Impairment of Non-financial Assets Accounting Policy disclosed by Bajaj Finance Limited

Ind AS 1 was amended with effect from 1 April 2023 to replace the requirement to disclose significant accounting policy with disclosure of material accounting policy information. The amendment also provided the principles for assessing whether an accounting policy is material accounting policy. This post compares the accounting policy on Impairment of Non-financial Assets disclosed by Bajaj Finance Limited in the financial statements before and after the amendment.

Impairment of non-financial assets Accounting Policy disclosed in Financial Statements for the year ended 31 March 2023:
An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may be impaired. If any such indication exists, an estimate of the recoverable amount of asset is determined. If the carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down accordingly.

Analysis for Material Accounting Policy Information:
Primary condition – Accounting policy relates to material transaction, other event or condition:
The company has not reported impairment loss in Statement of Profit and Loss in the current year or previous year. Therefore, the primary condition is not met.

Conclusion:
As the primary condition is not met, the company shall not disclose the policy on impairment of non-financial assets in material accounting policy information.

Comments on Accounting Policy disclosure in Financial Statements for the year ended 31 March 2025:
It may be noted that the financial statements of the company for the year ended 31 March 2025 do not include the policy on impairment of non-financial assets which shows that the company has made changes in its accounting policies to disclose only material accounting policy information.