ICAI’s Exposure Draft of ‘AS-37: Provisions, Contingent Liabilities and Contingent Assets’ for Comments by 28 Jan. 2019
ICAI has issued Exposure Draft of ‘Accounting Standard 29 (AS-29): Provisions, Contingent Liabilities and Contingent Assets’, which is an upgraded version of ICAI’s existing ‘AS-29: Provisions,Contingent Liabilities and Contingent Assets’ and has been drafted based on Ind AS-37, as part of MCA initiative to align Accounting Standards (AS) with Ind AS. Comments can be submitted latest by 28 Jan. 2018.
The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February, 2015, have been applicable to the specified class of companies. Accounting Standards are applicable to entities to whom Ind AS are not applicable. However, the Ministry of Corporate Affairs has requested the Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) to upgrade Accounting Standards, as notified under Companies (Accounting Standards) Rules, 2006, to bring them nearer to Indian Accounting Standards. Accordingly, the Accounting Standards Board (ASB) of ICAI has initiated the process of upgradation of these standards which will be applicable to all companies having net-worth less than Rs. 250 crores including non-corporate entities.
In this direction, the ASB has finalised AS 37, Provisions, Contingent Liabilities and Contingent Assets. For formulating AS 37, Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, has been taken as the base. Major differences between draft AS 37 and Ind AS 37 are given in Appendix 1 of the AS 37. Major differences between draft AS 37 and AS 29 are given in Appendix 2 of the AS 37.
Following is the Exposure Draft of the Accounting Standard (AS) 37, Provisions, Contingent Liabilities and Contingent Assets, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, for comments. AS 37 refers to following ASs which are under formulation:
1. AS 11, Construction Contracts
2. AS 12, Income Taxes
3. AS 17, Leases
4. AS 18, Revenue
5. AS 103, Business Combinations
6. AS 105, Non-current Assets Held for Sale and Discontinued Operations
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.
How to Comment: Comments can be submitted using one of the following methods so as to receive not later than January 28, 2019:
1. Electronically: Visit the link http://www.icai.org/comments/asb/
2. Email: Comments can be sent at email@example.com
3. Postal: Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi – 110 002
Further clarifications on any aspect of this Exposure Draft may be sought by email to firstname.lastname@example.org