MUMBAI: India’s aviation industry might be flying into a debt cloud when new accounting standards come into force in 2019. India adopted IFRS on April 1, 2016.PWC estimates that the new accounting standard would impact at least 20 industries, ranging from retail to utilities. But the second biggest impact, after retail, will be on airlines, for which average debt would rise up to 47%. For instance, Air France-KLM's reported net debt, as of December 2016, is 3.7 billion euros (Rs 27,750 crore), according to a Bloomberg report. "At present, airlines are exempted from GST liability on leased aircraft.“We are the front-runners in the adoption of IFRS 9 dealing with financial instruments.

Source: Economic Times July 25, 2017 19:07 UTC