Financial
reporting in India is passing through very remarkable moments owing to adoption
of Indian accounting standards (Ind AS). For companies covered under Phase – 1
of mandatory Ind AS Financials, 31st March 2017 is first time
complete reporting period and June 2016 was first Quarterly result publication
date and we are months away from Phase 2 implementation. Ind AS Implementation has very wide impact on the
organization so companies should assess carefully impact on growth, strategies,
joint ventures and tax planning. There are many challenges in implementation of
Ind AS however this blog/ article focuses on 5 major challenges:
Challenges Ahead
Financial Instruments
Deferred Taxation
Revenue Recognition
Control for Group Accounting
Business Combination
Financial instrument (Ind AS 32,
109):-
There are no mandatory standards
applicable under Ind GAAP, Ind AS provide the detailed guidance on accounting
of classification, measurement, derecognition and impairment of financial
assets and financial liabilities.