IFRS now reality – Get Ready!!!

On February 16, 2015, the ministry of corporate affairs notified the Indian version of International Financial Reporting Standards (IFRS), to be referred as Ind AS.  39 IND AS are issued aimed at convergence of the Indian accounting framework with globally recognised IFRS. It is not full adoption of IFRS, but only convergence.

 These set of accounting and reporting standards is required to be applied by prescribed class f companies effective April 1, 2016, with a mandatory comparative period for the year ended March 31, 2016. So, essentially covered companies will be required to transition to Ind AS as on April 1, 2015 itself.

Ind AS Roadmap


Types of Companies


Applicable to Financial Year beginning on or after

Comparative for the period ending on or after


All Companies (whether listed or not)

Rs. 500 crore or more

1st April 2016

31st March , 2016


Other companies  listed or in the process of listing on SE in India or outside

1st April 2017

31st March , 2017


Unlisted company

Rs. 250 crore or more

1st April 2017

31st March , 2017


1.   H/S/A/J are also covered:

  Also applicable to Holding, Subsidiary, Joint venture or Associate companies of companies covered above.

Overseas subsidiary, associate, joint venture and other similar entities of Indian company may prepare its standalone financial statements in accordance with the requirement of specific jurisdiction.

2.  Net Worth :

Section 2 (57) of Companies Act 2013 defines Net Worth as ‘the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation’.

To 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; 

3. Apply to Consolidated FS also

Once the company is required to apply Ind AS, than it is to be applied to both Stanalone financial statements and Consolidated financial statements.

4. Voluntary Ind AS adoption:

A company may voluntarily apply Ind AS for accounting period beginning on or after 1st April 2015 with comparative for the period ending on 31st March 2015 or thereafter.

5. Once Ind AS applied to be applied forever:

Once a company starts following the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily on the basis of criteria specified in sub-rule (1), it shall be required to follow the Indian Accounting Standards (Ind AS) for all the subsequent financial statements even if any of the criteria specified in this rule does not subsequently apply to it.

6.  Ind AS Not Applicable to Banking/Insurance/NBFC:

The 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.

7.   Other Companies (not covered in Roadmap), to follow existing Indian GAAP

The companies, other than the classes of companies applying Ind AS either voluntarily or mandatorily, are required to comply with Accounting Standards specified in Companies (Accounting Standards) Rules, 2006.


For the companies falling in Phase – 1, opening balance sheet as per Ind AS is required to be prepared as on 1st April 2015. It’s a huge task for corporate and professionals to gear up for the challanges of Ind AS implementation. The impact analysis is the first step that the corporate India has to take to assess the impact of the Ind AS implementation.



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