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

Phase 2 of the Interest Rate Benchmark Reform amendments, which amended Ind AS 116 among other standards, was notified by the MCA in June 2021. From which annual reporting periods must an entity apply these amendments?

Entities apply the Interest Rate Benchmark Reform Phase 2 amendments to Ind AS 116 for annual reporting periods beginning on or after 1 April 2021, as stated in paragraph C1B. The test is the beginning of the period, not its end.

  1. APeriods beginning on or after 1 April 2020
  2. BPeriods beginning on or after 1 April 2021Correct
  3. CPeriods beginning on or after 1 April 2022
  4. DPeriods ending on or after 31 March 2021

Explanation

Paragraph C1B states that an entity shall apply the Interest Rate Benchmark Reform Phase 2 amendments for annual reporting periods beginning on or after 1 April 2021. The option referring to periods ending on 31 March 2021 changes the test from beginning to ending date and is wrong.

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