What has changed
| Standard | Change |
|---|---|
| Ind AS 109 and Ind AS 107 | Classification of financial instruments with contingent features, with related disclosures |
| Ind AS 109 | Settlement of financial liabilities through electronic payment systems |
| Ind AS 109 and Ind AS 107 | Contracts referencing nature-dependent electricity, with new disclosures in Ind AS 107 paragraphs 30A to 30C |
| Ind AS 7 and Ind AS 110 | An investor that accounts for a subsidiary, associate or joint venture at cost reports only cash flows between itself and the investee, such as dividends and advances |
| Ind AS 101 | New paragraphs 39AJ and 39AK bringing in the Annual Improvements to Ind AS (2024) |
Nature-dependent electricity contracts: new disclosures
What finance teams and auditors should do
Review loans, bonds and other instruments with ESG-linked or other contingent features for classification under the amended Ind AS 109. Check the derecognition policy for liabilities settled through electronic payment systems. Identify renewable power purchase agreements and prepare the new Ind AS 107 disclosures. Revisit cash flow statement presentation for investments in subsidiaries, associates and joint ventures carried at cost. Apply the specific transition provisions for the financial instrument classification and electricity contract amendments.
Applies to FY 2026-27 financial statements
Frequently Asked Questions
The Companies (Indian Accounting Standards) Amendment Rules, 2026, notified by MCA vide G.S.R. 725(E) dated 12 August 2026.
Most apply to annual reporting periods beginning on or after 1 April 2026, with specific transition provisions for some amendments.
Ind AS 101, Ind AS 107, Ind AS 109, Ind AS 110 and Ind AS 7.
Ind AS 109 and Ind AS 107 were amended for contracts referencing nature-dependent electricity, with new disclosures in Ind AS 107 paragraphs 30A to 30C on their effect on future cash flows and performance.
