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 Result of the Information Systems Audit [ISA] Assessment Test held on 22nd December 2018 is likely to be declared on 23rd January, 2019 around 6.00 PM.
 Results of the Chartered Accountants Final Examination (Old course & New Course), Foundation Examination and Common Proficiency Test (CPT) held in November/December, 2018 are likely to be declared on Wednesday, the 23rd January 2019 around 6.00 P.M.
 Extension of last date "for complying with the CPE hours requirement for the Calendar Year 2018" - from 31st December, 2018 to 31st January, 2019
 2nd Batch of Educational Course by ICAI Registered Valuers Organsiation (ICAI RVO) at Kolkata from 27th January, 2019 to 23rd February, 2019.
 2nd Batch of Educational Course by ICAI Registered Valuers Organsiation (ICAI RVO) at Ahmedabad from 19th January, 2019 to 16th February, 2019
 Educational Material on Indian Accounting Standard (Ind AS) 110, Consolidated Financial Statements
 Will Modi government change Income tax slab? check details Budget 2019 Income tax rates
  Exposure Draft of Accounting Standard (AS) 18, Revenue (Comments to be received by February 4, 2019)
 Exposure Draft of Accounting Standard (AS) 11, Construction Contracts (Comments to be received
  Apply for 12th ICAI Leaders & Business Excellence Awards being organised by Committee for Members in Industry & Business (CMI&B) by 07th January 2019
 Launch of Batch of Educational Course by ICAI Registered Valuers Organsiation (ICAI RVO) at Bhubaneshwar from 19th January, 2019 to 17th February, 2019

FAQ on treatment of Securities Premium Account under Ind AS on the date of transition.
April, 18th 2017
Question: 1Company ABC Ltd. had issued non-convertible debentures redeemable at
premium, which were outstanding as on March 31, 2015. The Company has measured
this financial liability at amortised cost in accordance with Ind AS 109, Financial
Instruments. In the past, the Company had utilised the Securities Premium Account for
providing for the debenture redemption premium payable and writing off debenture
issue expenses in view of the requirements of Section 78 of the Companies Act, 1956 and
Section 52 of the Companies Act 2013 (such utilisation is not allowed once Ind AS
becomes applicable).

As the amount of Securities Premium Account had been utilised to provide for
debenture redemption premium payable and to write off debenture issue expenses,
what retrospective accounting adjustments in this regard are required to be done in the
books under Ind AS on transition date.

Response: Non-convertible debentures (financial liability) in the given case are classified as
subsequently measured at amortised cost under Ind AS 109. Accordingly, Company ABC
Ltd. will have to arrive at the amortised cost at the date of transition by applying the effective
interest method (EIM) with retrospective effect from the date of issue of debentures. In view
of requirements of Ind AS 109, amortised cost computation using EIM includes all
transaction costs that are directly attributable to the acquisition or issue of debentures, such
as, expenses incurred on issue of debentures and premiums and discounts, if any.






In the above background, the Securities Premium Account utilised in past as described above,
may result into higher carrying amount of non-convertible debentures as per Indian GAAP
compared to amortised cost carrying amount required as per Ind AS 109 as on transition date
and the excess amount needs to be reversed into an appropriate component of equity.

In this regard, the following requirement of Ind AS 101, First-time Adoption of Indian
Accounting Standards, may be noted:
               "11. The accounting policies that an entity uses in its opening Ind AS Balance
               Sheet may differ from those that it used for the same date using its previous
               GAAP. The resulting adjustments arise from events and transactions before
               the date of transition to Ind ASs. Therefore, an entity shall recognise those
               adjustments directly in retained earnings (or, if appropriate, another category
               of equity) at the date of transition to Ind ASs."

In view of the above-mentioned requirement of Ind AS 101, it may be mentioned that the
appropriate category of equity for reversal of the excess carrying amount of non-convertible
debentures in this case is the Securities Premium Account. Accordingly, the excess of
carrying value of financial liability as per Indian GAAP over the amortised cost amount






1. This FAQ replaces the earlier Issue no. 7 of the Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 2 issued by
the Accounting Standards Board.
arrived at by using EIM as per Ind AS 109 as on transition date should be reversed by
crediting the Securities Premium Account with corresponding debit to the relevant account
which was credited earlier.

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