In pursuance of the Budget statement, the Ministry of Corporate Affairs after wide consultations with various stakeholders and regulators, vide press release dated 2nd Jan 2015, has drawn up a revised Road Map for companies other than Banking Companies, Insurance Companies and Non- Banking Finance Companies (NBFC's) for implementation of Indian Accounting Standards (Ind AS) converged with the International Financial Reporting Standards (IFRS).
The Ind AS shall be applicable to the companies as follows:
On voluntary basis
For financial statements for accounting periods beginning on or after April 1, 2015, with the comparatives for the periods ending 31st March, 2015 or thereafter;
On mandatory basis
|
S.No |
Companies |
Eligibility |
W.e.f |
| 1 |
Companies whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India |
Having net worth of Rs. 500 Crore or more |
For the accounting periods beginning on or after April 1, 2016, with comparatives for the periods ending 31st March, 2016, or thereafter |
| 2 |
Companies other than those specified above |
Having net worth of Rs. 500 Crore or more |
|
| 3 |
Holding, subsidiary, joint venture or associate companies of companies covered under (1) and (2) |
N.A. |
|
| 4 |
Companies whose equity and/or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India |
Having net worth of less than Rs 500 Crore |
For the accounting periods beginning on or after April 1, 2017, with comparatives for the periods ending 31st March, 2017, or thereafter |
| 5 |
Companies other than those covered in (1)-(4) i.e. an unlisted companies |
Having net worth of Rs 250 crore or more but less than Rs 500 Crore. |
|
| 6 |
Holding, subsidiary, joint venture or associate companies of companies covered under (4) and (5) |
N.A. |
Note:
- However, Companies whose securities are listed or in the process of listing on SME exchanges shall not be required to apply Ind AS. Such companies shall continue to comply with the existing Accounting Standards unless they choose otherwise.
- Once a company opts to follow the Indian Accounting Standards (Ind AS), it shall be required to follow the Ind AS for all the subsequent financial statements.
- Companies not covered by the above roadmap shall continue to apply existing Accounting Standards prescribed in Annexure to the Companies (Accounting Standards) Rules, 2006.
A notification on the above lines shall be issued shortly.