After a long converging process of Accounting standards(AS) and IFRS, Ministry of corporate affairs has come up with new standards name as Indian Accounting Standards(Ind-AS) which sum of AS and IFRS. Hundred percent adoption of IFRS was not possible in Indian Scenario, hence Necessary changes are made in them to make them applicable in Indian scenario before adoption.<\/p>\n
Ministry of Corporate affairs(MCA) has notified “Companies (Indian Accounting Standards) Rules 2015” on date 16-02-2015. These rules are applicable w.e.f 01-04-2015. These rules are the roadmap\u00a0 for adoption and applicability of 39 Ind-AS to specified companies in a phased manner.Companies which are not required to follow Indian Accounting Standards (Ind AS) shall continue to comply with Accounting Standards as prescribed in Companies (Accounting Standards) Rules, 2006<\/p>\n
Rule 4 of Companies (Indian Accounting Standards) Rules 2015, specifies the class of companies which shall comply with Ind-As. It further specifies that specified companies shall comply with Ind-AS while preparing their financial statement and its auditor shall comply with Ind-AS while preparing their audit report.<\/p>\n
Ind-As are not applicable to following companies either voluntarily or mandatorily as specified in sub-rule (1) of rule 4:-<\/p>\n
Applicability of Ind-AS can be summarized in following manner:-<\/p>\n
As per rule 4 of\u00a0Companies (Indian Accounting Standards) Rules 2015, applicability of Ind-AS to companies\u00a0other than banking, Insurance and NBFC, can be explained in following manner:-<\/p>\n
As per clause (i) of sub-rule (1) of rule 4 of Companies (Indian Accounting Standards) Rules 2015, any company may comply<\/strong>\u00a0(voluntary)<\/strong><\/span> with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st<\/sup>\u00a0April, 2015<\/strong>, with the comparatives for the previous periods.<\/p>\n As per clause (ii) of sub-rule (1) of rule 4 of Companies (Indian Accounting Standards) Rules 2015, the following companies shall comply (mandatory)<\/span><\/strong>\u00a0with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2016<\/strong>, with the comparatives for the previous periods:-<\/p>\n (a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange (Except SME exchange) in India or outside India and<\/strong> having net worth of rupees five hundred crore or more.<\/p>\n (b) companies other than those covered in (a) above and having net worth of rupees five hundred crore or more.<\/p>\n (c) holding, subsidiary, joint venture or associate companies of companies in (a) and\u00a0 (b) above.<\/p>\n As per clause (iii) of sub-rule (1) of rule 4 of Companies (Indian Accounting Standards) Rules 2015, the following companies shall comply (mandatory)<\/span><\/strong>\u00a0with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2017<\/strong>, with the comparatives for the previous periods:-<\/p>\n (a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange (Except SME exchange) in India or outside India and<\/strong> having net worth of less than rupees five hundred crore.<\/p>\n (b) companies other than those covered in (a) above having net worth of rupees two hundred and fifty crore or more but less than rupees five hundred crore<\/strong>.<\/p>\n (c) holding, subsidiary, joint venture or associate companies of companies in (a) and (b) above.<\/p>\n Ministry of Corporate Affairs (MCA)\u00a0issued a circular dated 11 February 2016 as a press release on the roadmap for implementation of Ind AS by banks, non-banking finance companies (NBFCs), and insurance companies. As per above circular Ind-AS is applicable to NBFCs in following manner:-<\/p>\n The following categories of NBFCs shall be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards with comparatives for the previous periods.<\/p>\n (i) NBFCs having net worth of Rs.500 crores or more.<\/strong><\/p>\n (ii) Holding, subsidiary, joint venture or associate companies of companies covered (i) above, other than those companies already covered under the corporate roadmap announced by the Ministry of Corporate Affairs (MCA), Government of India (GoI).<\/p>\n The following categories of NBFCs shall be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2019 onwards with comparatives for the previous periods:-<\/p>\n (i) NBFCs whose equity and\/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth less than Rs.500 crores.<\/p>\n (ii) NBFCs other than those covered in (a)(i) and (b)(i) above, that are unlisted companies, having net worth of Rs.250 crores or more but less than Rs.500 crores.<\/p>\n (iii) Holding, subsidiary, joint venture or associate companies of companies covered under (b) (i) and (b)(ii) above, other than those companies already covered under the corporate roadmap announced by the MCA, GoI.<\/p>\n Note:\u00a0NBFCs having net worth below Rs. 250 Crores and not covered under the above provisions shall continue to apply Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006.\u00a0<\/span><\/p>\n Ministry of Corporate Affairs (MCA)\u00a0issued a circular dated 11 February 2016 as a press release on the roadmap for implementation of Ind AS by banks, non-banking finance companies (NBFCs), and insurance companies. As per above circular Ind-AS is applicable to Scheduled commercial banks (excuding RRBs) and Insurance\u00a0 Companies in following manner:-<\/p>\n (a) Scheduled commercial banks (excluding Regional Rural Banks (RRBs), All-India Term-lending Refinancing Institutions (i.e. Exim Bank, NABARD, NHB and SIDBI) and Insurers\/Insurance companies would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards<\/strong>, with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS would be applicable to both consolidated and individual financial statements.<\/p>\n (b) Notwithstanding the roadmap for companies, the holding, subsidiary, joint venture or associate companies of Scheduled commercial banks (excluding RRBs) would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter.<\/p>\n Note: Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) shall not be required to apply Ind AS and shall continue to comply with the existing Accounting Standards, for the present.<\/span><\/p>\n As per Rule 2(1)(f), \u201cnet worth\u201d shall have the meaning assigned to it in clause (57) of section 2 Companies Act, 2013. Net worth shall be calculated on the basis of stand alone financial statement as on 31st march 2014 or first audited financial statement for the accounting period which ends after 31st march 2014, as applicable.<\/p>\n Net Worth means: [Paid up share Capital + all reserves created from out of profit*<\/b>\u00a0& securities premium account – accumulated losses, deferred expenditure and miscellaneous expenditure not written off]<\/p>\n *<\/b>\u00a0Capital Reserve shall not be included in calculation of Net Worth.<\/p>\n List of 39 Ind-AS as notified by MCA is given below. To visit to MCA notification and know more above Ind-AS click on the link given below-<\/p>\n <\/p>\n Thanks.<\/p>\n","protected":false},"excerpt":{"rendered":" Indian Accounting Standards (IND-AS): Whether applicable to your company or not? After a long converging process of Accounting standards(AS) and IFRS, Ministry of corporate affairs has come up with new standards name as Indian Accounting Standards(Ind-AS) which sum of AS and IFRS. Hundred percent adoption of IFRS was not possible in Indian Scenario, hence Necessary […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[193],"class_list":["post-830","post","type-post","status-publish","format-standard","hentry","category-banking-investment","tag-ind-as"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9X28M-do","_links":{"self":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=830"}],"version-history":[{"count":2,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/830\/revisions"}],"predecessor-version":[{"id":3880,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/830\/revisions\/3880"}],"wp:attachment":[{"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}IND-AS Applicability w.e.f 01-04-2016<\/span><\/h3>\n
IND-AS Applicability w.e.f 01-04-2017<\/span><\/h3>\n
Applicability of Ind-AS to\u00a0<\/span>NBFC C<\/span>ompanies<\/span><\/span><\/h2>\n
a) NBFC to comply Ind-AS w.e.f 01-04-2018<\/span><\/h3>\n
b) NBFC to comply Ind-AS w.e.f 01-04-2019<\/span><\/h4>\n
Applicability of Ind-AS to Banking and Insurance companies\u00a0<\/span><\/span><\/h2>\n
How to calculate Net Worth to check Ind-AS Applicability<\/span><\/span><\/h2>\n
List of Ind-AS<\/strong><\/span><\/span><\/h2>\n
\n\n
\n Notifications<\/strong><\/td>\n \u00a0\u00a0\u00a0\u00a0Description<\/strong><\/td>\n<\/tr>\n \n G.S.R 111(E) dated 16 Feb 2015<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0The Companies (Indian Accounting Standards) Rules, 2015.<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 101<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0First-time Adoption of Indian Accounting Standards<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 102<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Share-based Payment<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 103<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Business Combinations<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 104<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Insurance Contracts<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 105<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Non-current Assets Held for Sale and Discontinued Operations<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 106<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Exploration for and Evaluation of Mineral Resources<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 107<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Financial Instruments: Disclosures<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 108<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Operating Segments<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 109<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Financial Instruments<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 110<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Consolidated Financial Statements<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 111<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Joint Arrangements<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 112<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Disclosure of Interests in Other Entities<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 113<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Fair Value Measurement<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 114<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Regulatory Deferral Accounts<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 115<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Revenue from Contracts with Customers<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 1<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Presentation of Financial Statements<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 2<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Inventories<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 7<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Statement of Cash Flows<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 8<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Accounting Policies, Changes in Accounting Estimates and Errors<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 10<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Events after the Reporting Period<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 12<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Income Taxes<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 16<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Property, Plant and Equipment<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 17<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Leases<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 19<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Employee Benefits<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 20<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Accounting for Government Grants and Disclosure of Government Assistance<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 21<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0The Effects of Changes in Foreign Exchange Rates<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 23<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Borrowing Costs<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 24<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Related Party Disclosures<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 27<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Separate Financial Statements<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 28<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Investments in Associates and Joint Ventures<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 29<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Financial Reporting in Hyperinflationary Economies<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 32<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Financial Instruments: Presentation<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 33<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Earnings per Share<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 34<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Interim Financial Reporting<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 36<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Impairment of Assets<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 37<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Provisions, Contingent Liabilities and Contingent Assets<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 38<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Intangible Assets<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 40<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Investment Property<\/td>\n<\/tr>\n \n Indian Accounting Standard (Ind AS) 41<\/a><\/td>\n \u00a0\u00a0\u00a0\u00a0Agriculture<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n