ind-as-trapslisted

# Ind AS Traps Ind AS is IFRS with carve-outs. The carve-outs and the transition dates are where models break. This skill lists the treatments that actually change conclusions. ## Who applies what - **Ind AS**: mandatory for all listed companies (and companies above prescribed net-worth thresholds) and their holding, subsidiary, associate and joint-venture entities. - **AS (previous Indian GAAP)**: still used by smaller unlisted companies. When you pull a subsidiary's or a supplier's financials from MCA, **check which framework it reports under before comparing** to the listed parent. - **Ind AS 117** (insurance contracts) applies to insurers on its own timeline — check the notified date before comparing insurance financials across periods. ## Ind AS 116 — Leases. The single biggest distortion. Every lease over 12 months (bar low-value assets) comes on balance sheet as a right-of-use (ROU) asset and a lease liability. **What it does to the P&L:** ``` Before: Rent expense inside EBITDA After: Depreciation on ROU asset (below EBITDA) + Interest on lease liability (below EBITDA) ``` Consequences: - **EBITDA rises** and **EBITDA margin expands** with no operating change - **Debt rises** — the lease liability is debt - **EPS falls in early years** and rises later: interest is front-loaded on a declining liability balance, so total early-year charge exceeds straight-line rent - **CFO rises**, because the principal portion of lease payments moves to financing activitie