The way of Indian companies present their profits and losses is set to a person who could provide investors with a clearer picture of what profits and where the money goes.
The Institute of Rent India (ICAI) The Institute for Authorized Accounting (ICAI) approved a new format of reporting within the Indian Indian, with two persons a step closer to implementation, said the development.
ICAI sends the proposed new format of the Watchdog National Financial Reporting Authority (NFRA) to review; The aim of the format is to overcome how companies represent revenue and expenditure and offer more clarity about the basic performance and generation of return.
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If it is cleaned, it will be sent to the Ministry for Corporate Affairs for final logging out, one of the above persons with the above and demanded anonymity. While the formal implementation date must still be announced, the implementation in April 2027 is probably in line with a similar global transition to IFRS 18.
Inquiries on Thursday E -mail to the Ministry for Corporate Affairs and NFRA remained unanswered at the time of publishing.
The advice nods, the next steps
The ICAI Council includes elected authorized accountants and nominated for the government and other constitutional or regulatory bodies, including representatives of the controller and the general auditor of India and the Ministry of Business Affairs.
Ca. Charanjot Singh Nanda, President of ICAI, said Mint in his statement that the proposed Indian AS 118 would mean a significant step forward to improving the quality and clarity of financial reporting in India.
“This standard is designed to improve how entities communicate with financial performance, with a special focus on profit and loss statements,” Nanda said.
“Although this does not change the method of measurement of financial performance, it is a more structured and consistent approach to how this performance is presented and published. The proposed standard will not affect how companies measure their financial performance and total profit information.
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Three -part division
The new format will require enterprises to show all income and expenditure in three defined groups: operation that deals with basic business activities; investment activities dealing with revenues or losses; And financing, which deals with items such as interest paid or accepted, said experts to cite the proposal of the ICAI Indard AS118 exhibition, which was previously published for public comments.
This structure is expected to help investors and regulatory authorities better assess performance in both main operations and in auxiliary investment activities.
Another significant change is the requirement to provide certain information – currently published outside the financial statements in investors’ presentations, press releases or comments for administration – with audited funds. These are often referred to as measures for the performance of defined management and now fall within the extent of the legal audit.
In addition, the format orders a more detailed range of income and expenditure with a clearer publication of the nature of specific costs. The aim of these changes is to improve transparency, auditability and comparability of financial statements and will require them to be more accurately precise when reporting their reports.
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Global alignment
This step is part of a wider global shift in financial reporting formats, which is in line with the standard of international financial reporting (IFRS) 18, which has been worldwide since January 2027.
However, the Indian timeline for adoption remains undecided. Probable implementation is possible since April 2027, although the final decision will depend on the discussions between ICAi, NFRA and the government, the above mentioned person said.
(Tagstotranslate) Financial statements
