09 July 2024
In India, the Indian Accounting Standards (IND AS) were introduced with the aim of converging with International Financial Reporting Standards (IFRS). Here are the details you're looking for:
1. **IND AS Commencement Date**: The implementation of IND AS in India began in phases: - **Voluntary Phase**: From April 1, 2015, onwards, certain companies had the option to adopt IND AS voluntarily. - **Mandatory Phase**: From April 1, 2016, onwards, IND AS became mandatory for certain classes of companies, primarily listed and unlisted companies meeting specified criteria based on net worth and other factors.
2. **Balance Sheet Preparation**: - Companies covered under the mandatory phase of IND AS implementation are required to prepare their financial statements, including balance sheets, as per IND AS instead of the old Indian GAAP (Generally Accepted Accounting Principles) prescribed under the Companies Act, 2013. - Companies not covered under the mandatory phase have the option to continue preparing financial statements as per the existing Indian GAAP or adopt IND AS voluntarily.
Therefore, depending on the classification and requirements applicable to a company, it will prepare its balance sheet either under the Companies Act, 2013 (Indian GAAP) or as per IND AS.
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