The Ministry of Corporate Affairs (MCA) on August 12, 2026, issued the Companies (Indian Accounting Standards) Amendment Rules, 2026 to further amend the Companies (Indian Accounting Standards) Rules, 2015.
The following amendments have been stated:
In the Companies (Indian Accounting Standards) Rules, 2015, in the “Annexure”, under the heading “B. Indian Accounting Standards (Ind AS)”, —
(A) in “Indian Accounting Standard (Ind AS) 101”; —
(i) after paragraph 39AI, the following paragraphs shall be inserted, namely:—
“39AJ [Refer Appendix 1]
39AK Annual Improvements to Ind AS (2024), amended paragraphs B5–B6. An entity shall apply those amendments for annual reporting periods beginning on or after 1 April 2026.”
(ii) in Appendix B, for paragraphs B5 and B6, the following paragraphs shall be substituted, namely:—
“B5 An entity shall not reflect in its opening Ind AS Balance Sheet a hedging relationship of a type that does not qualify for hedge accounting in accordance with Ind AS 109 (for example, many hedging relationships where the hedging instrument is a stand-alone written option or a net written option; or where the hedged item is a net position in a cash flow hedge for another risk than foreign currency risk) [see paragraph 6.4.1(a) of Ind AS 109]. However, if an entity designated a net position as a hedged item in accordance with previous GAAP, it may designate as a hedged item in accordance with Ind ASs an individual item within that net position, or a net position if that meets the requirements in paragraph 6.6.1 of Ind AS 109, provided that it does so no later than the date of transition to Ind ASs.
B6 If, before the date of transition to Ind ASs, an entity had designated a transaction as a hedge but the hedge does not meet the qualifying criteria for hedge accounting in paragraph 6.4.1(b)–(c) of Ind AS 109, the entity shall apply paragraphs 6.5.6 and 6.5.7 of Ind AS 109 to discontinue hedge accounting. Transactions entered into before the date of transition to Ind ASs shall not be retrospectively designated as hedges.”;
(iii) in Appendix 1, for paragraph 14, the following paragraph shall be substituted, namely:—
“14. Paragraphs 34 to 39W, 39Y to 39AB and 39AD of IFRS 1 have not been included in Ind AS 101 as these paragraphs relate to effective date and are not relevant in Indian context. Paragraph 39AJ of IFRS 1 has not been included since it relates to amendments due to issuance of IFRS 18, Presentation and Disclosure in Financial Statements, for which corresponding Ind AS is under formulation. However, in order to maintain consistency with paragraph numbers of IFRS 1, these paragraph numbers have been retained in Ind AS 101.”.
(B) in “Indian Accounting Standard (Ind AS) 107”; —
(i) after paragraph 5A, the following paragraphs shall be inserted, namely:—
“5B Paragraph 30A applies only to contracts to buy nature-dependent electricity that satisfy the requirements in paragraph 2.3A of Ind AS 109 and are outside the scope of that Standard in accordance with paragraphs B2.7–B2.8 of Ind AS 109.
5C Paragraph 30B applies only to contracts that satisfy the requirements in paragraph 2.3A of Ind AS 109 and have been designated in a cash flow hedging relationship in accordance with paragraph 6.10.1 of Ind AS 109.
5D Paragraph 30C applies only to contracts that satisfy the requirements in paragraph 2.3A of Ind AS 109 and have been entered into with regards to an entity’s electricity purchases. These contracts comprise those:
(a) within the scope of Ind AS 109; and
(b) outside the scope of Ind AS 109 in accordance with paragraph 2.4 of that Standard, including those excluded in accordance with paragraphs B2.7–B2.8 of that Standard.”;
(ii) in paragraph 11A ;—
(a) for the words “it shall disclose”, the words “it shall disclose, for each class of investment” shall be substituted;
(b) for item ‘c’ and entries relating thereto, the following item and entries shall be substituted, namely ;—
“(c) the fair value at the end of the reporting period.”
(c) after item (e) and entries relating thereto, the following item and entries shall be inserted, namely ;—
“(f) the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period.”;
They shall come into force on August 12, 2026.
[Notification No. G.S.R. 725(E)]
