Ind AS Changes beneficial for CFO, builds Confidence in Corporate Reporting, says ICAI President
Indian standards will now be in line with international IFRS advice since one of the main carve-outs under Ind AS 1 was removed.
The President of the Institute of CharteredAccountant of India ( ICAI ) CA Charanjot Singh Nanda has said that the latest changes to Indian Accounting Standards (Ind AS) have a major influence on CFOs and corporate financial reporting in India by bringing about increased transparency , discipline, and global alignment.
Speaking to ETCFO, the ICAI prez said that the new disclosure requirements will enable CFOs and stakeholders to make better-informed decisions and strengthen confidence in financial reporting.
The Ministry of Corporate Affairs (MCA)recently notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2025 bringing changes to Ind AS 1, 7, 12, 101, and 107, covering supplier finance disclosures, loan covenant classification, and global minimum tax reporting.
When a financier pays suppliers on behalf of a business, the revisions to Ind AS 107 require thorough disclosures of supplier finance arrangements. “These arrangements, where a third-party financier pays a company's suppliers earlier than the company would normally, can have a notable effect on a company's financial position and cash flow,” said the president.
According to him, stricter liability categorization standards resulting from amendments to Ind AS 1 that take effect in April 2026 will force CFOs to take a more proactive stance when it comes to debt management and forecasting.
Indian standards will now be in line with international IFRS advice since one of the main carve-outs under Ind AS 1 was removed. Key financial ratios, such as liquidity and leverage measurements, would be impacted by these changes, he explained, forcing businesses to adopt more stringent financial discipline and resilience planning.
During the interview with ETCFO, he also added that, "The implementation of the Global Minimum Tax (Pillar Two), which sets a 15% minimum effective tax rate for large multinational groups, is poised to introduce notable changes to the effective tax reporting and deferred tax planning for India Inc."
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