Can a company hide millions in debt without telling asingle lie? One listed company reported massive capital shifts—including a ₹192 million borrowing—yet failed to provide a single cross-reference to the mandatory explanatory notes. Under Ind AS 1, this "scattering" of information is legally equivalent to omitting or misstating the data entirely. Is your annual report a clear map or a calculated scavenger hunt designed to obscure the truth? Discover how a simple missing link can dismantle a company’s entire financial integrity.

This podcast explores whether switching from expensing tocapitalizing borrowing costs for qualifying assets is a policy change or an error rectification. Ind AS 23 mandates capitalization, meaning prior expensing was a mistake in applying policy. Per Ind AS 8, this qualifies as a prior period error, necessitating a retrospective restatement to correct past non-compliance. Notably, the statement of cash flows remains consistent; interest payments are always reported as financing activities, regardless of whether costs were capitalized or expensed in the accrual statements.

Reporting in absolute rupees violates Clause 5, Schedule III of the Companies Act 2013. Large entities with turnovers exceeding ₹100 crore must round to lakhs, millions, or crores. Expert Ind AS guidance is available through the GAAP Advisors repository of 4,500+ resolved issues.