E-waste provisioning may put pressure on electronic goods companies
MUMBAI: Electronic goods companies, including multinationals that have been operating in India for at least a decade, could see pressure on profit due to a proposed rule on electronic waste disposal and its treatment under current accounting standards. Companies such as Samsung, LG, Apple and Nokia will be required to collect a predetermined percentage of the goods they sell every year, stretching back over the past 10 years.
Under Indian Account Standards (Ind-AS), the companies will be required to provision for this cost in the current fiscal, leading to a possible erosion in earnings. They have asked the Ministry of Environment, Forests and Climate Change to amend the rule and strip out its retrospective nature.
Courtesy: The Economic Times