First Notes - 1 November 2017

First Notes - 1 November 2017

ICAI issues exposure drafts of AS 23, Borrowing Costs and AS 24, Related Party Disclosures



The Ministry of Corporate Affairs (MCA) through a notification dated 16 February 2015 issued the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS Rules) which laid down a road map for entities (other than insurance entities, banking entities and Non-Banking Financial Companies (NBFCs)) (corporate road map) for implementation of Ind AS converged with International Financial Reporting Standard (IFRS) in a phased manner.

For other class of companies not covered under the corporate road map (i.e. primarily unlisted entities having net worth less than INR250 crore, including non-corporate entities) Accounting Standards (AS), as notified under Companies (Accounting Standards) Rules, 2006 (AS Rules) continue to remain applicable.

The MCA had also requested the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) to upgrade the AS with a view to bring them nearer to the requirements of Ind AS. In this context, ICAI has recently issued exposure drafts of two new standards and has maintained consistency with the numbering of the standards under Ind AS.

New development

On 5 October 2017, the ASB of the ICAI issued Exposure Drafts (EDs) of the following AS:

  • AS 23, Borrowing Costs
  • AS 24, Related Party Disclosures.

This issue of First Notes provides an overview of guidance contained in the ED of AS 23 and ED of AS 24. The note also highlights the areas of key difference between the EDs and the currently applicable AS (i.e. AS 16, Borrowing Costs, and AS 18, Related Party Disclosures respectively).

It is important to note that ED of AS 23 and AS 24 is not identical to Ind AS 23, Borrowing Costs and Ind AS 24, Related Party Disclosures respectively. Therefore, this First Notes also highlights additional requirements contained in Ind AS 23 and Ind AS 24.

To access the text of the ED on:

  • AS 23, please click here
  • AS 24, please click here.


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