13 January 2015 | Volume 1 Issue 2
Revised roadmap – Implementation of Ind-AS

Following the budget statement by the Finance Minister, the Ministry of Corporate Affairs has announced a revised roadmap for implementation of the long-awaited new set of Indian Accounting Standards (Ind-AS). These standards are converged with International Financial Reporting Standards (IFRS) for companies other than banking, insurance and non-banking finance.

The Ind-AS will be applicable to the companies as follows:
  • on a voluntary basis, for financial statements for accounting periods beginning on or after 1 April 2015 with the comparatives for the periods ending 31 March 2015 or thereafter;
  • on a mandatory basis, for accounting periods beginning on or after 1 April 2016 with the comparatives for the periods ending 31 March 2016 or thereafter, for the companies, with a net worth of INR 5 billion or more and holding, subsidiary, joint venture or associates of such companies;
  • on a mandatory basis, for accounting periods beginning on or after 1 April 2017 with the comparatives for the periods ending 31 March 2017 or thereafter for:
    • listed companies (irrespective of net worth),
    • unlisted companies with net worth of INR 2.5 billion or more,
    • companies whose equity and/or debt security are in the process of being listed with net worth of less than INR 5 billion and
    • holding , subsidiary, joint venture or associates of the companies mentioned above.
However, companies that are listed or in the process of being listed on SME (small and medium enterprises) exchanges shall not be required to apply Ind-AS.
Once a company opts to follow the Ind-AS, it shall be required to follow these standards for all the subsequent financial statements.

Companies not covered by the above roadmap, shall continue to apply existing accounting standards prescribed in an annexure to the Companies (Accounting Standards) Rules, 2006.

The notification on the above lines is expected to be issued soon. It is expected that the notification shall throw light on certain aspects such as measurement of net worth, year for which net worth needs to be considered and whether this roadmap is applicable for both standalone and consolidated financial statements.

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