Introduction Mergers and acquisitions are becoming more and more common as entities aim to achieve their growth objectives other than in an organic way. IFRS 3 / Ind AS 103 – Business combinations transform the way companies plan and execute their acquisition strategies. This standard applies to most of business combinations, including amalgamations/ mergers and acquisitions. This standard lays down the principles of accounting for business combinations by way of acquisitions or mergers. Ind AS also provides guidance on a combination of entities or businesses under common control. However, IFRS does not provide guidance on combinations under common control. The companies that engage in business combination transactions face various challenges in accounting and financial reporting of such transactions, including: 1. Accounting for purchase consideration transferred by acquirer and other transaction costs incurred in the transaction. 2. Recognition and measurement of the net...

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  Impact on accounting for financial instruments due to Interest Rate Benchmark Reform (IRBR) Overview By the end of year 2021, some major interbank offer rates such as LIBOR, EURIBOR, TIBOR will cease to be published and will be replaced by new interest rate benchmarks. This poses challenges for accounting of broad range of financial products and contracts which use these interbank offer rates as benchmarks. To address these challenges amendments have been made by IASB to the relevant IFRS’ and in India, corresponding changes have been made to Ind AS’. The amendments are issued to provide guidance on accounting of financial instruments during the phase of transitioning to new benchmarks (pre replacement phase) and after the replacement of existing interbank offer rates with new rates (replacement phase). This document aims to summaries the amendments and explain their practical applicability by way of an example. What is Interest Rate Benchmark Reform? Interest rate benchmarks (IR...

  In the previous blog of the series on  IPO reporting , we evaluated the accounting framework applicable for the IPO. Accordingly, the issuer company shall prepare restated consolidated financial information to be presented in the offer document based on reporting framework in which they have prepared their latest financial statements before filing the offer document. Even if the latest financial statements are in  Indian GAAP, SEBI  has provided an option to issuer company to adopt Ind AS to restate the financial statements for all three years. Per our view, the issuer company shall opt for the Ind AS reporting framework for the restated financial statements as it reduces time, costs, and efforts of the Company. The company could execute Ind AS restatement as well as IPO restatement at the same time by removing duplication of efforts which otherwise would be performed at different times. In this blog, we will analyze the nature of adjustments required to prepare ‘C...

In the world of globalization, when the quantity of multinational corporations are ever expanding, standardization is a need, not a decision. Financial reporting is a fundamental part of business and requires standardization. IFRS focuses on precisely that by keeping up stability and transparency in the financial world. What is IFRS? What exactly IFRS stands for? International Financial Reporting Standards are Global unified reporting/ accounting standards that are used in preparing financial statements of a company viz, like account book, profit & loss account and cash flow statements. All the companies which are located in different countries use accounting standards of respective countries for preparing financial statements. Which standards were we using till now without IFRS?   In India, we were using Indian GAAP/ Accounting Standards notified by the Government (MCA). There was no uniformity in the basis of preparing financial statements of the companies in ...

Finance is the only field which   brings endless learning and earning opportunities for all. IFRS means International Financial Reporting Standard which is an internationally accepted language for business accountancy presentation. In other words, IFRS is a singular accounting language which is accepted by the world. If you are in accounting and thinking to make a secure career in finance and accounts, then the knowledge of IFRS is very important for you. In the world of upgrading, most of the countries, even including India, are moving to IFRS accounting standards . We have created a learning segment for accounting and finance backgrounds where you can learn about IFRS to improve their career prospects.   Let’s have a look at, from which field a person can go for IFRS: The demand for IFRS is higher because there is a lesser number of IFRS professionals in India and moreover, experts can offer consultancy services to companies adopting IFRS standards . And most compan...