A PRACTICAL GUIDE TO FINANCIAL INSTRUMENTS

Accounting for financial instruments under Ind AS is generally complex. In India, we do not have much of a history of a comprehensive and robust accounting framework for financial instruments. Historically, accounting for financial instruments is primarily based on form rather than the contractual terms of instruments.

Focus on accounting for financial instruments started only since 2007. Owing to the global financial crisis which raised issues regarding accounting treatment of financial instruments, various accounting standards setting bodies examined the robustness of accounting for financial instruments. Further, Ind AS transition resulted in high-quality, principles-based, globally comparable financial reporting of large Indian companies. Accounting for financial instruments under Ind AS is quite robust and comprehensive.

This book attempts to provide insights and in-depth analysis on interpretative issues and complex principles in the Ind ASs dealing with financial instruments. The requirements of Ind AS 32, Financial instruments: Presentation, Ind AS 109, Financial instruments, and Ind AS 107 Financial instruments: Disclosures are extensively dealt with. There are separate chapters addressing:

• Scope of the requirements.
• Debt/equity classification.
• Recognition and Derecognition.
• Subsequent measurement.
• Fair values and impairment.
• Hedge accounting.
• Presentation and Disclosures.
• Implications on key provisions of Companies Act, 2013.
• ICAI’s Guidance Note on Accounting for Derivative Contracts.
• insurance Contracts

This book is intended to help the companies to identify Ind AS requirements that are relevant to them and evaluate various aspects of financial instruments accounting. The book would be an immensely useful referencer for professionals, practitioners and corporates.

Key features

• To simplify the reading experience, the chapters include a brief, easy to understand, summary of the relevant topic, followed by FAQs.
• Covers examples-based illustrations of complex topics.
• Covers case studies on hedge accounting with journal entries, guidance for hedge documentation and effectiveness testing.
• Includes real life extracts of disclosures of financial instruments.
• Covers key implications of Ind AS under Companies Act, 2013.
• New chapter on Insurance Contracts under IFRS 4.
• Includes key amendments to Ind AS 109 effective for FY 2021-22.

About the Author

CA Santosh Maller

The author is an Associate Chartered Accountant, having secured rank in CA exams, with about 16 years of extensive experience in Accounting, Audit and Assurance fields. He has worked with several diverse companies, Indian and multinational companies, on IFRS and Ind AS GAAP conversion engagements, in India and overseas, in manufacturing, telecom, real estate, shipping and logistics. He has been a member of IFRS desk/accounting technical professional practice group of a big audit firm for over 8 years. He has had a stint in London, during which he was closely associated with the IFRS standard-setting projects of the International Accounting Standards Board, such as, revenue, leases and financial instruments.

The author has been serving as a special invitee for Ind-AS on the ICAIs, Accounting Standards Board and has been part of many study groups of the ICAI. He has authored several media articles on Accounting and Valuation and has been an eminent speaker and technical trainer on financial reporting and corporate governance. The author has also authored several other books on Ind AS and taxation.