The Ministry of Corporate Affairs (“MCA”), in exercise of the powers conferred under Section 133 read with Section 469 of the Companies Act, 2013, vide Circular No. G.S.R. 291(E), dated May 07, 2025, notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 (“Accounting Rules”).
Significance of the Amendment:
These amendments are a response to real-world complexities such as:
- Government-imposed foreign exchange controls.
- Sanctions or market breakdowns.
- Hyperinflation or economic instability in certain jurisdictions.
They aim to enhance the reliability and comparability of financial statements by providing a structured approach to estimating foreign currency values when markets are constrained. The full amended Accounting Rules can be found at https://www.mca.gov.in/bin/dms/getdocument?mds=vBFzI3EzmTiUyL7B7SDwAw%253D%253D&type=open