Conceptual Framework for Financial Reporting under Ind AS

Conceptual Framework for Financial Reporting under Ind AS

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Created By Admin Last Updated Sat, 03-Oct-2020

Accounting Standards Board
The Institute of Chartered Accountants of India
28th August 2020


Conceptual Framework for Financial Reporting under Indian Accounting Standards (Ind AS) applicable for Standard-setting Activity from accounting periods beginning from April 1, 2020, and for the preparers of financial Statements from a future date

In view of the issuance of new Conceptual Framework by the IASB and with an objective to remain converged with the global accounting framework, the ICAI has developed the Conceptual Framework for Financial Reporting under Indian Accounting Standards corresponding to IASB’s Conceptual Framework 2018.

The Framework is not a Standard and it does not override any specific standard. Therefore, this does not form part of a set of standards pronounced by the standard-setters. While the Framework is primarily meant for the standard-setter for formulating the standards, it has relevance to the preparers in certain situations such as to develop consistent accounting policies for areas that are not covered by a standard or where there is a choice of accounting policy, and to assist all parties to understand and interpret the Standards. As a result, certain individual standards e.g. Ind AS 1, Presentation of Financial Statements, Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors, Ind AS 103, Business Combinations, etc., require the preparers to follow the guidance in the Framework.

The ICAI has also recommended the necessary amendments in various Ind ASs due to revised Conceptual Framework under Ind AS for notification under the Companies Act, 2013, and the same will be notified in due course of time. Accordingly, the Council of the ICAI at its 393rd meeting held on June 30 – July 1, 2020, decided that the Conceptual The framework under Ind AS shall be applicable from April 1, 2020, for standard-setting activity. The applicability of the Conceptual Framework for preparers of financial statements will be notified separately when consequential amendments to Ind ASs arising from this New Conceptual Framework are notified following the due process under Section 133 of the Companies Act, 2013.