ICAI’s Checklist of ‘Ind AS Disclosure Requirements for Companies’ preparing Ind AS based Financial Statements
The ICAI has come out with a publication “Indian Accounting Standards (Ind AS): Disclosures Checklist”, for guidance of its members, to provide a compilation/ checklist of all the disclosure requirements under Ind AS at one place, incorporating about 3000 Disclosures for financial reporting by Companies preparing Ind AS based Financial Statements, as under:
Over the past two decades, the nature of accounting and financial reporting has evolved to meet the changing needs of users. Business and Financial markets have become more challenging, with greater complexity in business models, sources of risk and uncertainty, and how to manage this risk.
These new emerging challenges require disclosure for information that is relevant to users and may be subjective in nature. Disclosures of information in financial reporting have also had to respond to these challenges by shifting from simply presenting the line items on the face of the financial statements to providing more detailed disclosures, including disclosures of assumptions, estimations, business models, alternative measurement bases and sources of estimation uncertainty, amongst others.
The role and importance of disclosures in financial reporting have also enhanced the role and responsibility of the auditors regarding financial statement disclosures to support their opinion on the financial statements as a whole.
In this context, the Accounting Standards Board of the ICAI has decided to bring out this publication to provide a compilation/ checklist of all the disclosures required by Ind AS at one place.
This publication presents a checklist of disclosures requirements under Ind AS applicable to entities preparing its financial statements voluntarily and mandatorily beginning on or after April 1, 2016, in accordance with Ind AS.
The disclosures checklist is based on the Indian Accounting Standards (Ind AS) that are effective as on April 01, 2018, and includes disclosures required under Ind AS 115, Revenue from Contracts with Customers, a standard issued recently.
This publication is for guidance purposes and should be read in conjunction with the relevant Ind AS and should not be considered as an alternative from studying the Ind AS.
This disclosure checklist does not include disclosure requirements under other regulatory requirements, e.g., Schedule III of Companies Act 2013.
The disclosure checklist table has been presented in a manner which facilitates the compilation of the disclosures prescribed under Ind AS.
All the disclosures have reference of the paragraph number of the standard which requires disclosures under the standards, for e.g., 101.1 which indicates paragraph 1 of Ind AS 101.
As can be seen from the disclosure checklist, the disclosures in Ind AS are voluminous (more than 3000). Some are labelled as ‘minimum’ requirements and some Standards set out a disclosure objective along with examples of the types of information that might meet the objective. In deciding what information to disclose, the materiality aspect and it can be useful to think about the broad types of disclosure that Ind AS requires.