28 December 2016
It is mandatory for the following companies to comply with Indian AS for financial statements beginning with period on or after 1st April 2016, with the comparatives of period ending on 31st March, 2016, or thereafter. • Companies whose securities are listed or are in process of listing in any stock exchange in India or outside India and having net worth of Rs. 500 crore or more; • Companies other than above and having net worth of Rs. 500 Crore or more; • Holding, subsidiaries, joint venture or associates of above companies. It is also mandatory for the following companies to comply with Indian AS for financial statements beginning with period on or after 1st April 2017, with the comparatives of period ending on 31st March, 2016, or thereafter. • Companies whose securities are listed or are in process of listing in any stock exchange in India or outside India and having net worth of less than Rs. 500 crore or more; • Companies other than above and having net worth of Rs. 250 Crore but less than Rs. 500 Crore or more; • Holding, subsidiaries, joint venture or associates of above companies. Note: • Securities listed or in process of listed in SME Exchange are not included in above companies. • The net worth is calculated based on stand alone financial statements of company as on 31st March 2014 or first audited financial statements after this date. • The companies which were not in existence or exiting companies falling under above rules of applicability of AS, the net worth is calculated based on the first audited financial statements ending after that date. If these companies are meeting the netwoth limit for first time at the end of financial year, then they shall follow the Indian AS from next accounting year. For example if the companies meet the networth limit as on 31st march 2017 then the Ind AS will be applicable from financial year 2017-18. • Ind AS will be applied to both stand alone financial statements and consolidated financial statements. • Overseas subsidiaries, associates, joint ventures and other similar entities of an Indian company may prepare its standalone financials statements in accordance to requirement of specific jurisdiction. • Once any Indian company applies Ind AS voluntarily or mandatory, then it must follow them consistently for future years.
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