Getting prepared for year-end reporting

The close to financial year 2025–26 is fast approaching. Considering this, entities have either already started or are expected to soon start preparing for year-end financial reporting, including preparation of year-end financial statements. Year-end financial reporting requires careful consideration of changes in accounting standards, regulatory changes, and internal process reviews to ensure accuracy and compliance. Key areas of focus include aspects such as assessing asset impairment, evaluating onerous contracts, ensuring completeness of disclosures and ensuring fair presentation of financial statements. In this article, we look at key aspects that entities may need to consider while preparing for year-end financial reporting

Ind AS Amendments applicable for financial year 2025-26

There are few amendments to the Companies (Indian Accounting Standards) Rules, 2015 (as amended) that needs to be considered whilst preparing financial statements for the financial year 2025-26.

Ind AS 1 Presentation of Financial Statements – Classification of liabilities

The amendments to Ind AS 1 notified on 19 August 2025 impact the classification of liabilities as current or noncurrent. The amendments also require additional disclosures in the financial statements for the year 2025-26. Given below is an overview of key changes

1. Only covenants with which an entity must comply on or before the reporting date affect a liability’s classification as current or non-current.
2. Management’s intention and/or expectation for early settlement does not play a role in classification of liabilities. Thus, a liability otherwise meeting Ind AS 1 criteria for classification as non-current is still classified as non-current even if the management intends or expects the entity to settle the liability within 12 months after the reporting date.
3. Settlement of liability through issue of equity shares is treated as a form of settlement when determining current or non-current classification of liability. There is only one exception, where the embedded equity conversion option itself is classified as an equity instrument based on principles laid down in Ind AS 32 Financial Instruments: Presentation. This amendment is likely to impact current vs. non-current classification of convertible instruments where the holder has a right to require early conversion and embedded conversion option does not meet Ind AS 32 criteria for equity classification.
4. Specific additional disclosures are required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting date.

Classification of liabilities with covenants as current or noncurrent could significantly affect an entity’s presentation of its financial position. Entities need to carefully evaluate and incorporate the impact of the amendments on their loan agreements in terms of scope, settlement definition and disclosure requirements.

Besides the above changes applicable for FY 2025-26, Ind AS 1 has also been amended to remove two important carve outs vis-à-vis IAS 1 Presentation of Financial Statements, and these changes related to removal of carve out are applicable from FY 2026-27 onwards. While applying these amendments in FY 2026-27, an entity will need to give impact retrospectively. In accordance with these amendments:

1. A breach of covenant, whether material or immaterial, at the reporting date will impact current or non-current classification of liability if the lender has the right to require early payment pursuant to the breach. Currently, entities are allowed to ignore a breach of immaterial covenant in deciding such classification.
2. If there is a breach of a covenant of a long-term loan arrangement on or before the end of the reporting date with the effect that the liability becomes payable on demand, the waiver obtained from the lender on or before the reporting date will be required to continue classifying the liability as non-current. Any waiver granted by the lender after the reporting date will be treated as a non-adjusting event.

Though these changes are not applicable when preparing financial statements for FY 2025-26, they will apply retrospectively while preparing financial statements for FY 2026-27. To ensure that while presenting financial statements for financial year 2026–27 entities are not required to change classification of liability in the comparative period as current, they should endeavor that waiver for any breach of a loan covenant, which occurs on or before 31 March 2026, is obtained on or before 31 March 2026

More information about these amendments is available in January 2025 and October 2025 editions of Assurance EYe

Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments: Disclosures – Supplier-Finance Arrangements (SFA)

The amendments to Ind AS 7 Statement of Cashflows and Ind AS 107, Financial Instruments Disclosures, introduce new disclosure requirements to enhance transparency of supplier finance arrangements and their effects on an entity’s liabilities, cash flows and exposure to liquidity risk. These disclosures are required for the first time in FY 2025-26 annual financial statements.

The entities should ensure that they have identified all material supplier finance arrangements to which these requirements apply, and that they have relevant information to meet the new disclosure requirements. This may require entities to strengthen internal systems and undertake internal benchmarking to capture the necessary data. Also, considering enhanced transparency and focus, entities may also need to re-evaluate appropriate presentation of the amount covered under the supplier finance arrangements. Any change in presentation arising from the re-evaluation will require entities to also consider impact on the comparative period financial statements

More information about these amendments is available in the October 2025 edition of Assurance Eye

International Tax Reform Pillar Two Rules – Amendments to Ind AS 12 Income Taxes

The OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses the tax challenges arising from the digitalization of the global economy to ensure profits are taxed where economic activities take place and value is created. In August 2025, the Ministry of Corporate Affairs (MCA) amended Ind AS 12 to clarify its application to income taxes arising from tax law enacted or substantively enacted to implement the BEPS Pillar Two model rules. The amendments introduce:

• A mandatory temporary exemption to the accounting of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules.
• Disclosure requirements for affected entities to help users of financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation.

The amendments are applicable from financial year 2025-26 onwards. Entities need to monitor the developments around the implementation and (substantive) enactment of the Pillar Two model rules in the relevant jurisdictions and need to get ready to provide the additional disclosures required by the amendments to Ind AS 12 in a timely manner.

Lack of exchangeability – Amendments to Ind AS 21 The Effects of Changes in Foreign Exchange Rates

The amendments to Ind AS 21 are applicable to financial year beginning on or after 1 April 2025. These amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments require disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable.

More information about these amendments is available in the July 2025 edition of Assurance EYe.

Other key accounting developments

Ind AS 108 Operating Segments disclosures

Attention is drawn to the IFRS Interpretation Committee (IFRS IC) agenda decision issued in July 2024. In that decision, the IFRIC IC discusses how an entity applies the requirements in paragraph 23 of IFRS 8 Operating Segments (same as paragraph 23 of Ind AS 108) in making the assessment of which items of segment income and expense are material in the context of the financial statements as a whole and therefore, need to be disclosed in the segment reporting note. In practice, it is expected that the Agenda Decision may require entities to revisit and expand disclosure for segment expenses in the segment reporting note

While the agenda decision was issued on IFRS 8, it also applies in the context of Ind AS 108 as the requirements of both the standards are the same. Although in many cases it would be expected that impacted entities made changes to their segment disclosures in their 2024-25 annual financial statements, some entities may still be in the process of assessing whether additional disclosures are appropriate, considering the guidance provided by the agenda decision. It is expected that these entities may make changes to their segment reporting note in the FY 2025-26 financial statements.

More information about the Agenda Decision is available in January 2025 edition of Assurance EYe

Consolidation of not-for-profit entities (NPEs) under Ind AS 110

The Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI) had considered an issue related to consolidation of not-for-profit entities, say, section 8 company or trust constituted to carry out Corporate Social Responsibility (CSR) activities, under Ind AS 110 Consolidated Financial Statements. Particularly, the matter for evaluation was that an NPE is not allowed to repatriate profit or capital back to the entity. Considering this, can it be argued that the entity does not get any financial return from its involvement with the NPE and, therefore, it need not consolidate the NPE?

The EAC did not agree with the above contention and concluded that, based on the facts given, the NPE should be consolidated. Particularly, it was pointed out that variable return under Ind AS 110 is a wide notion which includes financial returns, such as exposure to loss or expenses from providing funds, intangible benefits of reputation and image from good governance practices. Further, under Ind AS 110, returns do not have to be generated within the investee. Rather, an investor could be exposed to the returns indirectly from its involvement with an investee

It is expected that, based on the EAC opinion, many entities re-evaluated their position with regard to consolidation of NPEs and made the necessary changes in their FY 2024-25 annual financial statements. However, some entities may still be in the process of re-assessing their position based on guidance provided in the EAC Opinion. It is expected that these entities may make changes considered necessary in the FY 2025-26 annual financial statements

More information about the EAC opinion and related practical implications is available in the January 2025 edition of Assurance EYe.

Accounting for guarantees issued on obligations of other entities

Ind AS 117 Insurance Contracts notified by the Ministry of Corporate Affairs (MCA) on 12 August 2024 is applicable to contracts issued by non-insurance companies if such contracts meet the definition of the term ‘Insurance Contract’ as per the standard and are covered within its scope. Among other contracts issued by non-insurance entities, financial guarantee and performance guarantee contracts may potentially meet the Ind AS 117 definition and criteria for coverage within its scope. Hence, their accounting may get impacted by Ind AS 117.

The IFRS Interpretations Committee (IFRIC), in its Agenda Decision finalized in April 2025, discussed how entities should account for guarantees they issue. The IFRIC clarified that IFRS Accounting Standards do not contain a single, uniform model for all guarantees. Instead, entities must analyze the specific terms and conditions of each guarantee to determine the applicable standard. Depending on its substance, a guarantee may fall within IFRS 9 as a financial guarantee contract, within IFRS 17 as an insurance contract, or within other Standards such as IFRS 15 or IAS 37. Significant judgement is required particularly in interpreting whether a guarantee relates to a ‘debt instrument’ for the purposes of IFRS 9, given diversity in practice. It may be noted that Ind AS 37, Ind AS 109, Ind AS 115 and Ind AS 117 contain the same requirements as those under IAS 37, IFRS 9, IFRS 15 and IFRS 17, respectively. Hence, the position should apply under Ind AS as well.

The April 2025 edition of Assurance EYe explained in detail how accounting for financial guarantee and performance guarantee contracts issued by an entity is likely to be impacted by such interaction among various Ind AS and applicability of Ind AS 117. It is expected that many entities re-evaluated their position with regard to accounting for such guarantees and made the necessary changes in their FY 2024-25 annual financial statements. However, some entities may still be in the process of re-assessing their position. It is expected that these entities may make changes considered necessary in FY 2025-26 annual financial statements.

More information about practical implications is available in the April 2025 edition of Assurance EYe.

Expert Advisory Committee (EAC) Opinions

Since 1 April 2025, approx. 24 Opinions finalized by the Expert Advisory Committee of the Institute of Chartered Accountants of India (ICAI) have been made available in the public domain, through hosting of these Opinions on the ICAI Website, publication in the ICAI Journal and/ or publication of the Compendium of Opinions. Some relevant topics covered in these opinions include as below:

Accounting for GST paid on lease rental under Ind AS 116, Leases

The EAC examined whether GST paid on lease rentals should be included in the measurement of the right-of-use (ROU) asset and lease liability under Ind AS 116 Leases. The EAC noted that the GST is a consumption-based tax levied by the Government and collected by the lessor as an agent. It is not a consideration paid or payable for the right to use the underlying asset and therefore, does not constitute a ‘lease payment.’ Accordingly, irrespective of whether input tax credit is available or not, GST paid on lease rentals should be excluded from the initial measurement of both the ROU asset and the lease liability. Instead, it should instead be recognized separately in accordance with the applicable accounting guidance.

Classification and presentation of accrued wages and salaries to employees

The EAC clarified that accrued wages and salaries arising from services already rendered by employees represent employee benefit accruals with no significant uncertainty in amount or timing and therefore do not meet the definition of provision under Ind AS 37 Provisions, Contingent Liabilities, and Contingent Assets. At the same time, such accruals should not be classified as trade payables, which generally relate to amounts due to suppliers for goods or services received. Instead, accrued wages and salaries should be presented separately under the head ‘Other Current Liabilities’ or as an appropriate separate line item within current liabilities to ensure proper presentation and understanding of the entity’s financial position.

While the EAC Opinion does not explicitly address classification between financial and non-financial liabilities, we believe that it will be acceptable to present such accruals under the head ‘Other financial liabilities’, since they generally meet the definition of a financial liability under Ind AS 32, Financial Instruments: Presentation. At the same time, considering that employee benefit plans are specifically excluded from the scope of financial instruments related standards and language used in the EAC Opinion, presentation of accruals under the head ‘Other Current Liabilities’ will also be acceptable

Key regulatory changes with accounting implications

During the year, there have been certain key regulatory changes that are likely to have accounting implications. Given below is an overview of these changes.

Changes to the Goods and Services Tax (GST) law

Effective 22 September 2025, the government has introduced certain significant changes to the existing Goods and Services Tax (GST) law. These landmark reforms, commonly referred to as GST 2.0, represent the most significant step aiming at rationalization of rates and simplification of the GST law since its introduction in 2017. The amendments are expected to simplify compliance, minimize cascading tax effects, make essential goods and services more accessible to the common man, and enhance the global competitiveness of the Indian industry.

From a financial reporting perspective, the following changes in the GST law will require particular consideration:

1. Goods/services moved from taxable to exempt or nil rate category.
2. Input tax credit (ITC) availed on capital assets initially used in the manufacture of taxable goods where such goods are subsequently exempted.
3. Abolition of compensation cess.
4. Goods/services will be taxed at a lower rate going forward while inputs continue at a higher rate of GST.

Entities impacted by the changes need to revisit recognition of GST ITC either because sale of final product has become exempt, or because ITC can no longer be used due to lower

GST rate on revenue arising from sale or goods or rendering of services. If there is a need to reverse/ write-off ITC, the following key accounting questions arise:

1. Should the amount be charged to the Statement of Profit and Loss or can it be added to the cost of inventory/property, plant and equipment?
2. If the amount is capitalized to the cost of property, plant and equipment, should depreciation be charged prospectively or retrospectively?

On the first issue, if the underlying goods/ items of property, plant and equipment are still in existence with the entity, then arguments can be made to add the amount of ITC reversed/ written-off to the cost of inventory and/ or property, plant and equipment, as applicable. Also, the arguments can be made to charge the amount of ITC reversed/ written off to the Statement of Profit and Loss immediately.

Regarding the second issue, if the amount is capitalized to the cost of property, plant and equipment, then depreciation on the newly capitalized amount is charged prospectively from the date of capitalization.

More information about the financial reporting implications of GST changes is available in the October 2025 edition of Assurance EYe.

Extended Producer Responsibility (EPR) Obligations

In recent years, the Ministry of Environment, Forest and Climate Change (MoEFCC) has issued rules/ draft rules dealing with waste processing, waste management, extended producer responsibility (EPR) targets, greenhouse gas emissions, etc. These rules have also been subject to changes over time. Some key examples and applicability dates are summarized in the table below:

These Rules/Draft Rules have specific requirements and require producers to meet EPR obligations as prescribed under the Rules. Entities need to evaluate whether they are covered under EPR obligations. If yes, they need to ensure appropriate provisioning in accordance with specific requirements of the applicable rules and Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets

Revised criteria for Micro, Small and Medium Enterprise (MSME) classification

As part of its strategy to promote growth and resilience of the Micro, Small and Medium Enterprises (MSMEs), the Government of India has introduced two key regulatory changes impacting entities that purchase goods or services from the MSMEs (the buyer). These changes relate to:

Revised criteria for classification of MSMEs

Pursuant to the notification dated 21 March 2025 issued by the Ministry of Micro, Small and Medium Enterprises, Government of India, the investment and turnover criteria for classification of MSMEs as prescribed under the MSME Act have been changed. Given below are the changes made to the criteria:

Pursuant to the amendment, a relatively higher number of entities will now be classified as MSMEs. The notification enhancing the limits comes into force with effect from 1 April 2025.

Half-yearly reporting under MSME-1 of overdue MSME payments to the Ministry of Corporate Affairs (MCA)

The Government of India, vide its notification dated 25 March 2025, has directed all companies, that purchase goods or services from micro or small enterprises and whose payments get delayed 45 days from the date of acceptance/ deemed acceptance of goods or services, to submit a half yearly return (MSME-1) to the Ministry of Corporate Affairs (MCA) stating the following:

1. The amount of payments due, and
2. The reason for the delay.

Entities purchasing goods or services from MSMEs (the buyer) have the responsibility for ensuring compliance with the specific requirements of the MSME Act. Any non-compliance with the 45-day payment requirement may have financial and tax implications, trigger reporting to the MCA and may also potentially expose entities to regulatory scrutiny and reputational risks. Hence, it is imperative that entities prepare themselves for dealing with the requirements of the MSME Act and requirements for reporting information to the MCA, considering the revised thresholds notified under the MSME Act.

More information about the revised criteria is available in the July 2025 edition of Assurance EYe.

Changes in the financial reporting framework applicable to REIT and InvIT

The SEBI (Real Estate Investment Trusts) Regulations, 2014 (as amended) and the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (as amended) (collectively referred to as the ‘BT Regulations’) and the Master Circulars dated 15 May 2024 issued under those regulations prescribed the financial reporting framework applicable to Real Estate Investment Trusts (REIT) and Infrastructure Investment Trusts (InvIT) [collectively referred to as ‘Business Trust’ or ‘BT’], respectively. The SEBI has issued two circulars, both dated 7 May 2025, applicable to REIT and InvIT, to modify its earlier Master Circulars dated 15 May 2024. These two circulars bring significant changes in the financial reporting framework applicable to Business Trusts at various stages of their life, including the annual financial reporting framework.

While BTs will continue preparing their financial statements as per Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) to the extent not contrary to the BT Regulations and overall principles for preparation of annual financial statements continue to be the same, there are significant changes regarding format of financial statements. For example,

1. Going forward, business trusts will be required to follow Division II of Schedule III of the Companies Act, 2013 (Schedule III) for preparation of financial statements. Considering the peculiarities of Business Trusts, certain exceptions and modifications have been made to Schedule III requirements.
2. Going forward, BTs will be required to present the Statement of Cash Flows using the ‘indirect method’ only.
3. The ‘Statement of Net Borrowings Ratio' will be disclosed as part of the annual financial statements of the Business Trust using the format prescribed.

The Business Trusts are required to prepare their annual financial statements for the year beginning 1 April 2026 in accordance with the revised requirements.

More information about the changes is available in the July 2025 edition of Assurance EYe.

Other accounting developments

Tariffs and geopolitical risks

In recent months, the prominence and impact of tariffs have grown significantly for reasons such as new tariffs, including reciprocal tariffs, imposed by the United States and, in response, a number of affected countries have responded with retaliatory tariffs. Considering changes in tariff policies, entities are likely to face complex operational and compliance challenges such as supply chain disruptions, increased costs, price fluctuations and shifts in market demand. It is evident that senior management of impacted entities will focus on mitigating supply chain disruptions and operational hurdles. However, in doing so, one should not ignore financial reporting consequences of tariffs since the introduction or modification of import taxes can lead to significant accounting and financial reporting implications.

The extent to which individual entities are impacted will depend on a number of factors, including which sector they operate in. However, due to the volatility in financial markets and the wider macroeconomic effects of the tariffs, most entities are likely to be affected to some extent. Given that there is likely to be a financial impact for many entities from the imposition of tariffs in the current period. The effects will be specific to the facts and circumstances of the entity and may include impairment of assets, valuation of inventory, fair value measurements, restructuring provisions, revenue recognition, potential for contracts to become onerous, and expected credit losses and deferred tax asset recognition. Entities need to consider the effect of current trade policy and tariffs on their accounting and financial reporting, based on the specific facts and circumstances for that entity, to ensure proper recognition and disclosure of these effects in their financial statements.

More information about the potential impact of tariffs, which may need to be considered, is available in the October 2025 edition of Assurance EYe.

Like tariffs, geopolitical conflict and related risks continue to create significant shifts in the global risk landscape and may have a pervasive economic impact. Investors may want to understand if and how these conflicts are affecting an entity’s operations, risk exposure and outlook. Accordingly, entities must carefully consider the impact on their financial statements and disclosures.

Rupee depreciation and foreign currency exposure

During financial year 25–26, Indian Rupee (INR) has depreciated materially against major currencies, particularly the US Dollar (USD). The INR weakened from INR84.8/USD (December 2024) to INR90.9/USD (November 2025).

INR depreciation is likely to have a material impact on financial statements of the entities having material foreign currency exposures. Some key impacts may include translation of foreign currency transactions, remeasurement of foreign currency monetary assets and liabilities and translation of foreign currency operations. Also, there may be other related impacts including valuation of foreign exchange derivatives and hedge effectiveness, impairment indicators, expected credit losses and inventory valuation. Accordingly, entities having material foreign currency exposure should ensure assumptions are updated to closing rates and provide clear disclosures of material foreign exchange exposures and sensitivities.

Hyperinflation

Hyperinflation continues to be an issue in a number of jurisdictions and entities should consider whether they need to address this. EY Publication IFRS Developments Issue 242: Hyperinflationary economies (Updated November 2025) lists the countries with economies that are considered hyperinflationary for IFRS purposes as of 31 December 2025. These countries are Argentina, Burundi, Haiti, Islamic Republic of Iran, Lebanon, Malawi, Sierra Leone, South Sudan, Sudan, Türkiye, Venezuela and Zimbabwe.

Entities will need to apply Ind AS 29 Financial Reporting in Hyperinflationary Economies if their functional currency is the currency of a hyperinflationary country, including for subsidiaries in a consolidated group. The application of Ind AS 29 requires significant judgment, and the effects of applying it to a subsidiary in a group can involve non-routine and complex accounting. Entities likely to be impacted by Ind AS 29 application need to prepare in advance.

Impairment review for non-financial assets

Impairment is likely to be a focus area for many entities in the current economic environment. This will be particularly the case for entities with significant amounts of goodwill and intangible assets with indefinite useful lives, as well as for entities likely to be affected to a greater extent by climate change, inflation, geopolitical risks, recent tariffs, etc. These entities should ensure strict compliance with Ind AS 36 Impairment of Assets and also factor common pitfalls observed in the impairment of non-financial assets.

Ind AS 36 and Ind AS 1 have extensive disclosure requirements. The disclosure requirements include key assumptions used in impairment testing and management’s approach to determine values assigned to each of those assumptions. If key assumptions differ from those indicated by external sources of information or past experience, an explanation of reasons justifying differing assumptions may also be required.

In times of higher uncertainty, disclosure of the sensitivities is particularly important. Sensitivity disclosure requirements are two-fold:

1. Paragraph 134 of Ind AS 36 requires disclosure of reasonably possible changes in the value of key assumptions which reduce headroom to nil.
2. Paragraph 125 of Ind AS 1 requires disclosure of information about the assumptions that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Offsetting (or netting) in the financial statements

Offsetting is the net presentation of separate assets and liabilities or income and expenses in the financial statements. Offsetting and netting generally detract users’ ability to gain a full and proper understanding of the transactions, other events and conditions that have occurred and to assess an entity’s future cash flows. Hence, offsetting is generally prohibited, except where expressly required or permitted by Ind AS. There are certain Ind AS which permit offsetting if and only if specific criteria are met. Most cases where the criteria for offsetting are met, offsetting must be applied – it is not a choice. The following Ind AS deals with offsetting requirements:

1. General offsetting, including in the Statement of Profit and Loss – Paragraphs 32 to 35 of Ind AS 1 Presentation of Financial Statements.
2. Offsetting in relation to financial instruments – Paragraphs 42 to 50 of Ind AS 32 Financial Instruments: Presentation. Cash pooling arrangements entered into by many entities also need to be evaluated using the same criteria.
3. Offsetting in relation to current and deferred tax – Paragraphs 71 to 76 of Ind AS 12 Income Taxes.
4. Offsetting in the cash flow statement – Paragraphs 22 to 24 of Ind AS 7 Statement of Cash Flows.

Entities need to evaluate transactions, events and conditions for offsetting in detail and ensure compliance with the relevant Ind AS requirements.

Presentation and disclosure of financial statements

Ensuring the presentation and disclosure of financial statements in compliance with applicable Ind AS is a critical activity. Regulators and review bodies are consistently pointing out disclosure weaknesses in year-end financial statements. To ensure completeness and avoid disclosure discrepancies, entities may consider the steps below:

1. A roll forward of the prior year financial statements might be a good starting point but should not automatically be assumed to still be relevant.
2. Ensure that the financial statements are updated for the latest changes in Ind AS, new transactions, events and circumstances as well as for changes in transactions, events and circumstances.
3. Ensure that accounting policies are given for all significant events and transactions. Also, disclose all significant judgements in applying accounting policies. Particularly, disclosures for judgements and estimates need to be reviewed and updated to ensure they remain relevant.
4. Perform a critical review of the annual report and financial statements as a whole, with the objective of ensuring that the whole report is clear, balanced and understandable. As part of the review, immaterial information may be identified and deleted.
5. Evaluate, considering paragraphs 31 and 112(c) of Ind AS 1, whether additional information beyond specific requirements of each Ind AS should be given such that the reader can understand specific material transactions or events.
6. Ensure that there is sufficient linkage and consistency between the narrative and the financial statements in the overall report. Any perceived inconsistencies might need to be explained. This may, for example, be relevant for climate-related impacts.
7. Develop robust internal controls to ensure accuracy and prevent omissions.
8. Complete the latest disclosure checklist to ensure completeness of disclosures.
9. Benchmark disclosures in financial statements with industry peers.
10. Review recent disclosure deficiencies pointed out by the regulator and ensure similar deficiencies do not exist in the financial statements.
11. Start early, leverage technology and have an independent desktop review done for financial statements.