Companies (Indian Accounting Standards) Third Amendment Rules, 2024
Written by
Daily Law Times
The Ministry of Corporate Affairs (MCA) on 28 September, 2024, issued a notification regarding the Companies (Indian Accounting Standards) Third Amendment Rules, 2024. This amendment aims to make further modifications to the Companies (Indian Accounting Standards) of 2015.
In the Companies (Indian Accounting Standards) Rules, 2015 (hereinafter referred to as the said rules), in rule 5, the following proviso shall be inserted, namely:-
--Provided that an insurer or insurance company may provide its financial statement as per Ind AS 104 for the purposes of consolidated financial statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply.
This Indian Accounting Standard (Ind AS) establishes financial reporting guidelines for insurers. It requires minimal improvements in accounting for insurance contracts and mandates disclosures that clarify amounts in financial statements, helping users understand the timing, amount, and uncertainty of future cash flows from these contracts.
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