Exposure Draft




      Amendments to Indian Accounting Standards
(Corresponding to Annual Improvements to IFRS 2011-2013
                          Cycle)




           (Last date for Comments: June 10, 2014)




                         Issued by
                 Accounting Standards Board
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             The Institute of Chartered Accountants of India



Standards addressed

The following table shows the topics addressed by these amendments.



Standard                                        Subject of amendment
Ind AS 103 Business Combinations                Scope exceptions for joint ventures.

Ind AS 113 Fair Value Measurement               Scope of paragraph 52 (portfolio
                                                exception).
Ind AS 40 Investment Property                   Clarifying the interrelationship between Ind
                                                AS 103 and Ind AS 40 when classifying
                                                property as investment property or owner-
                                                occupied property.




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                                       Exposure Draft
             Amendments to Indian Accounting Standards
Following is the Exposure Draft of the Amendments to the following Indian Accounting
Standards (Ind AS) (Corresponding to Annual Improvements to IFRS 2011-2013 Cycle)
issued by the Accounting Standards Board of the Institute of Chartered Accountants of India,
for comments:

      i) Ind AS 103 Business Combinations
     ii) Ind AS 113 Fair Value Measurement
    iii) Ind AS 40 Investment Property

 The Board invites comments on any aspect of this Exposure Draft. Comments are most
helpful if they indicate the specific paragraph or group of paragraphs to which they relate,
contain a clear rationale and, where applicable, provide a suggestion for alternative
wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board. The
Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha
Marg, New Delhi ­ 110 002, so as to be received not later than June 10, 2014             .
Comments can also be sent by e-mail at commentsasb@icai.in or asb@icai.in.

(This Exposure Draft of the Indian Accounting Standard includes paragraphs set in bold type
and plain type, which have equal authority. Paragraphs in bold type indicate the main
principles. This Exposure Draft of the Indian Accounting Standard should be read in the
context of its objective and the Preface to the Statements of Accounting Standards1)







Amendment to
Ind AS 103 Business Combinations
Paragraph 2 is amended. New text is underlined and deleted text is struck through.


Scope
2     This Indian Accounting Standard applies to a transaction or other event that meets the
      definition of a business combination. This Indian Accounting Standard does not apply to:

       (a) the accounting for the formation of a joint venture joint arrangement in the financial
           statements of the joint arrangement itself.

       (b)   ...



1
  Attention is specifically drawn to paragraph 4.3 of the Preface, according to which accounting
standards are intended to apply only to items which are material.

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Amendment to

Ind AS 113 Fair Value Measurement
Paragraph 52 is amended. New text is underlined and deleted text is struck through.


Application to financial assets and financial liabilities with offsetting
positions in market risks or counterparty credit risk
       ...

52   The exception in paragraph 48 applies only to financial assets, and financial liabilities
     and other contracts within the scope of Ind AS 39 Financial Instruments: Recognition
     and Measurement. The references to financial assets and financial liabilities in
     paragraphs 48­51 and 53­56 should be read as applying to all contracts within the
     scope of, and accounted for in accordance with, Ind AS 39 , regardless of whether they
     meet the definitions of financial assets or financial liabilities in Ind AS 32 Financial
     Instruments: Presentation.




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Amendment to

Ind AS 40 Investment Property
Before paragraph 6, a heading is added. Paragraph 14A is added. Paragraph 14 has been
included for ease of reference but are not amended. New text is underlined.


Classification of property as investment property or owner-occupied
property


6     (Refer to Appendix 1)

       ...

14     Judgement is needed to determine whether a property qualifies as investment property.
       An entity develops criteria so that it can exercise that judgement consistently in
       accordance with the definition of investment property and with the related guidance in
       paragraphs 7­13. Paragraph 75(c) requires an entity to disclose these criteria when
       classification is difficult.








14A Judgement is also needed to determine whether the acquisition of investment property
    is the acquisition of an asset or a group of assets or a business combination within the
    scope of Ind AS 103 Business Combinations. Reference should be made to Ind AS 103
    to determine whether it is a business combination. The discussion in paragraphs 7­14
    of this Standard relates to whether or not property is owner-occupied property or
    investment property and not to determining whether or not the acquisition of property is
    a business combination as defined in Ind AS 103. Determining whether a specific
    transaction meets the definition of a business combination as defined in Ind AS 103 and
    includes an investment property as defined in this Standard requires the separate
    application of both Standards.

...




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