From April 1, 2025, two important Ind AS amendments will apply
- Ind AS 7 – Statement of Cash Flows
- Ind AS 12 – Income Taxes (Deferred Tax)
These changes may look technical at first glance, but they will have a very real impact on how companies report, how investors interpret, and how regulators assess.
1) Ind AS 7 – Cash Flows
Companies will now need to disclose clearer reconciliations of financing activities.
This means investors and lenders will be able to track cash vs. non-cash movements in debt more transparently.
For CFOs, this brings tighter scrutiny on liquidity management.
2)Ind AS 12 – Deferred Tax
Deferred tax must now be recognized on transactions that create both assets and liabilities, such as leases or decommissioning obligations.
This removes ambiguity and ensures more consistent recognition of deferred tax.
The direct effect is on reported profitability and net worth.
Why This Matters
The transition to Ind AS has already shown how accounting standards can shift balance sheets in a big way.
A Livemint report noted that 72 companies saw their net worth rise by ₹1.65 trillion due to deferred tax adjustments
Reliance Industries and ONGC reported gains of over ₹13,000 crore each, while Tata Steel saw a hit on earnings.
For finance teams, this is not just about compliance. It’s about:
How stakeholders perceive the company’s financial health.
How ratios like debt-to-equity or return on equity will look after adjustments.
Whether disclosures build or erode market confidence.
Conclusion
These amendments are not small tweaks; they are part of India’s move towards greater transparency and global alignment in reporting.
Companies that treat this as a strategic opportunity rather than a compliance task will stand out not only for regulators, but also for investors who value clarity and consistency.