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COVER STORY
IND AS 108 'OPERATING
SEGMENTS': CONVERGED
ACCOUNTING STANDARD
ON SEGMENT REPORTING
IN INDIA
Abstract Introduction
In the age of convergence, ICAI has issued series of ac- In the age of convergence, with the line of other coun-
counting standards converged with respective IFRSs in- tries India has also very rightly decided to converge her
cluding Ind AS 108 'Operating Segments'. It replaces accounting standards with that of the International Ac-
the prevailing accounting standard on segment report- counting Standard Board (IASB). Accordingly, Indian apex
ing AS 17 and aligns with requirements of IFRS 8. The standard setting body Institute of Chartered Accountant
present article makes an endeavor to evaluate the of India (ICAI) has issued series of accounting standards
newness and to investigate the potentiality of this new converged with respective International Financial Report-
standard for meeting modern needs of the stakehold- ing Standards (IFRSs) including Ind AS108 'Operating Seg-
ers. It concludes that, Ind AS 108 not only insists the ments'.
creativity in accounting but also enables the users to
view the different perspective including future pros- Subsequently, the Ministry of Corporate Affairs has also
pects of the operating segments through the eye of notified the much awaited Indian Accounting Standards
management. This standard would also ensure accu- Rule, 2015 on 16th February, 2015 for implementing these
rate, relevant and adequate disclosures of segment in- Ind ASs (i.e. converged accounting standards). According
formation. to this rule, these Ind AS should be implemented in a
phased manner from the accounting period commencing
About the author on or after 1st April, 2015 voluntarily and it would be
mandatory from the accounting period commencing on or
&Satyajit Ghorai Dr. Ram Prahlad Choudhary after 1st April, 2016. India can now be claimed that her
accounting standards are contemporary and virtually at
Assistant Professor Assistant Professor per with the leading global standards (i.e. IFRSs).
Department of Commerce Department of Commerce The Ind AS 108 'Operating Segments' replaces the prevail-
Jhargram Raj College University of Calcutta
32 | 2016 | JULY | BANKING FINANCE
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