TaxTMI 
TaxTMI 
Companies (Indian Accounting Standards) Amendment Rules, 2022
X X X X Extracts X X X X
X X X X Extracts X X X X
....(2) They shall come into force with effect from 1st day of April, 2022. 2. In the Companies (Indian Accounting Standards) Rules, 2015, in the "Annexure", under the heading "B. Indian Accounting Standards (Ind AS)",- (A) in "Indian Accounting Standard (Ind AS) 101", - (i) after paragraph 39AF, the following shall be inserted, namely:- "39AG Annual Improvements to Ind AS (2021), amended paragraph D1(f) and added paragraph D13A. An entity shall apply that amendment for annual reporting periods beginning on or after 1st April, 2022."; (ii) in Appendix D, in paragraph D1, for sub-item (f), the following shall be substituted, namely:- "(f) cumulative translation differences (paragraphs D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t liabilities at the acquisition date. Therefore, the acquirer does not recognise those costs as part of applying the acquisition method. Instead, the acquirer recognises those costs in its postcombination financial statements in accordance with other Ind AS."; (ii) for paragraph 14, the following shall be substituted, namely:- "14 Paragraphs B31-B40 provide guidance on recognising intangible assets. Paragraphs 21A-28B specify the types of identifiable assets and liabilities that include items for which this Ind AS provides limited exceptions to the recognition principle and conditions."; (iii) for paragraph 21, the following shall be substituted, namely:- "21 This Ind ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a present obligation exists as a result of past events. For a levy that would be within the scope of Appendix C of Ind AS 37, the acquirer shall apply Appendix C of Ind AS 37 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date. 21C A present obligation identified in accordance with paragraph 21B might meet the definition of a contingent liability set out in paragraph 22(b). If so, paragraph 23 applies to that contingent liability."; (iv) for the heading relating to paragraph 22, the following shall be substituted, namely:- "Contingent liabilities and contingent assets"; (v) in paragraph 22, for the opening paragrap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aphs 21A, 21B, 21C and 23A. An entity shall apply those amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1st April, 2022.". (C) in "Indian Accounting Standard (Ind AS) 109", - (i) for paragraph 7.1.9, the following shall be substituted, namely:- "7.1.9 Annual Improvements to Ind AS (2021), added paragraphs 7.2.35 and B3.3.6A and amended paragraph B3.3.6. An entity shall apply that amendment for annual reporting periods beginning on or after 1st April, 2022."; (ii) for the figures, brackets and words, "7.2.35-7.2.42 [Refer Appendix 1]", the following shall be substituted, namely:- "Trans....
X X X X Extracts X X X X
X X X X Extracts X X X X
....carrying amount of the liability and are amortised over the remaining term of the modified liability.". (D) in "Indian Accounting Standard (Ind AS) 16", - (i) in paragraph 17, for sub-item (e), the following shall be substituted, namely:- "(e) costs of testing whether the asset is functioning properly, after deducting the net proceeds from selling any items produced while bringing the asset to that location and condition (such as samples produced when testing equipment). Excess of net sale proceeds of items produced over the cost of testing, if any, shall not be re-cognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he depreciation charge for an item of property, plant and equipment used in fulfilling that contract among others."; (ii) for paragraph 69, the following shall be substituted, namely:- "69 Before a separate provision for an onerous contract is established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the contract (see Ind AS 36)."; (iii) after paragraph 94, the following shall be inserted, namely:- "94A Onerous Contracts-Cost of Fulfilling a Contract, added paragraph 68A and amended paragraph 69. An entity shall apply those amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the annual r....