Financial reporting in India is undergoing a sea change with the implementation of Indian Accounting Standards (‘Ind AS’). As Indian companies get ready to prepare their financial statements compliant with Ind AS for the first time for the financial year 2016-17, they need to keep the perspective of their stakeholders in mind.
With the adoption of Ind AS, the average length of financial statements is set to increase significantly as compared to the existing Indian GAAP, given that disclosure requirements have substantially increased.
To simplify financial reporting and provide senior management with a practical advice, we have released a publication on “Effective reporting under Ind-AS: Making your financial statements an effective communication tool”which illustrates how companies may improve the quality of their annual report and communicate their story as per the new accounting language.
The key themes discussed in the publication are:
- Comply with the standards and regulations but also ensure your financial statements are an effective part of your wider communication with your stakeholders
- Make effective use of materiality to enhance the clarity and conciseness of your financial statement
- Re-evaluate how you organise the notes to your financial statements to improve their effectiveness as a communication tool
- The financial statements should disclose your significant accounting policies. Your disclosures should be relevant, specific to your company and explain how you apply your policies
We hope this publication further supports the initiatives taken by several regulators in India in improving the landscape of financial reporting by Indian corporates and make India Inc. truly global.