Applicability :
Companies which are not required to follow Ind AS shall continue to comply with Accounting Standards (‘AS’) as prescribed in Companies (Accounting Standards) Rules, 2006.
Highlights of the notified Companies (Indian Accounting Standard) Rules, 2015 is provided below:
Applicability of Ind AS:
The Companies and their Auditors shall comply with the Ind AS specified in the Annexure to the Rules in preparation of their Financial Statements (FS) and Audit respectively, in the following manner:
1. Voluntary adoption (for FY 2015-16):
Any company may comply with the Ind AS for Financial Statements for accounting periods beginning on or after 1st April 2015, with the comparatives for the periods ending on 31st March 2015, or thereafter. This option is also available to companies whose securities are listed or are in the process of being listed on Small and Medium Enterprises (‘SME’) exchange.
2. Mandatory adoption:
(i) From FY 2016-17: Companies satisfying following criteria are required to comply with the Ind AS for or the accounting periods beginning on or after 1st April 2016, with the comparatives for the periods ending on 31st March 2016, or thereafter.
(a) Companies whose Equity or Debt Securities are listed or are in the process of being listed on any stock exchange in India or outside India and having Net Worth (NW) of Rs 500 crore or more.
(b) Unlisted Companies (i.e. other than those mentioned in (a) above) having NW of Rs 500 crore or more.
(c) Holding, Subsidiary, Joint Venture/ Associate Companies of Companies covered in (a) and (b) above.
(ii) From FY 2017-18: Companies satisfying following criteria are required to comply with the Ind AS for or the accounting periods beginning on or after 1st April 2017, with the comparatives for the periods ending on 31st March 2017, or thereafter:
(a) Companies whose Equity or Debt Securities are listed or are in the process of being listed on any stock exchange in India or outside India and having NW of less than Rs 500 crore.
(b) Unlisted Companies having NW of Rs 250 crore or more but less than Rs 500 crore.
(c) Holding, Subsidiary, Joint Venture/ Associate Companies of Companies covered in (a) and (b) above. Ind AS once required to be complied with in accordance with these rules, shall apply to both standalone financial statements (SFS) and consolidated financial statements (CFS).
Companies preparing Financial Statements applying the Ind AS for the accounting period beginning on 1st April 2016 shall apply the Ind AS effective for the FY ending on 31st March 2017.
Any company opting to apply the Ind AS voluntarily as specified above for its Financial Statements shall prepare its Financial Statements as per the Ind AS consistently and such companies shall not be required to prepare another set of Financial Statements in accordance with AS specified in the Companies (Accounting Standards) Rules, 2006.
Once a company starts following the Ind AS either voluntarily or mandatorily on the basis of criteria specified above, it shall be required to follow the Ind AS for all the subsequent FS even if any of the criteria specified in this rule does not subsequently apply to it.
Applicability in case of Companies having subsidiary, associate, joint venture or other similar entities: Indian companies Indian companies having overseas subsidiary, associate, joint venture and other similar entities of an Indian company may prepare its standalone financial statements in accordance with the requirements of the specific jurisdiction.
Provided that such Indian company shall prepare its consolidated financial statements in accordance with the Ind AS either voluntarily or mandatorily if it meets the criteria as specified above. Foreign companies
Indian company which is a subsidiary, associate, joint venture and other similar entities of a foreign company shall prepare its financial statements in accordance with Ind AS either voluntarily or mandatorily if it meets the criteria as specified above.
Computation of NW
NW shall be calculated in accordance with the standalone financial statements of the company as on 31st March 2014 or the first audited financial statements for accounting period which ends after 31st March 2014.
Companies incorporated after 31st March 2014 or an existing company falling under any of thresholds specified above for the first time after 31st March 2014 – Companies shall apply Ind AS from the immediate next accounting year (i.e. FY 2015-16) in the manner specified above, based on the NW calculated on the basis of the first audited FS ending after 31st March 2014 (i.e. Financial Statements of FY 2014-15) in respect of which it meets the thresholds specified above.
Exemptions
The Insurance Companies, Banking Companies and Non-Banking Finance Companies shall not be required to apply Ind AS for preparation of their FS either voluntarily or mandatorily as specified above.
List of Indian Accounting Standards notified with their corresponding IFRS
| S.No. | Indian Accounting Standards (Ind AS) | Corresponding International Financial Reporting Standards | ||
| 1) | Ind AS 101 | First-time Adoption of Indian | IFRS 1 | First-time Adoption of International Financial Reporting Standards |
| 2) | Ind AS 102 | Share-based Payment | IFRS 2 | Share-based Payment |
| 3) | Ind AS 103 | Business Combinations | IFRS 3 | Business Combinations |
| 4) | Ind AS 104 | Insurance Contracts | IFRS 4 | IFRS 4 Insurance Contracts |
| 5) | Ind AS 105 | Non-current Assets Held for Sale and Discontinued Operations | IFRS 5 | Non-current Assets Held for Sale and Discontinued Operations |
| 6) | Ind AS 106 | Exploration for and Evaluation of Mineral Resources | IFRS 6 | Exploration for and Evaluation of Minera Resources |
| 7) | Ind AS 107 | Financial Instruments: Disclosures | IFRS 7 | Financial Instruments: Disclosures |
| 8) | Ind AS 108 | Operating Segments | IFRS 8 | Operating Segments |
| Ind AS 109 | Financial Instruments | IFRS 9 | Financial Instruments | |
| 10) | Ind AS 110 | Consolidated Financial Statements | IFRS 10 | Consolidated Financial Statements |
| 11) | Ind AS 111 | Joint Arrangements | IFRS 11 | Joint Arrangements |
| 12) | Ind AS 112 | Disclosure of Interests in Other Entities | IFRS 12 | Disclosure of Interests in Other Entities |
| 13) | Ind AS 113 | Fair Value Measurement | IFRS 13 | Fair Value Measurement |
| 14) | Ind AS 114 | Regulatory Deferral Accounts | IFRS 14 | Regulatory Deferral Accounts |
| 15) | Ind AS 115 | Revenue from Contracts with Customers | IFRS 15 | Revenue from Contracts with Customers |
| 16) | Ind As 1 | Presentation of Financial Statements | IAS 1 | Presentation of Financial Statements |
| 17) | Ind As 2 | Inventories | IAS 2 | Inventories |
| 18) | Ind As 7 | Statement of Cash Flows | IAS 7 | Statement of Cash Flows |
| 19) | Ind As 8 | Accounting Policies, Changes Accounting Estimates and Errors | IAS 8 | Accounting Policies, Changes Accounting Estimates and Errors |
| 20) | Ind As 10 | Events after the Reporting Period | IAS 10 | Events after the Reporting Period |
| 21) | Ind As 12 | Income Taxes | IAS 12 | Income Taxes |
| 22) | Ind As 16 | Property, Plant and Equipment | IAS 16 | Property, Plant and Equipment |
| 23) | Ind As 17 | Leases | IAs 17 | Leases |
| 24) | Ind As 19 | Employee Benefits | IAs 19 | Employee Benefits |
| 25) | Ind As 20 | Accounting for Government Grants and Disclosure of Government Assistance | IAs 20 | Accounting for Government Grants and Disclosure of Government Assistance |
| 26) | Ind As 21 | The Effects of Changes in Foreign Exchange Rates | IAs 21 | The Effects of Changes in Foreign Exchange Rates |
| 27) | Ind As 23 | Borrowing Costs | IAs 23 | Borrowing Costs |
| 28) | Ind As 24 | Related Party Disclosures | IAs 24 | Related Party Disclosures |
| 29) | Ind As 27 | Separate Financial Statements | IAs 27 | Separate Financial Statements |
| 30) | Ind As 28 | Investments in Associates and Joint Ventures | IAS 28 | Investments in Associates and Joint Ventures |
| 31) | Ind As 29 | Financial Reporting in Hyperinflationary Economies | IAS 29 | Financial Reporting in Hyperinflationary Economies |
| 32) | Ind As 32 | Financial Instruments: Presentation | IAs 32 | Financial Instruments: Presentation |
| 33) | Ind As 33 | Earnings per Share | IAs 33 | Earnings per Share |
| 34) | Ind As 34 | Interim Financial Reporting | IAs 34 | Interim Financial Reporting |
| 35) | Ind As 36 | Impairment of Assets | IAs 36 | Impairment of Assets |
| 36) | Ind As 37 | Provisions, Contingent Liabilities and Contingent Assets | IAs 37 | Provisions, Contingent Liabilities and Contingent Assets |
| 37) | Ind As 38 | Intangible Assets | IAS 38 | Intangible Assets |
| 38) | Ind As 40 | Investment Property | IAS40 | Investment Property |
| 39) | Ind As 41 | Agriculture | IAS 41 | Agriculture |