Moving
closer to the implementation of new accounting norms, the government has
notified the rules for Indian Accounting Standards (Ind AS), which will be
mandatory for certain companies from the accounting periods beginning on or
after April 1, 2016.
Ind
ASs, which are converged with global standards IFRS, can be followed by
corporates on a voluntary basis for accounting periods beginning on or after
1st April, 2015, with the comparatives for the periods ending on 31st March,
2015. Mandatory applicability of these standards is discussed below.
Please
note that banking, insurance and non-banking finance companies are currently
exempted from the roadmap.
Companies
with obligation to comply with Indian Accounting Standards (Ind ASs) for the
accounting periods beginning on or after 1st April, 2016
The
following companies shall comply with the Indian Accounting Standards (Ind AS)
for the accounting periods beginning on or
after 1st April, 2016, with the comparatives for the periods ending on 31st
March, 2016, or thereafter,
namely:
a.
companies
whose equity or debt securities are listed or are in the process of being listed on any stock
exchange in India or outside India and
having net worth of rupees five hundred crore or more;
b.
companies
other than those covered by clause above and having net worth of rupees five hundred crore or more;
c.
holding,
subsidiary, joint venture or associate companies of companies covered by any of
the two clauses above.
Companies
with obligation to comply with Indian Accounting Standards (Ind ASs) for the
accounting periods beginning on or after 1st April, 2017
The
following companies shall comply with the Indian Accounting Standards (Ind AS)
for the accounting periods beginning on or
after 1st April, 2017, with the comparatives for the periods ending on 31st
March, 2017, or thereafter,
namely:
a.
companies
whose equity or debt securities are listed or are in the process of being listed on any stock
exchange in India or outside India and
having net worth of less than rupees five hundred crore;
b.
companies
other than those covered by the applicability criteria for accounting periods
beginning on or after 1st April, 2016 or by clause (a) above and having net worth of rupees two hundred and fifty crore or
more but less than rupees five hundred crore;
c.
holding,
subsidiary, joint venture or associate companies of companies covered by any of
the two clauses above.
Please
note that the above criteria are an extract from the notified Companies (Indian
Accounting Standards) Rules, 2015. It is recommended to refer to the original
text in determining applicability for your organisation. You can access the
same and all the notified Ind AS that appeared on the MCA website by clicking here.
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