Accounting Standards

• Control by reporting enterprises - While the reporting enterprise may control the foreign operation; the
activities of foreign operation are carried independently without much dependence in reporting enterprise.
• Transactions with the reporting enterprises are not a high proportion of the foreign operation’s activities.
• Activities of foreign operation are mainly financed by its operations or from local borrowings. In other words,
it raises its finance independently and is in no way dependent on reporting enterprises.
• Foreign operation sales are mainly in currencies other than reporting currency.
• All the expenses by foreign operations are primarily paid in local currency not in the reporting currency.
• Day to day cash flows of the reporting enterprises is independent of the foreign enterprises cash flows.
• Sales prices of the foreign enterprises are not affected by the day to day changes in exchange rate of the
reporting currency of the foreign operation.
• There is an active sales market for the foreign operation product.
These are only indicators and not decisive/conclusive factors to classify the foreign operations as non-integral,
much will depend on factual information, situations of the particular case and therefore, proper judgment is
necessary to be applied to determine the appropriate classification.
In case of branches classified as independent for the purpose of accounting are generally classified as non-integral
foreign operations.
Translations of accounts of non-integral foreign operation –
Accounts of non-integral foreign operation are translated using the following principles :
• Balance sheet items i.e. Assets and Liabilities both monetary and non-monetary - apply closing rate.
• Items of income and expenses - at actual exchange rates on the date of transactions. However, accounting
standard allows average rate subject to materiality.
• Resulting exchange rate difference should be accumulated in a “foreign currency translation reserve” until the
disposal of “net investment in non-integral foreign operation”.
• Net investment in a non-integral foreign operation- An item for which settlement is neither planned nor likely
to occur in foreseeable future which is in substance a net investment in non-integral foreign operation, which
may be calculated as - all assets exclude trade receivable less outside liabilities excluding trade payable.
• Contingent liability - at closing rate.
• Tax effects, if any may be accounted for as per AS-22.
When a non-integral foreign subsidiary, foreign jointly controlled entity (JV) is consolidated with the reporting
enterprise, the reporting enterprises follow normal consolidation procedure such as—
• Goodwill/capital reserve arising on the acquisition, as a result of consolidation is translated using closing rate.
• Intra-group transactions are eliminated as per AS-21 and AS-27.
• Exchange difference arising on intra-group monetary items whether short-term or long-term cannot be set-off
against a corresponding amount arising on other intra-group balances because the monetary items represents
commitments to convert one currency into another and expose the reporting enterprises to gain or loss through
currency fluctuation. This difference is to be recognized as income or expense in consolidated financial
statements.

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If exchange difference arising on monetary items that in substance form part of net investment in non-integral
foreign operation, should be accumulated in currency translation reserve.
• Procedure for different reporting date/policies shall be followed as mentioned in AS-21.
Disposal of non-integral foreign operations - When non-integral foreign operation is disposed fully or partially
the corresponding exchange difference lying in the exchange translation reserve is recognized as income or expense.
• What is disposal - Disposal of a non-integral foreign operation includes—
- Sales
- Liquidation
- Repayment of its share capital by non-integral foreign opera¬tion
- Abandonment of all or part of the foreign operation by reporting enterprises
- Payment of dividend by the non-integral foreign operation if it is treated as return on investment by the
reporting enterprises (partial disposal).
• Disposal does not include - Write down of the carrying amount of non-integral foreign operation asset. For
example - write down due to impairment of asset (AS-28).
• Treatment of foreign currency translation reserve - On the disposal of non-integral foreign operation the
translation reserve is treated as under—
- On partial disposal proportionate foreign currency translation reserve is recognized as income or expense.
- On full disposal, whole foreign currency translation reserve is recognized income or expense.
The above treatment of foreign currency translation is done in the period in which gain or loss on disposal is
recognized.
When there is a change in classification from—
- Integral to non-integral
- Non-integral to integral.
The accounting treatment is as under—
• Integral to non-integral
- Translation procedure applicable to non-integral shall be followed from the date of change.
- Exchange difference arising on the translation of non-monetary assets at the date of re-classification is
accumulated in foreign currency translation reserve.
• From non-integral to integral
- Translation procedure as applicable to integral should be applied from the date of change.
- Translated amount of non-monetary items at the date of change are treated as historical cost.
- Exchange difference lying in foreign currency translation reserve is not to be recognized as income or
expense till the disposal of the operation even if the foreign operation becomes integral.
Forward Contract - A forward contract is an agreement between two parties whereby one party agrees to buy from
or sell to the other party an asset at future date for an agreed price, in case of forward exchange contract the asset
is “foreign currency”]

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Purposes of accounting treatment of forward exchange contract has been classified in two types—
• Forward exchange contract entered for managing risk (hedging).
• Forward exchange contract entered for trading or speculation.
Disclosures
An enterprise should disclose—
• Amount of exchange difference included in the net profit or loss.
• Amount accumulated in foreign exchange translation reserve.
• Reconciliation of opening and closing balance of foreign exchange translation reserve.
• If the reporting currency is different from the currency of the country in which entity is domiciled, the reason
for such difference.
• A change in classification of significant foreign operation needs following disclosures—
- Nature of change in classification
- The reason for the change
- Effect of such change on shareholders fund
- Impact of change on net profit or loss for each prior period presented
- The disclosure is also encouraged of an enterprise’s foreign currency risk management policy.
Comparative Provisions between AS 11 and Ind AS 21
Presently, in India, Indian Accounting Standard (Ind AS) 21 The effect of changes in foreign exchange rates deal
with the same issue. Ind AS 11 differs from AS 21, with respect to the following points:

Ind AS 21 AS 11
Forward exchange contracts are not covered. Forward exchange contracts are included within its scope.
Accounting of foreign operations is based on Accounting of foreign operations is based on integral and
functional currency approach. non-integral approach.
No specific guidance provided. Option to recognise exchange difference arising on
translation of certain long-term monetary items over the
period is available.
Presentation currency could be different from No such specification provided.
the local currency.
Illustration 7
During the financial year 2022-23, Zeds Ltd., an e-commerce firm entered into a foreign currency transaction
relating to fees for technical services paid to a Lucas Ltd., an Atlanta based organisation in the USA. The transaction
was for $24,000, which was entered into on 07.12.2022. The payment for the same was made on 20.05.2023. Given
that the exchange rates are: on 07.12.2022: $1 = ` 73.80; on 01.01.2023: $1 = ` 73.95; on 31.03.2023: $1 = ` 75.45;
on 20.05.2023: $1 = ` 76.50.
You are required to:

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(a) ascertain the amount at which the transaction would get recognised in the books; and
(b) calculate amount of foreign exchange gain/ loss to be recorded in the financial statement for the years 2022-23
and 2023-24.
Solution:
(a) As per AS 11, a foreign currency transaction should be recorded, on initial recognition in the reporting currency,
by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign
currency at the date of the transaction.
⸫ Fees for technical services $24,000 would be recorded on 07.12.2022 applying the exchange rate existing
on that date = 24,000 × ` 73.80 = ` 17,71,200.
(b) For 2022-23:
On 31.03.2023, Outstanding fess for technical services should be reflected in the balance sheet using the
closing rate ($1 = ` 75.45) i.e. 24,000 × ` 75.45 = ` 18,10,800.
⸫ Exchange loss to be charged to the Statement of Profit and Loss = ` (18,10,800 – 17,71,200) = ` 39,600.
For 2023-24:
On 20.05.2023, Outstanding fess for technical services paid should be recognised using the existing rate ($1 =
` 76.50) i.e. 24,000 × ` 76.50 = ` 18,36,000.
⸫ Exchange loss on settlement to be charged to the Statement of Profit and Loss = ` (18,36,000 – 18,10,800)
= ` 25,200.
Illustration 8
Subhash Ltd. purchased a machine costing ` 224 lakhs on 1.4.2022 and the same was fully financed by foreign
currency loan (US $) payable in three annual equal instalments. Exchange rates were $1 = ` 70.00 and ` 72.95 as
on 1.4.2022 and 31.03.2023 respectively. First instalment was paid on 31.03.2023. The entire difference in foreign
exchange has been capitalized. Advice how the exchange gain/ loss should be accounted for by the company.
Solution:
Cost of machine (in US$) = ` 224,00,000/ 70.00 = $3,20,000.
⸫ Exchange loss on payment of first instalment = 3,20,000 × ` (72.95 – 70.00) = ` 9,44,000.
This entire loss due to exchange differences amounting ` 9,44,000 should be charged to the Statement of Profit
and Loss.
Illustration 9
Particulars Exchange Rate
Goods purchased on 24.02.2022 of US$ 10000 ₹76.60
Exchange rate on 31.03.2022 ₹77.00
Date of actual payment 5.06.2023 ₹77.50
Calculate the loss / gain for the financial years 2021-22 and 2023-24.
Solutions:
As per AS-11 all foreign currency transactions should be recorded by applying the exchange rate at the date of
transaction. Therefore goods purchased on 24.02.2022 and corresponding creditor would be recorded at ₹76.60 =
US$1, i.e. 10,000 x 76.60 = ₹7,66,000

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As per AS-11 at the balance sheet date all monetary items should be reported using the closing rate therefore
creditors of US$10000 outstanding on 31.3.2023 will reported.
10,000 x ₹77.00 = ₹7,70,000
Exchange loss ₹(7,70,000 – 7,66,000) i.e. ₹4,000 should be debited in profit and loss account for 2021-22.
As per As-11 exchange difference on settlement on monetary items should be transferred to profit and loss account
as gain or loss therefore 10000 x ₹77.50 = ₹7,75,000 – ₹7,70,000 = ₹5000 will be be debited to profit or loss for
the year 2023-24.
Illustration: 10
MM Ltd. purchased fixed assets for US$50 lakhs costing ₹3,825 lakhs on 01.04.2022 and the same was fully
financed by the foreign currency loan [i.e. US Dollars] repayment in five equal instalments annually. [Exchange
rate at the time of purchase was 1 US Dollar = ₹76.50]. as on 31.03.2023 the first instalment was paid when 1
US Dollar fetched ₹81.50. The entire loss on exchange was included in cost of goods sold etc. MM Ltd. normally
provided depreciation on fixed assets at 20% on WDV basis.
Solutions:
In this case AS-11 will be applicable on Accounting for effects of changes in Foreign Exchange rates, as the
transaction in foreign currency has been entered into by the reporting enterprises before 01.04.2023. Exchange
differences arising on repayment of liabilities incurred for the purpose of acquiring fixed assets, should be adjusted
in the carrying amount of the respectively fixed assets. The carrying amount of such fixed assets to the extent not
already so adjusted or otherwise accounted for, also to be adjusted to account for any increase or decrease in the
liability of the enterprise, as expressed in the reporting currency by applying the closing rate, for making payments
towards the whole or a part of the cost of the assets or for repayment of the whole or a part of the monies borrowed
by the enterprise from any person directly or indirectly, in foreign currency specifically for the purpose of acquiring
those assets.
Thus the entire exchange loss due to variation of ₹50 lakhs on 31.03.2023 on payment of US$ 10 lakhs should be
added to the carrying amount of fixed assets and not to the cost of goods sold.
Further, depreciation on the unamortised depreciable amount should also be provided, in accordance with AS-10.
Calculate Exchange loss:
₹ 3,825 lakhs
Foreign currency loan = = 50 lakhs US Dollars
₹ 76.50 lakhs
Exchange loss on outstanding loan on 31.03.2023 = 40 lakhs US$ x ₹(81.50 – 76.50) = ₹200 lakhs should also be
added to cost of fixed asset with corresponding credit to outstanding loan.
Calculation of additional depreciation on account of increase in the depreciable amount of fixed assets: 20% of
₹250 lakhs = ₹50lakhs.
Accounting for Government Grants (AS 12)
This Standard deals with accounting for Government grants. Government grants are sometimes called by other
names such as subsidies, cash incentives, duty drawbacks, etc.
This Standard does not deal with:
i. the special problems arising in accounting for Government grants in financial statements reflecting the effects
of changing prices or in supplementary information of a similar nature;
ii. Government assistance other than in the form of government grants;
iii. government participation in the ownership of the enterprise.

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Definitions
Government refers to government, government agencies and similar bodies whether local, national or international.
Government grants are assistance by Government in cash or kind to an enterprise for past or future compliance
with certain conditions. They exclude those forms of Government assistance which cannot reasonably have a
value placed upon them and transactions with Government which cannot be distinguished from the normal trading
transactions of the enterprise.
Accounting Treatment of Government Grants
Capital Approach versus Income Approach
Two broad approaches may be followed for the accounting treatment of government grants: the ‘capital approach’,
under which a grant is treated as part of shareholders’ funds, and the ‘income approach’, under which a grant is
taken to income over one or more periods.
Capital approach:
• Many Government grants are in the nature of promoters’ contribution, i.e., they are given with reference to the
total investment in an undertaking or by way of contribution towards its total capital outlay and no repayment
is ordinarily expected in the case of such grants. These should, therefore, be credited directly to shareholders’
funds.
• It is inappropriate to recognise Government grants in the profit and loss statement, since they are not earned
but represent an incentive provided by government without related costs.
Income approach:
• Government grants are rarely gratuitous. The enterprise earns them through compliance with their conditions
and meeting the envisaged obligations. They should therefore be taken to income and matched with the
associated costs which the grant is intended to compensate.
• As income tax and other taxes are charges against income, it is logical to deal also with Government grants,
which are an extension of fiscal policies, in the profit and loss statement.
• In case grants are credited to shareholders’ funds, no correlation is done between the accounting treatment of
the grant and the accounting treatment of the expenditure to which the grant relates.
It is generally considered appropriate that accounting for Government grant should be based on the nature of the
relevant grant. Grants which have the characteristics similar to those of promoters’ contribution should be treated
as part of shareholders’ funds. Income approach may be more appropriate in the case of other grants.
It is fundamental to the ‘income approach’ that Government grants be recognised in the profit and loss statement on
a systematic and rational basis over the periods necessary to match them with the related costs. Income recognition
of government grants on a receipts basis is not in accordance with the accrual accounting assumption.
In most cases, the periods over which an enterprise recognises the costs or expenses related to a Government grant
are readily ascertainable and thus grants in recognition of specific expenses are taken to income in the same period
as the relevant expenses.

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Recognition of Government Grants

Government grants available to the enterprise are considered for inclusion in accounts:
• where there is reasonable assurance that the enterprise will comply with the conditions attached to them; and
• where such benefits have been earned by the enterprise and it is reasonably certain that the ultimate collection
will be made.
• Mere receipt of a grant is not necessarily a conclusive evidence that conditions attaching to the grant have been
or will be fulfilled.
Non-monetary Government Grants
Government grants may take the form of non-monetary assets, such as land or other resources, given at concessional
rates. In these circumstances, it is usual to account for such assets at their acquisition cost. Non-monetary assets
given free of cost are recorded at a nominal value.
Presentation of Grants Related to Specific Fixed Assets
Grants related to specific fixed assets are Government grants whose primary condition is that an enterprise
qualifying for them should purchase, construct or otherwise acquire such assets. Other conditions may also be
attached restricting the type or location of the assets or the periods during which they are to be acquired or held.
Two methods of presentation in financial statements of grants (or the appropriate portions of grants) related to
specific fixed assets are regarded as acceptable alternatives.
Method 1: The grant is shown as a deduction from the gross value of the asset concerned in arriving at its book
value. The grant is thus recognised in the profit and loss statement over the useful life of a depreciable asset by way
of a reduced depreciation charge. Where the whole, or virtually the whole, of the cost of the asset is shown in the
balance sheet at a nominal value.
Method 2: Grants related to depreciable assets are treated as deferred income which is recognised in the profit
and loss statement on a systematic and rational basis over the useful life of the asset. Such allocation to income
is usually made over the periods and in the proportions in which depreciation on related assets is charged. Grants
related to non-depreciable assets are credited to capital reserve under this method, as there is usually no charge
to income in respect of such assets. However, if a grant related to a non-depreciable asset requires the fulfillment
of certain obligations, the grant is credited to income over the same period over which the cost of meeting such
obligations is charged to income.
Presentation of Grants Related to Revenue
Grants related to revenue are sometimes presented as a credit in the profit and loss statement, either separately or
under a general heading such as ‘Other Income’. Alternatively, they are deducted in reporting the related expense.
Presentation of Grants of the nature of Promoters’ contribution
Where the Government grants are of the nature of promoters’ contribution, i.e., they are given with reference to the
total investment in an undertaking or by way of contribution towards its total capital outlay and no repayment is
ordinarily expected in respect thereof, the grants are treated as capital reserve which can be neither distributed as
dividend nor considered as deferred income.
Refund of Government Grants
Government grants sometimes become refundable because certain conditions are not fulfilled. A government grant
that becomes refundable is treated as an extraordinary item as per AS 5.
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The amount refundable in respect of a Government grant related to revenue is applied first against any unamortised
deferred credit remaining in respect of the grant. To the extent that the amount refundable exceeds any such
deferred credit, or where no deferred credit exists, the amount is charged immediately to profit and loss statement.
The amount refundable in respect of a government grant related to a specific fixed asset is recorded by increasing
the book value of the asset or by reducing the capital reserve or the deferred income balance, as appropriate, by the
amount refundable. In the first alternative, i.e., where the book value of the asset is increased, depreciation on the
revised book value is provided prospectively over the residual useful life of the asset.
Where a grant which is in the nature of promoters’ contribution becomes refundable, in part or in full, to the
government on non-fulfillment of some specified conditions, the relevant amount recoverable by the government
is reduced from the capital reserve.
Disclosure
(i) the accounting policy adopted for government grants, including the methods of presentation in the financial
statements;
(ii) the nature and extent of government grants recognised in the financial statements, including grants of non-
monetary assets given at a concessional rate or free of cost.
Comparative Provisions under Ind AS 20 and AS 12
Presently, in India, Indian Accounting Standard (Ind AS) 20 Accounting for Government Grants and Disclosure of
Government Assistance deal with the issue of government grants. Ind AS 20 differs from AS 12, with respect to
the following points:

Ind AS 20 AS 12
Disclosure required in financial statements with No specific guidance as does not deal with other forms
indication on other forms of government assistance of government assistance
received
Government grants in the nature of capital contribution Government grants as capital contribution are
are not recognized specifically recognized
Prohibition of recognition of grants directly to the Grants for non-depreciable assets are required to be
shareholder’s fund shown as a capital reserve under shareholder’s funds
Recognition of non-monetary grants at fair value Recognition of non-monetary grants at acquisition
cost or nominal value
No option to deduct the amount of grant from the book Optional to deduct the amount of grant from the book
value of the asset. value of the asset.

Illustration 11
Dee Ltd. received ` 80,00,000 from the Central Government as subsidy for setting up a factory in a backward area.
How would you treat the transaction in the financial statement of the company?
Solution:
When government grants are in the nature of promoters’ contribution, i.e., they are given with reference to the
total investment in an undertaking or by way of contribution towards its total capital outlay and no repayment

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is ordinarily expected in the case of such grants. These are credited directly to shareholders’ funds. So, Dee Ltd.
should credit the amount of ` 80,00,000 to capital reserve and the same would get reflected in the Balance Sheet.
Illustration 12
Big Box Ltd., a start-up purchased on April 1, 2020, a machine worth ` 44,85,000 in relation to which it received
` 7,35,000 as grant from Government of India. The company decided to treat this grant as a capital receipt. It
is estimated that the realizable value of the machine at the end of its useful life of 4 years will be ` 15,36,000.
During the financial year 2022-23, the grant became refundable as the start-up company failed to comply with the
necessary terms and conditions of the grant.
You are required to calculate the amount of depreciation that is to be charged to the statement of profit and loss
for the years 2022-23 and 2023-24 given that the company follows straight line method of charging depreciation.
Solution:
As per AS 12, the amount refundable in respect of government grant is related to specific fixed asset is recorded
by increasing the book value of the asset or by reducing the capital reserve or the deferred income balance, as
appropriate, by the amount refundable. In case the book value of the asset is increased, depreciation is provided on
the revised book value.
Calculation of Depreciation for the years 2022-23 and 2023-24 ` ’000

Cost of machine on 01.01.2020 4,485

Less: Grant from Government of India 735
Net cost of machine 3,750
Estimated useful life 4 years
3,750 - 1,536 553.5
Depreciation p.a. under straight line method [ ]
4
Depreciation charged during 2020-21 and 2021-22 [553.5 × 2] 1,107
Book value of machine on 01.04.2022 [3,750 – 1,107] 2,643
Add: Refund of government grant during 2022-23 735
Revised Book value of machine 3,378
Remaining useful life of machine 2 years
3,378 - 1,536 921
Revised depreciation p.a. [ ]
2
Illustration 13
Z Ltd. has set up its business in designated backward area which entitles it to receive as per a public scheme
announced by the Government of India, a subsidy of 25% of the cost of investment. Having fulfilled the conditions
laid down under the scheme, the company on its investment of ₹100 lakhs in capital assets during its accounting
year ending on 31st March,2023, received a subsidy of ₹ 25 lakhs in January, 2023 from the Government of India.
The Accountant of the company would like to record the receipt as an item of revenue and to reduce the losses on
the Profit and Loss Account for the year ended 31st March, 2023. Is his action justified?

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Solution:
As per AS-12, the Government grants related to depreciable fixed assets to be treated as deferred income which
should be recognized in the Profit and Loss Account on a systematic and rational basis over the useful life of the
asset. Such grants should be allocated to income over the periods and in proportions in which depreciation on those
assets is charged.
The company has received ₹ 25 lakhs subsidy for investment in capital assets which are depreciable in nature. In
view of the provisions under AS-12, the subsidy amount ₹ 25 lakhs received should not be credited to the Profit and
Loss Account for the year ended 31st March, 2023. the subsidy should be recognized and credited to the Profit and
Loss Account in the proportion of depreciation charge over the life of the subsidized assets.
Illustration 14
Explain the treatment of the following:
(i) A firm acquired a fixed asset for ₹550 lakhs on which the Government grant received was 40%.
(ii) Capital subsidy received from the Central Government for setting up a plant in the notified backward region.
Cost of the plant ₹600 lakhs, subsidy received ₹150 lakhs.
(iii) ₹125 lakhs received from the local authority for providing medical facilities to the employees.
Solution:
(i) The total cost of the fixed asset is ₹550 lakhs and the grant is 40% i.e., ₹220 lakhs. In the balance sheet, the
asset will be shown at the net amount (₹550 lakhs – ₹220 lakhs) i.e., ₹330 lakhs only. This will be depreciated
over the life of the asset.
(ii) In this case, the subsidy received for setting up a plant in the notified region, should be treated as a capital
subsidy. The amount of subsidy i.e., ₹150 lakhs be added to the Capital Reserves and the plant should be shown
at ₹600 lakhs.
(iii) It is a case of revenue grant and should be shown in the profit and loss account. However, if the medical
facilities are to be provided over a period of more than one year, it may be treated as deferred income and then
taken to Profit and Loss Account on a systematic basis.

Borrowing Costs (AS 16)

Objective
The objective of this Standard is to prescribe the accounting treatment for borrowing costs.
Scope
This Standard is applicable in accounting for borrowing costs.
Definitions
Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds.
Qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or
sale.

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 Accounting Standards

Borrowing costs may include:

(a) interest and commitment charges on bank borrowings and other short-term and long-term borrowings;
(b) amortisation of discounts or premiums relating to borrowings;
(c) amortisation of ancillary costs incurred in connection with the arrangement of borrowings;
(d) finance charges in respect of assets acquired under finance leases or under other similar arrangements; and
(e) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an
adjustment to interest costs.
Examples of Qualifying Assets: Manufacturing plants, power generation facilities, inventories that require a
substantial period of time to bring them to a saleable condition, and investment properties.
Other investments, and those inventories that are routinely manufactured or otherwise produced in large quantities
on a repetitive basis over a short period of time, are not qualifying assets.
Assets that are ready for their intended use or sale when acquired also are not qualifying assets.
Recognition
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
should be capitalised as part of the cost of that asset. The amount of borrowing costs eligible for capitalisation
should be determined in accordance with this Standard. Other borrowing costs should be recognised as an expense
in the period in which they are incurred.
Borrowing costs are capitalised as part of the cost of a qualifying asset when it is probable that they will result
in future economic benefits to the enterprise and the costs can be measured reliably. Other borrowing costs are
recognised as an expense in the period in which they are incurred.
Borrowing Costs Eligible for Capitalisation
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been
made. When an enterprise borrows funds specifically for the purpose of obtaining a particular qualifying asset, the
borrowing costs that directly relate to that qualifying asset can be readily identified.
The determination of the amount of borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset is often difficult and the exercise of judgement is required.
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of
borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred
on that borrowing during the period less any income on the temporary investment of those borrowings.
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the
amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the
expenditure on that asset. The capitalisation rate should be the weighted average of the borrowing costs applicable
to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically
for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalised during a period should
not exceed the amount of borrowing costs incurred during that period.
When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount
or net realisable value, the carrying amount is written down or written off in accordance with the requirements of

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other Accounting Standards. In certain circumstances, the amount of the write-down or write-off is written back in
accordance with those other Accounting Standards.
The capitalisation of borrowing costs as part of the cost of a qualifying asset should commence when all the
following conditions are satisfied:
(a) expenditure for the acquisition, construction or production of a qualifying asset is being incurred;
(b) borrowing costs are being incurred; and
(c) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Expenditure on a qualifying asset includes only such expenditure that has resulted in payments of cash, transfers
of other assets or the assumption of interest-bearing liabilities. Expenditure is reduced by any progress payments
received and grants received in connection with the asset. The average carrying amount of the asset during a period,
including borrowing costs previously capitalised, is normally a reasonable approximation of the expenditure to
which the capitalisation rate is applied in that period.
The activities necessary to prepare the asset for its intended use or sale encompass more than the physical
construction of the asset. They include technical and administrative work prior to the commencement of physical
construction, such as the activities associated with obtaining permits prior to the commencement of the physical
construction.
However, such activities exclude the holding of an asset when no production or development that changes the asset’s
condition is taking place. For example, borrowing costs incurred while land is under development are capitalised
during the period in which activities related to the development are being undertaken. However, borrowing costs
incurred while land acquired for building purposes is held without any associated development activity do not
qualify for capitalisation.
Suspension of Capitalisation
Capitalisation of borrowing costs should be suspended during extended periods in which active development is
interrupted.
Cessation of Capitalisation
Capitalisation of borrowing costs should cease when substantially all the activities necessary to prepare the
qualifying asset for its intended use or sale are complete.
When the construction of a qualifying asset is completed in parts and a completed part is capable of being used
while construction continues for the other parts, capitalisation of borrowing costs in relation to a part should cease
when substantially all the activities necessary to prepare that part for its intended use or sale are complete.
A business park comprising several buildings, each of which can be used individually, is an example of a qualifying
asset for which each part is capable of being used while construction continues for the other parts. An example
of a qualifying asset that needs to be complete before any part can be used is an industrial plant involving several
processes which are carried out in sequence at different parts of the plant within the same site, such as a steel mill.
Disclosure
(a) the accounting policy adopted for borrowing costs; and
(b) the amount of borrowing costs capitalised during the period.

640 The Institute of Cost Accountants of India

 Accounting Standards

Comparative Provisions under Ind AS 23 and AS 16

Presently, in India, Indian Accounting Standard (Ind AS) 23 Borrowing Costs deal with this issue. Ind AS 23 differs
from AS 16, with respect to the following points:

Ind AS 23 AS 16
Qualifying Assets will never Include Biological Qualifying Assets may Include Biological Assets.
Assets.
No specific definition and explanation on the Specific definition and explanation on the
understanding of substantial period of time has been understanding of substantial period of time is provided.
provided; rather, it is a matter of judgement.
Inventories which are produced in large quantities Inventories may be considered as Qualifying assets if
should not be considered as Qualifying Assets. It condition of substantial period is satisfied.
implies that Inventories which are produced in lower
quantity only can be considered as Qualifying assets.
interest expense which is capitalized or not capitalized Disclosure is required to be made only if capitalization
during the period should be disclosed separately of borrowing cost has been made during the period.
Borrowing costs in hyper-inflationary situation is Inflation in interest rate is not addressed.
addressed. If interest cost increase due to hyper
inflationary situation then the increase in Interest cost
should be written off in income statement.
Weighted Average capitalisation rate on borrowings No specific guidance provided.
should be disclosed in Notes to accounts.
In consolidated financial statements, weighted average No specific guidance provided.
capitalisation rate on total borrowing of Holding &
subsidiaries is to be considered.

Illustration 15
T&L Ltd. is a large construction company which is presently involved in the construction of a railway bridge
over the Ganga river at Patna. The project cost is ` 125 crores, 40% of which is financed by borrowing from
Asian Development Bank at an interest of 3%. There has been a delay in the completion of the project, and the
project manager of the railway bridge construction site has identified that delay construction of the railway bridge
has happened due to high water levels during the monsoon months of July to September. Ms. Sonali Mathur, the
accountant of T&L Co. has not suspended the capitalisation of the borrowing cost and reflected the same in the
cost of the qualifying asset.
You are required to comment on the treatment
Solution:
In this case, the work got suspended due to temporary delay which is a necessary part of the construction process.
Capitalisation of borrowing cost would continue during the extended period during which high water levels
delay construction of the railway bridge, as such high water levels are common during the monsoon period in the
geographic region involved.
So, the treatment done by Ms. Mathur, the company accountant is correct.

The Institute of Cost Accountants of India 641

Illustration 16
On 14.08.2022, Pushkar Ltd. obtained a loan from RAR Bank of ` 65 lakhs to be utilised as under:
Purchase of equipment: ` 19,50,000;
Construction of factory shed: ` 26,00,000;
Advance for purchase of delivery vehicle: ` 6,50,000;
Working capital: ` 13,00,000.
In March, 2023 installation of the machinery was completed and also construction of factory shed was completed
and the machinery installed. However, the truck was not delivered within 31.03.2023. Total interest charged by
the bank for the year ending 31.3.2023 was ` 11.70 lakhs. Discuss how the interest amount would be treated in the
financial statements of the company as per AS 16.
Solution:
In this case, only the factory shed is a Qualifying Asset (QA) as per AS 16. The amount of interest on borrowings
and its treatment is presented below:

Nature of Interest Interest charged to

Particulars
asset capitalised Income Statement
Purchase of equipment Not a QA 3,51,000
[11.7 × 19.5/65]
Construction of factory shed QA 4,68,000
[11.7 × 26/65]
Advance for purchase of delivery vehicle Not a QA 1,17,000
[11.7 × 6.5/65]
Working capital Not a QA 2,34,000
[11.7 × 13/65]
Total 4,68,000 7,02,000

Illustration 17

Amount (`)
Expenditure incurred till 31.03.2023 5,00,000
Interest cost capitalized for the financial year 2022-23 @ 13% 26,000
Amount borrowed till 31.03.23 is 2,00,000
Assets transferred to construction during 2023-24 1,00,000
Cash payment during 2023-24 75,000
Progress payment received 3,70,000
New borrowing during 2023-24 @ 13% 2,00,000
Calculate the amount of borrowing cost to be capitalized.

642 The Institute of Cost Accountants of India

Solution:
Total borrowing cost = 4,00,000 x 13/100 = `52,000

Amount (`)
Expenditure incurred including previously capitalized borrowing cost (5,00,000 + 26,000) 5,26,000
Cash payment during 2023-24 75,000
Asset transferred during 2023-24 1,00,000
7,01,000
Less: Progress payment received 3,70,000
3,31,000
Money borrowed including previously capitalized interest cost 4,00,000 + 26,000 = 4,26,000
3,31,000
Borrowing cost to be capitalized = × 52,000 = 40,404
4,26,000

Illustration 18
On 30-04-2023 MMLtd. obtained a loan from the bank for `200 lakhs to be utilized as under:
Construction of a shed `80 lakhs
Purchase of Machinery `60 lakhs
Working Capital `40 lakhs
Advance for Purchase of truck `20 lakhs
In March 2024 construction of shed was completed and machinery installed. Delivery of truck was not received.
Total interest charged by the bank for the year ending 31-03-2024 was `36 lakhs. Show the treatment of interest
under As-16.
Solution:
As per As-16 borrowing cost (interest) should be capitalized if borrowing cost is directly attributable to the
acquisition, construction or production of qualifying asset. In other words, asset acquired must be qualifying asset
and borrowing cost should be directly attributable to the acquisition, construction or production of qualifying asset.
In the question `200 lakhs borrowed from Bank was utilized for –
Construction of a shed `80 lakhs
Purchase of Machinery `60 lakhs
Purchase of Machinery `40 lakhs
Advance for Purchase of truck `20 lakhs
Out of the above four payments only construction of a shed of `80 lakhs is a qualifying asset as per AS-16, other
three payments are not for the qualifying asset. Therefore, borrowing cost attributable to the construction of a shed
should only be capitalized which will be equal to `36 lakhs x 80/200 = `14.40 lakhs
The balance of `21.6 lakhs (`36 lakhs – `14.4 lakhs) should be expensed and debited to Profit and Loss Account.

The Institute of Cost Accountants of India 643

Accounting for Taxes on Income (AS 22)
The objective of this Standard is to prescribe accounting treatment for taxes on income. Taxes on income are one
of the significant items in the statement of profit and loss of an enterprise.
Scope
This Standard should be applied in accounting for taxes on income. This includes the determination of the amount
of the expense or saving related to taxes on income in respect of an accounting period and the disclosure of such
an amount in the financial statements.
Taxes on income include all domestic and foreign taxes which are based on taxable income.
This Standard does not specify when, or how, an enterprise should account for taxes that are payable on distribution
of dividends and other distributions made by the enterprise.
Important Definitions
Accounting income (loss) - is the net profit or loss for a period, as reported in the statement of profit and loss,
before deducting income tax expense or adding income tax saving.
Taxable income (tax loss) - is the amount of the income (loss) for a period, determined in accordance with the tax
laws, based upon which income tax payable (recoverable) is determined.
Tax expense (tax saving) - is the aggregate of current tax and deferred tax charged or credited to the statement of
profit and loss for the period.
Current tax - is the amount of income tax determined to be payable (recoverable) in respect of the taxable income
(tax loss) for a period.
Deferred tax is the tax effect of timing differences.
Timing differences are the differences between taxable income and accounting income for a period that originate
in one period and are capable of reversal in one or more subsequent periods.
Permanent differences are the differences between taxable income and accounting income for a period that originate
in one period and do not reverse subsequently.
Taxable income is calculated in accordance with tax laws. In some circumstances, the computation of taxable
income differs from the accounting policies applied to determine accounting income. The effect of this difference
is that the taxable income and accounting income may not be the same.
The differences between taxable income and accounting income can be classified into permanent differences and
timing differences.
Permanent differences are those differences between taxable income and accounting income which originate in one
period and do not reverse subsequently.
Timing differences are those differences between taxable income and accounting income for a period that originate
in one period and are capable of reversal in one or more subsequent periods. Timing differences arise because the
period in which some items of revenue and expenses are included in taxable income do not coincide with the period
in which such items of revenue and expenses are included or considered in arriving at accounting income.
Unabsorbed depreciation and carry forward of losses which can be setoff against future taxable income are also
considered as timing differences and result in deferred tax assets, subject to consideration of prudence.
Recognition
Tax expense for the period, comprising current tax and deferred tax, should be included in the determination of the

644 The Institute of Cost Accountants of India

 Accounting Standards

net profit or loss for the period.

Taxes on income are considered to be an expense incurred by the enterprise in earning income and are accrued in
the same period as the revenue and expenses to which they relate. Such matching may result into timing differences.
The tax effects of timing differences are included in the tax expense in the statement of profit and loss and as
deferred tax assets or as deferred tax liabilities, in the balance sheet.
Permanent differences do not result in deferred tax assets or deferred tax liabilities.
This Standard requires recognition of deferred tax for all the timing differences. This is based on the principle
that the financial statements for a period should recognise the tax effect, whether current or deferred, of all the
transactions occurring in that period.
While recognising the tax effect of timing differences, consideration of prudence cannot be ignored. Therefore,
deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty of their
realisation. This reasonable level of certainty would normally be achieved by examining the past record of the
enterprise and by making realistic estimates of profits for the future.
Where an enterprise has unabsorbed depreciation or carry forward of losses under tax laws, deferred tax assets
should be recognised only to the extent that there is virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such deferred tax assets can be realised.
Existence of unabsorbed depreciation or carry forward of losses under tax laws is strong evidence that future
taxable income may not be available. Therefore, when an enterprise has a history of recent losses, the enterprise
recognises deferred tax assets only to the extent that it has timing differences the reversal of which will result in
sufficient income or there is other convincing evidence that sufficient taxable income will be available against
which such deferred tax assets can be realised. In such circumstances, the nature of the evidence supporting its
recognition is disclosed.
Re-assessment of Unrecognised Deferred Tax Assets
At each balance sheet date, an enterprise re-assesses unrecognised deferred tax assets. The enterprise recognises
previously unrecognised deferred tax assets to the extent that it has become reasonably certain or virtually certain,
as the case may be , that sufficient future taxable income will be available against which such deferred tax assets
can be realised.
Measurement
Current tax should be measured at the amount expected to be paid to (recovered from) the taxation authorities,
using the applicable tax rates and tax laws.
Deferred tax assets and liabilities should be measured using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. Certain announcements of tax rates and tax laws by the government
may have the substantive effect of actual enactment. In these circumstances, deferred tax assets and liabilities are
measured using such announced tax rate and tax laws.
When different tax rates apply to different levels of taxable income, deferred tax assets and liabilities are measured
using average rates.
Deferred tax assets and liabilities should not be discounted to their present value.
Carrying amount of deferred tax assets should be reviewed at each balance sheet date.
Disclosure
1. An enterprise should offset assets and liabilities representing current tax if the enterprise:
(a) has a legally enforceable right to set off the recognised amounts; and
(b) intends to settle the asset and the liability on a net basis.

The Institute of Cost Accountants of India 645

Financial Accounting

2. An enterprise will normally have a legally enforceable right to set off an asset and liability representing current
tax when they relate to income taxes levied under the same governing taxation laws and the taxation laws
permit the enterprise to make or receive a single net payment.
3. An enterprise should offset deferred tax assets and deferred tax liabilities if:
(a) the enterprise has a legally enforceable right to set off assets against liabilities representing current tax; and
(b) the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing
taxation laws.
4. Deferred tax assets and liabilities should be distinguished from assets and liabilities representing current tax
for the period. Deferred tax assets and liabilities should be disclosed under a separate heading in the balance
sheet of the enterprise, separately from current assets and current liabilities. The break-up of deferred tax assets
and deferred tax liabilities into major components of the respective balances should be disclosed in the notes
to accounts.
5. The nature of the evidence supporting the recognition of deferred tax assets should be disclosed, if an enterprise
has unabsorbed depreciation or carry forward of losses under tax laws.
Comparative Provisions between AS 22 and Ind AS 12
Presently, in India, Indian Accounting Standard (Ind AS) 12 Income Taxes deal with the same issue. Ind AS 12
differs from AS 22, with respect to the following points:

Ind AS 12 AS 22
Based on Balance Sheet approach. Based on Income Statement approach
Recognition is done based on difference between Recognises the difference between taxable income
carrying amounts of assets and liabilities and their tax and accounting income.
base.
Applies to two types of differences - Timing Applies to two types of differences - Taxable
Differences and Permanent Differences. Temporary Differences and Deductible Temporary
Differences. This standard does not address Permanent
Differences.
Deductible temporary differences are recognised to Deferred taxes are recognised only when and to
the extent that future periods are likely to provide the degree that there is a reasonable certainty of its
taxable earnings. realisation.
No concept of virtual certainty. When a corporation has unabsorbed depreciation or
losses carried forward, the deferred tax asset should
be to the degree that there is a virtual certainty backed
up by convincing evidence.
Current and deferred tax is recognised on income No specific guidance provided.
statement, except for tax that arises from transactions
done in Other Comprehensive Income or directly in
equity.
The disparity between carrying the amount of a The disparity between carrying the amount of a
revalued asset and its tax base is dealt with. revalued asset and its tax base is not covered.

646 The Institute of Cost Accountants of India

 Accounting Standards

No specific guidance provided regarding Minimum Specific guidance provided regarding tax rates for
Alternate Tax u/s 115JB. deferred tax assets/ liabilities Minimum Alternate Tax
u/s 115JB.
No specific guidance provided on deferred tax for tax Specific guidance provided on deferred tax for tax
holiday situations and capital gain cases. holiday situations and capital gain cases.
Illustration 19
Classify the following as Timing Difference and Permanent Difference and also state whether they would result in
Deferred Tax Asset or Deferred Tax Liability:
(a) Unabsorbed depreciation
(b) Income tax penalty
(c) Interest on loan taken from scheduled bank accounted in the books, but not paid till the date of filing Return of
Income.
Solution:
Particulars Nature of difference DTA/ DTL
Unabsorbed depreciation Timing Difference DTA
Income tax penalty Neither DTA nor
Permanent Difference
DTL to be created
Interest on loan taken from scheduled bank accounted in the Neither DTA nor
Permanent Difference
books, but not paid till the date of filing Return of Income. DTL to be created
Illustration 20
Parshuram Ltd., which commenced its operations in 2019-20, provides the following details:

Financial Profit before Timing Permanent Corporate

Remarks
year tax (`) Difference (`) Difference (`) tax rate
2019-20 28,00,000 + 3,15,000 + 3,50,000 40% Reversible in 2022-23
2020-21 31,50,000 + 2,10,000 + 2,80,000 38% Reversible in 2021-22
2021-22 35,00,000 - 70,000 + 3,15,000 35% Reversible in 2022-23
2022-23 24,50,000 Nil + 4,20,000 30% --
You are required to calculate the amount of Current Tax for the four financial years.
Solution:
Calculation of Current Tax (in ` Lakhs)
Particulars 2019-20 2020 - 21 2021-22 2022-23
Profit before tax 28.00 31.5 35.00 24.50
Timing Differences 3.15 2.10 (0.70) Nil
Permanent Differences 3.50 2.80 3.15 4.20

The Institute of Cost Accountants of India 647

Financial Accounting

Taxable Income 34.65 36.40 37.45 28.70

Corporate tax rate 40% 38% 35% 30%
Current Tax (Taxable Income Tax rate) 13.86 13.832 13.1075 8.61

Illustration 21
The following information is available from the records of Vishnu Ltd.:
Depreciation charged to income statement ` 8,00,000; Depreciation u/s 32 of Income Tax Act ` 20,00,000;
Unamortised preliminary expenditure as per income tax records ` 1,50,000.
It is communicated that there is adequate evidence of future profit sufficiency. Given that the corporate tax rate
is 40%, you are required to ascertain the amount of deferred tax asset/ deferred tax liability to be created in this
situation.
Solution:
Timing Difference = Additional depreciation as per Income Tax Act (-) Preliminary expenditure to be allowed = `
(20,00,000 – 8,00,000) - 1,50,000 = ` 10,50,000.
Deferred Tax Liability = ` 10,50,000 40% = ` 4,20,000.

Illustration 22
AB Ltd. has provided depreciation as per accounting records `8,00,000 and as per tax records `14,00,000.
Unamortized preliminary expenses, as per tax record is `11,200. There is adequate evidence of future profit
sufficiency. How much deferred tax asset / liability should be recognized as transition adjustment. Tax rate is 40%.
Solution:
As per AS-22 deferred tax should be recognized for all the timing differences. In the instant case the timing
difference i.e., difference between taxable income and accounting income is –
Excess depreciation as per tax `14,00,000 – `8,00,000 = `6,00,000
Less: Expenses provided in taxable income `11,200
`5,88,800
As tax expense is more than the current tax due to timing difference of `5,88,800, therefore deferred tax liability =
40% of `5,88,800 = `2,35,520 shall be credited in accounts.

648 The Institute of Cost Accountants of India

 Accounting Standards

Exercise
A. Theoretical Questions
~ Multiple Choice Questions

1. In India, Accounting Standards are governed by

a. The Institute of Cost Accountants of India
b. Financial Accounting Standards Board
c. The Institute of Company Secretaries of India
d. The Institute of Chartered Accountants of India
2. The Full form of GAAP
a. Generally Accepted Accounting Principles
b. Generally Accepted Accountancy Principles
c. Globally Accepted Accounting Principles
d. Global Accounting Accepted Principles
3. In India, the Accounting Standards for non-corporate entities including Small and Medium sized
Enterprises, are issued by the ____________ of Institute of Chartered Accountants of India
a. Accounting Standards Board
b. National Standard Setters
c. Financial Accounting Standards Board
d. Accounting Standards Committee
4. The IRDA issued a circular under ______ of the Insurance Act, 1938, which mandates insurers to
comply with Ind AS and its implementation Roadmap issued by the MCA
a. Section 35
b. Section 34
c. Section 36
d. Section 40
5. Full form of IFRS
a. Indian Financial Reporting Standards
b. International Financial Reporting Standards
c. International Financials Reporting Standards
d. Indian Financial Reporting Standard
Answers:

1 d 2 a 3 a 4 b 5 b

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Financial Accounting

B. Numerical Questions
~ Comprehensive Numerical Problems

1. Alpha Ltd. contracted with a supplier to purchase machinery which is to be installed in its one department
in three months’ time. Special foundations were required for the machinery which were to be prepared
within this supply lead time. The cost of the site preparation and laying foundations were `1,40,000. These
activities were supervised by a technician during the entire period, who is employed for this purpose of
` 45,000 per month. The machine was purchased at `1,58,00,000 and `50,000 transportation charges
were incurred to bring the machine to the factory site. An Architect was appointed at a fee of `30,000 to
supervise machinery installation at the factory site. You are required to ascertain the amount at which the
Machinery should be capitalized as per AS 10.
[Answer: Total Cost of Machinery `1,61,55,000]
2. Mrs. A bought a forward contract for three months of US$ 1,00,000 on 1st December at 1 US$ = ` 47.10
when exchange rate was US$ 1 = ` 47.02. On 31st December when he closed his books exchange rate
was US$ 1 = ` 47.15. On 31st January, he decided to sell the contract at ` 47.18 per dollar. Show how the
profits from contract will be recognised in the books as per AS 11.
[Answer: Total Profit (1,00,000 × 0.08) ` 8,000]
3.
Particulars Exchange Rate per $
Goods purchased on 1.1.22 × 1 for US $ 15,000 ` 75
Exchange rate on 31.3.22 × 1 ` 74
Date of actual payment 7.7.22 × 1 ` 73

You are required to ascertain the loss/gain to be recognized for financial years ended 31st March, 2023 and
31st March, 2024 as per AS 11.
[Answer: Credited to Profit and Loss Account ` 15,000]
4. On 1.4.2022, AS Ltd. received government grant of `300 lakhs for acquisition of machinery costing
`1,500 lakhs. The grant was credited to the cost of the asset. The life of the machinery is 5 years. The
machinery is depreciated at 20% on WDV basis. The Company had to refund the grant in May 20 × 4 due
to non-fulfilment of certain conditions. How you would deal with the refund of grant in the books of AS
Ltd. as per AS 12 assuming that the company did not charge any depreciation for year 20X4?
[Answer: Revised book value ` 914.40 lakhs]
5. Ashima Ltd. has obtained Institutional Term Loan of `580 lakhs for modernisation and renovation of
its Plant & Machinery. Plant & Machinery acquired under the modernisation scheme and installation
completed on 31st March, 20 × 2 amounted to ` 406 lakhs, `58 lakhs has been advanced to suppliers for
additional assets and the balance loan of `116 lakhs has been utilised for working capital purpose. The
Accountant is on a dilemma as to how to account for the total interest of ` 52.20 lakhs incurred during
20X1-20X2 on the entire Institutional Term Loan of ` 580 lakhs. Discuss how the interest amount would
be treated in the financial statements of the company as per AS 16.
[Answer: Total Interest to be capitalised ` 41.76 lakhs; Total Interest to be charged to
Profit and Loss Account ` 10.44 lakhs]

650 The Institute of Cost Accountants of India

 INDUSTRY INSIGHTS
INDUSTRY INSIGHTS| |NOVEMBER 2023
JANUARY 2024 Accounting Standards
GAAR

NOTES

TheInstitute
The InstituteofofCost
Cost Accountants
Accountants of India
of India 651 623
32
22 MEMBERS
MEMBERS IN IN INDUSTRY
INDUSTRY COMMITTEE
COMMITTEE II THE
THEINSTITUTE
INSTITUTEOF
OFCOST
COSTACCOUNTANTS
ACCOUNTANTS OF
OF IND
INDIA
Financial Accounting
INDUSTRY
INDUSTRY INSIGHTS
INSIGHTS| |NOVEMBER 2023
JANUARY 2024 GAAR

NOTES

The
652Institute of Cost Accountants of India The Institute of Cost Accountants of India 623
32
22 MEMBERS
MEMBERS IN IN INDUSTRY
INDUSTRY COMMITTEE
COMMITTEE II THE
THEINSTITUTE
INSTITUTEOF OFCOST
COSTACCOUNTANTS
ACCOUNTANTS OF
OF IND
INDIA