Common Ind AS Adjustments Foreign Parents Don't Expect
Lease accounting, expected credit loss provisioning, and share-based payment valuation are the Ind AS areas most likely to produce a number the parent's finance team wasn't expecting.
Three areas of Ind AS tend to produce the most "why does this number look different" conversations with foreign parent finance teams: lease accounting (Ind AS 116, which brings most leases onto the balance sheet, similar to IFRS 16 but with India-specific practical expedients), expected credit loss provisioning on trade receivables (a forward-looking model that can differ meaningfully from a simpler bad-debt allowance approach), and valuation of any share-based payments if the subsidiary participates in a parent company ESOP scheme.
None of these are unique to India, but the specific assumptions, discount rates for lease liabilities, credit loss model inputs, valuation methodology for share-based payments, need to be set with India-specific data (local borrowing rates, local credit environment), not simply inherited from the parent's global assumptions.
Flagging these three areas specifically during the first-year audit planning conversation, rather than discovering them as audit adjustments, gives the finance team time to build the right supporting models before they're needed.