applicability of IndAS
Anil Gudle (5 Points)
06 June 2018
Please tell me about the applicability of IndAS in detail.
Anil Gudle (5 Points)
06 June 2018
Kartikey Jain
(Intern)
(2382 Points)
Replied 06 June 2018
MCA has notified the Companies (Indian Accounting Standards) Rules 2015, as per which Ind AS have been made mandatory for certain classes of companies in India. Companies can although adopt Ind AS voluntarily beginning from 01/04/2015.
Ind AS is being introduced in a phased manner comprising of 4 phases:
PHASE 1 - From 1 April 2016
Mandatory for all companies having net worth greater than or equal to Rs 500 crores. (Net worth of previous three financial years of 31.03.2014, 31.03.2015 & 31.03.2016 is to be checked)
PHASE 2 - From 1 April 2017
Mandatory for all listed companies and comapnies in the process of listing. Also made mandatory for all other companies having net worth greater than or equal to Rs 250 crores. (Net worth of previous three financial years of 31.03.2014, 31.03.2015, 31.03.2016 & 31.03.2017 is to be checked)
PHASE 3 - From 1 April 2018
Mandatory for all schedules Banks & Insurance companies. (IRDA shall notify separate set of Ind AS for banks and insurance companies.)
Also mandatory for all NBFCs whose net worth is greater than or equal to Rs 500 crores. (Net worth of previous three financial years of 31.03.2016, 31.03.2017 & 31.03.2018 is to be checked)
PHASE 4 - From 1 April 2019
Mandatory for all NBFCs whose net worth is greater than or equal to Rs 250 crores. (Net worth of previous three financial years of 31.03.2016, 31.03.2017, 31.03.2018 and 31.03.2019 is to be checked)
SOME OTHER FACTS TO BE KEPT IN MIND
a) Ind AS would be automatically applicable on all the subsidiary cos., holding cos., associate cos. and joint ventures of a company, once they become applicable on such company.
b) Also, once a company has started reporting as per Ind AS, it cannot revert back to the old system.
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