Exposure Draft of the Amendments to Indian Accounting Standards (Corresponding to Annual Improvements to IFRSs 2011-13 Cycle) (Comments to be received by June 10, 2014)
May, 07th 2014
Amendments to Indian Accounting Standards
(Corresponding to Annual Improvements to IFRS 2011-2013
(Last date for Comments: June 10, 2014)
Accounting Standards Board
The Institute of Chartered Accountants of India
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
Ind AS 40 Investment Property Clarifying the interrelationship between Ind
AS 103 and Ind AS 40 when classifying
property as investment property or owner-
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,
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
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 firstname.lastname@example.org or email@example.com.
(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)
Ind AS 103 Business Combinations
Paragraph 2 is amended. New text is underlined and deleted text is struck through.
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.
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.
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
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
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.