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CMA Final · Corporate Financial Reporting · Leases (Ind AS 116)

Himalaya Pharma Ltd, a lessee, has a lease whose rentals are linked to a benchmark interest rate. The benchmark is replaced under interest rate benchmark reform and the amendments added paragraphs 104-106 and C20C-C20D to Ind AS 116. From which annual reporting period must the entity apply these Phase 2 amendments?

The Interest Rate Benchmark Reform Phase 2 amendments apply to annual reporting periods beginning on or after 1 April 2021. They amended Ind AS 109, 107, 104 and 116 and were notified on 18 June 2021, so earlier start dates are incorrect.

  1. APeriods beginning on or after 1 April 2019
  2. BPeriods beginning on or after 1 April 2020
  3. CPeriods beginning on or after 1 April 2021Correct
  4. DPeriods beginning on or after 1 April 2022

Explanation

The Phase 2 amendments to Ind AS 109, 107, 104 and 116 apply for annual reporting periods beginning on or after 1 April 2021, as notified on 18 June 2021. Earlier dates would not follow from the text. Thus the third option is correct.

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