In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 and sub-section (1) of section 210A of the Companies Act, 1956, the Central Government, in consultation with the National Advisory Committee on Accounting Standards, has made the Companies (Indian Accounting Standards) Rules, 2015.
These Rules have come into force on the 1st day of April, 2015.
APPLICABILITY OF IND AS
|
Voluntary Applicability |
|
|
W.e.f. 01.04.2015 |
Any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st April, 2015, with the comparatives for the periods ending on 31st March, 2015, or thereafter. |
|
Mandatory Applicability |
|
|
W.e.f. 01.04.2016 |
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:- · 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 Rs. 500 Crores or more · Companies other than those covered above and having net worth of Rs. 500 Crores or more · Holding, subsidiary, joint venture or associate companies of companies covered above. |
|
W.e.f. 01.04.2017 |
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:- · 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 Rs. 500 Crores · Unlisted Companies having net worth of Rs. 250 Crores or more but Rs. 500 Crores. · Holding, subsidiary, joint venture or associate companies of companies covered above. The mandatory applicability will not be applicable to companies whose securities are listed or are in the process of being listed on SME exchange as referred to in Chapter XB or on the Institutional Trading Platform without initial public offering in accordance with the provisions of Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009. |
|
Exemptions: 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. |
|
|
Other Important Points: · A company which follows the Indian Accounting Standards (Ind AS) shall follow such standards only. In other words, any company opting to apply the Indian Accounting Standards (Ind AS) voluntarily for its financial statements shall prepare its financial statements as per the Indian Accounting Standards (Ind AS) consistently. Once the Indian Accounting Standards (Ind AS) are applied voluntarily, it shall be irrevocable and such companies shall not be required to prepare another set of financial statements in accordance with Companies (Accounting Standards) Rules, 2006. · Companies which do not follow the Indian Accounting Standards shall continue to follow the Companies (Accounting Standards) Rules, 2006 and shall comply with such standards only and not the Indian Accounting Standards. Once a company starts following the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily on the basis of criteria specified above, 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 does not subsequently apply to it. · Once the applicability of Ind AS arises, the Ind AS shall apply to both stand-alone financial statements and consolidated financial statements. · Overseas subsidiary, associate, joint venture and other similar entities of an Indian company may prepare its standalone financial statements in accordance with the requirements of the specific jurisdiction. However, such Indian company shall prepare its consolidated financial statements in accordance with the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily if it meets the criteria as specified above. · Indian company which is a subsidiary, associate, joint venture and other similar entities of a foreign company shall prepare its financial statements in accordance with the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily if it meets the criteria as specified above. |
|
Calculation of Net Worth
· The net worth shall 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.
· For companies which are not in existence on 31st March, 2014 or an existing company falling under any of thresholds specified for mandatory applicability for the first time after 31st March, 2014, the net worth shall be calculated on the basis of the first audited financial statements ending after that date in respect of which it meets the thresholds specified for mandatory applicability. For example: (i) The companies meeting threshold for the first time as on 31st March, 2017 shall apply Ind AS for the financial year 2017-18 onwards. (ii) The companies meeting threshold for the first time as on 31st March, 2018 shall apply Ind AS for the financial year 2018-19 onwards and so on.
List of Indian Accounting Standards
|
First-time Adoption of Indian Accounting Standards |
|
|
Share-based Payment |
|
|
Business Combinations |
|
|
Insurance Contracts |
|
|
Non-current Assets Held for Sale and Discontinued Operations |
|
|
Exploration for and Evaluation of Mineral Resources |
|
|
Financial Instruments: Disclosures |
|
|
Operating Segments |
|
|
Financial Instruments |
|
|
Consolidated Financial Statements |
|
|
Joint Arrangements |
|
|
Disclosure of Interests in Other Entities |
|
|
Fair Value Measurement |
|
|
Regulatory Deferral Accounts |
|
|
Revenue from Contracts with Customers |
|
|
Presentation of Financial Statements |
|
|
Inventories |
|
|
Statement of Cash Flows |
|
|
Accounting Policies, Changes in Accounting Estimates and Errors |
|
|
Events after the Reporting Period |
|
|
Income Taxes |
|
|
Property, Plant and Equipment |
|
|
Leases |
|
|
Employee Benefits |
|
|
Accounting for Government Grants and Disclosure of Government Assistance |
|
|
The Effects of Changes in Foreign Exchange Rates |
|
|
Borrowing Costs |
|
|
Related Party Disclosures |
|
|
Separate Financial Statements |
|
|
Investments in Associates and Joint Ventures |
|
|
Financial Reporting in Hyperinflationary Economies |
|
|
Financial Instruments: Presentation |
|
|
Earnings per Share |
|
|
Interim Financial Reporting |
|
|
Impairment of Assets |
|
|
Provisions, Contingent Liabilities and Contingent Assets |
|
|
Intangible Assets |
|
|
Investment Property |
|
|
Agriculture |
………………………………………………………………………………
CAclubindia
