Introduction to Indian Accounting Standards - Ind AS - Indian Accounting Standards - Companies Law

Introduction to Indian Accounting Standards In the era of globalization, the world has become an economic village. Single globally accepted financial reporting system is the need of the globalize business world. The use of different accounting frameworks in different countries, which requires inconsistent treatment and presentation of same underlying economic transactions, creates confusion for users of financial statements. Thus, the increasing complexities of business transactions and globalization of capital markets call for a single set of high quality accounting standards. India made a commitment towards the convergence of Indian Accounting Standards with IFRS at the G20 summit 2009. Accordingly, it has introduced 39 IndAS as per the announcement in the union budget 2014-15 for adoption of IndAS and MCA has notified Company (Indian Accounting Standards) Rules, 2015 vide its G.S.R on Feb 16 th , 2015. These rules amended every year through many notifications. Adoption of IndAS Early adoption permitted from 1 st April, 2015, with one year comparative; Once adopted, cannot be revoked; Companies not covered by the roadmap to continue to apply existing standards. Phase I From 1 st April 2016 onwards Listed entities in India or outside India of its securities (Equity+Debt) having net worth more than or equal to Rs.500 crores. Unlisted entities having net worth of more than Rs.500 crores. Holding, Subsidiaries, Joint Ventures or Associates of these companies. Phase II From 1 st April 2017 onwards Listed entities in India or outside India of its securities (Equity + Debt) having net worth more than or equal to Rs.250 crores. Unlisted entities having net worth of more than Rs.250 crores. Holding, Subsidiaries, Joint Ventures or Associates of these companies. Not applicable to those 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 provision of Chapter XC of SEBI (issues of Capital and Disclosures requirements) Regulations, 2009. Applicability to NBFC On or After 1 st April, 2019 if- Listed NBFCs or in the process of listing on any stock exchanges in India or outside India and having net worth less than Rs. 500 crores; Unlisted NBFC having net worth of Rs.250crore or more but less than Rs.500 crore; and Holding, Subsidiary, Joint Venture or associate companies of above