"All specified Indian companies are required to shift from existing Indian GAAP to Ind AS w.e.f. 1st April, 2016. The adjustments arising on account of shifting from existing Indian GAAP to Ind AS are required to be reco

Ind-AS Companies: OCI - The treatment to be given to all those adjustments which are recorded in Other Comprehensive Income 'OCI' for the purpose of computation of book profits as being specified in section 115JB(2) of the Income-tax Act, 1961, are: Those adjustments which are recorded in OCI and which would be reclassified to profit or loss account subsequently shall be included in book profits in the year in which these are reclassified to profit or loss. Those adjustments recorded in OCI and which would never be reclassified to profit or loss shall be treated as under: Changes in revaluation surplus of Property, Plant or Equipment (PPI) and Intangible assets (Ind AS 16 and 38) shall be included in the book profit in the year in which the Asset/ Investment is retired, disposed, realised or otherwise transferred. Gains and losses from Investments in equity instruments designated at fair value through OCI (Ind AS 109) shall be adjusted in book profits in the year in which investment is retired/disposed/realised. Re-measurements of defined benefit plans (Ind AS 19) shall be adjusted in book profits equally over a period of 5 years starting from the year of first time adoption of Ind AS. Any other Item shall be adjusted in book profits equally over a period of 5 years starting from the year of first time adoption of Ind AS. All other adjustments recorded in reserves and surplus (excluding capital reserve and securities premiums) and which would otherwise never subsequently be reclassified to profit and loss account, shall be included in book profits, equally over a period of 5 years starting from the year of first time adoption of Ind AS.