Accounting Clinic

A Treasure Trove of over 400+ Ind AS FAQs pertaining to India Inc, edited by Ind AS Expert Dr. Anand Banka

Featured FAQs


Ind-AS 2 - Inventories

Ind AS 2 requires that inventories shall be measured at the lower of cost and net realisable value. Ind AS 2 also defines net realisable value as estimated selling price less estimated costs.


Whether trade discounts expected to be allowed on sale should be considered while determining the net realisable value of the inventories?

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Ind-AS 23 - Borrowing Costs

The acquisition/ construction activity of a qualifying asset is completed, however installation of the same may require certain activities to be performed viz. calibrations to be made or test runs to be performed, etc. For exam...


In the above example, should the borrowing costs pertaining to the 2 months period be capitalised?

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Ind-AS 16 - Property, Plant and Equipment

Companies commonly acquire land with existing building/s on it for a single negotiated consideration. The fair market values of the land and building/s individually can be determined. In some cases, companies have no intention ...


How the acquisition of land with the existing building/s will be accounted for in the books of accounts of the company, eg. real estate developer?

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Ind-AS 116 - Leases

Entity X provides a Customer Y with refrigerators to store the purchased chemicals at the premises of Customer Y. However, the refrigerators are not mentioned or promised to Customer Y in the contract. They are separately provided...


Whether the above arrangement will meet the definition of lease under Ind AS 116?

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Ind-AS 116 - Leases

Entity X (customer) enters into an arrangement for a period of six years with Entity Y (supplier) for the right to store its gas in a specified storage tank that has no separate compartments. At inception of the contract, Entity X...


Whether there is an identified asset and whether the arrangement would be a lease:
(i) in the respective stand-alone financial statements of Entity X and Entity Z.
(ii) in the consolidat...

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Ind-AS 116 - Leases

ABC Ltd. takes on lease a crossover which is explicitly specified in the contract, for a period of two years. As per the contract, ABC Ltd. can drive it only up to a maximum of 2,00,000 kilometers during the period of two years.


Considering the cap on the number of kilometers that the crossover can be driven by it, whether ABC Ltd. obtains substantially all of the economic benefits from use of the crossover?

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