Indian Accounting Standard 116 won't affect bottom line, says HUL

Company says operating margins will improve due to new accounting treatment for leases

The country's largest consumer goods company, Hindustan Unilever (HUL) said on Tuesday there would be no impact on its bottom line on account of the introduction of the new accounting standard for leases.
 
The Indian Accounting Standard (Ind AS) 116, which became effective on April 1, sets out the principles for recognition, presentation, and disclosure of leases. Experts said the new standard removed differences between financial and operating leases, putting all leases on the balance sheet, thereby, improving transparency.
 
For consumer goods firms, a lease is taken for trucks, warehouses, and co-packing facilities, as against retail companies that