In examining the likely impact of the standard locally,
India's vibrant but highly fragmented retail sector stands
out.
Indian corporations, like their counterparts around the world,
are working to ensure compliance with Ind AS 116 - the local
equivalent of the IFRS 16 accounting rule - which is mandated by
the Ministry of Corporate Affairs and came into effect in April
2019.1 In examining the likely impact of the standard,
the country's vibrant but highly fragmented retail sector
stands out.
Source: India Brand Equity Foundation
The objective of Ind AS116, like IFRS 16, is to account for
lease transactions in a way that allows users to transparently
assess the amounts and timings of all cash flows, assets and
liabilities arising from a lease.2 Naturally, the new
standard is expected to have the most significant impact on the
accounting departments of lessee corporations that manage a large
number of leases. Globally, this means companies in the
