Ind AS

Indian Accounting Standards

Notification As on 16th February, 2015 a set of rules

were released by the Central Government in consultation with the National Advisory Committee on Accounting Standards.

These were released under the provision of Sec. 2(57) and 469 of Companies Act,2013 and sub-section 210 as per Companies Act,1956.

The Rules shall come into force on 1st April, 2015.

•All companies which do not fall under the applicability of the Ind AS provisions shall continue with the original Companies ( Accounting Standards) rule, 2006. i.e.. AS 1 to 32.

•Any company falling under the applicability of the Ind AS shall have to follow it and once complied they cannot revert back to the previous Companies ( Accounting Standards) rule, 2006.

Applicability

2015 2016 2017

Any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st April, 2015, with the comparatives for the periods ending on 31st March, 2015 or thereafter.

Applicability

2015

2016

2017

Compulsory compliance from 1st April, 2016 for the following class of companies with comparatives ending as on 31st March, 2016:-

Companies with Equity or/and Debt securities, listed or in the process of listing, with a net worth of 500 crores or more.

Companies other than those covered above with a net worth of more than 500 crores or more.

Holding, subsidiaries, joint ventures or associate companies of companies covered by any of above two clauses.

Applicability

2015

2016

2017

Compulsory compliance from 1st April, 2017 for the following class of companies with comparatives ending as on 31st March, 2017:-

Companies with Equity or/and Debt securities, listed or in the process of listing, with a net worth less than 500 crores.

Companies other than those covered under the above clause with a net worth of more than 250 crores but less than 500 crores.

Holding, subsidiaries, joint ventures or associate companies of companies covered by any of above two clauses.

Provided that nothing in this shall apply to companies

whose securities are listed or are in the process of being listed on SME exchange as referred to in Chapter XB or on the Institutional Trading Platform without initial public offering in accordance with the provisions of Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Additional information

orSmall and medium enterprises who are listed or in the process of listing in SME exchange shall not be coming under the jurisdiction of this rule.

• The net worth shall be calculated in accordance with the stand-alone financial statements of the company as on 31st March, 2014 or the first audited financial statements for accounting period which ends after that date.

• For companies which are not in existence on 31st March, 2014 or an existing company falling under any of the applicability clauses in for the first time after 31st March, 2014, the net worth shall be calculated on the basis of the first audited financial statements ending after that date in respect of which it meets the thresholds.

OAny new company falling in the category of IND AS at the of a financial year shall immediately comply to the IND AS from the succeeding year.

OAssociates or joint venture companies located abroad with an Indian holding are allowed to prepare financial as per local jurisdiction, only if the Holding Indian company prepares its consolidated statements as per IND AS.

OThe same applies to Indian subsidiaries of foreign companies, IND AS can be followed locally as per the applicability criteria.

EXEMPTIONSThe insurance companies, banking

companies and non-banking finance

companies shall not be required to apply

Indian Accounting Standards (Ind AS)

for preparation of their financial

statements either voluntarily or

mandatorily.

Indian Accounting standards

• The introduction of IND AS is a step forward in the system of Accounting in our economy, it is way by which the country wants to introduce its financials without a translator.

• As much as a benefit the Ind AS may be considered, the maintenance and compliance of the standards is going to be a challenge for both Business men and Auditors.