Applicability of Ind AS in India29/08/2022 1 By indiafreenotes
Mandatory applicability of IND AS to all companies from 1st April 2016, provided:
- It is a listed or unlisted company
- Its Net worth is greater than or equal to Rs. 500 crore*
*Net worth shall be checked for the previous three Financial Years (2013-14, 2014-15, and 2015-16).
Mandatory applicability of IND AS to all companies from 1st April 2017, provided:
- It is a listed company or is in the process of being listed (as on 31.03.2016)
- Its Net worth is greater than or equal to Rs. 250 crore but less than Rs. 500 crore (for any of the below mentioned periods).
Net worth shall be checked for the previous four Financial Years (2014-14, 2014-15, 2015-16, and 2016-17)
Mandatory applicability of IND AS to all Banks, NBFCs, and Insurance companies from 1st April 2018, whose:
- Net worth is more than or equal to INR 500 crore with effect from 1st April 2018.
IRDA (Insurance Regulatory and Development Authority) of India shall notify the separate set of IND AS for Banks & Insurance Companies with effect from 1st April 2018. NBFCs include core investment companies, stock brokers, venture capitalists, etc. Net Worth shall be checked for the past 3 financial years (2015-16, 2016-17, and 2017-18)
All NBFCs whose Net worth is more than or equal to INR 250 crore but less than INR 500 crore shall have IND AS mandatorily applicable to them with effect from 1st April 2019.
|Ind AS 101||First time adoption of Indian Accounting Standards|
|Ind AS 102||Share Based Payment|
|Ind AS 103||Business Combinations|
|Ind AS 104||Insurance Contracts|
|Ind AS 105||Non-Current Assets Held for Sale and Discontinued Operations|
|Ind AS 106||Exploration for and Evaluation of Mineral Resources|
|Ind AS 107||Financial Instruments: Disclosures|
|Ind AS 108||Operating Segments|
|Ind AS 109||Financial Instruments|
|Ind AS 110||Consolidated Financial Statements|
|Ind AS 111||Joint Arrangements|
|Ind AS 112||Disclosure of Interests in Other Entities|
|Ind AS 113||Fair Value Measurement|
|Ind AS 114||Regulatory Deferral Accounts|
|Ind AS 115||Revenue from Contracts with Customers|
|Ind AS 116||Leases|
|Ind AS 1||Presentation of Financial Statements|
|Ind AS 2||Inventories|
|Ind AS 7||Statement of Cash Flows|
|Ind AS 8||Accounting Policies, Changes in Accounting Estimates and Errors|
|Ind AS 10||Events occurring after Reporting Period|
|Ind AS 12||Income Taxes|
|Ind AS 16||Property, Plant, and Equipment|
|Ind AS 19||Employee Benefits|
|Ind AS 20||Accounting for Government Grants and Disclosure of Government Assistance|
|Ind AS 21||The Effects of Changes in Foreign Exchange Rates|
|Ind AS 23||Borrowing Costs|
|Ind AS 24||Related Party Disclosures|
|Ind AS 27||Separate Financial Statements|
|Ind AS 28||Investments in Associates|
|Ind AS 29||Financial Reporting in Hyperinflationary Economies|
|Ind AS 32||Financial Instruments: Presentation|
|Ind AS 33||Earnings per Share|
|Ind AS 34||Interim Financial Reporting|
|Ind AS 36||Impairment of Assets|
|Ind AS 37||Provisions, Contingent Liabilities and Contingent Assets|
|Ind AS 38||Intangible Assets|
|Ind AS 40||Investment Property|
|Ind AS 41||Agriculture|
Ind AS Compliances
1) Once the Ind AS becomes applicable, whether due to voluntary adoption or otherwise, the companies shall adhere to the compliances of Ind AS applicable to them. The financial statements under the Companies Act, 2013 are governed by Schedule III. There are 3 divisions in Schedule III:
- Division-I: Applicable to companies to whom accounting standards are applicable.
- Division-II: Applicable to companies to whom Ind AS compliance are applicable
- Division-III: Applicable to Non-Banking Financial Companies to whom Ind AS are applicable.
2) All the companies (excluding banks, NBFCs and insurance companies) preparing financial statements as per Ind AS shall do so in accordance with the Division-II of Schedule-III (also known as the Ind AS Schedule-III) as well as the Guidance Note on Division-II of Schedule-III of the Companies Act, 2013 (also known as Ind AS Guidance Note). In the case of NBFCs, Division-III shall become applicable.
However, companies referred to in Section 129(1) of the Companies Act, 2013 are not required to comply with the requirements of Ind AS Schedule III. This includes an insurance company, banking company, or company engaged in the generation or supply of electricity for which the form for presentation of financial statements has been specified under any other act that governs such class of companies.
However, in the case of companies engaged in the generation and supply of electricity, the Electricity Act, 2003 has not specified any format for the presentation of Financial Statements. Therefore, Ind AS Schedule-III can be followed by such companies till any other format is being prescribed by the relevant act.
3) The listed companies shall follow the guidelines issued by way of a circular by SEBI that prescribes the format for publishing quarterly, half-yearly, and annual financial results that are guided by the provisions of Ind AS and Ind AS Schedule-III. The companies may make suitable modifications.
4) The components of financial statements prepared in accordance with Ind AS compliance include:
- Balance Sheet
- Statement of Profit & Loss
- Statement of Cash Flows
- Statement of Changes in Equity