MCA has notified Companies (Ind AS) Amendment Rules, 2020

MCA has notified Companies (Ind AS) Amendment Rules, 2020 on July 24, 2020 which shall come into force on the date of their publication in the Official Gazette. Primarily there are amendment in Ind AS 1, Ind AS 8, Ind AS 10, Ind AS 34, Ind AS 37, Ind AS 103, Ind AS 107, Ind AS 109 and Ind AS 116. Following are the list of major amendments:

1. Ind AS 1 & 8 : Definition of “Material” has been amended (applicable from April 1, 2020 prospectively)

2. Ind AS 10: Apart from disclosure of non-adjusting event, the disclosure of an estimate of its financial effect, or a statement that such an estimate cannot be made

3. Ind AS 37: clarification on accounting for restructuring plans

4. Ind AS 103: The business has been defined in more detail and an optional test to identify concentration on Fair value is given.

5. Ind AS 107: Disclosures for uncertainty arising from interest rate benchmark reform.

6. Ind AS 109: Temporary exceptions from applying specific hedge accounting requirements.

7. Ind AS 116: The clarifications on rent concessions to be accounted for as a lease modifications or not has been given.