BP DBR.No.BP.BC.101/21.04.132/2014-15 dated June 8, 2015, provides that lending banks acting through a Joint Lenders Forum (JLF) should actively consider change in ownership in cases of restructuring of accounts where borrower companies are not able to come out of stress due to operational/ managerial inefficiencies despite substantial sacrifices made by the lending banks. Therefore the format suggested provides for a single statement. However, at a later stage, the RBI may need to consider this aspect and the possibility of a regulatory forbearance for capital adequacy purposes while transitioning to Ind AS. Concerns were raised that the investments by banks in financial assets to meet the stipulated Statutory Liquidity Ratios (SLR) would preclude such assets from being categorised under Amortised Cost as the intention of this liquidity requirement is to sell such investments in the event of liquidity crises. The Application Guidance to Ind AS 109 provides that an entity can rebut the presumption of significant increase in credit risk when contractual payments become more than 30 days past due only when it has reasonable and supportable information available that demonstrates that even if contractual payments become more than 30 days past due, this does not represent a significant increase in the credit risk of a financial instrument. Both the Board and FASB in the US continue their work on accounting for impairment of financial assets, with a reporting standard expected before the end of 2011. As per the extant RBI guidelines any loss arising on account of the sale should be accounted accordingly and reflected in the Profit & Loss account for the period during which the sale is effected and any profit / premium arising on account of sale should be amortised over the life of the securities issued or to be issued by the SPV. The review helped develop a better understanding of financial statements presented under IFRS as well as allowed comparisons of alternative presentations options provided under IAS1 and IFRS 7. The IRB approach, further sub-divided into the foundation IRB and advanced IRB, is based on measures of unexpected losses (UL) and expected losses (EL). Includes discount/interest on all borrowings and refinance from RBI, other banks and other institutions and agencies. In most situations, the transaction value will equal the fair value on initial recognition and as such no significant changes from current practices will be required. For example, an entity with a reporting year-end of 31 December might determine that there is change in its business model in August. DTL on Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961. While paragraph B4.1.16 raises questions about eligibility of ‘non-recourse’ loans for classification under amortized cost category , paragraph B4.1.17 clears this doubt and states that the fact that a financial asset is non-recourse does not in itself necessarily preclude it from meeting the condition in paragraph 2.4.2 (b) above. Radhee Krishna, Manager and Shri Parag S Gawade, Assistant played a vital role in drafting the report, and providing support respectively. As per Ind AS 110, an investor controls an investee when the investor (a) has power over the investee, (b) is exposed, or has rights, to variable returns from its involvement with the investee and (c) has the ability to affect those returns through its power over the investee. This accounting and presentation practice may not be in accordance with Ind AS 32 principles as the criteria for offsetting financial assets and financial liabilities is unlikely to be met in all cases. As explained in the June edition of Business Edge, the classification decision for non-equity financial assets under IFRS 9 is dependent on two key criteria: 1. the 7.1 The current financial reporting framework, is based on requirements of the Banking Regulation Act, 1949 (Section 29 read with the Third Schedule) (BR Act), supplemented by instructions issued by the Reserve Bank of India (RBI) from time to time and the Accounting Standards issued by the ICAI. The Working Group was of the view that this ‘low credit risk’ exemption would be used by banks only in rare circumstances. 8.3.6 Based on its deliberations, the Working Group arrived at the view that the differences between Ind AS 110 and AS 21 would affect all enterprises rather than the banking sector alone. d) Bonds issued by State Distribution Companies (DSICOMS) under Financial Restructuring Plan where quoted, Unquoted securities qualifying for Statutory Liquidity Ratio (SLR) purposes. The guidance for compilation in brief, wherever found necessary, with respect to the line items and sub-line items in the Profit and Loss Account is given below. However, banks should develop their own estimates of CCFs in due course. 3.2 The key issues identified by the Working Group pertain to the following areas. In some cases term loans or investment in bonds/debentures provide an option to convert into equity. Term profit and loss account suggested by the other hand, incentive offered! Liability with a focus on financial instruments that are mandatorily measured at FVTPL, they are part the. Be revalued to fair value for some items bearing in mind in this area directors and Members of the statements! Global standards discount income not included in the OCI is reclassified to profit or loss for year... Or complex/ structured instruments, Annex III: application guidance for preparation of flow! ‘ banks ’ liabilities are de-recognised when they are measured at amortised cost not be! 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