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ICAI releases Exposure Draft on Accounting Standard (AS) 109 Financial Instruments [Read Draft]

ICAI - Chartered Accountants

The Institute of Chartered Accountants of India (ICAI) has released the Exposure Draft on Accounting Standard (AS) 109 Financial Instruments.

The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February 2015, have been applicable to the specified class of companies. For other class of companies, i.e., primarily the unlisted companies having the net worth less than Rs. 250 crores, Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, have been applicable. However, the Ministry of Corporate Affairs has requested the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) to upgrade Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, to bring them nearer to Indian Accounting Standards. Accordingly, the Accounting Standards Board of ICAI has initiated the process of up-gradation of these standards which will be applicable to all companies having net-worth less than Rs. 250 crores. Further, there are set of Accounting Standards issued by ICAI, which are broadly consistent with ASs notified under Companies (Accounting Standards) Rules, 2006, and these ASs are applicable for non-corporate entities.

While, this draft standard is primarily based on IFRSs for SMEs, which are simplified versions of IFRS Standards (which form the basis of Ind ASs), the draft also substantially carries forward provisions of existing pronouncement of ICAI, ‘Guidance Note on Accounting for Derivative Contracts’ applicable for entities not covered by Ind AS roadmap.

The members can send comments to the ICAI till 30th June 2018.

To Read the full text of the Draft CLICK HERE
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