Lease Accounting, Hedge Accounting, ECL Computation, Consulting & Software services
Ind AS 109 | IFRS 9 | Ind AS 32 | IAS 32 | Ind AS 113 | IFRS 13 | Ind AS 116 | IFRS 16
Lease Accounting as per Ind AS 116 is mandatory effective date 1st April 2019 replacing the earlier Ind AS 17. Leases should be recognized in the balance sheet as a ‘right-to-use’ asset and a ‘lease liability’.
ECL for Receivables
Ind AS 109 mandates computation of ECL for receivables portfolio. Simplified approach for receivables is followed for recognising lifetime expected credit loss It is required to determine the groupings of receivables.
ECL for Loans
Ind AS 109 mandates computation of ECL for loans. The Standard does not specify any particular method / model. The method should consider several factors apart from the forward looking macro economic data.
Fair value of Loans
A financial asset is measured at FVOCI if both conditions are met: (a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets …
Financial guarantees should be shown in the balance sheet as a liability at fair value. No longer can this be shown as a contingent liability. Also if no commission is involved, the entity should provide imputed commission.
Hedge Accounting is not mandatory, but it is in the best interest of the entity that following hedge accounting would greatly reduce the unintended consequences of profit and loss fluctuations on account of hedging instruments.
B R & S Reporting
Providing assurance on Business Responsibility & Sustainability Report prepared by the company by evaluating the systems, functions, operations and allied activities. We assess the ‘scope and boundary’ for the B R & S Report
IFRS 17 – Insurance
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The objective is to ensure that an entity provides relevant information that faithfully represents those contracts
As per Ind AS, certain financial instruments has to be fair valued as on the reporting date. Issuances also needs to be valued in certain cases. Compound instruments should be split and accounted for separately.