Indian Accounting Standards (Ind AS) - Applicability and Summary

What are Indian Accounting Standards (Ind AS)

Indian Accounting Standards or Ind AS are set of Accounting Standards notified by Ministry of Corporate Affairs (MCA) (Formulated by Accounting Standards Board of ICAI) that converge with International Financial Reporting Standards (IFRS). Ind AS are similar to IFRS except some Carve ins and Carve outs to suite the Business and accounting requirements of Indian Environment. The MCA has notified 39 Indian Accounting Standards till date.

Applicability of Ind AS:

Ind AS Shall be applicable to the Companies as follows:

1. Can be applied on Voluntary basis for the periods beginning on or after April 1^st 2015
2. Shall be applied to following companies mandatorily from the accounting period starting on April 1^st 2016 
• Companies whose equity or debt instrument is listed on any Stock exchange in India or outside India or in the process of getting them listed in Stock Exchange and having a Net Worth of Rs. 500 Crores or more 
• Companies other than those covered above having a Net worth of Rs. 500 Crores or more
3. Shall be applied to following companies mandatorily from the accounting period starting on April 1st 2017
• Companies whose equity or debt instrument is listed on any Stock exchange in India or outside India or in the process of getting them listed in Stock Exchange and having a Net Worth less than Rs. 500 Crores
• Companies other than those covered above having a Net worth of Rs. 250 Crores or more but less than Rs. 500 Crores
4. Shall be applied to following companies mandatorily from the accounting period starting on April 1st 2018
• Scheduled commercial banks (excluding RRB’s and UCB’s), Insurer or Insurance Companies All India Term lending Refinancing Institutions (like Exim, NABARD, NHB and SIDBI)
• NBFC’s having net worth of Rs. 500 Crores or more (Phase 1)
5. Shall be applied to following companies mandatorily from the accounting period starting on April 1st 2019 (NBFC – Phase 2)
• NBFC’s whose equity or debt instrument is listed on any Stock exchange in India or outside India or in the process of getting them listed in Stock Exchange and having a Net Worth less than Rs. 500 Crores
• NBFC other than those covered above that are Unlisted companies having a net worth of Rs. 250 Crores or more but less than Rs. 500 Crores

Note:

1. Once a company opts to follow the Indian Accounting Standards, It shall be required to follow the Ind AS for all subsequent financial years
2. Holding company, Joint Venture, Associate companies of the companies to whom Ind AS is applicable are required to follow the Ind AS
3. Companies Listed in SME Exchange or in the process of listing in the SME Exchange are not required to comply with the IND AS
4. Companies not covered above shall continue to follow the Accounting Standards as
5. NBFC’s having net worth below Rs. 250 Crores and not covered under above provisions shall continue to apply Accounting Standards
6. Scheduled Commercial Banks (excluding RRB’s and UCB’s), Insurer or Insurance Companies shall apply Ind AS only if they meet specified criteria, they shall not be allowed to adopt Ind AS Voluntarily 

Indian Accounting Standards (Ind AS):

SL No	Ind AS No	Name of the Standard	Summary	Disclosures
1	1	Presentation of Financial Statements	View	View
2	2	Inventories	View	View
3	7	Statement of Cashflows	View	View
4	8	Accounting Policies, Changes in Accounting   Estimates and Errors	View	View
5	10	Events after the Reporting Period	View	View
6	12	Income Taxes	View	View
7	16	Property, Plant and Equipment	View	View
8	19	Employee Benefits	View	View
9	20	Accounting for    Government Grants and Disclosure of Government   Assistance	View	View
10	21	The Effects of Changes in Foreign Exchange Rates	View	View
11	23	Borrowing Costs	View	View
12	24	Related Parties	View	View
13	27	Separate Financial Statements	View	View
14	28	Investments in Associates and Joint Ventures	View	View
15	29	Financial Reporting    in Hyperinflationary Economies	View	View
16	32	Financial Instruments Presentation	View	View
17	33	Earnings per Share	View	View
18	34	Interim Financial Reporting	View	View
19	36	Impairment of Assets	View	View
20	37	Provisions, Contingent    Liabilities and Contingent Assets	View	View
21	38	Intangible Assets	View	View
22	40	Investment Property	View	View
23	41	Agriculture	View	View
24	101	First-time Adoption of    Indian Accounting Standards	View	View
25	102	Share-based Payments	View	View
26	103	Business Combinations	View	View
27	104	Insurance Contracts	View	View
28	105	Non-current Assets    Held for Sale and Discontinued Operations	View	View
29	106	Exploration for and Evaluation of Mineral   Resources	View	View
30	107	Financial Instruments: Disclosures	View	View
31	108	Operating Segments	View	View
32	109	Financial Instruments	View	View
33	110	Consolidated Financial statements	View	View
34	111	Joint Arrangements	View	View
35	112	Disclosure of Interests in Other Entities	View	View
36	113	Fair Value Measurements	View	View
37	114	Regulatory Deferral Accounts	View	View
38	115	Revenue from Contracts with Customers	View	View
39	116	Leases	View	View