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 16 - Property, Plant and Equipment

Companies generally set an internal limit for capitalisation of spares. An example could be:- An internal limit of Rs. 50,000 is set i.e., any item of spare having useful life of more than 1 year and value more than Rs. 50,0...

1. Whether such spares should be capitalised from the date of its purchase or date of actual issue of that spare into use?

2. Whether a spare that has a life of le...

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Ind-AS 115 - Revenue from Contracts with Customers

Companies operating in the same line of business generally contract to supply the same units of products to each other’s customers. For example:- Entities A Ltd. and B Ltd. are both engaged in the extraction and supply...

How will the situation envisaged in the above example be treated under Ind AS 115?

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IndAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

While preparing consolidated financial statements, it is pertinent that all like transactions of all entities being consolidated, are being recorded using uniform accounting policies.

Are individual entities within a group required to adopt uniform accounting policies in their stand-alone financial statements?

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Ind-AS 20 - Accounting for Government Grants and Disclosure of Government Assistance

Companies sometimes receive grants from government with specific conditions of spending the grants so received. Companies sometimes may not be sure that the conditions would be fulfilled. For example:- A Ltd. has received a ...

In the above example, whether A Ltd. can recognise such grant received in its financial statements from April 2021 as per Ind AS 20?

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Ind-AS 23 - Borrowing Costs

Generally, during construction of a qualifying asset, there is a wide variance in the amount of borrowing cost to be capitalised based on the accrual basis (cost of construction accrued) and on actual cash flows basis (cash paymen...

In such cases, what should be the basis of capitalisation for borrowing costs? On accrual basis or actual cash outflow basis?

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IndAS 37 - Provisions, Contingent Liabilities and Contingent Assets

Ind AS 37 requires that for a liability to qualify for recognition, there must be not only a present obligation but also the probability of an outflow of resources embodying economic benefits to settle that obligation.

What is the meaning of the word “probable” in the context of Ind AS 37?

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