New accounting norms to bolster financial reporting quality: ICAI

The proposed standards also present two additional subtotals in the profit or loss section: 'operating profit or loss' and 'profit or loss before financing and income taxes'

The proposed new accounting standard Ind AS 118 will mark a significant step forward in enhancing the quality and clarity of financial reporting in India, Charanjot Singh Nanda, President, Institute of Chartered Accountants of India (ICAI) said on Monday.  

ICAI had issued an exposure draft of Ind AS 118 for public comments in January 2025.  

The Standard requires entities to classify income and expenses into five categories: operating, investing, financing, income taxes and discontinued operations. For instance, income and expenses from assets that generate returns independently such as debt or equity investment will be classified under investing category while, income