Ind AS 118: India Inc gears up for big changes to financial reporting
Economic Times 1 hr ago·25 Oct 2026, 8:08 pm
India’s accounting standards are about to change with the rollout of Ind AS 118. The new rule revises how companies classify revenue and expenses and introduces a separate line for operating profit, replacing the current presentation under existing standards.
For investors, the shift matters because earnings figures will look different even if the underlying business performance is unchanged. A change in the way profit is reported can affect key ratios, peer comparisons and the way analysts model future cash flows, so investors will need to adjust their interpretation of quarterly results.
The next step is the issuance of detailed guidance from the Ministry of Corporate Affairs and the Securities and Exchange Board. Watch for companies’ transition plans disclosed by audit committees, system upgrades, and any interim filing notes that explain how the new format is being applied.
Excerpt from Economic Times
India’s largest companies are preparing for the implementation of Ind AS 118, which may impact financial reporting. Changes include new classifications for income and expenses, and new operating profit reporting methods. Companies face challenges due to complex requirements and the need for system adjustments. Audit…Read the original at Economic Times
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
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