The distinction within the basic accounting methodology applicable to firms is probably going to create varied challenges from a transfer valuation perspective, that are mentioned within the report.

The Ministry of company Affairs (MCA), through its notification dated sixteen Gregorian calendar month 2015, issued the Indian Accounting Standards (Ind AS) and suggested its application in an exceedingly phased manner from one Apr 2016.

The onset of Ind AS has a sway on varied areas, one among that is Transfer valuation. this is often as a result of a corporation transitioning from the present Indian typically Accepted Accounting Principles (AS) to Ind AS would expertise a amendment in varied performance measures impacting the determination of arm’s length value for a corporation following AS vis-à-vis a corporation following Ind AS.

The distinction within the basic accounting methodology applicable to firms is probably going to create varied challenges from a transfer valuation perspective. This report outlines the varied impact areas.

• Impact on the positions adopted beneath transfer valuation for firms transitioning to Ind AS, particularly considering the requirement to acknowledge varied parts of the monetary statements at truthful price, and stress on substance of transactions;
• Need for changes, whereas conducting benchmarking analysis;
• Evaluation of Associated Enterprise relationship for the aim of Transfer valuation from the angle of ‘control’ beneath Ind AS;
• Interplay between General anti-avoidance rule (GAAR) and Ind AS on re-characterization of economic instruments.
• The Impact on the Advance valuation Agreement (APA) as a result of transitioning to Ind AS.