Thursday, 25 February 2016

A wonderful discussion on AS / Ind AS / IFRS / IAS

A wonderful discussion on AS / Ind AS / IFRS / IAS

I had a discussion on whatsapp with some person regarding such topic, now here under am sharing all that discussion so that you can also be aware of this.

As ICAI has recently made applicability of Ind AS in syllabus for CA Final May 16 Exams

there are lots of confusions about what to read and what not to read etc etc

am sure after reading about this discussion, u will b clear of all such confusions, & if u still have any questions to ask, just comment over here, i will happy to answer your queries.

Lets name that person "Querier", So discussion goes like this :

Querier: GK sir can you please explain me what is the meaning of the phrase "Carve in & Carve out" with respect to the amendments of FR-Ind As which are applicable for may 16 attempt ? 

This phrase is really ambiguous. Not getting that what does carve ins and carve outs actually mean

Querier: Ind as and Ias? What are Ias now?

Me: see there are 4 terms.. AS, IndAS & IFRS, IAS
IAS & IFRS are one n same, they both are intrnational standards

IAS are being replaced by IFRS internationally
lets take it like they both r outside india

now we are following AS in india
now as per G20 summit n all and all other things happening international.. we r nt going in detail wat happen all ther
lets stik to concept here
IND AS are just converged form of IFRS/IAS
we cant apply direct IFRS in india
so we r applying them in converged form
nw q is wats this converged form
converged form is simply
, we took AS that we were following one hand n other hand IFRS
there are lots of differences between these 2
bcz AS are not principles based standards
, they r just rules based
like.... do like this wen this happen n do like that wen that happen

so now we are at AS, we want to go IFRS
wat we do, we find out those things wch we cant apply as per our indian system
those differences are called CARVES


Querier:  Acha ok sir
Me: now carve OUTS are those wch we r just not taking from IFRS..
we r excluding it straightway
Carve INS are those point wch we r adapting from IFRS but wd some modifications

and then we are adding or subtracting these carve outs n ins in our old existing AS...resulting in IND AS
this is all abt confusions generlly we r having
i hope it wl make u clear


Querier:  Ohkk sir got'it. Sir may I have one question please
Me: sure

Querier: Sir in the supplementary issued by icai for ind as, Icai has given all the ind as in that booklet. And on the other hand icai says that ind as equivalent to as 30,31,32 will be applicable.

Me: no.. u took it wrong


Querier:  So sir the confusion is that whether we have to read all the ind as in such supplementary or only those three ind as equivalent to as 30,31,32

Me: AS 30 31 32 are delted from syllabus


Querier:  Jee they are deleted

Querier:  Gk sir then ??

Me: in place of those AS we need to do 3 IND AS 32 107 & 109 in detail

read this http://ca-passion.blogspot.in/2016/02/applicable-amendments-for-ca-final-may.html

and except these

we need to do carve outs / ins of all ind as

Querier:  Ohkk.. Now I got it sir. Thank you sir
Me: so dont take it like all ind as are eql to AS 30 31 32 this is a big NO ❌


Querier: Yaa sir i am not taking in dis way

Me: Good !

Querier:  On one hand icai has AS, on the other it issues ind as, then it compares itself to ifrs and ias. Now income tax act introduces ICDs. Icai is really confused ke wo laagu kya karna chahati h future me permanently 😐
Me: This is part of globalisation only.

.........................................


Thanks for patience reading, your comments and suggestions are always welcome

Gourav Kapoor


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