News

New AS: ball now in industry’s court

KR Srivats New Delhi | Updated on January 23, 2018 Published on August 06, 2015

bl07_regulation.jpg

Advisory committee on standards to seek views of three chambers

The National Advisory Committee on Accounting Standards (NACAS) on Wednesday decided to go in for further industry consultations to decide whether adoption of a key new revenue standards need to be pushed back or not.

The new revenue standard — Ind AS 115 — is slated to be implemented from April 1, 2016 and could radically change the way revenue is recognised in several industries, including telecom and software.

Stakeholders’ opinion

Indian standard setters are debating whether this effective date needed to be deferred in the wake of the International Accounting Standards Board (IASB) putting off the implementation of IFRS 15 (equivalent of Ind AS 115) by one year to January 1, 2018.

“We have now decided to write to all the three industry chambers — FICCI, CII and Assocham — seeking their views on the matter,” Amarjit Chopra, Chairman, NACAS, told BusinessLine here.

NACAS is likely to meet this month end to discuss the response from apex industry chambers.

At Thursday’s NACAS meeting, the CA institute had left it to the committee to take a call on the issue. It is widely perceived the CA institute is keen on avoiding any deferral of Ind AS 115.

“The Central council (CA Institute) had not given any view on this matter. It has left it to NACAS,” Chopra said.

Later, CA Institute President Manoj Fadnis said it will be better to take a call on this issue only after industry understood the pros and cons of adopting the new standard.

“To us, IFRS 15 is a superior standard. However, if industry feels implementation will be difficult, then it should be ready to adopt Ind AS 18 and Ind AS 11 for few years before moving to Ind AS 115. Our effort is to develop more consensuses within industry,” Fadnis said.

Deferral impact

Charanjit Attra, Partner, SR Batliboi & Associates LLP, said views of the industry need to be heard before any decision is taken on the issue. The impact of any deferral of Ind AS 115 on other Ind AS standards should also be considered, Attra said.

Pankaj Chadha, Partner in a member firm of EY, said IASB’s decision to defer implementation with an option for early adoption will be most suited (for India). This would permit Indian companies to fully absorb the changes that this standard entails, he added.

Published on August 06, 2015

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.