Convergence of As 14 Amalgamation to Ind As 103 Business Combination and Carve Outs from Ifrs 3- Vibha Tripathi

Abstract

With the integrated global economies and cross border mergers and acquisitions, the uniformity of financial reporting by Indian companies is inevitable for the authenticity of their financial statements worldwide e. The emergence of International Financial Reporting Standards (IFRS) marks the biggest revolution in financial reporting, though, not without posing challenges of convergence. In order to harmonize with the Financial Reporting worldwide the ICAI (Institute of C chartered Accountants of India) has issued 35 Ind AS -the converged accounting standards which are in line with IFRS subject to certain carve outs (differ recess) due to tax related issue, as notified by the MCA. The paper focuses on one of these converged IND AS 103 Business Combination. At present in India, though the AS 14 lays out specific treatment for Amalgamation n it is not matching the global reporting standards requirements, so ICAI has converged the present standard AS 14 co Ind AS l03 Business combination which is in line with IFRS 3. The transition co Ind AS a and when it happens is likely to have an impact on the accounts of companies involved in such acquisitions and mergers. With reference to chic convergence, the study provides an insight on the treatment of goodwill and its impairment, barge in purchase, no n controlling in tersest, reverse acquisitions and identifiable net assets & liabilities at fair value through various examples. Al o, Ind AS 103 is more stringent about the accounting method cube used. The study also how’s the major difference between IND AS 103 and as 14 Amalgamation with the help of different case studies. le also focuses on the carves outs of Ind A 103 from IFRS 3 and its reasons.