Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Applicability of IND AS

SREENATH P. (Company secretary) (208 Points)

18 February 2020

Dear Experts,

As all of you know that, INDAS is applicable to the selective classes of companies and other companies can adopt the same is as per their discretion. I have a query in this;

Whether this INDAS is only applicable for the preparation of financial results. If a company is keeping it's books of accounts in IGAP and at the year-end, the COmpany is converting those figures to as per INDAS for the preparation of financial reports.Whether this practice is legally valid or not?

Thanks in advance

Reply
Follow
Share

2 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 03 May 2020

It starts from transactions. For example, The Ind AS is completely IFRS but there are other standard principles adjustments prevalent.

All the listed companies follow IFRS. Then, if someone is using IFRS and IND GAAP, then India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards. So reporting will be done as per Indian standards.

Indian domestic companies need not follow IFRS for listings by foreign companies.

IFRS is not completely permitted for SME’s.

India converged to IFRS, but not completely.

Right now, Indian companies with 250 crore net worth is using Ind AS. Apart from these companies, all other companies follow Indian GAAP and no need to convert their figures to adjust for IFRS.

IFRS=IND AS, soon, India is committed to follow the new standards.