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Step 1 — Entity profile and engagement scope
Minimum information needed to drive classification.
A · Entity information
INPUT
Show guidance — What, Why & Action
WhatInd AS 118 is still at ICAI Exposure Draft stage — not yet a notified standard.
WhyThe effective date, transition provisions and consequential Schedule III amendments could still change before final notification.
ActionTreat every conclusion in this tool as planning-stage and revalidate against the notified standard before finalising financial statements.
Status caveat. Ind AS 118 is at ICAI Exposure Draft stage, recommended by NFRA for periods beginning on or after 1 April 2027 (early adoption from 1 January 2027 proposed for calendar-year entities). Consequential amendments to Schedule III have not been notified. Conclusions are planning-stage and must be revalidated on final notification.
Show guidance — What, Why & Action
WhatCurrent year and comparative figures are entered together in one working paper.
WhyInd AS 118 comparatives must be restated on the same basis as the current year, so keeping both years side by side avoids running the exercise twice.
ActionEnter CY and PY figures side by side wherever the tool asks for both (Declare the PL face, Mapping, etc.) — do not maintain separate files per period.
Both years are captured together in this single working paper — enter the current-year and comparative figures side by side throughout (Declare the PL face, Mapping, etc.). There is no need to run the tool twice or keep separate files per period.
B · Specified main business activity assessment
The single most consequential judgement in Ind AS 118. It moves whole categories into Operating and therefore changes Operating Profit — the subtotal analysts, lenders and covenant tests will use.
INPUT
Reviewer prompts
Question to resolve
Why it matters
Is this a main business activity or incidental treasury deployment?
Parking surplus cash in mutual funds is not "investing as a main business". Getting this wrong overstates Operating Profit.
Can there be more than one specified main business activity?
Yes. Assess each separately; effects are cumulative.
Entity or group level for CFS?
Assess for the reporting entity. A manufacturer with a captive NBFC subsidiary may qualify on consolidation but not standalone — creating a standalone/consolidated presentation difference that must be explained.
Is the conclusion contemporaneously documented and approved?
A significant judgement requiring disclosure. Auditors and NFRA inspections will look for the working paper, not a post-hoc rationalisation.
Could the conclusion change year on year?
Reassessment on business model change triggers restated comparatives and re-presentation disclosure.
C · Feature requirements for this engagement
Not every engagement needs every tab. Answer No to hide a tab that does not apply — nothing already entered there is lost, and you can switch back to Yes at any time.
INPUT
Screens management-defined performance measures used in investor communications (Step 7 · MPMs). Say No only where the entity issues no such communications — most listed entities and many large unlisted ones should keep this Yes.
Reconciles the new Operating profit to legacy EBITDA/EBIT and tests loan covenants (Step 8 · Covenants & KPIs). Say No where the entity has no financial covenants to monitor.
D · Engagement actions
Save, reload, print or start from a worked sample engagement.
Application Preferences → Appearance
A visual preference for this device only. It has no effect on Ind AS 118 calculations, mapping, tie-out, MPM assessment, covenants, engagement conclusions, reports, the audit trail, or locking/workflow status — and this card stays usable even when the Profile tab above is locked.
Lock this tab once you have reviewed and completed the information. This prevents accidental changes to the inputs and selections.
Step 2 — Input mode
Choose how you will bring in the figures
Pick one option below — the relevant working area is shown; the others stay out of the way until needed. Declare the PL face holds the control totals and is required at some point — options (A)/(B)/(C) can populate it for you automatically, or use them purely for note-level detail if you prefer to enter the face totals by hand.
Declare the PL face of the Statement of Profit and Loss
These are the control totals. Nothing can be mapped until the notes underneath tie back to them.
INPUT
Prefer to bring the figures in automatically?
Face caption as presented
Type
Current year
Comparative year
Note ref
Enter both years — they are captured together in this one working paper, side by side.
(A) Auto-map an Excel workbook recommended
📱Excel auto-mapping involves reviewing multiple sheets and detected line items — this is easiest on a laptop or tablet. You can still proceed here if you prefer.
Upload the financial-statements Excel file (Statement of Profit and Loss plus notes). The tool reads every sheet, detects note schedules and their totals, auto-classifies each line item and populates the face control totals — then routes everything through the tie-out gate for you to review and adjust. Nothing is concluded automatically.
Show guidance — What, Why & Action
WhatThe auto-mapper reads and classifies the Statement of Profit and Loss and its notes only.
WhyInd AS 118 re-presents the P&L; it does not change Balance Sheet presentation, so there is nothing there to reclassify.
ActionReview the Balance Sheet sheet only for reference; check the information request list for splits the mapper could not detect (e.g. net interest on the defined benefit liability, trade/borrowing split of FX); verify every heuristic note-title/total detection in the review grid and tie-out gate.
What the auto-mapper does and does not do. It maps the Statement of Profit and Loss and its notes — the only statement Ind AS 118 re-presents. A Balance Sheet sheet is read for reference but not reclassified, because Ind AS 118 does not change balance-sheet presentation. It cannot see splits that are absent from the file (for example net interest on the defined benefit liability buried inside employee benefits, or the trade/borrowing split of a net FX line) — those still appear in the information request list (Step 5). Detection of note titles and totals is heuristic; the review grid and the tie-out gate are where errors are caught.
(B) Import notes-level detail (CSV / paste)
INPUT
(C) PDF-assisted extraction accelerator only
Extraction feeds Tier 2; it never bypasses the tie-out gate. Every extracted caption must reconcile to the declared face amount before its items can be mapped.
If PDF loading is unavailable offline, select the note in your PDF reader, copy, and paste the text below.
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Step 3 — Tie-out gate
For every face caption, the sum of imported note items must agree to the declared face amount. Captions that do not reconcile are blocked from mapping. This is the control that makes the working paper audit-defensible.
Face caption
Face (CY)
Notes (CY)
Diff CY
Diff PY
Status
Resolution
Show guidance — What, Why & Action
WhatAn unexplained tie-out difference must never be cleared by inserting a balancing figure.
WhyA residual almost always means a missing note item, a double-count, or an undisclosed net presentation on the face caption — each is a genuine finding, not noise.
ActionInvestigate and resolve the actual cause; if you must proceed without full resolution, force-unlock the caption (this is recorded in the report) and document the reason.
Do not clear a difference by plugging a balancing figure. An unexplained residual means either a note item is missing, an item has been double-counted, or the face caption itself is net of something not disclosed. Each of those is a finding. Force-unlocking a caption is permitted but is recorded in the report and requires a documented reason.
Show guidance — What, Why & Action
WhatThe total of all mapped items must equal audited profit for the year, not just tie out caption by caption.
WhyCaption-level tie-out alone does not guarantee every rupee of profit has actually been mapped somewhere.
ActionCheck this control on the P&L Preview tab before relying on any subtotal.
Completeness control. Beyond caption-level tie-out, the signed total of all mapped items must equal profit for the year per the audited financial statements. This is shown on the P&L Preview tab.
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Step 4 — Classification and aggregation guard
The tool proposes a category from the rule library. The reviewer confirms or overrides. Items that could span more than one Ind AS 118 category are flagged and must be split or explicitly confirmed before the mapping is treated as complete.
Deciding where a line item belongs?
Search the Subtotal library — a quick reference of where similar items are usually presented, by category, with para references and cautions.
📱Bulk classification of line items is easiest to review accurately on a laptop or tablet screen. You can still add or fix individual items here.
Mapping Library
Save a reviewed mapping for reuse next period or on a similar entity, without carrying forward any financial figures. Load a saved mapping and apply it to auto-classify clear matches — only exceptions need your review.
Mapped line items
Add a line item
Face caption
Line item
Current yr
Comp. yr
Category
Status
Basis / judgement
Reviewer conclusion
Show guidance — What, Why & Action
WhatA line item that could straddle more than one Ind AS 118 category is too aggregated to map as a single line.
WhyInd AS 118's five categories (operating, investing, financing, tax, discontinued) each need their own subtotal, so a mixed line would misstate more than one of them.
ActionUse Split to break the item into its components, or tick Confirm single-category only once you have verified from the underlying records that it truly belongs to one category.
Aggregation rule embedded: if a line item could contain amounts belonging to more than one Ind AS 118 category, it is too aggregated to map. Use Split to break it, or tick Confirm single-category where you have satisfied yourself from the underlying records.
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Step 5 — Information you still need to gather
Every row below is editable and can be deleted — including the shaded standard gaps list (splits Ind AS 118 always needs that a typical annual report never shows on its own). Company-specific requests are ones you raised yourself — from the Mapping tab, click → IR on any line item to send it here, or add a blank row directly below. Removed a standard row by mistake? Use "Restore standard checklist".
The memo picks up the preparer / addressee automatically from the Profile tab.
INPUT — click any cell to edit, × to delete
Information required
Source
Why Ind AS 118 needs it
Priority
Status
Remarks
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Step 6 — Statement of Profit and Loss under Ind AS 118
Structure and mandatory subtotals derived from the mapping — this is the core output of the tool. Compare Operating Profit with the operating measure management reports today.
INPUT — control: tie the mapped total to profit per the audited financial statements
Profit for the period
Current year
Comparative
Per this mapping (Ind AS 118 total)
—
—
Per audited financial statements
Difference / status
—
—
Expense analysis — operating category (guidance)
Show guidance — What, Why & Action
WhatOperating expenses must be presented by nature or by function — whichever gives the most useful structured summary — and any function-based line still needs a by-nature breakup of depreciation, amortisation, employee benefits, impairment and inventory write-downs in the notes.
WhySchedule III currently mandates a by-nature format, so a genuine free choice between nature and function is not yet available to most Indian companies even though Ind AS 118 itself permits both.
ActionDo not assume a free choice — flag any function-based presentation for confirmation against Schedule III as it stands (or as amended) before adopting it.
Operating expenses must be analysed by nature or by function, whichever gives the most useful structured summary. A mixed presentation is permitted only where it is the most useful and the basis is explained. Where any function-based line is presented, the notes must disclose depreciation, amortisation, employee benefits, impairment and inventory write-downs within each function line. India: Schedule III mandates a by-nature format; until it is amended, a by-function presentation is not available to most companies. Flag this rather than assuming a free choice.
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Three linked working areas. A screens every measure your own entity uses — identification through to a preliminary conclusion. B is a research library of measures used by other India and global companies, for benchmarking only. C turns Section A into a report. Evidence discipline: nothing here invents a source, page reference, company definition or reconciliation — where a fact has not been captured, the tool says so and asks for it.
MPM document review register
Add every document you have reviewed for possible management-defined performance measures. Attach it where you can — the tool tries to read the file (plain text/CSV, PDF via the in-browser reader, or Excel) and scans it for common MPM-style terminology; where the file type can't be parsed offline, paste the key text instead. A keyword match is recorded only as "Potential MPM — further analysis required", never as a final "Yes" — that call is always yours to make, and every override is logged with a reason. A potential or confirmed measure is added automatically to the Client measure register below for detailed assessment.
INPUT
Sr.
Type of document reviewed
Document title / description
Reporting period
Attachment
MPM identified?
Remarks / conclusion
Status
Show guidance — What, Why & Action
WhatAutomatic keyword scanning only works on plain text/CSV, PDF and Excel files, and a keyword hit (e.g. "Adjusted", "Underlying", "Core") is only a screening flag, not a conclusion.
WhyWord/PowerPoint files cannot be parsed offline in this tool, and a measure's label alone does not establish whether it meets the Ind AS 118 definition of an MPM.
ActionPaste extracted text for Word/PowerPoint sources; review the exact definition, calculation and use of every flagged measure before reaching a technical conclusion.
Automatic scanning works only on plain text/CSV, PDF and Excel attachments — Word, PowerPoint and other formats cannot be parsed offline in this tool; paste the relevant extracted text for those instead. Identifying a keyword such as "Adjusted", "Underlying", "Core", "Normalised" or "Recurring" does not by itself mean a measure is an MPM — the exact definition, calculation and use of the measure must still be reviewed before a technical conclusion is reached.
Client measure register
One row per measure — add it directly here, or let a "Yes"/"Potential" conclusion in the Document Review Register above create it automatically (linked by name). Click Details on any row to enter the definition, calculation, adjustments and the four screening questions the assessment below is based on. Nothing here draws on the Library in Section B, and nothing invents a definition, page reference or reconciliation you have not supplied — a blank or "Unclear" field is recorded as "Insufficient information available – management confirmation required" and listed as a follow-up question.
INPUT — click the measure name to rename, Details to expand
Measure
Status
Assessment reason
Follow-up questions
Search / filter the library
Show guidance — What, Why & Action
WhatThe MPM library is a research and screening aid, not a source of verified facts about your entity.
WhyRecords marked "Candidate" or "requires assessment/verification required" have not been confirmed against the entity's own disclosures.
ActionAlways check the entity's own public disclosure before relying on a library record; only Section A's conclusion (based on your own inputs) is entity-specific.
Research and screening tool only. Records marked "Candidate" evidence, or whose status says "requires assessment"/"verification required", are not source-verified — always check the entity's own public disclosure before relying on any record. The library benchmarks; it never concludes for your entity — only Section A does that, from your own inputs.
INPUT — filters
Library results
Coverage
Company / example
Sector
Measure
Category
Preliminary status
Evidence / source
Notes
Transition / MPM report
Click Generate to build the MPM report from Section A's register.
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Data Integrity Status
The six controls Ind AS 118 transition work specifically calls for, plus one this tool adds (documented reasoning for judgemental items) — all drawn live from every other tab, nothing entered by hand here. Refresh any tab's data and reopen this one to see it update.
Step 9 — Management dashboard
A one-screen view for the CFO / Head of Accounts: today's Ind AS 1 presentation next to the new Ind AS 118 presentation, with the subtotals that matter and the reclassifications driving the difference. Click any subtotal to see what it is made of.
Opening this tab builds the dashboard automatically — or click Refresh.
Report and letter branding (preparer, addressee, reference, period labels) is picked up automatically from the Profile tab — nothing further to fill in here.
Detailed narrative report
Click Generate to build the detailed transition report.
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Step 8 — Covenant & KPI impact
The new mandatory Operating profit subtotal will not equal the entity's existing EBIT/EBITDA or covenant definitions. This step quantifies the gap so management can renegotiate covenants and reset guidance before the transition year.
A · Reconciliation — Ind AS 118 Operating Profit to legacy EBITDA
Start from the tool's Operating profit and add back the items your legacy EBITDA/EBIT definition includes or excludes. Enter add-backs as positive, deductions as negative.
Adjustment
Current year
Comparative
B · Covenant register
Enter each covenant. Choose the metric basis, the threshold and the test direction; the tool shows the actual value on the new Ind AS 118 basis and flags headroom or breach.
INPUT
Covenant / KPI
Basis
Test
Threshold
Actual (CY)
Status (CY)
Actual (PY)
Show guidance — What, Why & Action
WhatA covenant defined on a legacy EBITDA/EBIT that differs materially from the new Operating profit subtotal is at risk of a definitional breach.
WhyInd AS 118 changes presentation, not underlying cash flows, but a mechanically applied covenant test does not know that — it can trigger a breach on the reclassification alone.
ActionFlag every materially affected covenant to the CFO and treasury, and get the definition revisited with lenders before year-end.
Covenant risk. Where a covenant is defined on a legacy EBITDA/EBIT that differs materially from the new Operating profit, the definition must be revisited with lenders. Ind AS 118 changes presentation, not the underlying cash flows — but a mechanically applied covenant test can breach on a definitional change alone. Flag this to the CFO and treasury before year-end.
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Step 10 — Financial statements convergence
Final Profit & Loss is generated automatically from Step 6. Balance Sheet, Cash Flow and Notes on Accounts are guidance and a disclosure checklist only — Ind AS 118 is a P&L presentation standard and does not change how the Balance Sheet or Cash Flow Statement are prepared; this tab does not capture new BS/CF figures.
A · Final Statement of Profit and Loss (Ind AS 118 basis)
Live copy of the Step 6 statement — open Step 6 · P&L Preview to edit mapping or amounts; this view refreshes automatically whenever you open this tab.
B · Balance Sheet — guidance (no figures captured here)
Show guidance — What, Why & Action
WhatInd AS 118 replaces only Ind AS 1's Statement of Profit and Loss requirements.
WhyIt does not amend the Balance Sheet requirements of Ind AS 1, Schedule III Division II's Balance Sheet format, or any other Ind AS governing recognition or measurement of assets and liabilities.
ActionNo action needed — do not reclassify the Balance Sheet solely because of this transition.
Ind AS 118 replaces Ind AS 1's Statement of Profit and Loss requirements; it does not amend Ind AS 1's Balance Sheet requirements, Schedule III Division II's Balance Sheet format, or any other Ind AS dealing with recognition or measurement of assets and liabilities. No Balance Sheet reclassification is required solely because of this transition.
Show guidance — What, Why & Action
WhatInd AS 118 does not change goodwill's recognition, measurement or impairment-testing requirements under Ind AS 103/Ind AS 36.
WhyTwo second-order effects can still arise: a CGU's value-in-use/FVLCD model or impairment-headroom narrative may reference "operating profit"/"EBIT" as an input or disclosure item, and that measure could silently diverge from the newly defined face subtotal if not cross-checked.
ActionConfirm the impairment model and note continue to use a consistently defined measure; do not redraft the unchanged goodwill accounting policy note, but do cross-check the CGU narrative on "operating performance" against the restated P&L.
Goodwill — specific comment. Ind AS 118 does not change the recognition, measurement or impairment-testing requirements for goodwill under Ind AS 103 / Ind AS 36. However, two second-order effects need attention: (i) if a CGU's value-in-use or fair-value-less-costs-of-disposal model, or the impairment headroom narrative in the notes, refers to "operating profit", "EBIT" or a similarly labelled measure as a cash-flow forecasting input or as part of the disclosure, confirm the model and the note continue to use a consistently defined measure — do not silently let the input measure and the newly defined face subtotal diverge in the disclosure; and (ii) the accounting policy note on goodwill (cost less accumulated impairment losses) itself does not change and should not be redrafted, but cross-check that the CGU disclosure's narrative on "operating performance" is still internally consistent with the restated P&L.
Checklist: (1) confirm no BS line item needs relabelling as a consequence of the P&L classification changes; (2) confirm CGU/impairment models and disclosures that cross-reference a P&L subtotal are traced to the new subtotal definitions; (3) confirm deferred tax note narrative (if any) referring to "operating" items is consistent with the new classification.
C · Statement of Cash Flows — guidance (no figures captured here)
Show guidance — What, Why & Action
WhatInd AS 7 itself is unchanged, but the conventional indirect-method starting point ("Profit before tax") is expected to shift to the new "Operating profit" subtotal once Ind AS 118 mirrors the IFRS 18 approach.
WhyThis is a probable, not yet confirmed, consequence of the exposure/final drafting — until the standard is notified, the current starting point remains technically valid but likely to change.
ActionTreat this as a probable change; update the standard operating procedure and cash-flow templates once the final notified text confirms the new starting point.
Ind AS 7 itself is not amended by Ind AS 118. However, entities using the indirect method conventionally start the reconciliation of operating cash flows from "Profit before tax". Under the IFRS 18 exposure/final drafting that Ind AS 118 is expected to mirror, the indirect-method reconciliation is expected to start instead from the "Operating profit" subtotal (or, where an entity's main business activity brings investing/financing items into Operating, from that revised Operating profit figure) — treat this as a probable change pending the final notified Ind AS 118 text and update the standard operating procedure and templates accordingly once confirmed.
Checklist: (1) identify the currently used starting point for the operating-activities reconciliation and confirm it against the final standard; (2) rebuild the add-back/deduct schedule so that items now within Operating profit are not added back a second time, and items now excluded from Operating profit (e.g. finance costs, share of profit of associates, investing income) are added back/deducted as appropriate; (3) update the accounting policy note describing the starting point of the indirect-method reconciliation; (4) re-perform the direct/indirect method cross-check, if maintained.
D · Notes on Accounts — Ind AS 118 disclosure checklist
Six disclosure areas Ind AS 118 specifically requires. Most of what these notes need is already on file elsewhere in the tool (MPM register, Main Business election, aggregation flags, 'other' captions) and is never asked again here. The few remaining questions are answered once, below — every draft note then updates automatically from your inputs and answers across the tool. Once you hand-edit a note it is frozen and will not be silently overwritten — use "Regenerate draft" to discard your edit and start over.
D1 · Questions to resolve
Not covered anywhere else in the tool — your answer drives the matching draft note below.
D2 · Draft notes (editable)
All six notes together, in one place, ready to review and edit as a single working draft of the Notes on Accounts.
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