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June 2025

From Published Accounts

By Himanshu Kishnadwala, Chartered Accountant
Reading Time 13 mins

COMPILER’S NOTE

On first time adoption of Ind AS, for accounting for investment in subsidiaries and associates, Ind AS 27 gives an option to record the same at Cost (less impairment, if any). Most companies in India adopted this option when they adopted Ind AS. The normal accounting for the same as per Ind AS 109 is ‘Fair value through Other Comprehensive Income’.

Given below is a case where the company had though earlier adopted the option given under Ind AS 27 to account for its investments in subsidiaries at cost, has now, with retrospective effect, changed the same to ‘Fair value through Other Comprehensive Income’. Ind AS 108 permits such change Such change in policy can be done only in cases where the same can provide more reliable and relevant information about the effects of transactions, other events or conditions on the entity's financial position and financial performance to the users of financial results/statements.

Tata Steel Ltd. (financial results for the quarter and year ended 31st March, 2025)

Extract from the communication by the company addressed to the Stock Exchanges

Change of Accounting Policy

During the quarter ended 31st<

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