MCA has notified amendments to five Indian Accounting Standards. Most apply to annual reporting periods beginning on or after 1 April 2026, so they affect FY 2026-27 financial statements.
Key changes
- Ind AS 109: revised classification tests for financial assets with features linked to non-financial events (such as carbon-emission targets) and non-recourse arrangements; an option to derecognise certain liabilities settled through electronic payment systems before the settlement date; rules for nature-dependent electricity contracts.
- Ind AS 107: new disclosures for instruments at amortised cost or FVOCI with contingent terms, and for nature-dependent electricity contracts.
- Ind AS 110: revised guidance on de facto agents when assessing control.
- Ind AS 7: for investments in subsidiaries, associates and joint ventures carried at cost, only cash flows between the investor and investee (such as dividends and advances) are reported.
- Ind AS 101: revised hedge accounting rules for first-time adopters.
Who is affected
Ind AS companies, especially those with green-linked loans, power purchase agreements with renewable generators, structured financial assets, or group holding structures.
What to do now
Review loan and investment contracts with ESG-linked or contingent features before the half-year close of FY 2026-27, and update accounting policies and disclosure templates early.
Reference: MCA Notification G.S.R. 725(E) dated 12 August 2026 — Companies (Indian Accounting Standards) Amendment Rules, 2026.