Companies (Indian Accounting Standards) Amendment Rules, 2023


The Central Government vide notification dated 27 April, 2023 has issued the Companies (Indian Accounting Standards) Amendment Rules, 2023. They shall come into force with effect from 1st day of April, 2023.

The amendment provides that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may nevertheless be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial.

However, not all accounting policy information relating to material transactions, other events or conditions is itself material. Accounting policy information is expected to be material if users of an entity’s financial statements would need it to understand other material information in the financial statements. For example, an entity is likely to consider accounting policy information material to its financial statements if that information relates to material transactions, other events or conditions and:
(a) the entity changed its accounting policy during the reporting period and this change resulted
in a material change to the information in the financial statements;
(b) the entity chose the accounting policy from one or more options permitted by Ind ASs;
(c) the accounting policy was developed in accordance with Ind AS 8 in the absence of an Ind
AS that specifically applies;
(d) the accounting policy relates to an area for which an entity is required to make significant
judgements or assumptions in applying an accounting policy, and the entity discloses those
judgements or assumptions in accordance with paragraphs 122 and 125; or
(e) the accounting required for them is complex and users of the entity’s financial statements
would otherwise not understand those material transactions, other events or conditions—
such a situation could arise if an entity applies more than one Ind AS to a class of material

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