TaxTMI 
TaxTMI 
TaxTMI 
Companies (Indian Accounting Standards) Second Amendment Rules, 2025
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....ments. Accordingly, paragraph D31 of IFRS 1 has not been included;"; (b) in paragraph 8, in sub-paragraph (c), for item (2), the following shall be substituted, namely:- "(2) Paragraph D9AA has been added to provide for transitional relief to first-time adopter lessor while applying Ind AS 116, Leases. D9AA provides an entity to use the transition date facts and circumstances for lease arrangements which includes both land and building elements to assess the classification of each element as finance or an operating lease at the transition date to Ind ASs."; (c) in paragraph 12, item (vii) shall be omitted; (B) in "Indian Accounting Standard (Ind AS) 107", - (i) after paragraph 44II, the following paragraph shall be inserted, namely:- "44JJ Supplier Finance Arrangements, which also amended Ind AS 7, amended paragraph B11F. An entity shall apply that amendment when it applies the amendments to Ind AS 7."; (ii) in Appendix B, in paragraph B11F, for items (h) and (i), the following items shall be substituted, namely:- "(h) has instruments that allow the entity to choose whether it settles its financial liabilities by delivering cash (or another financial asset) or by del....
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....er settlement for at least twelve months (paragraph 69(d)) 72A An entity's right to defer settlement of a liability for at least twelve months after the reporting period must have substance and, as illustrated in paragraphs 72B-73 and 75, must exist at the end of the reporting period. 72B An entity's right to defer settlement of a liability arising from a loan arrangement for at least twelve months after the reporting period may be subject to the entity complying with conditions specified in that loan arrangement (hereafter referred to as 'covenants'). For the purposes of applying paragraph 69(d), such covenants: (a) affect whether that right exists at the end of the reporting period-as illustrated in paragraphs 74-75-if an entity is required to comply with the covenant on or before the end of the reporting period. Such a covenant affects whether the right exists at the end of the reporting period even if compliance with the covenant is assessed only after the reporting period (for example, a covenant based on the entity's balance sheet at the end of the reporting period but assessed for compliance only after the reporting period); (b) do not affect whether that right exist....
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....ragraph 76, the following heading and paragraphs shall be inserted, namely: - "Settlement (paragraphs 69(a), 69(c) and 69(d)) 76A For the purpose of classifying a liability as current or non-current, settlement refers to a transfer to the counterparty that results in the extinguishment of the liability. The transfer could be of: (a) cash or other economic resources-for example, goods or services; or (b) the entity's own equity instruments, unless paragraph 76B applies. 76B Terms of a liability that could, at the option of the counterparty, result in its settlement by the transfer of the entity's own equity instruments do not affect its classification as current or noncurrent if, applying Ind AS 32 Financial Instruments: Presentation, the entity classifies the option as an equity instrument, recognising it separately from the liability as an equity component of a compound financial instrument. 76ZA In applying paragraphs 69-75, an entity might classify liabilities arising from loan arrangements as non-current when the entity's right to defer settlement of those liabilities is subject to the entity complying with covenants within twelve months after the reporting period ....
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....t demand immediate repayment. 75A Classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. If a liability meets the criteria in paragraph 69 for classification as non-current, it is classified as non-current even if management intends or expects the entity to settle the liability within twelve months after the reporting period, or even if the entity settles the liability between the end of the reporting period and the date the financial statements are approved for issue. However, in either of those circumstances, the entity may need to disclose information about the timing of settlement to enable users of its financial statements to understand the impact of the liability on the entity's balance sheet (see paragraphs 17(c) and 76(d)). 76 If the following events occur between the end of the reporting period and the date the financial statements are approved for issue, those events are disclosed as non-adjusting events in accordance with Ind AS 10, Events after the Reporting Period: (a) refinancing on a long-term basis of a liability classified....
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...., suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity's suppliers with early payment terms, compared to the related invoice payment due date. Supplier finance arrangements are often referred to as supply chain finance, payables finance or reverse factoring arrangements. Arrangements that are solely credit enhancements for the entity (for example, financial guarantees including letters of credit used as guarantees) or instruments used by the entity to settle directly with a supplier the amounts owed (for example, credit cards) are not supplier finance arrangements. 44H To meet the objectives in paragraph 44F, an entity shall disclose in aggregate for its supplier finance arrangements: (a) the terms and conditions of the arrangements (for example, extended payment terms and security or guarantees provided). However, an entity shall disclose separately the terms and conditions of arrangements that have dissimilar terms and conditions. (b) as at the beginning and end of the reporting period: (i) the carrying amounts, and associated line items presented in the entity's balance sheet, of the financial liabilities that are part of a....
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....the following paragraph shall be inserted namely: - "23CA Classification of Liabilities as Current or Non-current and Noncurrent Liabilities with Covenants (Amendments to Ind AS 1), amended paragraph 3 for annual accounting periods beginning on or after the 1st April 2026."; (iii) In Appendix 1, in paragraph 2, for the word "provision", the word "covenant" shall be substituted.; (I) in "Indian Accounting Standard (Ind AS) 12", - (i) after paragraph 4, the following paragraph shall be inserted, namely: - "4A This Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD), including tax law that implements qualified domestic minimum top-up taxes described in those rules. Such tax law, and the income taxes arising from it, are hereafter referred to as 'Pillar Two legislation' and 'Pillar Two income taxes'. As an exception to the requirements in this Standard, an entity shall neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes."; (ii) after paragraph 88, the follo....