TaxTMI 
TaxTMI 
Companies (Indian Accounting Standards) Amendment Rules, 2021.
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....instruments (paragraphs B8-B8C); "; (ii) for heading before paragraph B8, the following shall be substituted, namely:- "Classification and measurement of financial instruments"; (B) in "Indian Accounting Standard (Ind AS) 102", - (i) after paragraph 63D, the following shall be inserted, namely:- "63E Amendments to References to the Conceptual Framework in Ind AS issued in 2021 amended the footnote to the definition of an equity instrument in Appendix A. An entity shall apply that amendment for annual periods beginning on or after 1 April, 2021. An entity shall apply the amendment to Ind AS 102 retrospectively, in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. However, if an entity determines that retrospective application would be impracticable or would involve undue cost or effort, it shall apply the amendment to Ind AS 102 by reference to paragraphs 23-28, 50-53 and 54F of Ind AS 8."; (ii) in Appendix A, for the footnote relating to "equity instrument", the following shall be substituted, namely:- "* The Conceptual Framework for Financial Reporting under Indian Accounting Standard....
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....ng two options for entities that issue insurance contracts within the scope of IFRS 4: • the option to recognise in other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts Standard is issued; and • give companies whose activities are predominantly connected with insurance an optional temporary exemption from applying IFRS 9 until 2023. The above optional temporary exemptions have not been provided under Ind AS 104. In the context of optional temporary exemptions from applying IFRS 9, paragraphs 3 and 5 have been amended and paragraphs 20A-20Q, 35A-35N, 39B-39M, 46-49 have been added in IFRS 4. Since temporary optional exemptions have not been provided under Ind AS 104, these paragraphs have not been included in Ind AS 104. However, paragraph numbers have been retained in Ind AS 104 to maintain consistency with IFRS 4. Amendments to Interest Rate Benchmark Reform-Phase 2 added paragraphs 20R-20S in IFRS 4 which prescribes that an insurer applying the temporary exemption from IFRS 9 shall read certain paragraph references of IAS 39 in place of....
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....ons given in IFRS 6 have not been given in Ind AS 106, since all transitional provisions related to Ind ASs, wherever considered appropriate have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards, corresponding to IFRS 1, First-time Adoption of International Financial Reporting Standards."; (G) in "Indian Accounting Standard (Ind AS) 107", - (i) in paragraph 24G, in item (c), for the words, figures, brackets and letter "paragraph 6.7.4(b) of Ind AS 109", the words, figures and letters "paragraph 6.7.4 of Ind AS 109" shall be substituted.; (ii) after paragraph 24H, the following shall be inserted, namely:- "Additional disclosures related to interest rate benchmark reform 24I To enable users of financial statements to understand the effect of interest rate benchmark reform on an entity's financial instruments and risk management strategy, an entity shall disclose information about: (a) the nature and extent of risks to which the entity is exposed arising from financial instruments subject to interest rate benchmark reform, and how the entity manages these risks; and (b) the entity's progress in com....
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....vii) in Appendix B,- (a) in paragraph B8B, for the word, figures, letters and brackets "paragraph 35F(f)(i) requires", the words, figures, letters and brackets "paragraph 35F(f)(ii) requires", shall be substituted; (b) in paragraph B8I, for the word and figures "paragraph 5.5.10", the word and figures "paragraph 5.5.11" shall be substituted; (H) in "Indian Accounting Standard (Ind AS) 109", - (i) after paragraph 5.4.4, the following shall be inserted, namely:- "Changes in the basis for determining the contractual cash flows as a result of interest rate benchmark reform 5.4.5 An entity shall apply paragraphs 5.4.6‒5.4.9 to a financial asset or financial liability if, and only if, the basis for determining the contractual cash flows of that financial asset or financial liability changes as a result of interest rate benchmark reform. For this purpose, the term ‗interest rate benchmark reform' refers to the market-wide reform of an interest rate benchmark as described in paragraph 6.8.2. 5.4.6 The basis for determining the contractual cash flows of a financial asset or financial liability can change: (a) by a....
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....ate benchmark; and (c) the addition of a fallback provision to the contractual terms of a financial asset or financial liability to enable any change described in (a) and (b) above to be implemented. 5.4.9 If changes are made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, an entity shall first apply the practical expedient in paragraph 5.4.7 to the changes required by interest rate benchmark reform. The entity shall then apply the applicable requirements in this Standard to any additional changes to which the practical expedient does not apply. If the additional change does not result in the derecognition of the financial asset or financial liability, the entity shall apply paragraph 5.4.3 or paragraph B5.4.6, as applicable, to account for that additional change. If the additional change results in the derecognition of the financial asset or financial liability, the entity shall apply the derecognition requirements."; (ii) in paragraph 5.5.8, the words "impairment gain or loss", shall be in italics; (iii) in paragraph 6.5.10, th....
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.... than once. When, and only when, such a change is made to the hedge designation, an entity shall apply paragraphs 6.9.7-6.9.12 as applicable. An entity also shall apply paragraph 6.5.8 (for a fair value hedge) or paragraph 6.5.11 (for a cash flow hedge) to account for any changes in the fair value of the hedged item or the hedging instrument. 6.9.4 An entity shall amend a hedging relationship as required in paragraph 6.9.1 by the end of the reporting period during which a change required by interest rate benchmark reform is made to the hedged risk, hedged item or hedging instrument. For the avoidance of doubt, such an amendment to the formal designation of a hedging relationship constitutes neither the discontinuation of the hedging relationship nor the designation of a new hedging relationship. 6.9.5 If changes are made in addition to those changes required by interest rate benchmark reform to the financial asset or financial liability designated in a hedging relationship (as described in paragraphs 5.4.6-5.4.8) or to the designation of the hedging relationship (as required by paragraph 6.9.1), an entity shall first apply the applicable requirements in this Stand....
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....would continue to designate the existing interest rate benchmark as the hedged risk for the other subgroup of hedged items until the hedged cash flows or fair value of those items are changed to reference the alternative benchmark rate or the items expire and are replaced with hedged items that reference the alternative benchmark rate. 6.9.10 An entity shall assess separately whether each subgroup meets the requirements in paragraph 6.6.1 to be an eligible hedged item. If any subgroup fails to meet the requirements in paragraph 6.6.1, the entity shall discontinue hedge accounting prospectively for the hedging relationship in its entirety. An entity also shall apply the requirements in paragraphs 6.5.8 and 6.5.11 to account for ineffectiveness related to the hedging relationship in its entirety. Designation of risk components 6.9.11 An alternative benchmark rate designated as a non-contractually specified risk component that is not separately identifiable (see paragraphs 6.3.7(a) and B6.3.8) at the date it is designated shall be deemed to have met that requirement at that date, if, and only if, the entity reasonably expects the alternative benchmark rate w....
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....te a discontinued hedging relationship if, and only if, these conditions are met: (a) the entity had discontinued that hedging relationship solely due to changes required by interest rate benchmark reform and the entity would not have been required to discontinue that hedging relationship if these amendments had been applied at that time; and (b) at the beginning of the reporting period in which an entity first applies these amendments (date of initial application of these amendments), that discontinued hedging relationship meets the qualifying criteria for hedge accounting (after taking into account these amendments). 7.2.45 If, in applying paragraph 7.2.44, an entity reinstates a discontinued hedging relationship, the entity shall read references in paragraphs 6.9.11 and 6.9.12 to the date the alternative benchmark rate is designated as a non-contractually specified risk component for the first time as referring to the date of initial application of these amendments (ie the 24-month period for that alternative benchmark rate designated as a non-contractually specified risk component begins from the date of initial application of these amendments). ....
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....9, these paragraph numbers are retained in Ind AS 109."; (I) in "Indian Accounting Standard (Ind AS) 111", in paragraph 21A, for the words, letters and figures "as defined in Ind AS 103," the words, letters and figures "as defined in Ind AS 103,Business Combinations," shall be substituted; (J) in "Indian Accounting Standard (Ind AS) 114", - (i) for paragraph 13, the following shall be substituted, namely:- "13 An entity shall not change its accounting policies in order to start to recognize regulatory deferral account balances. An entity may only change its accounting policies for the recognition, measurement, impairment and derecognition of regulatory deferral account balances if the change makes the financial statements more relevant to the economic decision-making needs of users and no less reliable**, or more reliable and no less relevant to those needs. An entity shall judge relevance and reliability using the criteria in paragraph 10 of Ind AS 8." (K) in "Indian Accounting Standard (Ind AS) 115",- (i) in Appendix D, after paragraph 27, the following shall be inserted, namely;- "Effective date 28 [Refer Appendix 1] ....
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....ply paragraph 42 to account for a lease modification required by interest rate benchmark reform. This practical expedient applies only to such modifications. For this purpose, a lease modification is required by interest rate benchmark reform if, and only if, both of these conditions are met: (a) the modification is necessary as a direct consequence of interest rate benchmark reform; and (b) the new basis for determining the lease payments is economically equivalent to the previous basis (ie the basis immediately preceding the modification). 106 However, if lease modifications are made in addition to those lease modifications required by interest rate benchmark reform, a lessee shall apply the applicable requirements in this Standard to account for all lease modifications made at the same time, including those required by interest rate benchmark reform."; (iii) in Appendix C, (a) after paragraph C1A, the following shall be inserted, namely:- "C1B Interest Rate Benchmark Reform-Phase 2, which amended Ind AS 109, Ind AS 107, Ind AS 104 and Ind AS 116, added paragraphs 104-106 and C20C-C20D. An entity shall apply these ame....
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...., as appropriate) of the annual reporting period that includes the date of initial application of these amendments."; (M) in "Indian Accounting Standard (Ind AS) 1", - (i) in paragraph 15, for the word "Framework", the words "Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India (ICAI)" shall be substituted; (ii) in paragraph 19, for the words " in the Framework", the words " in the Conceptual Framework" shall be substituted; (iii) in paragraph 20, in item (c), for the word "Framework", the words " Conceptual Framework" shall be substituted; (iv) in paragraph 23, for the words " in the Framework" at both the places where they occur, the words " in the Conceptual Framework" shall be substituted; (v) in paragraph 24, for the words " in the Framework" at both the places where they occur, the words " in the Conceptual Framework" shall be substituted; (vi) in paragraph 28, for the word "Framework", the words " Conceptual Framework" shall be substituted; (vii) in paragraph 89, for the word "Framework's", the word....
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....ment in Amendments to References to the Conceptual Framework in Ind AS would involve undue cost or effort, an entity shall, in applying paragraphs 23-28 of this Standard, read any reference except in the last sentence of paragraph 27 to ‗is impracticable' as ‗involves undue cost or effort' and any reference to ‗practicable' as ‗possible without undue cost or effort'. 54G If an entity does not apply Ind AS 114, Regulatory Deferral Accounts, the entity shall, in applying paragraph 11(b) to regulatory account balances, continue to refer to, and consider the applicability of, the definitions, recognition criteria, and measurement concepts in the Framework for the Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards issued by the Institute of Chartered Accountants of India instead of those in the Conceptual Framework issued in 2020. A ‗regulatory account balance' and ‗rate regulator' have the same meaning as defined in Ind AS 114."; (iii) in Appendix 1,for paragraph 5, the following shall be substituted, namely:- "5. Paragraphs 54-54E of IAS 8 related to Effective date and trans....
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....dments to References to the Conceptual Framework in Ind AS issued in 2021 amended paragraphs 31 and 33. An entity shall apply those amendments for annual periods beginning on or after 1 April 2021. An entity shall apply the amendments to Ind AS 34 retrospectively in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. However, if an entity determines that retrospective application would be impracticable or would involve undue cost or effort, it shall apply the amendments to Ind AS 34 by reference to paragraphs 43-45 of this Standard and paragraphs 23-28, 50-53 and 54F of Ind AS 8."; (iv) in Appendix 1,for paragraph 7, the following shall be substituted, namely:- "7 Paragraphs 46-54 and 56-57 related to effective date have not been included in Ind AS 34 as these are not relevant in Indian context. However, in order to maintain consistency with paragraph numbers of IAS 34, these paragraph numbers are retained in Ind AS 34."; (T) in "Indian Accounting Standard (Ind AS) 37", in paragraph 10, in the definition of the term "liability", after the word "liability", the symbol "*"with corresponding following footnote shall be insert....