TaxTMI 
TaxTMI 
Companies (Indian Accounting Standards) Amendment Rules, 2026.
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....ents to Ind AS (2024), amended paragraphs B5-B6. An entity shall apply those amendments for annual reporting periods beginning on or after 1 April 2026." (ii) in Appendix B, for paragraphs B5 and B6, the following paragraphs shall be substituted, namely:- "B5 An entity shall not reflect in its opening Ind AS Balance Sheet a hedging relationship of a type that does not qualify for hedge accounting in accordance with Ind AS 109 (for example, many hedging relationships where the hedging instrument is a stand-alone written option or a net written option; or where the hedged item is a net position in a cash flow hedge for another risk than foreign currency risk) [see paragraph 6.4.1(a) of Ind AS 109]. However, if an entity designated a net position as a hedged item in accordance with previous GAAP, it may designate as a hedged item in accordance with Ind ASs an individual item within that net position, or a net position if that meets the requirements in paragraph 6.6.1 of Ind AS 109, provided that it does so no later than the date of transition to Ind ASs. B6 If, before the date of transition to Ind ASs, an entity had designated a transaction as a hedge but th....
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....c) after item (e) and entries relating thereto, the following item and entries shall be inserted, namely ;- "(f) the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period."; (iii) in paragraph 11B, after item (c) and entries relating thereto, the following item and entries shall be inserted, namely:- "(d) any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period."; (iv) after paragraph 20A, the following paragraphs shall be inserted, namely:- "20B An entity shall disclose the information required by paragraph 20C by class of financial assets measured at amortised cost or fair value through other comprehensive income and by class of financial liabilities measured at amortised cost. The entity shall consider how much detail to disclose, the appropriate level of aggregation or disaggregation, and whether users of ....
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....te time bands within which to disclose the estimated future cash flows. (ii) qualitative information about how the entity assesses whether a contract might become onerous (see Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets), including the assumptions the entity uses in making this assessment. (c) qualitative and quantitative information about effects on the entity's financial performance for the reporting period. The disclosure is based on the information that is applicable to the reporting period that the entity used to assess whether it has been a net purchaser of electricity (see paragraph B2.8 of Ind AS 109). An entity shall disclose information for the reporting period about: (i) the costs arising from purchases of electricity made under the contracts, disclosing separately how much of the purchased electricity was unused at the time of delivery; (ii) the proceeds arising from sales of unused electricity; and (iii) the costs arising from purchases of electricity made to offset sales of unused electricity. 30B An entity shall disaggregate, for its contracts that meet the criteria set out in paragraph 5C,....
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....to disclose the gain or loss on derecognition relating to financial assets in which the entity has continuing involvement. The entity shall disclose if a gain or loss on derecognition arose because the fair values of the components of the previously recognised asset (ie the interest in the asset derecognised and the interest retained by the entity) were different from the fair value of the previously recognised asset as a whole. In that situation, the entity shall also disclose whether the fair value measurements included significant unobservable inputs, as described in paragraphs 72-73 of Ind AS 113."; (viii) in Appendix 1, for paragraph 5, the following paragraphs shall be substituted, namely:- "5 Paragraphs 42I-42S of IFRS 7 have not been included in Ind AS 107 as these paragraphs relate to initial application of IFRS 9 which are not relevant in Indian context. Paragraphs 43-44BB related to effective date and transition given in IFRS 7 have not been given in Ind AS 107 since it is not relevant in Indian context. Paragraph 44KK relates to IFRS 18, Presentation and Disclosure in Financial Statements, for which corresponding Ind AS 118 is under formulation. Howeve....
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....pe of this Standard."; (v) after paragraph 2.7, the following paragraph shall be inserted, namely:- "2.8 An entity shall also apply paragraphs B2.7-B2.8 to assess whether contracts referencing nature-dependent electricity (as described in paragraph 2.3A) are entered into and continue to be held for the purpose of the receipt of electricity in accordance with the entity's expected usage requirements."; (vi) for paragraph 5.1.3, the following paragraph shall be substituted, namely:- "5.1.3 Despite the requirement in paragraph 5.1.1, at initial recognition, an entity shall measure trade receivables at the amount determined by applying Ind AS 115 if the trade receivables do not contain a significant financing component in accordance with Ind AS 115 (or when the entity applies the practical expedient in accordance with paragraph 63 of Ind AS 115)."; (vii) after paragraph 6.9.13, the following paragraphs shall be inserted, namely:- "6.10 Contracts referencing nature-dependent electricity 6.10.1 Some contracts referencing nature-dependent electricity are designated as hedging instruments in hedges of forecast electricity trans....
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....raphs, the date of initial application is the beginning of the annual reporting period in which the entity first applies the amendments. 7.2.48 An entity is not required to restate prior periods to reflect the application of these amendments. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight. If an entity does not restate prior periods, it shall recognise the effect of initially applying these amendments as an adjustment to the opening balance of financial assets and financial liabilities and the cumulative effect, if any, as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application. 7.2.49 At the date of initial application of the amendments to the Application Guidance to Section 4.1 of this Standard (Classification of financial assets), an entity shall disclose for each class of financial assets that changed measurement category as a result of applying the amendments: (a) the measurement category and carrying amount determined immediately before the amendments were applied; and (b) the measurement category an....
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....s relating thereto, for last paragraph beginning with the words 'The following terms' and ending with the word 'price', the following paragraph shall be substituted, namely:- "The following terms are defined in paragraph 11 of Ind AS 32, Appendix A of Ind AS 107 or Appendix A of Ind AS 113 and are used in this Standard with the meanings specified in Ind AS 32, Ind AS 107 or Ind AS 113: (a) credit risk; (b) equity instrument; (c) fair value; (d) financial asset; (e) financial instrument; and (f) financial liability."; (xi) in Appendix B, - (a) after paragraph B2.6, the following heading and paragraph shall be inserted, namely: - "Contracts to buy nature-dependent electricity B2.7 Some contracts referencing nature-dependent electricity (as described in paragraph 2.3A) require an entity to buy and take delivery of the electricity when it is generated. These contractual features expose the entity to the risk that it would be required to buy electricity during a delivery interval in which the entity cannot use the electricity. The entity might also have no practical ability to avoid m....
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....aragraph 3.3.2). "; (c) after paragraph B3.3.7, the following paragraphs shall be inserted, namely: - "B3.3.8 Despite the requirement in paragraph B3.1.2A to derecognise a financial liability on the settlement date, when settling a financial liability (or part of a financial liability) in cash using an electronic payment system, an entity is permitted to deem the financial liability (or part of it) to be discharged before the settlement date if, and only if, the entity has initiated a payment instruction that resulted in: (a) the entity having no practical ability to withdraw, stop or cancel the payment instruction; (b) the entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and (c) the settlement risk associated with the electronic payment system being insignificant. B3.3.9 For the purpose of applying paragraph B3.3.8(c), settlement risk associated with an electronic payment system is insignificant if its characteristics are such that completion of the payment instruction follows a standard administrative process and the time between the criteria in paragraphs ....
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....or amount of the contractual cash flows. While the nature of the contingent event in itself is not a determinative factor in assessing whether the contractual cash flows are solely payments of principal and interest, it may be an indicator. For example, compare a financial instrument with an interest rate that is reset to a higher rate if the debtor misses a particular number of payments to a financial instrument with an interest rate that is reset to a higher rate if a specified equity index reaches a particular level. It is more likely in the former case that the contractual cash flows over the life of the instrument will be solely payments of principal and interest on the principal amount outstanding because of the relationship between missed payments and an increase in credit risk. In the former case, the nature of the contingent event relates directly to, and the contractual cash flows change in the same direction as, changes in basic lending risks and costs. (See also paragraph B4.1.18.) B4.1.10A In some cases, a contingent feature gives rise to contractual cash flows that are consistent with a basic lending arrangement both before and after the change in contractual....
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.... on the financial asset are solely payments of principal and interest. The entity therefore assesses whether, in all contractually possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without the contingent feature linked to carbon emissions (see paragraph B4.1.10A). Because any adjustments over the life of the instrument would not result in contractual cash flows that are significantly different, the entity concludes that the loan has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding.". (g) in paragraph B4.1.14, in the table, after item "Instrument H" and and entries relating thereto, the following item and the entries shall be inserted, namely: - "Instrument I Instrument I is a loan with an interest rate that is adjusted every reporting period to track the movements in a market-determined carbon price index during the preceding reporting period. Analysis The contractual cash flows are not solely payments of principal and interest on the principal amount outstanding. ....
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....tent with payments representing principal and interest, the financial asset does not meet the condition in paragraphs 4.1.2(b) and 4.1.2A(b). Whether the underlying assets are financial assets or non-financial assets does not in itself affect this assessment."; (j) for paragraph B4.1.20, the following paragraphs shall be substituted, namely: - "B4.1.20 In some types of transactions with non-recourse features, an issuer may prioritise payments to the holders of financial assets using multiple contractually linked instruments (tranches). Each tranche has a subordination ranking that specifies the order in which any cash flows generated by the issuer from the underlying pool of financial instruments are allocated to the tranche. The prioritisation of payments to the holders of these tranches is established through a waterfall payment structure that creates concentrations of credit risk and results in a disproportionate allocation of cash shortfalls from the underlying pool between the tranches. In such situations, the holders of a tranche have the right to payments of principal and interest on the principal amount outstanding only if the issuer generates sufficient c....
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....al amount outstanding."; (xii) in Appendix 1, for paragraph 3, the following paragraph shall be substituted, namely:- "3. Paragraphs 7.1.1 to 7.1.3 of IFRS 9 related to effective date have not been included in Ind AS 109 as these paragraphs are not relevant in Indian context. Paragraph 7.1.11 has not been included since it relates to amendments due to issuance of IFRS 18, Presentation and Disclosure in Financial Statements, for which corresponding Ind AS is under formulation. Paragraph 7.1.13 has not been included since it relates to early application of the amendments to the classification and measurement of financial instruments which is not permitted in India. However, in order to maintain consistency with paragraph numbers of IFRS 9, these paragraph numbers are retained in Ind AS 109.". (D) in "Indian Accounting Standard (Ind AS) 110": - (i) in Appendix B, for paragraph B74, the following paragraph shall be substituted, namely:- "B74 Such a relationship need not involve a contractual arrangement. A party is a de facto agent when the investor has, the ability to direct that party to act on the investor's behalf. A party might also be ....