Roadmap for implementation of Ind-AS for Scheduled Commercial Banks (Excluding Rrbs), Insurers/Insurance Companies and Non-Banking Financial Companies (NBFC’s)
The Government after consultations with Reserve Bank of India (RBI), Insurance Regulatory and Development Authority (IRDA) and Pension Fund Regulatory and Development Authority (PFRDA), has released the roadmap for implementation of Indian Accounting Standards (Ind AS) converged with International Financial Reporting Standards (IFRS) for Scheduled commercial banks (excluding RRBs), insurers/insurance companies and Non-Banking Financial Companies (NBFC’s). The details of roadmap is outlined below. Draft Notification/Rules, as required, would be issued by the Ministry of Corporate Affairs, RBI and IRDA in due course
(I). Scheduled commercial banks (excluding RRBs) and Insurer/Insurance Companies:
(a) Scheduled commercial banks (excluding Regional Rural Banks (RRBs), All-India Term-lending Refinancing Institutions (i.e. Exim Bank, NABARD, NHB and SIDBI) and Insurers/Insurance companies would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS would be applicable to both consolidated and individual financial statements.
(b) Notwithstanding the roadmap for companies, the holding, subsidiary, joint venture or associate companies of Scheduled commercial banks (excluding RRBs) would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter.
(c) Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) shall not be required to apply Ind AS and shall continue to comply with the existing Accounting Standards, for the present.
(II). NBFCs:
NBFCs will be required to prepare Ind AS based financial statements in two phases:
| Phases | Eligibility | Requirement |
| Phase I |
|
Prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 onwards with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS would be applicable to both consolidated and individual financial statements. |
| Phase II |
|
Prepare Ind AS based financial statements for accounting periods beginning from April 1, 2019 onwards with comparatives for the periods ending March 31, 2019 or thereafter. Ind AS would be applicable to both consolidated and individual financial statements. |
| NBFCs having net worth below Rs. 250 Crores | Shall continue to apply Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006 |
Important
Scheduled commercial banks (excluding RRBs)/NBFCs/insurance companies/insurers shall apply Indian Accounting Standards (Ind AS) only if they meet the specified criteria, they shall not be allowed to voluntarily adopt Indian Accounting Standards (Ind AS). This, however, does not preclude an insurer/insurance company/NBFC from providing Ind AS compliant financial statement data for the purposes of preparation of consolidated financial statements by its parent/investor, as required by the parent/investor to comply with the existing requirements of law.
Download Press release on the roadmap
Guidance note on Secretarial Standards
ICSI has released the Guidance Note on the Meetings of the Board of Directors (SS-1) and on the General Meetings (SS-2). These guidance notes elucidates, wherever necessary, the basis for setting the particular Standard, explains its ingredients and gives illustrative examples. This Guidance Note also addresses the various issues/queries/concerns raised by the stakeholders on the particular Standard after the issuance of Secretarial Standards and aims to facilitate the compliance of Secretarial Standards by the Corporates, their Board, Management and Professionals.
Download:
Guidance note on SS-1
Guidance note on SS-2