a brief description of Ind AS

1. Indian Accounting Standards
(Ind AS)

2. INDIAN ACCOUNTING STANDARDS (IND AS)
- A CONVERGENCE OF ACCOUNTING STANDARDS WITH IFRS
 Indian Accounting Standards (Ind As), notified under section 133 of the Companies
Act 2013 are the Accounting Standards which have been formulated keeping the Indian
economic & legal environment in view and with a view to converge with IFRS
(International Financial Reporting Standards), globally accepted Accounting
Standards.
 It is issued under the supervision of Accounting Standards Board (ASB) which was
constituted in the year 1977 as a body or a committee under Institute of Chartered
Accountants of India (ICAI) consisting of representatives from government department,
academicians, and other professional bodies viz. ICAI, representatives from ASSOCHAM,
CII, FICCI, etc..
 National Financial Reporting Authority (NFRA), constituted under Section 132 of
the Companies Act 2013, recommend these standards to the Ministry of Corporate
Affairs (MCA). MCA has to spell out the accounting standards applicable for companies in
India.

4. Source: https://www.rbi.org.in/Scripts/PublicationReportDetails.aspx?ID=194

5. INDIAN ACCOUNTING STANDARDS (IND AS)
- A CONVERGENCE OF ACCOUNTING STANDARDS WITH IFRS
 The MCA, in 2015, had notified the Companies (Indian Accounting Standards (IND
AS)) Rules 2015, which stipulated the adoption and applicability of IND AS in a phased
manner beginning from the Accounting period 2016-17.
 Companies not covered by the above roadmap shall continue to apply existing Accounting
Standards notified in Companies (Accounting Standards) Rules, 2006.
 Voluntarily Applicability
 Companies can voluntarily choose to apply IND AS on their Annual Reports for
accounting periods beginning on or after April 01, 2015.
 Adoption of Ind AS is allowed only when required. Voluntary adoption of Ind AS is not
allowed in case of NBFCs.
 once a company has started reporting as per the IND AS, an entity shall be required to follow
the standards for all subsequent Reporting.

6. INDIAN ACCOUNTING STANDARDS (IND AS)
- A CONVERGENCE OF ACCOUNTING STANDARDS WITH IFRS
 If IND AS become applicable to any company, IND AS shall automatically be made
applicable to all the subsidiaries, holding companies, associated companies, and joint
ventures of that company, irrespective of individual qualification of such companies.
 Companies once required to comply with Ind AS, shall apply to both stand-alone financial
statements and consolidated financial statements.
 Listed Companies are those 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.
 Companies listed on SME exchange not required to apply Ind AS.

7. INDIAN ACCOUNTING STANDARDS (IND AS)
- A CONVERGENCE OF ACCOUNTING STANDARDS WITH IFRS
 Net worth means the aggregate value of the paid-up share capital and all reserves created out of
the profits, securities premium account and debit or credit balance of profit and loss account after
deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous
expenditure not written off, as per the audited balance sheet, but does not include reserves created
out of revaluation of assets, write-back of depreciation and amalgamation.
Aggregate value of the
• paid-up share capital
• reserves created out of the
profits
• securities premium
account
• debit or credit balance of
profit and loss account
* does not include reserves created
out of revaluation of assets, write-
back of depreciation and
amalgamation
Aggregate value of the
 accumulated losses
 deferred expenditure
 miscellaneous
expenditure not
written off
Net Worth

8. INDIAN ACCOUNTING STANDARDS (IND AS)
- A CONVERGENCE OF ACCOUNTING STANDARDS WITH IFRS
 Calculation of Net Worth for Phase I or II
i. The net worth shall be calculated in accordance with the stand-alone financial
statements of the company as on 31st March, 2014 or the first audited financial
statements for accounting period which ends after that date.
ii. For companies which are not in existence on 31st March, 2014 or an existing
company falling under any of thresholds specified in Phase I and II for the first
time after 31st March, 2014, the net worth shall be calculated on the basis of the first
audited financial statements ending after that date in respect of which it meets the
thresholds specified in Phase I and II.
 Calculation of Net Worth for Phase III or IV
i. the net worth shall be calculated in accordance with the stand-alone financial
statements of the NBFCs as on 31st March, 2016 or the first audited financial statements
for accounting period which ends after that date.
ii. For NBFCs which are not in existence on 31st March, 2016 or an existing NBFC
falling first time, after 31st March, 2016, the net worth shall be calculated on the
basis of the first audited stand-alone financial statements ending after that date, in
respect of which it meets the thresholds specified in Phase III and Phase IV.

9. ADOPTION PHASES OF IND AS
Phases I Phase II Phase III Phase IV
Applicable from 1st April 2016 1st April 2017 1st April 2018 1st April 2019
Bases Mandatory Applicability of IND AS to
Companies
Mandatory Applicability of IND AS to
NBFCs
Listing Status Listed Unlisted
Every
Listed
Company
Unlisted
Listed Unlisted Listed Unlisted
Net Worth greater than or equal
to Rs. 500 crore
Less than
Rs. 500
crore
greater
than or
equal to
Rs. 250
crore but
less than
Rs. 500
crore
more than or equal to
INR 500 crore
Less than
Rs. 500
crore
More
than or
equal to
INR 250
crore but
less than
INR 500
crore

10. Implementation of Indian Accounting
Standards (Ind AS) for Insurers/
Insurance companies
Implementation of Indian Accounting
Standards (Ind AS) for Scheduled
Commercial banks (excluding Regional
Rural Banks)
The Insurance Regulatory and Development
Authority (IRDA) vide circular release as on
January 21, 2020 has deferred the date of
implementation of Indian Accounting
Standard (Ind AS) for the insurance sector
from FY 20-21 in the circular dated June 28,
2017 till further notice.
The Reserve Bank of India dated March 22,
2019 has deferred the implementation of
new accounting rules (Ind AS)
for banks till further notice. The Indian
accounting standards or the Ind-As were
proposed to be effective April 1, 2019.

11. INDIAN ACCOUNTING STANDARDS (IND AS) AS ON
01.04.2020

12. INDIAN ACCOUNTING STANDARDS (IND AS) AS ON
01.04.2020

13. INDIAN ACCOUNTING STANDARDS (IND AS) AS ON
01.04.2020

14. INDIAN ACCOUNTING STANDARDS (IND AS) AS ON
01.04.2020