Scopes of the three standards for financial instruments

Scopes of the three standards for financial instruments

Are the scopes of all the three standards viz., Ind AS 32, Ind AS 109 and Ind AS 107 similar?

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. While the scope of all the three standards is more or less similar, it should be noted that these are not identical as each one of these standards are subject to different exclusions. The entity, therefore, should be cautious to the extent that exclusion in the scope provided in one standard does not automatically ensure that it is exempt from the application of the other standards relating to the financial instruments. For example, Ind AS 32 is applicable for all financial instruments which means it covers the equity issued by the entity as well while Ind AS 109 applies only to financial assets and financial liabilities. Another typical example would be certain contracts to buy or sell a non-financial item which are to be regarded as though they were financial instruments, even though they are not financial instruments as per the standard.

Ind AS Accounting Standards