Current Context: During this pandemic situation of Coronavirus, and to support Indian companies, the Government of India has amended certain Indian Accounting Standards (Ind-AS),including the standards and norms relating to leases.
- The ministry of corporate affairs has amended Ind-AS 103 and Ind-As 116 and some other standards.
- The Ind-AS 116 standard defines lease as a contract, or any section of particular contract which conveys the right to use an asset for a tenure of time in exchange of consideration. It is related to principles of presentation, recognition and disclosure of leases. The Ind-AS 103 standard is related to business combinations.
- The amendment rules were set and finalized by the ministry in guidance and consultation with National Financial Reporting Authority (NFRA).
- Previously before relaxing norms under Ind-As 116, there were practical difficulties being faced by the companies in the current situation of pandemic in terms of lease payments. Therefore to solve this problem, GOI and the ministry has amended the rules under this standard. This will provide lease concessions to the Indian companies.
- Amendments in the Ind-AS 103 will help entities to determine whether a transactions need to be accounted as a business combination or as an asset acquisition.
Question:
Q.1 Which Indian Accounting standard was amended by GOI recently?
a. Ind-As 111
b. Ind-AS 103
c. Ind-As 116
d. Both (b) and (c)
a. Ind-As 111
b. Ind-AS 103
c. Ind-As 116
d. Both (b) and (c)
