Every year, minor amendments to the International Financial Reporting Standards (IFRS) are introduced by the International Accounting Standards Board (IASB) by way of annual improvements. Generally, these amendments apply for accounting periods beginning on or after 1 January.

Indian Accounting Standards (Ind AS), which are converged standards based on IFRS but only applicable in India, follow a similar model. Every year in March, annual amendments to Ind AS are notified (by way of amendments to the Ind AS Rules under the Companies Act, 2013) and become applicable for accounting periods beginning on or after 1 April.

For instance, annual improvements notified on 31 March 2023 will become applicable for accounting periods beginning on or after 1 April 2023. Hence, companies should consider them while preparing financial statements for the year ending on 31 March 2024.

It should also be noted that Ind AS 1 requires companies to provide an explanatory note stating the impact of the amendments to Ind AS that have been issued and will apply in the next accounting period. Similar requirements exist in IFRS. In this article, we provide an overview of the recent amendments (with the applicability dates) to Ind AS and IFRS.