Ind AS 103 from IFRS 3

With reference to this convergence, this article provides an insight on the treatment of goodwill and its impairment, bargain purchase, non-controlling interests, reverse acquisitions and identifiable net assets & liabilities at fair value through various examples. Also, Ind AS 103 is more stringent about the accounting method to be used. This article also shows the major difference between IND AS 103 and As 14 Amalgamation with the help of different case studies as well as carves outs of Ind AS 103 from IFRS 3 and its reasons.


Comments

Post a Comment

Popular posts from this blog

Section 53A of the Transfer of Property Act

Image
The method adopted by the assessee, therefore,cannot be regarded to comply with the ownership so as to get an enforceable right to receive the balance of sale consideration, the question of applying Section 53A of the Transfer of Property Act would not arise so as to recognise the revenue before actual registration. Recognition/identification of income under the Income-tax Act 1961 is attainable by several methods of accounting. Project completion method [PCM] is one such method.
Read more

Transfer of all significant risks and rewards of ownership

Image
The case of builders, undertaking construction on own account, is more appropriately covered by AS-9. The question, therefore, reduces to as to which of the two methods is, on facts of the case,in consonance with AS-9. The said standard stipulates the basic conditions that should obtain if the income can be said to have accrued. The first is the transfer of all significant risks and rewards of ownership. Income arises on exchange. Risk and reward are incidents of ownership, income, thus, can be said to have accrued when there has been i.e., given the binding legal contract, transfer of these incidents, wholly or substantially so.
Read more

Reverse acquisition

Image
Reverse acquisition takes place when a private entity wants to become a public entity but does not want to register its equity shares. In such case,private entity approaches a public entity,the one which is listed, to acquire its (private entity’s) equity interests in exchange for the equity interests of the public entity In a reverse acquisition, the entity issuing equity interests is legally the acquirer, but for accounting purposes is considered the acquiree. Accounting for business combination is done from the perspective of accounting acquirer and not legal acquirer.
Read more