Companies (Indian Accounting Standards) Second Amendment Rules 2018 | Labour Law News

Companies (Indian Accounting Standards) Second Amendment Rules 2018

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MCA – The Companies (Indian Accounting Standards) Second Amendment Rules, 2018

Companies (Indian Accounting Standards) Second Amendment Rules 2018

Government of India, Ministry of Corporate Affairs issued Notification dated 20th September, 2018 regarding the Companies (Indian Accounting Standards) Second Amendment Rules, 2018 and details as follows.

G.S.R     (E).— In exercise of the powers conferred by section 133 read with section

469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the National Advisory Committee on Accounting Standards, hereby makes the following rules further to amend the Companies (Indian Accounting Standards) Rules, 2015, namely:—

  1. Short title and commencement.-(1) These rules may be called the Companies (Indian Accounting Standards) Second Amendment Rules, 2018.

(2) They shall come into force on the date of their publication in the Official Gazette.

  1. In the Companies (Indian Accounting Standards) Rules, 2015 (hereinafter referred to as the principal rules), in the “Annexure”, under the heading “B. Indian Accounting Standards (Ind AS)”,-

(a) in “Indian Accounting Standard (Ind AS) 20”, –

(i) for paragraphs 23-28, the following paragraphs shall be substituted, namely:-

“23 A Government grant may take the form of a transfer of a non-monetary asset, such as land or other resources, for the use of the entity. In these circumstances, it is usual to assess the fair value of the non-monetary asset and to account for both grant and asset at that fair value. An alternative course that is sometimes followed is to record both asset and grant at a nominal amount.

24 Government grants related to assets, including non-monetary grants at fair value, shall be presented in the balance sheet either by setting up the grant as deferred income or by deducting the grant in arriving at the carrying amount of the asset.

25 Two methods of presentation in financial statements of grants or the appropriate portions of grants related to assets are regarded as acceptable alternatives.

26 One method recognises the grant as deferred income that is recognised in profit or loss on a systematic basis over the useful life of the asset.

To download detail notification click below

Companies-Indian-Accounting-Standards-Second-Amendment-Rules2018.pdf (17 downloads)

Source: MCA.

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