The Reserve Bank of India (RBI) will match the concept of 'financial difficulty' with the guidelines provided by the Basel Committee on Banking Supervision. A non-exhaustive indicative list of signs of financial distress was put out by the RBI.
> The Indian Accounting Standard (Ind-AS) provisions that were to come into force were indefinitely postponed by the RBI as it would have called for higher capital for banks to provide bad loans.
> It was the second such deferred move, banks were to implement Ind-AS from April 2018, it also needed legislative amendments to make the format of financial statements compatible with Ind-AS.
Indian Accounting Standard (Ind-AS):
> They are a set of accounting rules covering the accounting and documentation of a company's financial transactions and the presentation of statements such as a company's profit and loss account and balance sheet.
> The Accounting Standards Board (ASB), which was formed as an agency in 1977, developed the standards. ASB is an Institute of Chartered Account of India (ICAI) committee comprising of government department members, academics, other professional bodies, viz. ICAI, the ASSOCHAM members, CII, FICCI, etc.
> The names and numbers of the Ind-AS are the same as those of the International Financial Reporting Standards ( IFRS).
International Financial Reporting Standards (IFRS):
> It is an accounting standard issued by the International Accounting Standards Board (IASB) in order to include a common accounting language in order to improve the accuracy of financial information presentations.
> IASB is an autonomous body based in London, established in 2001 to create the IFRS and succeeded the International Accounting Standards Committee (IASC) in 2001.
> The Basel Committee on Banking Supervision released the Basel III criteria in December 2010. A global regulatory structure for more sustainable banks and financial structures that provides specifics of global regulatory requirements on adequacy and liquidity of bank capital, including a countercyclical buffer of capital.