Income Computation and Disclosure...
41
Income Computation and Disclosure Standards ICDS 6, 9 and 10 17 December 2016
Transcript of Income Computation and Disclosure...
Inco
me
Co
mp
uta
tio
n a
nd
Dis
clo
sure
Sta
nd
ard
sIC
DS
6, 9
an
d 1
017
Dec
emb
er 2
016
Co
nte
nts
•IC
DS
–B
ackg
ro
un
d a
nd
Evo
luti
on
•IC
DS
VI –
Ch
an
ges i
n f
oreig
n
exch
an
ge r
ate
s
•IC
DS
IX
–B
orro
win
g c
osts
•IC
DS
X -
Pro
vis
ion
s,
Co
nti
ng
en
t Lia
bil
itie
s a
nd
Co
nti
ng
en
t A
ssets
•K
ey t
akeaw
ays
Pre
senta
tion t
itle
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dit,
clic
k V
iew
> S
lide M
aste
r >
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e M
aste
r]©
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elo
itte
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s &
Sells
LLP
3
19
96
CG
notified 2
AS u
nder
section
145(2
)
Decem
ber 2
01
0
CBD
T c
onstitu
tes
AS C
om
mitte
e to
suggest
Harm
oniz
ation o
f IC
AI
AS w
ith t
he
Act
and s
uggest
AS t
o b
e n
otified
under
the A
ct
. M
eth
od t
o
dete
rmin
e b
ook
pro
fit
for
MAT
purp
oses o
n
transitio
n to I
ND
AS A
mendm
ents
to
the A
ct
in v
iew
of
transitio
nO
cto
ber 2
01
2
Fin
al re
port
of
Com
mitte
e a
nd 1
4
ICD
S p
ublished.
Com
ments
invited
from
public o
n
Dra
ft I
CD
S
Ju
ly 2
01
4
Fin
ance B
ill (N
o
2)
2014 a
mended
section
145(2
).IC
DS to
be n
otified
separa
tely
. IC
DS
applicable
fro
m
FY 2
015-1
6
Jan
uary 2
01
5
CBD
T issued d
raft
of
12 I
CD
S. D
raft
IC
DS k
ept
open
for
com
ments
and
suggestions till
Febru
ary
8, 2015
March
20
15
CBD
T v
ide
Notification N
o.
32/2
015 d
ate
d
Marc
h 3
1, 2015
notified 1
0 I
CD
S
w.e
.f. Apri
l 1,
2015
Sep
tem
ber
20
16
The C
BD
T h
as
rescin
ded o
ld
ICD
S n
otified in
2015 a
nd h
as
issued n
ew
notification w
ith
som
e
modific
ations.
Applicable
fro
m
1 A
pri
l 2016
ICD
S E
volu
tion
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senta
tion t
itle
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iew
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ICD
S H
ighlights
1 2 3 4 5
Applicable
to a
ll t
he a
ssessees (
oth
er
than a
n indiv
idual or
a H
indu
undiv
ided f
am
ily n
ot
required t
o g
et
their a
ccounts
audited u
nder
section
44AB o
f In
com
e T
ax A
ct)
) f
ollow
ing m
erc
antile
syste
m o
f accounting
ICD
S w
ill not
have a
ny im
pact
on c
om
puting t
axable
incom
e u
nder
pro
vis
ions o
f section 1
15JB
of
the A
ct
ICD
S s
hall a
pply
for
com
puta
tion o
f in
com
e c
harg
eable
under
the A
ct
as B
usin
ess I
ncom
e o
r in
com
e f
rom
Oth
er
Sourc
es
No s
epara
te b
ooks o
f account
required t
o b
e m
ain
tain
ed f
or
ICD
S -
Adju
stm
ent
to b
e m
ade o
nly
to incom
e
In c
ase o
f a c
onflic
t betw
een I
CD
S a
nd t
he A
ct,
pro
vis
ions o
f th
e A
ct
to p
revail
6Am
ended I
CD
S s
hall a
pply
fro
m f
inancia
l year
2016-1
7.
Tax A
udit F
orm
am
ended t
o inclu
de im
pact
and d
isclo
sure
requirem
ents
of
ICD
S
Pre
senta
tion t
itle
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iew
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aste
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aste
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elo
itte
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s &
Sells
LLP
5
Extr
act
of
Notification n
o.
88 d
ate
d 2
9 S
epte
mber
2016 –
Tax A
udit R
eport
-Im
pact/
Dis
clo
sure
of
ICD
S
In t
he I
ncom
e-t
ax R
ule
s, 1962, in
Appendix
II
, in
Form
No.
3CD
, in
Part
-B,
in c
lause 1
3,
for
sub-c
lause (
d),
th
e follow
ing s
hall b
e s
ubstitu
ted ,nam
ely
, —
“(d),
the follow
ing s
hall b
e s
ubstitu
ted ,nam
ely
, —
“(d)
Wheth
er
any a
dju
stm
ent
is r
equir
ed t
o b
e m
ade t
o t
he p
rofits
or
loss for
com
ply
ing w
ith t
he
pro
vis
ions o
f in
com
e c
om
puta
tion a
nd d
isclo
sure
sta
ndard
s n
otified u
nder
section 1
45(2
)
If a
nsw
er
to (
d)
above is in t
he a
ffir
mative, giv
e d
eta
ils o
f such a
dju
stm
ents
:
(f)
Dis
clo
sure
as p
er
ICD
S:
Incre
ase
in p
rofit
(Rs.)
Decre
ase
in P
rofit
(Rs.)
Net
(Rs.)
ICD
S I
Accounting P
olicie
s
ICD
S I
I to
IC
DS X
Valu
ation o
f In
vento
ries
and o
ther
ICD
S
(i)
ICD
S I
Accounting P
olicie
s
(ii)
ICD
S I
I to
ICD
S X
Valu
ation o
f In
vento
ries a
nd o
ther
ICD
S
ICD
S V
IE
ffect
s of
Cha
nges
in F
orei
gn
Exc
hang
e R
ates
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
s
ICD
S V
I deals
w
ith:
Moneta
ry
Item
s
Non-
Moneta
ry
Item
s
No c
lassific
ation into
in
tegra
l and n
on-i
nte
gra
l fo
reig
n o
pera
tion.
Hedgin
g
Tre
atm
ent
of
transactions in
fore
ign c
urr
encie
s
Tra
nsla
ting t
he
financia
l sta
tem
ents
of
fore
ign o
pera
tions
Tre
atm
ent
of
forw
ard
exchange
contr
acts
Specula
tion
ICD
S V
I –
Eff
ects
of
Changes in f
ore
ign e
xchange r
ate
sM
oneta
ry a
nd N
on -
moneta
ry I
tem
s
Moneta
ry I
tem
s
•M
on
eta
ry ite
ms a
re m
oney h
eld
and a
ssets
to
be r
eceiv
ed o
r liabilitie
s to b
e p
aid
in fix
ed
or
dete
rmin
able
am
ounts
of
money. Cash,
receiv
able
s a
nd p
ayable
s a
re e
xam
ple
s o
f m
oneta
ry ite
ms
•In
itia
l R
ecog
nit
ion
:
•At
the e
xchange r
ate
betw
een t
he
report
ing c
urr
ency a
nd t
he fore
ign
curr
ency a
t th
e d
ate
of th
e t
ransaction o
r
•At
an a
vera
ge r
ate
for
a w
eek o
r a m
onth
th
at
appro
xim
ate
s t
he a
ctu
al ra
te a
t th
e
date
of th
e t
ransaction
If t
here
are
sig
nific
ant
fluctu
ations t
hen
avera
ge r
ate
should
not
be u
sed
•C
on
versio
n a
t year e
nd
•M
oneta
ry ite
ms s
hall b
e c
onvert
ed b
y
apply
ing the c
losin
g rate
•R
ecog
nit
ion
of
exch
an
ge d
iffe
ren
ces
•Exchange d
iffe
rence o
n c
onvers
ion, shall
be r
ecogniz
ed a
s incom
e o
r expense
Non -
Moneta
ry ite
ms
•N
on
mon
eta
ry ite
ms a
re a
ssets
and
liabilitie
s o
ther
than m
oneta
ry ite
ms. Fix
ed
assets
, in
vento
ries a
nd investm
ents
in e
quity
share
s a
re e
xam
ple
s o
f non –
moneta
ry ite
ms
•In
itia
l R
ecog
nit
ion
:
•At
the e
xchange r
ate
betw
een t
he
report
ing c
urr
ency a
nd t
he fore
ign
curr
ency a
t th
e d
ate
of th
e t
ransaction o
r
•At
an a
vera
ge r
ate
for
a w
eek o
r a m
onth
th
at
appro
xim
ate
s t
he a
ctu
al ra
te a
t th
e
date
of th
e t
ransaction
If t
here
are
sig
nific
ant
fluctu
ations t
hen
avera
ge r
ate
should
not
be u
sed
•C
on
versio
n a
t year e
nd
•N
on-m
oneta
ry ite
ms to b
e r
ecord
ed u
sin
g
exchange r
ate
on d
ate
of tr
ansaction
•In
vento
ry c
arr
ied a
t net
realizable
valu
e
(NRV)-
Exchange r
ate
on t
he d
ate
of
dete
rmin
ation o
f N
RV s
hould
be u
sed
•R
ecog
nit
ion
of
exch
an
ge d
iffe
ren
ces
•N
ot
applicable
In
itia
l recog
nit
ion
, con
versio
n a
nd
recog
nit
ion
of
exch
an
ge d
iffe
ren
ce s
hall b
e s
ub
ject
to
Secti
on
43
A o
f th
e I
ncom
e T
ax A
ct,
19
61
or R
ule
11
5 o
f In
com
e-T
ax R
ule
s,
19
62
.
Refe
r n
ext
slid
e f
or d
eta
ils
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sIllu
str
ation 1
–M
oneta
ry a
nd N
on-
Moneta
ry I
tem
s
Date
Parti
cu
lars
Am
ou
nt
Rate
01 J
anuary
2017
100 E
quity s
hare
spurc
hased o
n C
redit
€5000
1€=
Rs.
70
31 M
arc
h 2
017
1€=
Rs.
75
01 J
anuary
2017
Investm
ent
-Bala
nce S
heet(
BS)
5000*70
Rs.
350,0
00
Payable
–BS
5000*70
Rs.
350,0
00
31
stM
arc
h 2
017
Payable
–BS
5000*75
Rs.
375,0
00
31
stM
arc
h 2
017
Fore
ign e
xchange loss –
Sta
tem
ent
of
Pro
fit
and L
oss
5000*(7
5-7
0)
Rs.
25,0
00
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sIn
terp
lay b
etw
een I
CD
S a
nd S
ection 4
3A
Exchange loss / gain on Monetary Items
Revenue in n
atu
re
Payable
for
acquis
itio
n
of
fore
ign a
sset
(Section 4
3A)
Realized/U
nre
alized
Realized
Unre
alized
Not
allow
ed o
n a
ccru
al
basis
–capitalized
in t
he y
ear
of
realization
Capitalize a
s p
er
section
43A o
f th
e A
ct
Recogniz
e a
s
incom
e/e
xpense
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sFore
ign B
orr
ow
ings a
nd I
ndia
n A
sset
Fore
ign c
urr
ency
borr
ow
ings
Purc
hased F
ore
ign
Asset
Realized
Gain
/Loss
Purc
hased I
ndia
n
Asset
Unre
alized
Gain
/Loss
Realized
Gain
/Loss
Unre
alized
Gain
/Loss
Adju
stm
ent
to
cost
of
asset
as p
er
Section
43A
Adju
stm
ent
to
cost
of
asset
when r
ealized
as p
er
Section
43A
Section 4
3A d
oes n
ot
apply
and n
o s
pecific
pro
vis
ion in
the A
ct.
•Sutlej
Cott
on M
ills
Ltd
. V.
CIT
[1
979]
(116 I
TR 1
) (S
C)
•CIT
v.
Tata
Locom
otive a
nd
Engin
eering C
o.
Ltd
. [1
966]
(60
ITR 4
05)
(SC)
Judic
ial
Pre
cedents
ICD
S
The e
xchange
diffe
rence
should
be
capitalized
One m
ay a
rgue t
hat
this
exchange d
iffe
rence is
revenue in n
atu
re a
nd
cla
im d
eduction.
How
ever,
it is p
rone t
o litig
ation
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sFore
ign O
pera
tions
Fore
ign O
pera
tions -
Meanin
g
•“Fo
reig
n o
perati
on
s o
f a p
erso
n” is a
bra
nch,
by w
hate
ver
nam
e c
alled,
of
that
pers
on,
the a
ctivitie
s o
f w
hic
h a
re b
ased o
r conducte
d in a
countr
y o
ther
than I
ndia
Fore
ign O
pera
tions –
Meth
od o
f Tra
nsla
tion
•The f
inancia
l sta
tem
ents
of
a f
ore
ign o
pera
tion s
hall b
e t
ransla
ted u
sin
g t
he s
am
e p
rincip
les
and p
rocedure
s,
as if
the t
ransactions o
f th
e f
ore
ign o
pera
tion h
ad b
een t
hose o
f th
e p
ers
on
him
self
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sForw
ard
Exchange C
ontr
acts
Fo
rw
ard
exch
an
ge c
on
tract”
means a
n a
gre
em
ent
to e
xchange d
iffe
rent
curr
encie
s a
t a f
orw
ard
rate
, and inclu
des a
fore
ign c
urr
ency o
ption c
ontr
act
or
anoth
er
financia
l in
str
um
ent
of
a s
imilar
natu
re
Forw
ard
Exchange C
ontr
act
Pre
miu
m/D
iscount/
ED
is
recogniz
ed o
nly
on
sett
lem
ent
Pro
fit
or
loss o
n
cancellation o
r re
new
al
of contr
act
Exchange d
iffe
rence
(ED
)
Pre
miu
m/D
iscount
arisin
g a
t th
e inception
of th
e c
ontr
act
Am
ort
ized o
ver
life
of
contr
act
Recogniz
ed a
s incom
e
or
expense in y
ear
of
change
Recogniz
ed a
s incom
e
or
expense w
hen
incurr
ed
Firm
com
mitm
ent,
hig
hly
pro
bable
fo
recast
transaction, specula
tive
Yes
No
Forw
ard
contr
act
is e
nte
red into
to
esta
blish t
he a
mount
of
the r
eport
ing c
urr
ency
required o
r available
at
the s
ett
lem
ent
date
of
the t
ransaction
Meanin
g
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sFore
ign O
pera
tions
Fore
ign O
pera
tions -
Meanin
g
•“Fo
reig
n o
perati
on
s o
f a p
erso
n” is a
bra
nch,
by w
hate
ver
nam
e c
alled,
of
that
pers
on,
the a
ctivitie
s o
f w
hic
h a
re b
ased o
r conducte
d in a
countr
y o
ther
than I
ndia
Fore
ign O
pera
tions –
Meth
od o
f Tra
nsla
tion
•The f
inancia
l sta
tem
ents
of
a f
ore
ign o
pera
tion s
hall b
e t
ransla
ted u
sin
g t
he s
am
e p
rincip
les
and p
rocedure
s,
as if
the t
ransactions o
f th
e f
ore
ign o
pera
tion h
ad b
een t
hose o
f th
e p
ers
on
him
self
ICD
S V
I –
Eff
ects
of
changes in f
ore
ign e
xchange r
ate
sTra
nsitio
nal Pro
vis
ions
Impact
of
Tra
nsitio
n t
o I
CD
S V
I
•All f
ore
ign c
urr
ency t
ransactions u
ndert
aken o
n o
r aft
er
1st
day o
f April, 2
016 s
hall b
e
recognis
ed in a
ccord
ance w
ith t
he p
rovis
ions o
f th
is s
tandard
•The I
CD
S V
I The t
ransitio
n t
o I
CD
S V
I w
ill have p
ro
sp
ecti
ve e
ffect.
Moneta
ry a
nd N
on-
moneta
ry ite
ms
•Bro
ught
forw
ard
th
e b
ala
nce o
f m
oneta
ry a
nd
non m
oneta
ry
item
s a
s o
n
31/0
3/2
016
•Apply
the
pro
vis
ions a
s p
er
ICD
S f
rom
01/0
4/2
016
onw
ard
s
Fore
ign O
pera
tions
Forw
ard
Exchange
Contr
acts
•Bro
ught
forw
ard
th
e b
ala
nces o
f assets
and
liabilitie
s a
s o
n
31/0
3/2
016
•Apply
the
pro
vis
ions a
s p
er
ICD
S f
rom
01/0
4/2
016
onw
ard
s.
•A
ll f
orw
ard
exc
ha
ng
e
con
tra
cts
exi
stin
g o
n t
he
1st
da
y o
f A
pri
l, 2
01
6 s
ha
ll b
e
de
alt
as
pe
r th
e p
rovis
ion
s o
f
ICD
S V
I a
fte
r ta
kin
g i
nto
acc
ou
nt
the
in
com
e o
r
exp
en
ses,
if
an
y, r
eco
gn
ise
d
in r
esp
ect
of
said
co
ntr
act
s
for
the
pre
vio
us
yea
r e
nd
ing
on
or
be
fore
th
e 3
1st
Ma
rch
,20
16
.
ICD
S V
I –
Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
(1/2
)
Parti
cu
lars
IC
DS
–V
IA
cco
un
tin
g S
tan
dard
11
(A
S-1
1)
Exchange D
iffe
rence
on C
apital Asset
Tre
atm
ent
of
realized
exchange d
iffe
rence o
f liability
incurr
ed in a
cquis
itio
n o
f a
foreig
ncapital asset
shall b
e
in a
ccord
ance w
ith S
ection
43A o
f th
e A
ct
Option
to c
harg
e t
he e
xchange d
iffe
rence
to p
rofit
& L
oss A
ccount
Forw
ard
exchange
contr
act
–Specula
tion/t
radin
g
purp
ose/h
ighly
pro
bable
fo
recast/
firm
com
mitm
ent/
hedgin
g
Pre
miu
m/d
iscount/
exchange
diffe
rence is r
ecogniz
ed a
t th
e
tim
e o
f sett
lem
ent.
AS 1
1 –
MTM
gain
/loss
as o
n t
he b
ala
nce
sheet
date
to b
e r
ecogniz
ed a
s
incom
e/e
xpense
AS 3
0 -
Forw
ard
Exchange C
ontr
acts
–hig
hly
pro
bable
fore
cast/
firm
com
mitm
ent/
hedgin
g (
bein
g o
uts
ide t
he
scope o
f AS 1
1)
exchange g
ain
/loss is
record
ed u
nder
Hedge R
eserv
e a
nd
transfe
rred t
o P
&L u
pon a
ctu
al
sett
lem
ent
ICD
S V
I –
Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
(2/2
)
Parti
cu
lars
IC
DS
–V
IA
cco
un
tin
g S
tan
dard
11
(A
S-1
1)
Fore
ign O
pera
tion-
Definitio
n“F
ore
ign o
pera
tions o
f a p
ers
on”
is a
bra
nch,
by w
hate
ver
nam
e
called,
of
that
pers
on,
the
activitie
s o
f w
hic
h a
re b
ased o
r conducte
d in a
countr
y o
ther
than I
ndia
Fore
ign O
pera
tion is a
subsid
iary
, associa
te,
join
t ventu
re o
r bra
nch o
f th
e
report
ing e
nte
rprise,
the a
ctivitie
s o
f w
hic
h a
re b
ased o
r conducte
d in a
countr
y o
ther
than t
he c
ountr
y o
f th
e
report
ing e
nte
rprise
Fore
ign O
pera
tion-
Tra
nsla
tion
No c
oncept
of
inte
gra
l or
non-
inte
gra
l fo
reig
n o
pera
tions.
The f
inancia
l sta
tem
ents
of
a
fore
ign o
pera
tion s
hall b
e
transla
ted u
sin
g t
he s
am
e
princip
les a
nd p
rocedure
s,
as if
the t
ransactions o
f th
e f
ore
ign
opera
tion h
ad b
een t
hose o
f th
e
pers
on h
imself
The t
ransla
tion
depends o
n t
he
cla
ssific
ation o
f th
at
opera
tion a
s inte
gra
l or
non-i
nte
gra
l•
In
teg
ral
Op
erati
on
-th
e t
ransla
tion
is d
one o
n t
he s
am
e p
rincip
les a
s
used b
y t
he p
ers
on h
imself.
This
is
sim
ilar
to t
he t
reatm
ent
pre
scribed
under
ICD
S•
No
n-i
nte
gral
Op
erati
on
s -
all t
he
assets
and lia
bilitie
s a
re t
ransla
ted a
t th
e c
losin
g r
ate
and p
rofit
and loss
account
item
s a
re t
ransla
ted a
t actu
al/
avera
ge r
ate
s.
The r
esultin
g
diffe
rence is t
aken t
o r
eserv
e a
nd n
ot
to t
he p
rofit
and loss a
ccount
until
dis
posal of
such o
pera
tions
ICD
S V
I –
Eff
ects
of
canges in f
ore
ign e
xchange r
ate
sFore
ign O
pera
tions
Fore
ign O
pera
tion
Inte
gra
l O
pera
tion
Non-i
nte
gra
l opera
tion
Incom
e &
Expenses
Moneta
ry
Item
s
Non-
moneta
ry
item
s
Incom
e &
Expenses
Moneta
ry
item
s
Non-
moneta
ry
item
s
Sam
e t
reatm
ent
under
ICD
S
and A
SAS-1
1IC
DS
At
clo
sin
g
rate
;D
iffe
rence
transfe
rred
in F
CTR*
Sam
e a
s
Inte
gra
l O
pera
tions
Tra
nsla
tion
AS-1
1IC
DS
At
clo
sin
g
rate
;D
iffe
rence
transfe
rred
in F
CTR*
Sam
e a
s
Inte
gra
l O
pera
tions
Tra
nsla
tion
As p
er
AS 1
1
In b
oth
the c
ases –
no
impact
on p
rofit
and loss
account
*Fore
ign C
urr
ency T
ransla
tion R
eserv
e
ICD
S IX
Bor
row
ing
Cos
ts
ICD
S I
X –
Borr
ow
ing C
osts
Com
mitm
ent
charg
es o
n b
orr
ow
ings;
Am
ort
ised a
mount
of
dis
counts
or
pre
miu
ms
rela
ting t
o b
orr
ow
ings;
Am
ort
ised a
mount
of
ancilla
ry c
osts
incurr
ed in
connection w
ith t
he a
rrangem
ent
of
borr
ow
ings;
Fin
ance c
harg
es in r
espect
of
assets
acquired
under
finance leases o
r under
oth
er
sim
ilar
arr
angem
ents
.
Mean
ing
of
Bo
rro
win
g
Co
sts
Borr
ow
ing
costs
are
inte
rest
and
oth
er
costs
incurr
ed
by
apers
on
inconnection
with
the
borr
ow
ing
of
funds
and
inclu
de:
ICD
S I
X d
oes n
ot
deal w
ith a
ctu
al or
impute
d c
ost
of
ow
ner’s e
quity a
nd p
refe
rence s
hare
capital.
ICD
S I
X –
Borr
ow
ing C
osts
Qualify
ing A
sset
Qualify
ing A
sset
Qualify
ing a
sset
means:
Tangib
le A
ssets
Land,
buildin
g,
machin
ery
, pla
nt
or
furn
iture
Inta
ngib
le A
ssets
Know
-how
, pate
nts
, copyrights
, tr
adem
ark
s,
licenses,
franchis
es o
r any o
ther
busin
ess o
r com
merc
ial rights
of
sim
ilar
natu
re
Invento
ries
Invento
ries t
hat
require
a p
eriod o
f tw
elv
e
month
s o
r m
ore
to b
ring
them
to a
sale
able
conditio
n
Note
: For
the p
urp
ose o
f capitalization o
f in
tere
st
on g
enera
l purp
ose b
orr
ow
ings,
Qualify
ing a
sset
should
be s
uch a
sset
that
necessarily
require a
period o
f tw
elv
e m
onth
s
or
more
for
its a
cquis
itio
n,
constr
uction o
r pro
duction
ICD
S I
X –
Borr
ow
ing C
osts
Types o
f Borr
ow
ings
Parti
cu
lars
Sp
ecif
ic B
orro
win
gG
en
eral
bo
rro
win
g
Recognitio
nBorr
ow
ing c
osts
directly a
ttributa
ble
to
acquis
itio
n o
f qualify
ing a
sset
-capitalized a
s p
art
of
cost
of
asset
Pro
vid
es a
specific
form
ula
for
capitalizin
g b
orr
ow
ing c
osts
rela
ting t
o
genera
l borr
ow
ings b
ased o
n t
he r
atio
of
qualify
ing a
ssets
to t
ota
l Assets
Com
mencem
ent
of
Capitalization
Sta
rts f
rom
the d
ate
when s
pecific
borr
ow
ings h
ave b
een t
aken
When t
he a
mount
of
loan h
as b
een
actu
ally u
tilized f
or
constr
uction o
f Assets
Cessation o
f Capitalization
Capitalization o
f borr
ow
ing c
osts
shall c
ease w
hen t
angib
le/i
nta
ngib
le a
sset
is
firs
t put
to u
se o
r in
vento
ry is r
eady f
or
sale
If t
he q
ualify
ing a
sset
is c
om
ple
ted in p
art
s a
nd a
com
ple
ted p
art
is c
apable
of
bein
g u
sed,
then c
apitalization
shall c
ease w
hen t
hat
part
of
tangib
le/i
nta
ngib
le a
sset
is p
ut
to u
se o
r th
at
part
of
invento
ry is r
eady f
or
sale
As p
er
the p
rovis
ions o
f section 3
6 (
1)
(iii)
of
the A
ct,
any inte
rest
paid
, in
respect
of
capital borr
ow
ed f
or
acquis
itio
n o
f an a
sset
(wheth
er
capitalized in t
he b
ooks o
f account
or
not)
for
any p
eriod b
egin
nin
g f
rom
the d
ate
on w
hic
h t
he c
apital w
as b
orr
ow
ed f
or
acquis
itio
n o
f th
e a
sset
till t
he d
ate
on w
hic
h s
uch a
sset
was f
irst
put
to u
se,
is n
ot
allow
ed
as d
eduction.
As p
er
Expla
nation 8
to S
ection43(1
) of
the A
ct,
inte
rest
paid
or
payable
aft
er
asset
is f
irst
put
to u
se s
hall b
e e
xclu
ded f
rom
its
cost.
Pro
vis
ions o
f IC
DS I
X is in lin
e w
ith t
he s
aid
pro
vis
ions o
f th
e A
ct
Tre
atm
ent
of
borr
ow
ing c
osts
oth
er
than c
overe
d u
nder
ICD
S I
X,
will be d
ealt in a
ccord
ance w
ith
the p
rovis
ions o
f In
com
e T
ax A
ct,
1961 (
the A
ct)
ICD
S I
X –
Borr
ow
ing C
osts
Snapshot
–Period o
f capitalization
Time Period
General Borrowing costs to be capitalized -ICDs
Borrowing costs to be capitalized –AS 16
Asset
put
to u
se
Constr
uction e
nds,
inclu
din
g t
rial ru
n if
any
Constr
uction
Begin
s
Loan t
aken
Loan u
tilized –
paym
ent
made
Bo
rro
win
g C
osts
Specific Borrowing costs to be capitalized -ICDs
ICD
S I
X –
Borr
ow
ing C
osts
Genera
l borr
ow
ings a
nd O
wned F
unds
It m
ay b
e a
rgued t
hat
capitalization is r
equired o
nly
w
hen g
enera
lly b
orr
ow
ed f
unds a
re a
ctu
ally u
tilized
for
the p
urp
ose o
f acquis
itio
n,
constr
uction o
r pro
duction o
f a q
ualify
ing a
sset,
and t
here
fore
no
capitalization is w
arr
ante
d w
hen t
he t
ax p
ayer
has
suff
icie
nt
ow
n f
unds t
o p
urc
hase t
he q
ualify
ing a
sset.
Reliance c
an inte
r alia b
e p
laced o
n t
he f
ollow
ing
rulings o
f th
e B
om
bay H
igh C
ourt
in t
he c
onte
xt
of
section 1
4A -
oReliance U
tilities &
Pow
er
Ltd
. [2
009]
178
Taxm
an 1
35
oH
DFC B
ank L
td.
[2014]
49 t
axm
ann.c
om
335
oBom
bay O
il I
ndustr
ies L
td.
[2014]
42
taxm
ann.c
om
440
Litig
ation o
n t
his
issue c
annot
be r
ule
d o
ut.
Inte
rest
on G
enera
l Borr
ow
ings
Am
ount
utilized
for
constr
uction/
acquis
itio
n o
f Q
ualify
ing A
sset
Am
ount
not
utilized –
ow
n
funds a
vailable
Capitalize a
s
per
ICD
S
Deduction
under
Section
36(1
)(iii)
ICD
S I
X –
Borr
ow
ing C
osts
Tra
nsitio
nal Pro
vis
ions a
nd D
isclo
sure
s
Impact
of
Tra
nsitio
n t
o I
CD
S I
X
•All t
he b
orr
ow
ing c
osts
incurr
ed o
n o
r aft
er
1st
day o
f April, 2
016 s
hall b
e c
apitalised f
or
the
pre
vio
us y
ear
com
mencin
g o
n o
r aft
er
1st
day o
f April, 2
016 in a
ccord
ance w
ith t
he
pro
vis
ions o
f th
is s
tandard
.
•The I
CD
S V
I The t
ransitio
n t
o I
CD
S I
X w
ill have p
rospective e
ffect
•Tre
atm
ent
of
borr
ow
ing c
osts
befo
re 1
stApril 2016 w
ill re
main
unaff
ecte
d
Dis
clo
sure
Requirem
ents
The f
ollow
ing d
isclo
sure
shall b
e m
ade in r
espect
of
borr
ow
ing c
osts
, nam
ely
:—(a
) th
e a
ccounting p
olicy a
dopte
d f
or
borr
ow
ing c
osts
; and
(b)
the a
mount
of
borr
ow
ing c
osts
capitalised d
uring t
he p
revio
us y
ear.
ICD
S I
X –
Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
(1/3
)
Parti
cu
lars
IC
DS
–IX
Acco
un
tin
g S
tan
dard
16
(A
S-1
6)
Meanin
g o
f Borr
ow
ing
cost
Exchange d
iffe
rence a
risin
g f
rom
fo
reig
n c
urr
ency b
orr
ow
ings t
o t
he
exte
nt
itis
regard
ed a
s a
n a
dju
stm
ent
to t
he inte
rest
cost
not
covere
d
Exchange d
iffe
rence a
risin
g f
rom
fo
reig
n c
urr
ency b
orr
ow
ings t
o t
he
exte
nt
itis
regard
ed a
s a
n
adju
stm
ent
to t
he inte
rest
cost
covere
d
Specific
Borr
ow
ing
Cost
Capitalization
of
inte
rest
sta
rts
irre
spective o
f sta
ge o
f com
ple
tion o
f th
e q
ualify
ing a
sset
Capitalization
of
inte
rest
sta
rts
only
when n
ecessary
constr
uction
activitie
s a
re s
tart
ed
Cessation o
f capitalization
Inte
rest
ceased t
o b
e c
apitalized a
t th
e
tim
e w
hen a
sset
is p
ut
to u
se
Inte
rest
ceased t
o b
e c
apitalized a
t th
e t
ime w
hen a
sset
isre
ady
to
use
Qualify
ing A
sset
•For
Specific
borr
ow
ings -
All
tangib
le a
nd inta
ngib
le a
ssets
.•
For
Oth
er
Borr
ow
ings –
tangib
le,
and inta
ngib
le a
ssets
requirin
g a
period o
f 12 m
onth
s o
r m
ore
for
its
acquis
itio
n,
constr
uction o
r pro
duction
•In
both
the a
bove c
ases -
Invento
ries t
hat
require 1
2 m
onth
s
or
more
to b
e b
rought
into
the
sale
able
conditio
n
Qualify
ing a
sset
is a
n a
sset
whic
h
takes s
ubsta
ntial period o
f tim
e f
or
its p
repara
tion
i.e.
genera
lly 1
2
month
s irr
espective o
f ty
pe o
f borr
ow
ings
ICD
S I
X –
Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
(2/3
)
Parti
cu
lars
IC
DS
–IX
Acco
un
tin
g S
tan
dard
16
(A
S-1
6)
Rate
of
capitalization o
f in
tere
st
on g
enera
l purp
ose
Borr
ow
ings
Costs
dete
rmin
ed
by
follow
ing
form
ula
;A
*B C
(The
form
ula
isexpla
ined
belo
w)
Costs
dete
rmin
ed b
y a
pply
ing
capitalisation r
ate
to t
he
expenditure
incurr
ed o
n t
he a
sset.
The r
ate
is w
eig
hte
d a
vera
ge o
f borr
ow
ing c
osts
applicable
to t
he
borr
ow
ings d
uring t
he p
eriod o
ther
than s
pecific
borr
ow
ings
.
Fo
rm
ula
as
per
IC
DS
for
cap
italizati
on
of
bo
rro
win
gco
sts
rela
ted
tog
en
eral
bo
rro
win
gs
A=
Borr
ow
ing
costs
incurr
ed
during
pre
vio
us
year
except
on
specific
borr
ow
ings
B=
a.
Avera
ge
cost
of
QA
appearing
inbala
nce
sheet
on
firs
tand
last
day
of
the
pre
vio
us
year
b.
Half
of
the
cost
of
QA,
ifit
does
not
appear
inbala
nce
sheet
on
the
firs
tday
or
both
firs
tand
last
day
of
the
pre
vio
us
year
c.
Avera
ge
cost
of
QA
as
on
firs
tday
of
pre
vio
us
year
and
date
of
com
ple
tion,
ifit
does
not
appear
inbala
nce
sheet
on
the
last
day
of
the
pre
vio
us
year
C=
Avera
ge
of
tota
lassets
,oth
er
than
those
funded
by
specific
borr
ow
ings,
as
appearing
inbala
nce
sheet
as
on
firs
tand
last
day
of
pre
vio
us
year
#Q
A=
Qualify
ing
Assets
oth
er
than
those
funded
by
specific
borr
ow
ings.
ICD
S I
X –
Borr
ow
ing C
osts
Illu
str
ation
Th
e c
ap
ita
lisa
tio
n o
f g
en
era
l b
orr
ow
ing
co
st u
nd
er
the
IC
DS
an
d A
cco
un
tin
g
Sta
nd
ard
dif
fers
as
exp
lain
ed
be
low
:
•To
tal
ass
ets
ap
pe
ari
ng
in
ba
lan
ce s
he
et
–IN
R 1
00
0
•To
tal
tan
gib
le a
nd
in
tan
gib
le a
sse
ts a
cqu
ire
d,
con
stru
cte
d,
pro
du
ced
–IN
R 7
00
•G
en
era
l b
orr
ow
ing
s –
INR
50
0 (
inte
rest
@ 1
0%
i.e
. IN
R 5
0)
•S
pe
cifi
c b
orr
ow
ing
s –
INR
20
0 (
inte
rest
@ 1
0%
i.e
. IN
R 2
0)
•C
ost
of
ass
ets
co
nst
ruct
ed
usi
ng
ge
ne
ral
bo
rro
win
gs
–IN
R 4
50
•C
ost
of
ass
ets
co
nst
ruct
ed
usi
ng
sp
eci
fic
bo
rro
win
gs
–IN
R 2
50
Cap
italisati
on
of
gen
eral
bo
rro
win
g c
osts
un
der A
S-1
6
Weig
hte
d a
vera
ge b
orr
ow
ing c
ost
is
10%
. The s
aid
borr
ow
ing c
ost
is 4
50 X
10%
= 4
5
Cap
italisati
on
of
gen
eral
bo
rro
win
g c
osts
un
der I
CD
S-I
X*
50 X
700-2
50 =
Rs.3
01000-2
50
*(A
vera
gin
g is ignore
d in t
he a
bove
illu
str
ation)
ICD
S I
X –
Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
(2/3
)
Parti
cu
lars
IC
DS
–IX
Acco
un
tin
g S
tan
dard
16
(A
S-1
6)
Inte
rest
incom
e o
nte
mpora
ry d
eposits
made,
pendin
g
utilization o
f borr
ow
ed f
unds
ICD
S d
oes
not
deal w
ith t
he issue.
One m
ay n
eed t
o r
efe
r re
levant
case
law
s in o
rder
to d
ete
rmin
e t
he
treatm
ent
of
such inte
rest
incom
e
Such inte
rest
incom
e t
o b
e
reduced f
rom
tota
l borr
ow
ing c
osts
SC r
uling in T
uti
co
rin
Alk
ali
Ch
em
icals
(2
27
IT
R 1
72
)re
quires
that
inte
rest
incom
e e
arn
ed
from
inte
rest
earn
ed o
n s
hort
-term
in
vestm
ent
of
funds b
orr
ow
ed f
or
sett
ing-u
p o
f fa
cto
ry d
uring
constr
uction o
f fa
cto
ry b
efo
re
com
mencem
ent
of
busin
ess
has t
o b
e
off
ere
d t
o t
ax a
s incom
e f
rom
Oth
er
Sourc
es
One m
ay h
ave t
o r
efe
r ju
dic
ial
pre
cedents
Delh
i H
C r
uling i
n I
nd
ian
Oil
Pan
ipat
Po
wer C
on
so
rti
um
Ltd
(T
S-6
2-H
C-2
00
9(D
el)
held
that
sin
ce t
he inte
rest
incom
e o
n
tem
pora
ry d
eposits w
as e
arn
ed in a
period p
rior
to c
om
mencem
ent
of
busin
ess it
was in t
he n
atu
re o
f capital re
ceip
t and h
ence w
as
required t
o b
e s
et
off
again
st
pre
-opera
tive e
xpenses.
ICD
S X
Pro
vis
ions,
Contingent
Lia
bilitie
s a
nd C
ontingent
Assets
ICD
S X
–Pro
vis
ions,
Contingent
Lia
bility a
nd C
ontingent
Asset
•P
ro
vis
ion
” is a
lia
bility w
hic
h c
an b
e
measure
d o
nly
by u
sin
g a
substa
ntial
degre
e o
f estim
ation
Pro
vis
ion
Co
nti
ng
en
t Lia
bilit
y
This
Incom
e C
om
puta
tion a
nd D
isclo
sure
Sta
ndard
deals
with p
rovis
ions,
contingent
liabilitie
s a
nd c
ontingent
assets
, except
those:
a)
resultin
g f
rom
fin
ancia
l in
str
um
ents
;b)
resultin
g f
rom
executo
ry c
ontr
acts
;c)
arisin
g in insura
nce b
usin
ess f
rom
contr
acts
with p
olicyhold
ers
; and
d)
covere
d b
y a
noth
er
Incom
e
Com
puta
tion a
nd D
isclo
sure
Sta
ndard
Co
nti
ng
en
t A
sset
•C
on
tin
gen
t asset”
is a
possib
le
asset
that
arises f
rom
past
events
th
e e
xis
tence o
f w
hic
h w
ill be
confirm
ed o
nly
by t
he o
ccurr
ence o
r non o
ccurr
ence o
f one o
r m
ore
uncert
ain
futu
re e
vents
not
wholly
within
the c
ontr
ol of
the p
ers
on.
a p
ossib
le
obligation t
hat
arises f
rom
past
events
and t
he
exis
tence o
f w
hic
h
will be c
onfirm
ed
only
by t
he
occurr
ence o
r non
occurr
ence o
f one
or
more
uncert
ain
futu
re e
vents
not
wholly w
ithin
the
contr
ol of
the
pers
on;
or
a p
resent
obligation
that
arises f
rom
past
events
but
is
not
recognis
ed
because:
(A)
it is n
ot
reasonably
cert
ain
th
at
an o
utf
low
of
resourc
es
em
bodyin
g
econom
ic b
enefits
w
ill be r
equired t
o
sett
le t
he
obligation;
or
(B)
a r
eliable
estim
ate
of
the
am
ount
of
the
obligation c
annot
be m
ade
Scope
ICD
S X
–Pro
vis
ions,
Contingent
Lia
bility a
nd C
ontingent
Asset
•W
hen
apers
on
has
apre
sent
obligation
as
are
sult
of
apast
event;
•W
hen it
is ‘re
asonably
cert
ain
’ th
at
an o
utf
low
of re
sourc
es
em
bodyin
g e
conom
ic b
enefits
will be r
equired t
o s
ett
le t
he
obligation;
and
•W
hen a
reliable
estim
ate
can b
e m
ade o
f th
e o
bligation
am
ount
Reco
gn
itio
n o
f P
ro
vis
ion
as p
er I
CD
S
•Recognitio
nof
contingent
liability
isnot
allow
ed
Reco
gn
itio
n o
f C
on
tin
gen
t Lia
bilit
y a
s
per I
CD
S
•Recognitio
nof
contingent
asset
isnot
allow
ed
genera
lly
•Contingent
asset
must
be a
ssessed c
ontinually a
nd if
it
becom
es ‘re
asonably
cert
ain
’ th
at
inflow
of econom
ic b
enefit
will arise,
the a
sset
and t
he incom
e a
re r
ecogniz
ed in p
revio
us
year
in w
hic
h t
he c
hange o
ccurs
•This
is d
epart
ure
fro
m A
S w
hic
h r
equires r
ecognitio
n o
f contingent
asset
only
if
there
is “
virtu
al cert
ain
ty”
Reco
gn
itio
n o
f C
on
tin
gen
t asset
as
per I
CD
S
The t
erm
‘Reasonably
Cert
ain
’ has n
ot
been d
efined in I
CD
S,
Act
or
Rule
s.
Where
deta
ils o
f a p
roposed n
ew
law
have y
et
to b
e fin
alized,
an o
bligation
arises o
nly
when t
he legis
lation is e
nacte
d
ICD
S X
–Pro
vis
ions,
Contingent
Lia
bility a
nd C
ontingent
Asset
Dis
counting
Revie
w a
nd R
evers
al
•Calc
ula
tion o
f Pre
sent
Valu
e b
y
way o
f dis
counting is n
ot
required
Pro
vis
ions
Contingent
Assets
and r
ela
ted
incom
e
•Revie
w a
t each b
ala
nce s
heet
to
reflect
the b
est
estim
ate
•Excess a
mount
not
required is
to b
e r
evers
ed
ICD
S X
–Pro
vis
ions,
Contingent
Lia
bility a
nd C
ontingent
Asset
Tra
nsitio
nal Pro
vis
ions
Impact
of
Tra
nsitio
n t
o I
CD
S X
•All t
he p
rovis
ions o
r assets
and r
ela
ted incom
e s
hall b
e r
ecognis
ed f
or
the p
revio
us y
ear
com
mencin
g o
n o
r aft
er
1st
day o
f April, 2
016 in a
ccord
ance w
ith t
he p
rovis
ions o
f th
is
sta
ndard
•The t
ransitio
n t
o I
CD
S X
will have p
rospective e
ffect
ICD
S X
–Pro
vis
ions,
Contingent
Lia
bility a
nd C
ontingent
Asset
Dis
clo
sure
s
Pro
vis
ions
•a b
rief
description o
f th
e n
atu
re o
f th
e
obligation;
•th
e c
arr
yin
g a
mount
at
the b
egin
nin
g a
nd
end o
f th
e p
revio
us y
ear;
•
additio
nal pro
vis
ions m
ade d
uring t
he
pre
vio
us y
ear, inclu
din
g incre
ases t
o
exis
ting p
rovis
ions;
•am
ounts
used,
that
is incurr
ed a
nd
charg
ed a
gain
st
the p
rovis
ion,
during t
he
pre
vio
us y
ear;
•
unused a
mounts
revers
ed d
uring t
he
pre
vio
us y
ear;
and
•th
e a
mount
of
any e
xpecte
d
reim
burs
em
ent,
sta
ting t
he a
mount
of
any a
sset
that
has b
een r
ecognis
ed f
or
that
expecte
d r
eim
burs
em
ent.
Contingent
Assets
and e
late
d incom
e
•a b
rief
description o
f th
e n
atu
re o
f th
e
asset
and r
ela
ted incom
e;
•th
e c
arr
yin
g a
mount
of
asset
at
the
begin
nin
g a
nd e
nd o
f th
e p
revio
us y
ear;
•
additio
nal am
ount
of
asset
and r
ela
ted
incom
e r
ecognis
ed d
uring t
he y
ear,
inclu
din
g incre
ases t
o a
ssets
and r
ela
ted
incom
e a
lready r
ecognis
ed;
and
•am
ount
of
asset
and r
ela
ted incom
e
revers
ed d
uring t
he p
revio
us y
ear.
ICD
S X
–Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
Parti
cu
lars
IC
DS
–X
Acco
un
tin
g S
tan
dard
29
(A
S-2
9)
Recognitio
n o
f Pro
vis
ion
A p
rovis
ion s
hall b
e r
ecogniz
ed
/cre
ate
d w
hen o
utf
low
of
resourc
es
is r
easo
nab
lycerta
in
A p
rovis
ion s
hall b
e r
ecogniz
ed
/cre
ate
d w
hen o
utf
low
of
resourc
es is p
ro
bab
le (
i.e.
mo
re
likel
y th
an n
ot)
Contingent
Assets
–Assessm
ent
Contingent
assets
are
assessed
continually a
nd w
hen it
becom
es
reaso
nab
ly c
erta
inth
at
inflow
of
econom
ic b
enefit
will arise,
the a
sset
and r
ela
ted incom
e a
rere
cognis
ed in t
he y
ear
in w
hic
hth
e c
hange o
ccurs
Contingent
assets
are
assessed
continually a
nd if
it h
as b
ecom
evir
tually c
erta
in t
hat
an inflow
of
econom
ic b
enefits
will arise,
the a
sset
and t
he r
ela
ted incom
eare
recognis
ed in t
he f
inancia
lsta
tem
ents
of
the p
eriod in w
hic
hth
e c
hange o
ccurs
Reasonably
cert
ain
is n
ot
defined in I
CD
S,
Act
or
Rule
s.
Revenue a
uth
orities m
ay c
onte
st
that
‘reasonably
cert
ain
’ is
a low
er
thre
shold
than
‘virtu
ally c
ert
ain
’
ICD
S X
–Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
Recognitio
n o
f Pro
vis
ion
Devia
tion f
rom
Judic
ial Pro
nouncem
ents
Pro
vis
ion f
or
Warr
anty
is a
llow
ed a
s a
n e
xpenditure
uphold
ing t
he t
est
of
‘pro
bab
le’ w
arr
anty
obligation in t
he f
ollow
ing j
udgm
ents
. H
ow
ever, I
CD
S r
ecogniz
es p
rovis
ion o
nly
if
the o
utf
low
is
reasonably
cert
ain
.
�Roto
rkContr
ols
India
P.
Ltd
. (2
009)
314 I
TR 6
2 (
SC)
(extr
act
on n
ext
slide)
�H
imala
ya M
achin
ery
(P)
Lim
ited v
DCIT
334 I
TR 6
4
�CIT
vs.
Luk
India
P.
Ltd
. 52 D
TR 1
17.
�Sie
mens P
ublic c
om
munic
ation N
etw
ork
s L
imited v
CIT
�CIT
v I
ndia
n T
ransfo
rmer
Lim
ited.
270 I
TR 2
59
ICD
S X
–Key D
iffe
rences b
etw
een I
CD
S a
nd A
ccounting S
tandard
Parti
cu
lars
IC
DS
–X
Acco
un
tin
g S
tan
dard
29
(A
S-2
9)
Onero
us C
ontr
act
ICD
S is s
ilent
on t
he r
ecognitio
n o
r m
easure
ment
of
pro
vis
ion in r
espect
of
such o
nero
us c
ontr
act
If a
n e
nte
rprise h
as a
contr
act
that
is o
nero
us,
the p
resent
obligation
under
the c
ontr
act
is r
ecognis
ed
and m
easure
d a
s a
pro
vis
ion
Reim
burs
em
ents
Where
som
e o
r all o
f th
eexpenditure
required t
o s
ett
lea p
rovis
ion is e
xpecte
d t
o b
ere
imburs
ed b
y a
noth
er
part
y,
the r
eim
burs
em
ent
shall b
ere
cognis
ed w
hen it
is r
easo
nab
lycerta
in t
hat
reim
burs
em
ent
will
be r
eceiv
ed if
the e
ntity
sett
les t
he
obligation
Where
som
e o
r all o
f th
eexpenditure
required t
o s
ett
lea p
rovis
ion is e
xpecte
d t
o b
ere
imburs
ed b
y a
noth
er
part
y,
the
reim
burs
em
ent
should
be
recognis
ed w
hen,
and o
nly
when,
it is v
irtu
ally c
erta
in t
hat
reim
burs
em
ent
will be
receiv
ed if
the e
nte
rprise s
ett
les
the o
bligation
Key T
akeaw
ays
Mandato
ry f
rom
FY 2
016-1
7
Where
Act
is s
ilent
ICD
S m
ay lead t
o
contr
overs
ies
ICD
S a
ligned w
ith
exis
ting A
S.
Com
panie
s a
dopting
Ind
AS?
ICD
S s
cenario –
pre
pone incom
e a
nd
postp
one e
xpenses
Because o
f diffe
rences w
ith
AS,
extr
a e
ffort
s
on d
ocum
enta
tion
is r
equired
Qu
esti
on
s
Del
oitte
ref
ers
to o
ne o
r m
ore
of D
eloi
tte T
ouch
e T
ohm
atsu
Lim
ited,
a U
K p
rivat
e co
mpa
ny l
imite
d by
gua
rant
ee (
“DT
TL”
), it
s ne
twor
k of
m
embe
r fir
ms,
and
the
ir re
late
d en
titie
s. D
TT
L an
d ea
ch o
f its
mem
ber
firm
s ar
e le
gally
sep
arat
e an
d in
depe
nden
t en
titie
s. D
TT
L (a
lso
refe
rred
to
as “
Del
oitte
Glo
bal”)
doe
s no
t pr
ovid
e se
rvic
es t
o cl
ient
s. P
leas
e se
ew
ww
.del
oitt
e.co
m/a
bout
for
a m
ore
deta
iled
desc
riptio
n of
D
TT
L an
d its
mem
ber
firm
s.
Thi
s co
mm
unic
atio
n is
for
inte
rnal
dis
trib
utio
n an
d us
e on
ly a
mon
g pe
rson
nel
of D
eloi
tte T
ouch
e T
ohm
atsu
Lim
ited,
its
mem
ber
firm
s, a
nd
thei
r re
late
d en
titie
s (c
olle
ctiv
ely,
the
“D
eloi
tte n
etw
ork”
). N
one
of th
e D
eloi
tte n
etw
ork
shal
l be
resp
onsi
ble
for
any
loss
wha
tsoe
ver
sust
aine
d by
any
per
son
who
rel
ies
on t
his
com
mun
icat
ion.
© 2
016.
For
info
rmat
ion,
con
tact
Del
oitte
Tou
che
Toh
mat
su L
imite
d
![DRAFT INCOME COMPUTATION AND DISCLOSURE ... Releases...2015/01/08 · Income Computation and Disclosure Standard [ICDS] Accounting Policies Preamble This Income Computation and Disclosure](https://static.fdocuments.us/doc/165x107/6083f1186324d247d57da594/draft-income-computation-and-disclosure-releases-20150108-income-computation.jpg)
