Ind AS 118
Ind AS 118: presenting expenses by function, and the note that comes with it
Present operating expenses by function and Ind AS 118 asks for the nature amounts in one note. Presenting by nature changes that cost, not the choice.
Blog
Notes on closing and reporting a group
Written for controllers and group finance teams. Short answer first, working shown.
Posts are grouped by subject on the topic pages.
Unfamiliar terms are defined in the glossary.
MIS and management reporting
Your MIS chart of accounts is not your statutory one, and that is fine
The board wants the business cut, the filing wants the statutory cut, and the same ledgers must produce both. How to hold two views, one set of books.
Ind AS 118
Operating, investing or financing: classifying every line of your P&L
Ind AS 118 sorts every income and expense into five categories. The rule is about the asset or liability underneath, not the expense itself.
MIS and management reporting
Cost allocation you can defend in a board meeting
Every allocation is an opinion. The ones that survive questioning have a basis fixed before the result, applied the same way every month.
MIS and management reporting
Budget, actual and forecast in one place
Three numbers, usually in three systems, reconciled by hand each month. What it takes to hold them together so the variance is a fact.
Ind AS 118
Your adjusted EBITDA is about to be audited: management-defined performance measures under Ind AS 118
Under Ind AS 118, adjusted EBITDA moves into the audited notes with a reconciliation and a reason. What that changes for your reporting.
Ind AS updates
When is a payable really paid? Electronic payments and derecognition under amended Ind AS 109
When is a payable really paid? The amendment to Ind AS 109 sets when an electronic payment lets you derecognise the liability.
Ind AS updates
Reduced disclosures for subsidiaries: what IFRS 19 could mean for Indian groups
IFRS 19 lets eligible subsidiaries give reduced disclosures. What it could mean for Indian groups once Ind AS 119 is notified.
Ind AS updates
Ind AS Amendment Rules 2026: a FY 2026-27 checklist for finance teams
The MCA's 2026 amendments to Ind AS, and what each one asks of an FY 2026-27 close that is already running.
Ind AS 118
Ind AS 118: what changes in your profit and loss statement, and what doesn't
Ind AS 118 changes no number in your profit. It changes the shape of the statement: five categories, two new subtotals, audited measures.
Ind AS 118
Ind AS 118 transition: why your FY 2026-27 ledger needs new tags now
Ind AS 118 applies retrospectively, so FY 2026-27 becomes the restated comparative. What your ledger has to carry before that year begins.
Ind AS 118
Budget versus actuals when the profit and loss layout changes under Ind AS 118
A budget built on statement captions breaks when the captions change. Budget one level below, and any layout is a grouping of the same budget lines.
Disclosures
Segment reporting and management MIS from the same numbers
The segment note reports what management reviews. If the MIS and the note are built separately they will disagree. How to keep one set of numbers.
Ind AS 118
One definition of EBITDA: making MIS and audited measures agree
Two EBITDA numbers in one company is a definition problem, not a systems problem. How to write one rule, keep the variants named, and hold the bridge.
Ind AS updates
Group-captive solar and wind: own-use accounting under amended Ind AS 109
The 2026 Ind AS 109 amendment lets a nature-dependent power contract stay an own-use purchase even when surplus goes to the grid. What to assess.
Consolidation
Substantive versus protective rights: getting the control assessment right
Which rights give control and which only protect an interest. How to make the Ind AS 110 assessment and keep a record of it.
Disclosures
Operating segments: the questions regulators keep asking
Who is the chief operating decision maker, why one segment, why these aggregations: the questions a segment note has to answer before it is challenged.
Ind AS updates
Covenants and current versus non-current: what changed in practice
Classification turns on the rights you held at the reporting date. Which covenants count, why a waiver in April does not help, and what to disclose.
Consolidation
Purchase price allocation: the decisions that shape goodwill for years
Purchase price allocation sets numbers you live with for years. The judgements that decide goodwill, and what auditors ask to see.
Ind AS 118
Ind AS 118 for NBFCs, holding companies and conglomerates: the main-business-activity test
Ind AS 118 classifies interest, dividends and fair value gains by your main business activities. How to make that assessment and write it down.
Product updates
A navigation built around how the close actually runs
The product's navigation was reorganised around the order people work in, from user feedback and usage patterns rather than from the org chart.
Intercompany
Living with a purchase price allocation after year one
Subsequent measurement of a purchase price allocation is underestimated: the entries carry for years, and each one has to be justified again.
Product updates
What we shipped: reporting module releases
New releases in the reporting module, and the reasoning behind each one. Written for the controllers who asked for them.
Intercompany
What makes intercompany reconciliation hard to automate
Intercompany reconciliation is the step most groups do by hand. What actually blocks automation, and what it takes to get past each one.
Intercompany
Unusual intercompany transactions: sub-leases and ESOPs
Two intercompany transactions that do not eliminate the way the others do, and what each one leaves behind in the consolidated numbers.
Intercompany
Intercompany transactions in a group that keeps acquiring
Elimination entries are a key adjustment to consolidated statements, and an acquisitive group changes which ones are needed every year.