FAQs on Amendments in Ind AS 1

The Ministry of Corporate Affairs (MCA) has issued Notification No. G.S.R. 242(E) dated 31.03.2023 (hereinafter referred to as “the Notification”). The Notification has amended the Companies (Indian Accounting Standards) Rules, 2015. The notification states that the amendment shall be effective from 01.04.2023. The amendments brought more clarity to the disclosure of the accounting policy information and resolved the long dispute of what is meant by the significant accounting policy. In the story, we have covered some of the frequently asked questions on the amendments introduced under Ind AS 1, Presentation of Financial Statements such as:

1. What is the new definition of the term “Accounting Policies” for the purposes of Ind AS 1 inserted by the Notification in Ind AS 1?

2. What is the rationale for the amendment by the Notification inserting the new definition of “accounting policies” in Ind AS 1 by referring to the existing definition of the term in Ind AS 8?

3. Why the word “significant” has been replaced by the word “material” in Para 117 of Ind AS 1?

4. Will “Material Accounting Policy Information” form part of the complete set of financial statements as per Ind AS 1?

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