Over 10 years we help companies reach their financial and branding goals. Engitech is a values-driven technology agency dedicated.

Gallery

Contacts

411 University St, Seattle, USA

engitech@oceanthemes.net

+1 -800-456-478-23

Implementation of Ind AS by banks in India

In 2023, the RBI issued a DP on provisioning per the ECL approach, which was largely acknowledged as a paradigm shift in how banks in India were required to provide financial assets like loans and investments. In response to comments received from stakeholders, the RBI issued a press release on 04 October 2023 and announced the constitution of a working group for independent inputs on technical aspects of ECL. While the final directions on ECL-based provisioning are awaited, the RBI issued final directions on the Classification, Valuation, and Operations of Investments on 12 September 2023. The issuance of revised directions on the classification, valuation, and operations of investments marks a significant shift in the financial reporting requirements of banking entities.

Currently, banks prepare financial statements using I GAAP. The financial reporting framework under IGAAP comprises directions stipulated by the Third Schedule of the Banking Regulation Act, 1949, various guidelines issued by the RBI over a period, the Accounting Standards (‘AS’) specified under Section 133 of the Companies Act, 2013 read together with the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Rules, 2021. Furthermore, disclosures stipulated under IGAAP do not cover policies, processes, and systems relating to risk management, which are pertinent to better understanding a banking company’s financial performance and results.

This publication highlights the journey of the transition to Ind AS, key issues to be addressed during the transition to Ind AS based on our global and local experience of implementing IFRS 9 & Ind AS, and a point of view on the timing of the transition to Ind AS by banks in India.

Tags

Similar Insights

Resolution 157 - UAE Accountability Authority web banner

Resolution 157 - UAE Accountability Authority


The United Arab Emirates is undertaking significant steps to strengthen corporate governance. Through Resolution 157, the UAE Accountability...

Read More
IASB Exposure DraftEquity Method of Accounting-1

IASB Exposure Draft: Equity Method of Accounting


The IASB issued an Exposure Draft on the Equity Method of Accounting in September 2024 to address specific application challenges related...

Read More
IFRS 16

IFRS 16- Leases


IFRS 16 has significantly changed lease accounting by establishing a unified model for lessees, ensuring financial statements accurately...

Read More
IFRS 15 Revenue from Contracts with Customers

IFRS 15- Revenue from Contracts with Customers


We are excited to publish of our latest thought leadership document, "IFRS 15: Revenue from Contracts with Customers." This comprehensive...

Read More
“Implementation of Ind AS forInsurance Entities” banner

Implementation of Ind AS for Insurance Entities


Transitioning to Ind AS 117: A Milestone for India's Insurance Sector The journey towards adopting Indian Accounting Standards (IndAS)...

Read More
IASB Exposure Draft1

IASB Exposure Draft


Business combinations are often pivotal transactions for the entities involved. A critical aspect of these transactions is the recognition...

Read More