ICAI issue Draft standard onFinancial Instruments | Accounting Standard 109

ICAI issue Draft standard onFinancial Instruments | Accounting Standard 109 |ICAI has released Draft standard onFinancial Instruments | Accounting Standard 109 This draft standard is primarily based on IFRSs for SMEs, which are simplified versions of IFRS Standards (which form the basis of Ind ASs), the draft also substantially carries forward provisions of existing pronouncement of ICAI, Guidance Note on Accounting for Derivative Contracts applicable for entities not covered by Ind AS roadmap. Efforts are made to keep the standard simple, appropriate balance between fair presentation and prudence is maintained. Following are relevant sections in IFRS for SMEs, corresponding to which this draft standard comprises of 3 sections:

Sections in IFRS for SMEs	Sections in upgraded AS 109
Section 11, Basic Financial Instruments	Section A, Basic Financial Instruments
Section 12, Other Financial Instruments Issues	Section B, Other Financial Instruments
Section 22, Liabilities and Equity	Section C, Liabilities and Equity

Section A applies to basic financial instruments (those that are commonly used and have simple features) and is relevant to all entities. Section B applies to other, more complex financial instruments and transactions. Section C Liabilities and Equity establishes principles for classifying financial instruments as either liabilities or equity and addresses accounting for equity instruments issued to individuals or other parties acting in their capacity as investors in equity instruments (ie in their capacity as owners). Similar to IFRS for SMEs, no separate AS equivalent to Ind AS 113, Fair Value Measurement is currently proposed, rather fair value measurement principles are incorporated in individual standards based on entry price concept. Following is the Exposure Draft of the Accounting Standard (AS) 109, Financial Instruments, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, for comments. The Board invites comments on any aspect of this Exposure Draft. Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

ICAI issue Draft standard onFinancial Instruments | Accounting Standard 109

How to Comment Comments can be submitted using one of the following methods so as to receive not later than June 30, 2018:

1. Electronically:	Visit the following link http://www.icai.org/comments/asb/
2. Email:	Comments can be sent at [email protected]
3. Postal:	Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002

Further clarifications on any aspect of this Exposure Draft may be sought by email to [email protected].