Conceptual Framework & Ind AS Roadmap

Core concepts

1. 01Ind AS converges with IFRS; mandatory for listed companies + specified thresholds.
2. 02Phase I (FY 2016-17): net worth ≥ ₹500 cr; Phase II (FY 2017-18): listed + net worth ≥ ₹250 cr.
3. 03Framework defines elements, measurement, recognition, qualitative characteristics.
4. 04Fair value measurement (Ind AS 113) — exit price in orderly transaction; 3-level hierarchy.
5. 05Carve-outs vs IFRS: FCTR on translation, capitalisation of forex, bargain purchase.

Exam-critical pointers

• ⭐Fair value hierarchy: Level 1 quoted prices, Level 2 observable, Level 3 unobservable inputs.
• ⭐Reclassification distinction: equity (no recycling) vs P&L (recycled) for FVOCI.
• ⭐Going concern assessment when material uncertainties exist (Ind AS 1, SA 570).
• ⭐Schedule III (Division II) for Ind AS preparers — different from Division I.