With significant updates under Indian Accounting Standards (Ind AS), here are a few year-end considerations for organizations to evaluate and prepare themselves while responding to new accounting standards and regulatory changes in the financial year 2019-20.
Companies reporting under Indian Accounting Standards (Ind AS) continued to face steady flow of new accounting standards and regulatory changes in the financial year 2019-20. These changes range from significant amendments of fundamental accounting principles, enhanced disclosure requirements to some minor updates arising from changes in International Financial Reporting Standards (IFRS).
Some of these changes go beyond the matters of accounting and reporting. They potentially impact the internal controls and information systems of companies and their business decisions, such as buying versus leasing decisions.
With regulatory environment becoming more stringent, stakeholders’ expectations from companies and auditors are increasing. Stakeholders now demand enhanced level of transparency and disclosures. Consequently, there is a need for companies to proactively understand the changes, assess their impact on financial statements and prepare their systems and processes to ensure smooth transition to new accounting standards and regulatory changes.
As we come close to the end of the financial year, we had discussed this during the webinar (Year-end considerations) our Financial accounting advisory services (FAAS) have summarized the key changes and their impact to assist companies in ensuring compliance with these developments while finalizing their annual financial statements.
Companies will need to look out for accounting standards and regulatory updates and to monitor the current and potential effects that the Coronavirus will have on their financial statements. The three broad updates will highlight the key aspects of these changes: New accounting pronouncements relevant for financial statements of FY 2019-20 or thereafter, new auditing pronouncements applicable to financial statements of FY 2019-20 or thereafter, regulatory changes and other developments.