IND - AS

100% Online & Our Expert team will make it easy

IND - AS

Provide your Name, Email & Mobile No. and click Get Start Now

IND - AS

Our Expert will call you and send you an email with list of required details/documents.

IND - AS

Kindly email the requested documents to us to start the IND - AS process.

IND - AS

Our Expert Team will help you to complete all your compliances done.

company registration consultants near me

I agree to receive Whatsapp updates

I agree to receive Newsletter

Here's How it Works

1. Fill Form

Simply fill the form and click Get Start Now.

2. Call to discuss

Our Experts will connect with you to proceed further.

3. Work done

We will help you to get the entire process done.

Everything About Ind-AS: A Complete GuideĀ 

While the Accounting Standards were regulating the accounting scenario of India, there was a need to streamline the accounting principles and provisions with the international standards. It has an Indian Accounting Standards, popularly known as Ind-AS. So, what are Ind-AS taking over existing accounting standards and what is their scope? Here’s a detailed guide to Ind-AS. 

What Are Ind-AS? 

Ind-AS are the Indian version of International Financial Reporting Standards (IFRS), the accounting standards and rules issued by the IFRS Foundation and International Accounting Standards Board. The provisions of IFRS have been aligned with the requirements of the Indian economy to form Ind-AS. This ensures that the accounting principles and methodology followed by the Indian entities are in line with the global standards. 

Phases for Implementation of Ind-AS 

Ind-AS was implemented in India in a phase-wise manner. Following are the phases for implementation of Ind-AS: 

  1. For Companies 

Phase-I: 

From 1st April 2015: Ind-AS was allowed to be adopted on a voluntary basis for all the companies along with the comparatives 

From 1st April 2016: Ind-AS became mandatory for the following companies: 

  • Every company (whether unlisted / listed / in the process of listing on stock exchanges in India or outside India) with a net worth equal to or more than Rs. 500 crores 

  • Every holding subsidiary, joint venture, and associate companies of the above companies 

Phase-II: From 1st April 2017: - Ind-AS became mandatory for the following companies: 

  • All the companies listed or in the process of listing in stock exchanges within or outside India that are not covered in Phase-I 

  • Unlisted companies with a net worth equal to or more than Rs. 250 crores but less than Rs. 500 crores 

  • Every holding subsidiary, joint venture, and associate companies of the above companies 

Points to Remember: 

  • The companies that meet the threshold at the end of any accounting year shall subsequently apply the Ind-AS from the immediate next accounting year. 

  • Ind-AS is not required to be mandatorily complied with by the companies listed on the SME exchange 

  • Once a company adopts Ind-AS either mandatorily or voluntarily, it shall comply with the requirements of such Ind-AS for all subsequent financial years even if the criteria specified cease to apply to such company subsequently. 

  • The Ind-AS shall apply for both the standalone as well as consolidated financial statements.  

  1. For Scheduled Commercial Banks, NBFCs, Insurers and Insurance Companies 

 

  1. Non-Banking Financial Companies (NBFCs) 

Phase-I: From 1st April 2018: - Ind-AS became mandatory for the following companies: 

  • Listed or unlisted NBFCs with a net worth of equal to or more than Rs. 500 crores 

  • Every holding subsidiary, joint venture, and associate companies of the above companies other than those that are already covered under the above corporate roadmap (Part A above) 

Phase-II: From 1st April 2019: - Ind-AS became mandatory for the following companies: 

  • NBFCs with a net worth less than Rs. 500 crores whose equity or debt securities are listed or in the process of listing in any stock exchange within or outside India  

  • Unlisted NBFCs with a net worth equal to or more than Rs. 250 crores but less than Rs. 500 crores 

  • Every holding subsidiary, joint venture, and associate companies of the above companies other than those that are already covered under the above corporate roadmap (Part A above) 

Points to Remember 

  • NBFCs have a net worth below Rs. 250 crores shall NOT apply Ind-AS on a voluntary basis. 

  • The Ind-AS shall apply for both the standalone as well as consolidated financial statements.  

  1. Scheduled Commercial Banks (Excluding RRBs) 

Initially, Scheduled Commercial Banks (excluding the Regional Rural Banks) were required to implement Ind-AS from 1st April 2018. It was deferred to 1st April 2019 through the issue of a press release. Later on, it was again deferred through a notification till the issue of further notice. 

  1. Insurer and Insurance Companies 

The implementation of Ind-AS for the insurance sector has been deferred by the Insurance Regulatory and Development Authority of India (IRDAI) till further notice. 

Applicable Division in Schedule-III of the Companies Act, 2013 

The Ministry of Corporate Affairs made amendments to Schedule-III of the Companies Act, 2013, thereby inserting Division-II and Division-III. After the amendments, the following is the Schedule-III of the Companies Act, 2013: 

  • Division-I: Applicable to companies whose financial statements comply with the requirements of Accounting Standards 

  • Division-II: Applicable to companies whose financial statements comply with the requirements of Ind-AS 

  • Division-III: Applicable to NBFCs whose financial statements comply with the requirements of Ind-AS. 

Points to Remember 

Companies, as referred to in the proviso to Section 129(1) preparing financial statements in accordance with the requirements of other acts governing such companies (i.e., electricity companies, insurance companies, etc.), shall not be required to comply with the above requirements. However, it is clarified that for the companies engaged in the generation and supply of electricity, no format for presentation of financial statements has been prescribed under the Electricity Act, 2013, or any other relevant statute. Also, as per Section 1(4) of the Companies Act, 2013, the provisions of this act apply to such companies to the extent they are not inconsistent with the provisions of the Electricity Act. Therefore, such companies can follow Schedule-III of the Companies Act, 2013 till any other format is prescribed in the relevant statute. 

All other companies to whom Companies (Indian Accounting Standards) Rules, 2015 applies should consider Division-II as well as the Guidance Note on Division-II while preparing its financial statements.  

FAQs about CMA Report

IFRS is the foundation for drafting Ind-AS. However, to make it align with the Indian economy, certain modifications were done. Carve-Ins are the additions in Ind-AS as compared to the IFRS/IAS while the Carve-Outs are the items that exist in IFRS/IAS but are removed in the Ind-AS.

Following is the list of all the Ind-AS: Ind AS 101 First time adoption of Ind AS Ind AS 102 Share Based Payment Ind AS 103 Business Combination Ind AS 104 Insurance Contracts Ind AS 105 Non-Current Assets Held for Sale and Discontinued Operations Ind AS 106 Exploration for and Evaluation of Mineral Resources Ind AS 107 Financial Instruments: Disclosures Ind AS 108 Operating Segments Ind AS 109 Financial Instruments Ind AS 110 Consolidated Financial Statements Ind AS 111 Joint Arrangements Ind AS 112 Disclosure of Interests in Other Entities Ind AS 113 Fair Value Measurement Ind AS 114 Regulatory Deferral Accounts Ind AS 115 Revenue from Contracts with Customers Ind AS 116 Leases Ind AS 1 Presentation of Financial Statements Ind AS 2 Inventories Ind AS 7 Statement of Cash Flows Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors Ind AS 10 Events after the Reporting Period Ind AS 11 Construction Contracts (Omitted) Ind AS 12 Income Taxes Ind AS 16 Property, Plant and Equipment Ind AS 19 Employee Benefits Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance Ind AS 21 The Effects of Changes in Foreign Exchange Rates Ind AS 23 Borrowing Costs Ind AS 24 Related Party Disclosures Ind AS 27 Separate Financial Statements Ind AS 28 Investments in Associates and Joint Ventures Ind AS 29 Financial Reporting in Hyperinflationary Economies Ind AS 32 Financial Instruments: Presentation Ind AS 33 Earnings per Share Ind AS 34 Interim Financial Reporting Ind AS 36 Impairment of Assets Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets Ind AS 38 Intangible Assets Ind AS 40 Investment Property Ind AS 41 Agriculture Ind AS 101 First time adoption of Ind AS Ind AS 102 Share Based Payment Ind AS 103 Business Combination Ind AS 104 Insurance Contracts Ind AS 105 Non-Current Assets Held for Sale and Discontinued Operations Ind AS 106 Exploration for and Evaluation of Mineral Resources Ind AS 107 Financial Instruments: Disclosures Ind AS 108 Operating Segments Ind AS 109 Financial Instruments Ind AS 110 Consolidated Financial Statements Ind AS 111 Joint Arrangements Ind AS 112 Disclosure of Interests in Other Entities Ind AS 113 Fair Value Measurement Ind AS 114 Regulatory Deferral Accounts Ind AS 115 Revenue from Contracts with Customers Ind AS 116 Leases Ind AS 1 Presentation of Financial Statements Ind AS 2 Inventories Ind AS 7 Statement of Cash Flows Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors Ind AS 10 Events after the Reporting Period Ind AS 11 Construction Contracts (Omitted) Ind AS 12 Income Taxes Ind AS 16 Property, Plant and Equipment Ind AS 19 Employee Benefits Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance Ind AS 21 The Effects of Changes in Foreign Exchange Rates Ind AS 23 Borrowing Costs Ind AS 24 Related Party Disclosures Ind AS 27 Separate Financial Statements Ind AS 28 Investments in Associates and Joint Ventures Ind AS 29 Financial Reporting in Hyperinflationary Economies Ind AS 32 Financial Instruments: Presentation Ind AS 33 Earnings per Share Ind AS 34 Interim Financial Reporting Ind AS 36 Impairment of Assets Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets Ind AS 38 Intangible Assets Ind AS 40 Investment Property Ind AS 41 Agriculture

The company following the Ind-AS shall include the following as a part of its financial statements: Balance Sheet Statement of Profit & Loss Statement of Changes in Equity Statement of Cash Flows Notes

Following is the difference between all the terminologies: IFRS: IFRS are the International Financial Reporting Standards setting out the financial reporting and accounting framework that are currently applicable in 100+ countries. These are issued by the International Accounting Standards Board. Ind-AS: These are the Indian version of IFRS. IAS: International Accounting Standards are the old accounting standards that were issued by the International Accounting Standards Committee. These have been replaced by the IFRS since 2001. AS: These are the existing accounting standards that are followed in India. In order to remove variations with international accounting methodologies and to meet the needs of the complexity of transactions, Ind-AS were introduced for bigger enterprises. Therefore, in India, two sets of accounting standards are followed viz. AS and Ind-AS.

company registration consultants near me

I agree to receive Whatsapp updates

I agree to receive Newsletter