Decoding Ind AS 118 and the future of financial reporting

In this episode of the EY India Insights podcast, we unpack Ind AS 118, a new accounting standard set to redefine financial performance reporting. Jigar Parikh and Devesh Prakash, Partners, FAAS, EY India, discuss how this goes beyond compliance to become a strategic transformation for businesses.

The conversation covers key changes, including the restructuring of the profit and loss statement, the rise of management‑defined performance measures, and enhanced aggregation and disclosure requirements. It also highlights the broader impact across governance, technology, controls, and investor communication.

Key takeaways:

• Ind AS 118 enhances comparability, consistency and transparency in financial reporting.
• P&L restructuring introduces clear operating, investing and financing classifications.
• Management‑defined performance measures will require stronger governance and disclosures.
• Implementation extends beyond accounting, impacting ERP systems and internal processes.
• Early preparation is critical for smooth transition, compliance and stakeholder confidence.

Tune in to understand how Ind AS 118 will reshape financial reporting and why early readiness is key to navigating this transformation.