TMI BlogPresentation of Financial StatementsX X X X Extracts X X X X X X X X Extracts X X X X ..... e and content of condensed interim financial statements prepared in accordance with Ind AS 34, Interim Financial Reporting. However, paragraphs 15 35 apply to such financial statements. This Standard applies equally to all entities, including those that present consolidated financial statements in accordance with Ind AS 110, Consolidated Financial Statements, and those that present separate financial statements in accordance with Ind AS 27, Separate Financial Statements. 5 This Standard uses terminology that is suitable for profit-oriented entities, including public sector business entities. If entities with not-for-profit activities in the private sector or the public sector apply this Standard, they may need to amend the descriptions used for particular line items in the financial statements and for the financial statements themselves. 6 Similarly, entities whose share capital is not equity may need to adapt the financial statement presentation of members interests. Definitions 7 The following terms are used in this Standard with the meanings specified: 38 [Accounting policies are defined in paragraph 5 of Ind AS 8, Accounting Policies, Changes in A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while also considering the entity s own circumstances. Many existing and potential investors, lenders and other creditors cannot require reporting entities to provide information directly to them and must rely on general purpose financial statements for much of the financial information they need. Consequently, they are the primary users to whom general purpose financial statements are directed. Financial statements are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information diligently. At times, even wellinformed and diligent users may need to seek the aid of an adviser to understand information about complex economic phenomena. ] Notes contain information in addition to that presented in the balance sheet ), statement of profit and loss, statement of changes in equity and statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements. Other comprehensive income comprises items of income and expense (including reclassification adjustments) that are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e income in the current or previous periods. Total comprehensive income is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners. Total comprehensive income comprises all components of profit or loss and of other comprehensive income . 8 [Refer Appendix 1] 8A The following terms are described in Ind AS 32, Financial Instruments: Presentation, and are used in this Standard with the meaning specified in Ind AS 32: (a) puttable financial instrument classified as an equity instrument(described in paragraphs 16A and 16B of Ind AS 32) (b) an instrument that imposes on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation and is classified as an equity instrument (described in paragraphs 16C and 16D of Ind AS 32). Financial statements Purpose of financial statements 9 Financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statements is to provide information about the fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, including changes in the environment in which the entity operates, the entity s response to those changes and their effect, and the entity s policy for investment to maintain and enhance financial performance, including its dividend policy; (b) the entity s sources of funding and its targeted ratio of liabilities to equity; and (c) the entity s resources not recognised in the balance sheet in accordance with Ind ASs. 14 Many entities also present, outside the financial statements, reports and statements such as environmental reports and value added statements, particularly in industries in which environmental factors are significant and when employees are regarded as an important user group. Reports and statements presented outside financial statements are outside the scope of Ind ASs. General features Presentation of True and Fair View and compliance with Ind ASs 15 Financial statements shall present a true and fair view of the financial position, financial performance and cash flows of an entity. Presentation of true and fair view requires the faithful representation of the effects of transactions, other events and conditions in accordance with the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and fair view of the entity s financial position, financial performance and cash flows; (b) that it has complied with applicable Ind ASs, except that it has departed from a particular requirement to present a true and fair view; (c) the title of the Ind AS from which the entity has departed, the nature of the departure, including the treatment that the Ind AS would require, the reason why that treatment would be so misleading in the circumstances that it would conflict with the objective of financial statements set out in the 30 [Conceptual Framework], and the treatment adopted; and (d) for each period presented, the financial effect of the departure on each item in the financial statements that would have been reported in complying with the requirement. 21 When an entity has departed from a requirement of an Ind AS in a prior period, and that departure affects the amounts recognised in the financial statements for the current period, it shall make the disclosures set out in paragraph 20(c) and (d). 22 Paragraph 21 applies, for example, when an entity departed in a prior period from a requirement in an Ind AS for the measurement of assets or liabiliti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity s ability to continue as a going concern, the entity shall disclose those uncertainties. When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not regarded as a going concern. 26 In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. The degree of consideration depends on the facts in each case. When an entity has a history of profitable operations and ready access to financial resources, the entity may reach a conclusion that the going concern basis of accounting is appropriate without detailed analysis. In other cases, management ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntity shall also consider whether to provide additional disclosures when compliance with the specific requirements in Ind AS is insufficient to enable users of financial statements to understand the impact of particular transactions, other events and conditions on the entity s financial position and financial performance. ] Offsetting 32 An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an Ind AS. 33 An entity reports separately both assets and liabilities, and income and expenses. Offsetting in the statement of profit and loss or balance sheet, except when offsetting reflects the substance of the transaction or other event, detracts from the ability of users both to understand the transactions, other events and conditions that have occurred and to assess the entity s future cash flows. Measuring assets net of valuation allowances-for example, obsolescence allowances on inventories and doubtful debts allowances on receivables-is not offsetting. 19 [34 Ind AS 115, Revenue from Contracts with Customers, requires an entity to measure revenue from contracts with customers at the amount of consideration to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and descriptive information if it is relevant to understanding the current period s financial statements. 38A An entity shall present, as a minimum, two balance sheets , two statements of profit and loss, two statements of cash flows and two statements of changes in equity, and related notes. 38B In some cases, narrative information provided in the financial statements for the preceding period(s) continues to be relevant in the current period. For example, an entity discloses in the current period details of a legal dispute, the outcome of which was uncertain at the end of the preceding period and is yet to be resolved. Users may benefit from the disclosure of information that the uncertainty existed at the end of the preceding period and from the disclosure of information about the steps that have been taken during the period to resolve the uncertainty. Additional comparative information 38C An entity may present comparative information in addition to the minimum comparative financial statements required by Ind ASs, as long as that information is prepared in accordance with Ind ASs. This comparative information may consist of one or more statements referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arative amounts, it shall disclose (including as at the beginning of the preceding period): (a) the nature of the reclassification; (b) the amount of each item or class of items that is reclassified; and (c) the reason for the reclassification. 42 When it is impracticable to reclassify comparative amounts, an entity shall disclose: (a) the reason for not reclassifying the amounts, and (b) the nature of the adjustments that would have been made if the amounts had been reclassified. 43 Enhancing the inter-period comparability of information assists users in making economic decisions, especially by allowing the assessment of trends in financial information for predictive purposes. In some circumstances, it is impracticable to reclassify comparative information for a particular prior period to achieve comparability with the current period. For example, an entity may not have collected data in the prior period(s) in a way that allows reclassification, and it may be impracticable to recreate the information. 44 Ind AS 8 sets out the adjustments to comparative information required when an entity changes an accounting policy or corrects an error. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e requirements. 51 An entity shall clearly identify each financial statement and the notes. In addition, an entity shall display the following information prominently, and repeat it when necessary for the information presented to be understandable: (a) the name of the reporting entity or other means of identification, and any change in that information from the end of the preceding reporting period; (b) whether the financial statements are of an individual entity or a group of entities; (c) the date of the end of the reporting period or the period covered by the set of financial statements or notes; (d) the presentation currency, as defined in Ind AS 21; and (e) the level of rounding used in presenting amounts in the financial statements. 52 An entity meets the requirements in paragraph 51 by presenting appropriate headings for pages, statements, notes, columns and the like. Judgement is required in determining the best way of presenting such information. For example, when an entity presents the financial statements electronically, separate pages are not always used; an entity then presents the above items to ensure that the information includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more prominence than the subtotals and totals required in Ind AS for the balance sheet. ] 56 When an entity presents current and non-current assets, and current and non-current liabilities, as separate classifications in its balance sheet, it shall not classify deferred tax assets (liabilities) as current assets (liabilities). 57 This Standard does not prescribe the order or format in which an entity presents items. Paragraph 54 simply lists items that are sufficiently different in nature or function to warrant separate presentation in the balance sheet. In addition: (a) line items are included when the size, nature or function of an item or aggregation of similar items is such that separate presentation is relevant to an understanding of the entity s financial position; and (b) the descriptions used and the ordering of items or aggregation of similar items may be amended according to the nature of the entity and its transactions, to provide information that is relevant to an understanding of the entity s financial position. For example, a financial institution may amend the above descriptions to provide information that is relevant to the operations of a financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es using a current/non-current classification and others in order of liquidity when this provides information that is reliable and more relevant. The need for a mixed basis of presentation might arise when an entity has diverse operations. 65 Information about expected dates of realisation of assets and liabilities is useful in assessing the liquidity and solvency of an entity. Ind AS 107, Financial Instruments: Disclosures, requires disclosure of the maturity dates of financial assets and financial liabilities. Financial assets include trade and other receivables, and financial liabilities include trade and other payables. Information on the expected date of recovery of non-monetary assets such as inventories and expected date of settlement for liabilities such as provisions is also useful, whether assets and liabilities are classified as current or as noncurrent. For example, an entity discloses the amount of inventories that are expected to be recovered more than twelve months after the reporting period. Current assets 66 An entity shall classify an asset as current when: (a) it expects to realise the asset, or intends to sell or consume it, in its normal oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be settled more than twelve months after the reporting period. The same normal operating cycle applies to the classification of an entity s assets and liabilities. When the entity s normal operating cycle is not clearly identifiable, it is assumed to be twelve months. 71 Other current liabilities are not settled as part of the normal operating cycle, but are due for settlement within twelve months after the reporting period or held primarily for the purpose of trading. Examples are some financial liabilities that meet the definition of held for trading in Ind AS 109, bank overdrafts, and the current portion of non-current financial liabilities, dividends payable, income taxes and other non-trade payables. Financial liabilities that provide financing on a long-term basis (ie are not part of the working capital used in the entity s normal operating cycle) and are not due for settlement within twelve months after the reporting period are non-current liabilities, subject to paragraphs 74 and 75. 72 An entity classifies its financial liabilities as current when they are due to be settled within twelve months after the reporting period, even if: (a) the original term was for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isaggregated, in accordance with Ind AS 2, Inventories, into classifications such as merchandise, production supplies, materials, work in progress and finished goods; (d) provisions are disaggregated into provisions for employee benefits and other items; and (e) equity capital and reserves are disaggregated into various classes, such as paid-in capital, share premium and reserves. 79 An entity shall disclose the following, either in the balance sheet or the statement of changes in equity, or in the notes: (a) for each class of share capital: (i) the number of shares authorised; (ii) the number of shares issued and fully paid, and issued but not fully paid; (iii) par value per share, or that the shares have no par value; (iv) a reconciliation of the number of shares outstanding at the beginning and at the end of the period; (v) the rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital; (vi) shares in the entity held by the entity or by its subsidiaries or associates; and (vii) shares reserved for issue under options and contracts for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with Section 5.5 of Ind AS 109; (c) share of the profit or loss of associates and joint ventures accounted for using the equity method; (ca) if a financial asset is reclassified out of the amortised cost measurement category so that it is measured at fair value through profit or loss, any gain or loss arising from a difference between the previous amortised cost of the financial asset and its fair value at the reclassification date (as defined in Ind AS 109); (cb) if a financial asset is reclassified out of the fair value through other comprehensive income measurement category so that it is measured at fair value through profit or loss, any cumulative gain or loss previously recognised in other comprehensive income that is reclassified to profit or loss; (d) tax expense; (e) [Refer Appendix 1] (ea) a single amount for the total of discontinued operations (see Ind AS 105). (f)-(i) [Refer Appendix 1] Information to be presented in the other comprehensive income section 8 [82A The other comprehensive income section shall p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance. An entity considers factors including materiality and the nature and function of the items of income and expense. For example, a financial institution may amend the descriptions to provide information that is relevant to the operations of a financial institution. An entity does not offset income and expense items unless the criteria in paragraph 32 are met. 87 An entity shall not present any items of income or expense as extraordinary items, in the statement of profit and loss or in the notes. Profit or loss for the period 88 An entity shall recognise all items of income and expense in a period in profit or loss unless an Ind AS requires or permits otherwise. 89 Some Ind ASs specify circumstances when an entity recognises particular items outside profit or loss in the current period. Ind AS 8 specifies two such circumstances: the correction of errors and the effect of changes in accounting policies. Other Ind ASs require or permit components of other comprehensive income that meet the 34 [ Conceptual Framework s ] definition of income or expense to be excluded from profit or loss (see paragraph 7). Other comprehensive income for the period 90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges in revaluation surplus may be transferred to retained earnings in subsequent periods as the asset is used or when it is derecognised (see Ind AS 16 and Ind AS 38). In accordance with Ind AS 109, reclassification adjustments do not arise if a cash flow hedge or the accounting for the time value of an option (or the forward element of a forward contract or the foreign currency basis spread of a financial instrument) result in amounts that are removed from the cash flow hedge reserve or a separate component of equity, respectively, and included directly in the initial cost or other carrying amount of an asset or a liability. These amounts are directly transferred to assets or liabilities. Information to be presented in the statement of profit and loss or in the notes 97 When items of income or expense are material, an entity shall disclose their nature and amount separately. 98 Circumstances that would give rise to the separate disclosure of items of income and expense include: (a) write-downs of inventories to net realisable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs; (b) restructurings of the act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owners of the parent and to noncontrolling interests; (b) for each component of equity, the effects of retrospective application or retrospective restatement recognised in accordance with Ind AS 8; (c) [Refer Appendix 1] (d) for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately (as a minimum) disclosing changes resulting from: (i) profit or loss; (ii) other comprehensive income; (iii) transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control; and (iv) any item recognised directly in equity such as amount recognised directly in equity as capital reserve with paragraph 36A of Ind AS 103. Information to be presented in the statement of changes in equity or in the notes 106A For each component of equity an entity shall present, either in the statement of changes in equity or in the notes, an analysis of other comprehensive income by item (see paragraph 106 (d) (ii)). 107 An entity shall present, either i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the information required by Ind ASs that is not presented elsewhere in the financial statements; and (c) provide information that is not presented elsewhere in the financial statements, but is relevant to an understanding of any of them. 11 [113 An entity shall present notes in a systematic manner. In determining a systematic manner, the entity shall consider the effect on the understandability and comparability of its financial statements. An entity shall cross-reference each item in the balance sheet and in the statement of profit and loss, and in the statements of changes in equity and of cash flows to any related information in the notes.] 12 [114 Examples of systematic ordering or grouping of the notes include: (a) giving prominence to the areas of its activities that the entity considers to be most relevant to an understanding of its financial performance and financial position, such as grouping together information about particular operating activities; (b) grouping together information about items measured similarly such as assets measured at fair value; or (c) following the order of the line items in the statement of profit and loss and the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licy from one or more options permitted by Ind ASs; (c) the accounting policy was developed in accordance with Ind AS 8 in the absence of an Ind AS that specifically applies; (d) the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or (e) the accounting required for them is complex and users of the entity s financial statements would otherwise not understand those material transactions, other events or conditions such a situation could arise if an entity applies more than one Ind AS to a class of material transactions. 117C Accounting policy information that focuses on how an entity has applied the requirements of the Ind ASs to its own circumstances provides entity-specific information that is more useful to users of financial statements than standardised information, or information that only duplicates or summarises the requirements of the Ind ASs. 117D If an entity discloses immaterial accounting policy information, such information shall not obscure material account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir nature, and (b) their carrying amount as at the end of the reporting period. 126 Determining the carrying amounts of some assets and liabilities requires estimation of the effects of uncertain future events on those assets and liabilities at the end of the reporting period. For example, in the absence of recently observed market prices, future-oriented estimates are necessary to measure the recoverable amount of classes of property, plant and equipment, the effect of technological obsolescence on inventories, provisions subject to the future outcome of litigation in progress, and long-term employee benefit liabilities such as pension obligations. These estimates involve assumptions about such items as the risk adjustment to cash flows or discount rates, future changes in salaries and future changes in prices affecting other costs. 127 The assumptions and other sources of estimation uncertainty disclosed in accordance with paragraph 125 relate to the estimates that require management s most difficult, subjective or complex judgements. As the number of variables and assumptions affecting the possible future resolution of the uncertainties increases, those judgements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity (or class of assets or liabilities) affected by the assumption. 132 The disclosures in paragraph 122 of particular judgements that management made in the process of applying the entity s accounting policies do not relate to the disclosures of sources of estimation uncertainty in paragraph 125. 133 Other Ind ASs require the disclosure of some of the assumptions that would otherwise be required in accordance with paragraph 125. For example, Ind AS 37 requires disclosure, in specified circumstances, of major assumptions concerning future events affecting classes of provisions. Ind AS 113, Fair Value Measurement, requires disclosure of significant assumptions (including the valuation technique(s) and inputs) the entity uses when measuring the fair values of assets and liabilities that are carried at fair value. Capital 134 An entity shall disclose information that enables users of its financial statements to evaluate the entity s objectives, policies and processes for managing capital. 135 To comply with paragraph 134, the entity discloses the following: (a) qualitative information about its objectives, policies and processes for managing capital, including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of dividends proposed or declared before the financial statements were approved for issue but not recognised as a distribution to owners during the period, and the related amount per share; and (b) the amount of any cumulative preference dividends not recognised. 138 An entity shall disclose the following, if not disclosed elsewhere in information published with the financial statements: (a) the domicile and legal form of the entity, its country of incorporation and the address of its registered office (or principal place of business, if different from the registered office); (b) a description of the nature of the entity s operations and its principal activities; (c) the name of the parent and the ultimate parent of the group; and (d) if it is a limited life entity, information regarding the length of its life. 20 [ Transition and *Effective Date 139 * 139A * 139B * 139C * 139D * 139E * 139F * 139G * 139H * 139I * 139J * 139K * 139L * 139M * 139N As a consequence of issuance of Ind AS 115, Revenue from Contracts with Customers , paragraph 34 is amended. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Site Costs, contained in Ind AS 38, Intangible Assets 5 Appendix D, Extinguishing Financial Liabilities with Equity Instruments contained in Ind AS 109, Financial Instruments. 6 Appendix C, Levies, contained in Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets. 7 Appendix B, Stripping Costs in the Production Phase of a Surface Mine, contained in Ind AS 16, Property, Plant and Equipment. Appendix 1 Note: This Appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is only to bring out the major differences, if any, between Indian Accounting Standard (Ind AS) 1 and the corresponding International Accounting Standard (IAS) 1, Presentation of Financial Statements, issued by the International Accounting Standards Board. Comparison with IAS 1, Presentation of Financial Statements 1. With regard to preparation of Statement of profit and loss, International Accounting Standard (IAS) 1, Presentation of Financial Statements, provides an option either to follow the single statement approach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Deleted in IAS 1. In order to maintain consistency with paragraph numbers of IAS 1, the paragraph numbers are retained in Ind AS 1. (i) paragraph 12 (ii) paragraphs 39-40 (iii) paragraph 81 (iv) paragraph 82(e) (v) paragraphs 82(f)-(i) (vi) paragraphs 83-84 (vii) paragraph 106(c) (viii) paragraph 123(a) (ix) paragraph 115 45 (x) paragraphs 118-121 ]] 7. Paragraph 29 and 31 dealing with materiality and aggregation has been modified to include words except when required by law . 8. Paragraph 106(d)(iv) of Ind AS 1 dealing with disclosures regarding reconciliation between the carrying amount at the beginning and the end of the period for each component of equity, has been amended to include disclosure regarding recognition of bargain purchase gain arising on business combination in line with treatment prescribed in this regard in Ind AS 103. 9. Paragraph 74 has been modified to clarify that long term loan arrangement need not be classified as current on account of breach of a material provision, for which the lender has agreed to waive before the approval of financial statements for issue. Consequential to this Paragraph 76 has been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sses on the disposal of non-current assets, including investments and operating assets, by deducting from the amount of consideration on disposal the carrying amount of the asset and related selling expenses; and (b) an entity may net expenditure related to a provision that is recognised in accordance with Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, and reimbursed under a contractual arrangement with a third party (for example, a supplier s warranty agreement) against the related reimbursement. 5. Substituted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, As a minimum, the balance sheet shall include line items that present the following amounts: 6. Substituted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, 55 An entity shall present additional line items, headings and subtotals in the balance sheet when such presentation is relevant to an understanding of the entity s financial position. 7. Inserted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k management objectives and policies (see Ind AS 107). 13. Omitted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, 115 In some circumstances, it may be necessary or desirable to vary the order of specific items within the notes. For example, an entity may combine information on changes in fair value recognised in profit or loss with information on maturities of financial instruments, although the former disclosures relate to the statement of profit and loss and the latter relate to the balance sheet. Nevertheless, an entity retains a systematic structure for the notes as far as practicable. 14. Substituted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3-2016 before it was read as, 117 An entity shall disclose in the summary of significant accounting policies: (a) the measurement basis (or bases) used in preparing the financial statements, and (b) the other accounting policies used that are relevant to an understanding of the financial statements. 15. Substituted vide F. No. 01/01/2009-CL-V(Part) - Dated 30-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) paragraph 12 (ii) paragraphs 39-40 (iii) paragraph 81 (iv) paragraph 82(e) (v) paragraphs 82(f)-(i) (vi) paragraphs 83-84 (vii) paragraph 106(c) (viii) paragraph 123(a) 19. Substituted vide F. No. 01/01/2009-CL-V(Part VI) Dated 28-03-2018 , w.e.f. 1st day of April, 2018, before it was read as, 4 [34 Ind AS 18, Revenue, defines revenue and requires an entity to measure it at the fair value of the consideration received or receivable, taking into account the amount of any trade discounts and volume rebates the entity allows. An entity undertakes, in the course of its ordinary activities, other transactions that do not generate revenue but are incidental to the main revenue-generating activities. An entity presents the results of such transactions, when this presentation reflects the substance of the transaction or other event, by netting any income with related expenses arising on the same transaction. For example: (a) an entity presents gains and losses on the disposal of non-current assets, including investments and operating assets, by deducting from the proceeds on disposal the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... graph 25 that users are assumed to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence. Therefore, the assessment needs to take into account how users with such attributes could reasonably be expected to be influenced in making economic decisions. 26 Inserted vide NOTIFICATION NO. G.S.R. 463(E) dated 24-07-2020 27 Substituted vide NOTIFICATION NO. G.S.R. 463(E) dated 24-07-2020 before it was read as 24 [ 10. Paragraphs 139 to 139M and 139O-139P related to Transition and Effective Date have not been included in Ind AS 1 as these are not relevant in Indian context. However, in order to maintain consistency with paragraph numbers of IAS 1, these paragraph numbers are retained in Ind AS 1. ] 28 Substituted vide NOTIFICATION NO. G.S.R. 419(E) dated 18-06-2021 before it was read as Framework 29 Substituted vide NOTIFICATION NO. G.S.R. 419(E) dated 18-06-2021 before it was read as in the Framework 30 Substituted vide NOTIFICATION NO. G.S.R. 41 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing: (a) the measurement basis (or bases) used in preparing the financial statements; and (b) the other accounting policies used that are relevant to an understanding of the financial statements. ] 42. Inserted vide Notification G.S.R. 242(E), dated 31.03.2023 w.e.f. 01.04.2023, 43. Omitted vide vide Notification G.S.R. 242(E), dated 31.03.2023 w.e.f. 01.04.2023, before it was read as, 118 It is important for an entity to inform users of the measurement basis or bases used in the financial statements (for example, historical cost, current cost, net realisable value, fair value or recoverable amount) because the basis on which an entity prepares the financial statements significantly affects users analysis. When an entity uses more than one measurement basis in the financial statements, for example when particular classes of assets are revalued, it is sufficient to provide an indication of the categories of assets and liabilities to which each measurement basis is applied. 15 [119 In deciding whether a particular accounting policy should be disclosed, management considers whether disclosure would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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