Implementation of Indian Accounting Standards (Ind AS)

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....select All India Term Lending and Refinancing Institutions and insurance entities. 2. In this connection, it is advised that select All-India Term Lending and Refinancing Institutions(AIFIs) (Exim Bank, NABARD, NHB and SIDBI), shall follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the Reserve Bank in this regard, in the following manner: (i) AIFIs shall comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS shall be applicable to both standalone financial statements an....

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....rences between the current accounting framework and Ind AS, significant accounting policy decisions impacting financials, drafting accounting policies, preparation of disclosures, documentation, preparation of proforma Ind AS financial statements, timing the changeover to Ind AS, and dry-run of accounting systems and end-to-end reporting process before the actual conversion. b) Systems and processes: Evaluate system changes - assessment of processes requiring changes, issues having significant impact on information systems (including IT systems), and develop/strengthen data capture system, where required. c) Business Impact: Profit planning and budgeting, taxation, capital planning, and impact on capital adequacy. d) People - Evaluation ....

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....sary instructions/guidance/clarifications on relevant aspects as and when required. 7. AIFIs shall disclose in their Annual Report, the strategy for Ind AS implementation, including the progress made in this regard. These disclosures shall be made from the financial year 2016-17 until full implementation. 8. The Boards of the AIFIs shall have the ultimate responsibility in determining the Ind AS direction and strategy and in overseeing the development and execution of the Ind AS implementation plan. 9. The directions contained herein are issued under Section 45L of the Reserve Bank of India Act, 1934 and AIFIs shall ensure strict compliance of the same. Yours faithfully, (Rajinder Kumar) Chief General Manager APPENDIX Implementation....

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....nd AS financial statements for the accounting periods beginning April 1, 2018 shall be notified separately. It is also clarified that AIFIs shall continue to be guided by the extant instructions issued vide their respective concerned gazette notifications and General Regulations with respect to the preparation and presentation of financial statements for the financial years 2016-17 and 2017-18. 4. AIFIs may refer to Annex V for the broad application guidance on the major line items/sub-line items in the financial statements. AIFIs may email to the Reserve Bank for specific clarifications/issues, in this regard. 5. To begin with, AIFIs which are not in a position to submit both standalone and consolidated proforma Ind AS financial statemen....

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....ng requirements with the opening Ind AS 109 allowance. A comparison of the impairment allowance under ECL for the half-year ended September 30, 2016 with the corresponding provisions under the extant Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) norms shall also be disclosed. AIFIs may note that Ind AS 109 is not specific in terms of the approach to be followed when measuring expected credit losses. The Reserve Bank expects AIFIs to adopt sound expected credit loss methodologies commensurate with the size, complexity, and risk profile specific to individual AIFIs. AIFIs may also note that the Reserve Bank shall finalise the policy on expected credit loss provisioning, taking into account the impairme....