PwC Reporting InBrief: Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 13

The Ind AS Implementation Committee of Institute of Chartered Accountants of India (ICAI) constituted the Ind AS Transition Facilitation Group (ITFG) to address issues faced by preparers, users and other stakeholders on applicability and implementation of Ind AS. The ITFG recently issued its 13th bulletin clarifying some of the key accounting issues commonly faced by the stakeholders such as accounting of (i) deemed disposal of interest in subsidiary without loss of control (ii) financial guarantee in the books of the beneficiary (iii) dividend distribution tax (DDT) paid by a partly owned subsidiary in the consolidated financial statements of the parent (iv) compulsory convertible bonds in the books of the issuer and (v) DDT on dividend payable on preference shares classified as liability.

This InBrief provides an overview of the clarifications issued by the ITFG in its bulletin 13 and our insights on these clarifications and related interpretative issues.