THE IMPACT OF IND AS 116

Abstract

The Institute of Chartered Accountants of India (ICAI) has released an Exposure Draft for Ind AS 116, "Leases." IFRS 16, Leases, released by the International Accounting Standards Board, is mostly convergent with Ind AS 116. (IASB) (Natrajan&Ali, 2019). Subject to notification by the Ministry of Corporate Affairs of India, it is proposed to be applicable for yearly periods commencing on or after April 1, 2019. Lessees must now account for practically all leases on their balance sheets, which will indicate their right to use an asset for a specified period of time and the corresponding payment obligations (Segal &Naik, 2019).