The Accounting Standards Board of the Institute of Chartered Accountants of India ( ICAI ) has released the Exposure Draft of the Accounting Standard (AS) 37, Provisions, Contingent Liabilities, and Contingent Assets, issued by
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. Accounting Standards are applicable to entities to whom Ind AS are not 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 (ASB) 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 including non-corporate entities.
Also Read: ICAI releases Exposure Draft Accounting Standard (AS) on Presentation of Financial Statements [Read Draft]
The objective of this Standard is to ensure that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and that sufficient information is disclosed in the notes to enable users to understand their nature, timing and amount.
The Board invites comments on any aspect of this Exposure Draft.
“Comments are most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording. How to Comment. The comments can be submitted using one of the following methods so as to receive no later than January 28, 2019,” ICAI said.To Read the full text of the Draft CLICK HERE