Mumbai, Oct 21 (KNN)  The Reserve Bank of India has placed on its website the report of Working Group on Implementation of Ind AS by Banks in India, seeking suggestions and comments if any.

In a notification on Tuesday, the country’s central bank has asked for comments to reach Principal Chief General Manager, Department of Banking Regulation), Sudarshan Sen by post of email on or before November-30.

The Union Budget for 2014-15 has emphasised the urgent need for convergence of the current Indian accounting standards with International Financial Reporting Standards (IFRS). The Ministry of Corporate Affairs (MCA), Government of India notified the rules for IFRS converged Indian accounting standards (Ind AS) along with its implementation road map for corporates in a phased manner from 2016-17 onwards.

The roadmap for convergence of insurance companies, banking companies and non-banking financial companies (NBFCs) is expected to be announced by MCA in due course.

The Reserve Bank recommended to the MCA a roadmap for implementation of Ind AS by banks from 2018-19 onwards and NBFCs in a phased manner (2018-19 and 2019-20).

Considering these developments, a Working Group was constituted to look into the issues in implementation of Ind AS by banks.

The Working Group has structured its recommendations into the following key areas with focus on financial instruments:  Classification and Measurement of Financial Assets; Classification and Measurement of Financial Liabilities; Hedge Accounting and Derivatives; Fair Value Measurement; Impairment of Financial Assets; Presentation of Financial Statements and Disclosure; Derecognition, Consolidation and Other Residuary Issues.  (KNN Bureau)