agriculture ind as accounting


Presentation and disclosure requirements

Impact on the Agriculture sector

Presentation and disclosure requirements are driven by Schedule III of the Companies Act, 2013 and the relevant accounting standards. With the change in the accounting framework, changes were made to Schedule III. Consequently, there has been a fundamental change to the presentation and disclosure requirements in the financial statements. This publication aims to address the additional presentation and disclosure requirements for companies that are in the tea, coffee and rubber space.

Our insights

Considering that the financial statements will now be required to contain enhanced disclosures on bearer plants, biological assets, the assumptions used for determination of fair values, key sources of estimation uncertainty , companies will have to start planning early to assess whether they have all the information on hand to enable them to fulfil the extensive disclosure requirements prescribed by the Ind AS Standards, including starting early discussions with the independent fair value experts.

Further, Companies will also have to develop appropriate risk control matrices that address the various risk and controls revolving around these specific disclosure requirements prescribed by the standards and also maintain adequate documentation to support the review of these disclosures.

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