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.

A quick, practical breakdown of how investments in mutual fund units should be classified under Ind AS 109. We discuss why mutual funds cannot be measured at FVOCI, why dividends aren’t “interest,” why these units are neither equity nor debt instruments, and why they end up as mandatory FVTPL.
This issue comes from the GAAP Advisors Issue Repository (4,500+ Ind AS/IGAAP issues) and was featured in the 228th edition of the GAAP Advisors TASK Weekly Newsletter by CA Manish C. Iyer.
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