Version 21 - December 2025 (CUD release)
Content update
- Financial period type: 12-Months (Annual)
- Target industry type: Manufacturing, Services, Generic (excluding Financial Services)
Legislative updates
Lot 3 forms FAQs
The MCA has issued a publication, "Lot 3 forms FAQs", which contains frequently asked questions (FAQs) on the forms covered in Lot 3. The final set of 38 e-forms have been migrated from V2 to V3 portal of MCA. Effective 14 July 2025, all 38 e-forms must be filed through V3 of the MCA Portal.
Companies CSR Policy Amendment Rules 2025
The MCA has notified Companies CSR Policy Amendment Rules 2025, through which it has made amendments to e-Form No. CSR-1 (Registration of Entities for undertaking CSR Activities). These rules shall come into force with effect from 14 July 2025.
Guidance Note on Tax Audit under section 44AB of the Income-tax Act, 1961 (Revised 2025)
The Direct Taxes Committee of ICAI has issued the revised 2025 edition of Guidance note on Tax Audit under Section 44AB of the Income-tax Act, 1961.
This publication covers:
- The amendments introduced by the Finance (No. 2) Act 2024 and Finance Act 2025 to the Income-tax Act, 1961; and
- The additional reporting requirements in Form No. 3CD introduced vide Notification No. 27/2024 dated 5 March 2024 and Notification No. 23/2025 dated 28 March 2025.
Advisory w.r.t. form MGT-7 certification under MCA V3 portal
Pursuant to the Companies (Management and Administration) Amendment Rules, 2025, certification in Form MGT-8 has been integrated with the E-form MGT-7 on V3 portal thereby capturing the certification under Form MGT-8 in a static field.
It is advised to continue to certify the compliances under Form MGT-8 on the letter head of a Peer reviewed Practice Unit, generate UDIN in accordance with guidelines issued by the Institute and attach the same as an optional attachment to Form MGT-7, till the issuance of clarification/Rules from the MCA in this context.
The Institute has already submitted a representation to the MCA on 6 June 2025 for modification in the layout of Form MGT-8 by reviewing Form MGT-7.
Companies (Indian Accounting Standards) Second Amendment Rules, 2025
The MCA has issued the Companies (Indian Accounting Standards) Second Amendment Rules, 2025, introducing key amendments along with consequential changes in other Ind AS.
Amendments to Ind AS 1
The amendment provides clarification on classification of liabilities as current or non-current where the right to defer settlement depends on compliance with debt covenants in the next 12 months, and requires additional disclosures in such cases. The amendment clarifies what is meant by a right to defer settlement, that this right must exist at the end of the reporting period, and that classification is unaffected by the likelihood of exercising the deferral right. It also clarifies the treatment of convertible liabilities and related disclosure requirements.
Effective date: Annual reporting periods beginning on or after 1 April 2025 (retrospective application in accordance with Ind AS 8). In addition, if a covenant breach is rectified after the reporting date, it will be treated as a non-adjusting event; this requirement applies for annual reporting periods beginning on or after 1 April 2026.
Amendments to Ind AS 7 and Ind AS 107 - Disclosures: Supplier Finance Arrangements
The amendments specify additional disclosure requirements intended to help users understand the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk.
Effective date: Annual reporting periods beginning on or after 1 April 2025. Comparative information is not required for periods before 1 April 2025. Interim period information for periods ending on or before 31 March 2026 is not required.
Amendments to Ind AS 12 - International tax reform—Pillar Two model rules
The amendments introduce a mandatory exception from recognising and disclosing deferred tax assets and liabilities related to Pillar Two income taxes.
Effective date: The mandatory temporary exception (use of which must be disclosed) applies immediately and retrospectively in accordance with Ind AS 8. The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 April 2025, but not for any interim periods ending on or before 31 March 2026.
Lack of exchangeability - Amendments to Ind AS 21
The MCA notified amendments to Ind AS 21 to specify how an entity should assess whether a currency is exchangeable and how to determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosures to help users understand the impacts on an entity's financial performance, financial position and cash flows.
Effective date: Annual reporting periods beginning on or after 1 April 2025. Comparative information cannot be restated.
The amendments are not expected to have a material impact on the Group's financial statements.
Other amendments
Other amendments have been made to various standards to update/correct references, align references with IFRS and Ind AS, and bring further clarity in the standards.
- In Ind AS 10, Events After the Reporting Period, certain terms have been updated to align with changes in Ind AS 1.
- Incorrect reference to IFRS 108 (instead of IFRS 8 Operating Segments) is corrected.
- In Ind AS 101, First-time Adoption of Ind AS, certain transitional provisions of IFRS 11 Joint Arrangements have been incorporated and a new paragraph D9AA has been added to provide transitional relief for lessors adopting Ind AS 116 Leases for the first time.
Electricity Distribution (Accounts and Additional Disclosure) Rules, 2025
The MoP has notified the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2025, superseding the Electricity Distribution (Accounts and Additional Disclosure) Rules, 2024 dated 10 October 2024. The new rules shall be applicable to specified entities and address key areas such as recognition of regulatory deferral account balances or income recoverable from future tariff, provisioning of trade receivables, content and form of additional disclosure statements and statement of compliance. They shall come into force from 1 April 2026.
Methodology for calculating Green Credit in respect of tree plantation activity
The MoEFCC has notified the Methodology for calculating Green Credit in respect of tree plantation activities under the Green Credit Rules, 2023. The notification prescribes the basis for determining Green Credits earned through such activities. Green Credits generated from compensatory afforestation or tree plantation under the programme will be non-tradable and non-transferable, except for transfers between a holding company and its subsidiary companies.
Good practice disclosures observed in EMEIA 2024 IFRS annual reports
EMEIA entities have disclosed in their 2024 IFRS annual reports on the following key areas:
- Impact of tariff tensions
- Segment reporting - changes to segment information based on IFRIC Agenda Decision on disclosure of revenues and expenses for reportable segments
- Breach/modification of covenants
- Connectivity - examples demonstrating connectivity in the annual reports
The same can be implemented in Ind AS companies as a good company practice.
Ministry of Labour and Employment
The Government of India, via the Ministry of Labour and Employment, has issued notification(s) stating that the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 are being made effective from 21 November 2025. These Codes will replace the existing 29 central labour laws. The relevant notifications are attached.
Ministry of Electronics and Information Technology
The Government of India has also notified the Digital Personal Data Protection Act, 2023 and the Digital Personal Data Protection Rules, 2025 with effect from 13 November 2025.
Is early adoption available for these accounting standards?
N/A
Related Content
-
India AS
Format:
Article,
1 min read