MCA notifies Indian Accounting Standard Amendment Rules, 2022 recommended by NFRA [Read Notification]

The Ministry of Corporate Affairs (MCA) vide Notification dated 4 April 2022 has issued new Companies (Indian Accounting Standard) Amendment Rules, 2022 in consultation with the National Financial Reporting Authority (NFRA). These rules shall be applicable from the financial year beginning on or after 1st April 2022.

As per the notification, Annual Improvements to Ind AS (2021), amended paragraph D1(f) and added paragraph D13A. An entity shall apply that amendment for annual reporting periods beginning on or after 1st April, 2022.

The notification further provided that the Conceptual Framework defines a liability as ‗a present obligation of the entity to transfer an economic resource as a result of past events‘. For a provision or contingent liability that would be within the scope of Ind AS 37, the acquirer shall apply paragraphs 15–22 of Ind AS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. For a levy that would be within the scope of Appendix C of Ind AS 37, the acquirer shall apply Appendix C of Ind AS 37 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date.

To Read the full text of the Notification CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.