Ind AS for financial instruments replica of IFRS?
Are the Ind AS relating to financial instruments an exact replica of its counterpart, viz, IFRS?
Ind AS 32 is the converged standard of IAS 32. Ind AS 109 is the converged Ind AS of IFRS 9. Ind AS 107 is the converged Ind AS of IFRS 7. As on date, it may be correct to state that the Ind ASs relating to financial instruments are more or less a replica of its IFRS counterpart, even though there is one major carve out in Ind AS 32 and one major exception provided in Ind AS 109 in respect of hedge accounting. It is pertinent to note that a financial instrument which was undertaken as a project by IASB was completed in July 2014 culminating in the release of IFRS 9 on 24 July, 2014. Financial instruments project by IASB was carried out broadly in three phases, phase-1 on classification and measurement, phase-2 on impairment and phase-3 on hedge accounting. Since there has been a major overhaul of the key Accounting Standard, viz, IFRS 9, we may presume that the contents of the standard are likely to remain unaltered at least in the near future. IFRS 9 is applicable to the rest of the geographical areas implementing IFRS, only with effect from 1 January, 2018 onwards.