MINISTRY OF CORPORATE AFFAIRSNOTIFICATIONNew Delhi, the 31st March, 2023 G.S.R. 242(E). — In exercise of the powers conferred by section 133 read with section 469 of the CompaniesAct, 2013 (18 of 2013), the Central Government, in consultation with the National Financial Reporting Authority,hereby makes the following rules further to amend the Companies (Indian Accounting Standards) Rules, 2015,namely:-1. Short title and commencement.-(1) These rules may be called the Companies (Indian Accounting Standards)Amendment Rules, 2023.(2) They shall come into force with effect from 1st day of April, 2023.2. In the Companies (Indian Accounting Standards) Rules, 2015, in the “Annexure”, under the heading “B. IndianAccounting Standards (Ind AS)”,-(A) in Indian Accounting Standard (Ind AS) 101, –(i) after paragraph 39AG, the following shall be inserted, namely:-“39AH Deferred Tax related to Assets and Liabilities arising from a Single Transaction, amendedparagraph B1 and added paragraph B14. An entity shall apply these amendments for annualreporting periods beginning on or after 1 April 2023.”;(ii) in Appendix B,(a) in paragraph B1, for items (f) and (g), the following shall be substituted, namely:-“(f) embedded derivatives (paragraph B9);(g) government loans (paragraphs B10–B12);(h) [Refer Appendix 1]; and(i) deferred tax related to leases and decommissioning, restoration and similar liabilities (paragraphB14).”;[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 9(b) after paragraph B12, the following paragraphs shall be inserted, namely:-“B13 [Refer Appendix 1]Deferred tax related to leases and decommissioning, restoration and similar liabilitiesB14 Paragraphs 15 and 24 of Ind AS 12, Income Taxes exempt an entity from recognising a deferredtax asset or liability in particular circumstances. Despite this exemption, at the date of transitionto Ind ASs, a first-time adopter shall recognise a deferred tax asset—to the extent that it isprobable that taxable profit will be available against which the deductible temporary differencecan be utilised—and a deferred tax liability for all deductible and taxable temporary differencesassociated with:(a) right-of-use assets and lease liabilities; and(b) decommissioning, restoration and similar liabilities and the corresponding amountsrecognised as part of the cost of the related asset.”;(iii) in Appendix 1,(a) in paragraph 7, item (ii) shall be omitted;(b) after paragraph 14, the following paragraph shall be inserted, namely:-“15. Paragraphs B1(h) and B13 of IFRS 1 related to exceptions to insurance contracts have not beenincluded since these refer to amendments due to issuance of IFRS 17, Insurance Contracts, forwhich corresponding Ind AS has not been issued/notified. However, in order to maintainconsistency with paragraph numbers of IFRS 1, the paragraph numbers are retained in Ind AS101.”;(B) in Indian Accounting Standard (Ind AS) 102, the footnote starting with the words “For example, in case” andending with the words “not exercised”, appearing on the heading before paragraph 24 ‘If the fair value ofthe equity instruments cannot be estimated reliably’ shall be deleted and the same shall be added at the end ofparagraph 23 at the words “equity to another”.(C) in Indian Accounting Standard (Ind AS) 103, in Appendix C, in paragraph 13, for item (b), the following itemshall be substituted, namely:-“(b) the date on which the transferee obtains control of the transferor;”;(D) in Indian Accounting Standard (Ind AS) 107, –(i)for paragraph 21, the following paragraph shall be substituted, namely:-“21 In accordance with paragraph 117 of Ind AS 1, Presentation of Financial Statements, an entitydiscloses material accounting policy information. Information about the measurement basis (or bases)for financial instruments used in preparing the financial statements is expected to be materialaccounting policy information.”;(ii) after paragraph 44HH, the following paragraph shall be inserted, namely:-“44II Disclosure of Accounting Policies, which amends Ind AS 1 amended paragraphs 21 and B5. An entityshall apply that amendment for annual reporting periods beginning on or after 1 April 2023.”;(iii) in Appendix B, in paragraph B5,-(a) for the opening paragraph, the following shall be substituted, namely:-“Paragraph 21 requires disclosure of material accounting policy information, which is expected toinclude information about the measurement basis (or bases) for financial instruments used in preparingthe financial statements. For financial instruments, such disclosure may include:”(b) for the closing paragraph, the following shall be substituted, namely:-“Paragraph 122 of Ind AS 1 also requires entities to disclose, along with material accounting policyinformation or other notes, the judgements, apart from those involving estimations, that management hasmade in the process of applying the entity’s accounting policies and that have the most significant effecton the amounts recognised in the financial statements.”;(E) in Indian Accounting Standard (Ind AS) 109, in Appendix B, in paragraph B4.3.12, for item (b), the followingitem shall be substituted, namely:-“(b) a combination of entities or businesses under common control as described in Appendix C of IndAS 103; or”;10 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)](F) in Indian Accounting Standard (Ind AS) 115, in Appendix 1,-(i) in paragraph 2, for the words and figure “paragraph of 15”, the word and figure “paragraph 51” shallbe substituted;(ii) in paragraph 5, for the word and letter “Appendix D” the word and letter “Appendix B” shall besubstituted.;(G) in Indian Accounting Standard (Ind AS) 1, –(i) in paragraph 7, before the definition of “General purpose financial statements”, the following shall beinserted, namely:-“Accounting policies are defined in paragraph 5 of Ind AS 8, Accounting Policies, Changes inAccounting Estimates and Errors, and the term is used in this Standard with the same meaning.”;(ii) in paragraph 10, in item (e), for the words “significant accounting policies”, the words “materialaccounting policy information”, shall be substituted.;(iii) in paragraph 114, in item (c), for sub-item (ii), the following sub-item shall be substituted, namely:-“(ii) material accounting policy information (see paragraph 117);”;(iv) for paragraph 117, the following paragraph shall be substituted, namely:-“Disclosure of accounting policy information117 An entity shall disclose material accounting policy information (see paragraph 7).Accounting policy information is material if, when considered together with otherinformation included in an entity’s financial statements, it can reasonably be expected toinfluence decisions that the primary users of general purpose financial statements make onthe basis of those financial statements. ”(v) after paragraph 117, the following shall be inserted, namely:-“117A Accounting policy information that relates to immaterial transactions, other events or conditionsis immaterial and need not be disclosed. Accounting policy information may nevertheless bematerial because of
