Page 4 - 33. FR RTP NOV. 22

Indian Accounting transition to Ind AS. According to it, first time adopter of Ind AS are
Standards‖ permitted to deem all cumulative translation differences for all foreign
operations to be zero on the date of transition to Ind AS.
Para D13A has been inserted in Ind AS 101 which removes the conflict
between the requirements of paragraph D16(a) of Ind AS 101 which provides
exemption where a subsidiary adopts Ind AS later than its parents and the
exemptions on cumulative translation differences at the carrying amount
included in the parent‖s consolidated financial statements. Similar exemption
is available to joint venture and an associate that uses the exemption in para
D16(a) of Ind AS 101. Para D16(a) of

Ind AS Significant amendment made in 2022
Ind AS 101 provides that a subsidiary can measure its assets and
liabilities at the carrying amounts in parent‖s consolidated
financial statements.
Ind AS 109 ―Financial As per Ind AS 109, a financial liability is derecognised when it is
Instruments‖ extinguished, which includes exchange between an existing
borrower and lender due to different or substantial modification
in terms of the contract.
Further, Ind AS 109 clarified that terms are considered to have
been substantially modified when the net present value of the
cash flows under the new terms (including any fees paid net of
any fees received) and discounted using the original EIR differs
by atleast 10% from the present value of the remaining cash
flows under the original terms.
Earlier what is to be included in the fees paid and fees received
was not mentioned in the standard.
Now the amendment has been made in 2022 by substituting
para B3.3.6 and inserting para B3.3.6A in Ind AS 109 which
clarify that the fees paid (for the above purpose) includes
amount paid by the borrower to or on behalf of the lender and
fees received includes fees amounts paid by the lender to or on
behalf of the borrower.
The above amendment will be applied prospectively to
modifications and exchanges that occur on or after the date the
entity first applies the amendment.
Ind AS 41 Earlier para 22 of Ind AS 41 prescribed certain cash flows that
―Agriculture‖ would not be considered for the purpose of assessing the fair
values.
Out of those cash flows, the amendment made in 2022 deleted
the cash flows for taxation from the exclusion list for
measurement of fair value.
This implies that tax cash flows must be included in the fair
value measurement of biological assets as per Ind AS 41.

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