities; and aligning depreciation/amortisation measurement to statutory and IndAS principles.