The new standard on leases, Ind AS 116, Leases is effective for companies from 1 April 2019. Significant areas of differences have been discussed below. Let me illustrate the new accounting model and put it in the contract with the treatment under IAS 17. Note – IFRS 16 is Ind AS-116 and IFRS-9 is Ind AS 109. as though Ind AS 116 was always applied. It measures the ROU based on option 1 i.e. 27 . Let’s take an example of a Lease assets: 1. The difference between IFRS vs IAS (International Accounting Standards) are mentioned here. To make it quick, I will just make up some data: Annual rental payments are CU 10 000, including the cleaning services, all payable in arrears (at the end of year) IND AS 116 at a glance . a rrea rs . CUlO,OOO . I will continue in the above example of a warehouse. itiaI di rect costs: Each individual Ind AS includes an appendix to highlight the ‘major differences, if any, between the Indian Accounting Standard (Ind AS) and the corresponding IFRS Standard’. Most of the entities are busy managing these impacts for reporting their numbers of the previous financial year. IFRS (International Financial Reporting Standard )16 has significantly changed the accounting for leases across the globe. Key Differences ‘AS’ and ‘Ind-AS’ 24 Example : Taxable Temporary Difference •An entity has an item of machinery whose cost is fully tax deductible. Example IAS 17 vs. IFRS 16. Practical Expedients: 2 : 8 ... 20.16 . One of the easiest ways to manage this transition, is to refer comprehensive analysis of differences with existing GAAP and make necessary changes in … By this article you can learn the difference between IFRS (International Financial Reporting Standards) vs IAS (International Accounting Standards), when was they implemented and the introduction of both IFRS and IAS. 2. Ind AS 116 eliminates the classification of leases as either finance or operating lease as required by Ind AS 17, Leases. In. IFRS 16, Leases, is effective for annual periods beginning on or after 1 January 2019. (above para is same as para 47 IFRS 16, thereby making IFRS 16 and Ind AS 116 exactly same now, except for the fair value option for investment property- ref para 1 of comparison with IFRS 16 ) Giving the above option makes it clear how the lessee is going to show the asset in books. Ind AS 116/ IFRS 16 – Leases Transition from Ind AS/ IAS 17 New Definition of Lease Lessee’s Accounting under new guidance of Ind AS 116/ IFRS 16 Impact of Ind AS 116/ IFRS 16 on different industries like Telecom, Manufacturing, Automobile, Oli and Gas etc. 2 . IND AS 116 - Leases . a n num ; 1 n . Ind AS 116 introduces a single on-balance sheet accounting model that is similar to current finance lease accounting model. Company A transitions to Ind AS 116 with effect from 1 April 2019, using the modified retrospective method. Overview. •Depreciation under tax rate is higher that that under Ind AS 16. June 2019. 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