Ind AS Amendment Rules 2026: a FY 2026-27 checklist for finance teams

Short answer: The amendments the MCA notified on 12 August 2026 are not a future problem. They apply to annual periods beginning on or after 1 April 2026, so they are already in your FY 2026-27 numbers, including the half-year you are about to close. Most of them affect specific companies. One, on payments, affects almost everyone.

What was notified

The Companies (Indian Accounting Standards) Amendment Rules, 2026 (G.S.R. 725(E), 12 August 2026) amend Ind AS 101, 107, 109, 110 and 7. They bring Indian standards in line with IFRS amendments that took effect internationally from 1 January 2026.

The five changes that matter

1. Loans and instruments with contingent features. Think of a loan whose rate drops if the borrower meets an emissions target. The amended Ind AS 109 gives a structured test for whether such features still allow amortised cost. It applies to all contingent features, not only ESG ones, and adds disclosures for instruments whose contingent features aren’t tied to basic lending risks or costs. Who should care: banks, NBFCs, treasury teams holding structured instruments, and borrowers reviewing covenant-linked pricing.

2. Equity investments at fair value through OCI. More disclosure about these investments. Who should care: holding companies and groups with strategic stakes.

3. Non-recourse and contractually linked instruments. Clearer lines between the two. Who should care: lenders to project SPVs, securitisation structures and infrastructure financing.

4. Renewable power contracts. For electricity whose output depends on nature (solar, wind), a company can now treat a power purchase agreement as an own-use contract even when surplus power has to be sold back to the grid, provided it has been and expects to remain a net purchaser in that market. There is also relief to make hedge accounting work for virtual PPAs. Who should care: any company with captive or group-captive solar or wind arrangements, which in India is a growing list.

5. Payments through electronic payment systems. The standard now says plainly that a financial liability is derecognised on settlement date, with an optional, system-by-system exception for electronic payments that meet strict conditions. This touches every company with payables. Read the full note on this one.

Plus annual improvements: first-time adopters’ hedge accounting (Ind AS 101), gains and losses on derecognition with continuing involvement (Ind AS 107), derecognition of lease liabilities and the initial measurement of trade receivables at the Ind AS 115 amount (Ind AS 109), the “de facto agent” wording (Ind AS 110), and the cost-method reference (Ind AS 7).

The IFRS group reporting wrinkle

Internationally, the classification and measurement changes could be applied early. The Indian text says early application isn’t permitted. For an Indian subsidiary of a calendar-year IFRS parent, that can leave a short window where group reporting and statutory accounts are on different bases. Document the difference; don’t let it surprise the group auditor.

Transition in one paragraph

The financial instrument changes are applied retrospectively, but you restate prior periods only if you can do it without hindsight. If you don’t restate, the adjustment goes to opening retained earnings (or another component of equity) at 1 April 2026. The hedge accounting relief for renewable contracts applies prospectively, with the option to re-designate existing relationships.

The half-year checklist

• Payment systems: list them, decide whether to use the electronic payment exception for each, and write the policy.
• Period-end payment runs and cheques: check what is recorded before settlement.
• Loan and investment book: flag instruments with contingent pricing features and rerun the cash flow test.
• FVOCI equity investments: prepare the added disclosures.
• Renewable PPAs: assess net-purchaser status per market and period; revisit hedge designations for virtual PPAs.
• Lease liabilities derecognised in the year: confirm the gain or loss treatment.
• Trade receivables with variable consideration: confirm initial measurement follows Ind AS 115.
• Group reporting: note any IFRS versus Ind AS timing differences.
• Update accounting policy notes and the “new standards” disclosure.
• Brief the audit committee before the half-year results.

Where FINAHQ fits

New disclosures belong in the template, not in a side workbook that someone rebuilds each quarter. In FINAHQ, notes are part of the statement templates and fill from the mapped trial balance, with controlled inputs for the few numbers that come from outside the ledger. Talk to us about updating your templates for FY 2026-27.

This article is general information, not professional advice. Refer to the notified text.