Non-current Assets held for sale Accounting Policy disclosed by Asian Paints 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 non-current assets held for sale disclosed by Asian Paints Limited in the financial statements before and after the amendment.
The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and actions required to complete such sale indicate that it is unlikely that significant changes to the plan to sell will be made or that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if the management expects to complete the sale within one year from the date of classification.

Policy disclosed by Asian Paints Limited in Financial Statements for the year ended 31 March 2023:

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortised.
(Asian Paints Limited Financial Year Ended 31 March 2023)

Analysis for Material Accounting Policy Information:
Primary condition – Accounting policy relates to material transaction, other event or condition:
The company has not reported non-current assets held for sale in balance sheet. Therefore, the primary condition is not met.

Conclusion:
As the primary condition is not met, the company shall not disclose the policy on non-current assets held for sale in material accounting policy information.

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 non-current assets held for sale which shows that the company has made changes in its accounting policies to disclose only material accounting policy information. However, the company has disclosed “Summary of Material Accounting Policies”. It may be noted that Ind AS 1 requires disclosure of material accounting policies and not summary of material accounting policies. The way Ind AS 1 explains material accounting policies, there cannot be a summary of material accounting policies.