ICAI invites views on Exposure Draft of IFRS Practice Statement

ICAI - Exposure Draft of IFRS Practice Statement - Taxscan

The Institute of Chartered Accountants of India (ICAI) invites the comments on the Management Commentary on International Financial Reporting Standards (IFRS) Practice Statement.

Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of the IFRS Foundation. The IASB, before issuing the new/amendments to IFRS Standards, issues consultative documents (such as Discussion Paper (DP), Exposure Draft (ED), etc) seeking public comments from across the globe. The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments on the consultative documents issued by the IASB. It also helps the Indian stakeholders to be aware of the preparations required for the implementation of Ind AS in line with adhering to global timelines.

“The IASB has issued the ED of revised IFRS Practice Statement – Management Commentary, which is not mandatory in nature. The revised Practice Statement would supersede the existing Practice Statement, issued in 2010. The purpose of this ED is to obtain feedback on the IASB’s proposals,” the ICAI announced.

The IASB’s main aim in revising the Practice Statement is to develop comprehensive requirements that focus on information that investors and creditors need and guidance to help management identify that information and present it clearly, the ICAI added.

The IASB’s proposals are designed to provide both sufficient flexibilities for a company to be able to tell its unique story, focusing on what is important to the company’s long-term prospects; and an effective basis for regulators to enforce the revised Practice Statement and for auditors to assess compliance with it.

The Institute, while inviting the comment said that the Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments from the public. The downloadable version of Exposure Draft and its Basis for Conclusion is available at a link at Exposure Draft of IFRS Practice Statement – Management Commentary (https://resource.cdn.icai.org/65613asb52923ed.pdf) and Basis for Conclusions of Exposure Draft (IFRS Practice Statement Management Commentary (https://resource.cdn.icai.org/65614asb52923bc.pdf).

The comments on the Exposure Draft may be submitted by October 1, 2021, electronically by submitting the comment on https://www.icai.org/comments/asb/; through an email (commentsasb@icai.in) or by Post at the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India,  ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002.

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