2. CONTENTS
Applicability of IND-AS
Objective of IND-AS
Impact on Taxes
List of IND-AS
Benefits of IND-AS
Difference in AS and IND-AS
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3. APPLICABILITY OF IND-AS
Ministry of Corporate Affairs (MCA) has
notified Companies (Indian Accounting
Standards) Rules, 2015 prescribing the
new Indian Accounting Standards (Ind AS)
applicable to companies/classes of
companies in contrast with applicability of
the Accounting standards specified in
Companies (Accounting Standards) Rules,
2006 .
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4. APPLICABILITY OF IND-AS
The applicability of new Ind AS 2015 vis-à-vis
AS 2006 has been defined in Rule 4 and is
summaries as under: It is evident that
unlisted companies having turnover less than
500 crores are not required to follow these
new Ind AS. However, once the Indian
Accounting Standards (Ind AS) are applied
voluntarily, it shall be irrevocable ,
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5. APPLICABILITY OF IND-AS
It has been categorically specified that once
a company starts following the Indian
Accounting Standards (Ind AS) either
voluntarily or mandatorily on the basis of
criteria specified, it shall be required to follow
the Indian Accounting Standards (Ind AS) for
all the subsequent financial statements even
if any of the criteria specified does not
subsequently apply to it.
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6. APPLICABILITY OF IND-AS
Relevant Accounting Periods
For the financial statements
for accounting periods
beginning on or after 1 st
April, 2015, with the
comparative figures for the
preceding accounting period
for the periods ending on
31st March, 2015, or
thereafter
Ind AS 2015
Any Company
AS 2006
Any Company
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7. APPLICABILITY OF IND-AS
For the accounting periods
beginning on or after 1st
April, 2016, with the
comparative figures for the
preceding accounting
period for the periods
ending on 31st March,
2016, or thereafter
(a) Companies whose
equity or debt securities
are listed/ in the
process of listing on any
stock exchange (other
than SME Exchange) in
India/abroad and having
net worth of rupees five
hundred crore or more;
OR
(b) Companies having
net worth of rupees five
hundred crore or more.
OR
Other than those
companies Specified in
matching row to column
(2)
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8. APPLICABILITY OF IND-AS
For the accounting periods
beginning on or after 1st
April, 2017, with the
comparative figures for the
preceding accounting
period for the periods
ending on 31st March,
2017, or thereafter
(c) Holding, subsidiary,
joint venture or
associate companies
of companies as per
clause (a) or (b) above
(a) Companies whose
equity or debt
securities are
listed/are in the
process of listing on
any stock exchange
(other than SME
Exchange) in
India/abroad and
having net worth of
less than rupees five
hundred crore.
OR
Other than those
companies Specified
in matching row to
column (2)
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9. APPLICABILITY OF IND-AS
(b) Unlisted companies
having net worth of rupees two
hundred and fifty crore or more
but less than rupees five
hundred crore.
OR
(c) Holding, subsidiary, joint
venture or associate
companies of companies as
per clause (a) or (b) above
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10. OBJECTIVE
The basic objective of Indian Accounting
Standards is to remove variations in the
treatment of several accounting aspects and
to bring about standardization in
presentation. They intent to harmonize the
diverse accounting policies followed in the
preparation and presentation of financial
statements by different reporting enterprises
so as to facilitate intra-firm and inter-firm
comparison.
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11. IMPACT OF TAXES
In order to make the transition to Ind AS smooth, the
related tax issues also need to be addressed. In this regard,
the Ministry of Finance had notified 10 Income
Computation and Disclosure Standards in March 2015.
These standards provide an independent framework for
computation of taxable income, which is delinked from the
statutory financial reporting by companies. However, the
basis for ‘minimum alternative tax’ (MAT) computation for
companies reporting under Ind AS still remains an issue to
be addressed.
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12. LIST OF IND-AS
Notifications Description
Indian Accounting Standard (Ind AS) 101 First-time Adoption of Indian Accounting Standards
Indian Accounting Standard (Ind AS) 102 Share-based Payment
Indian Accounting Standard (Ind AS) 103 Business Combinations
Indian Accounting Standard (Ind AS) 104 Insurance Contracts
Indian Accounting Standard (Ind AS) 105 Non-current Assets Held for Sale and Discontinued Operations
Indian Accounting Standard (Ind AS) 106 Exploration for and Evaluation of Mineral Resources
Indian Accounting Standard (Ind AS) 107 Financial Instruments: Disclosures
Indian Accounting Standard (Ind AS) 108 Operating Segments
Indian Accounting Standard (Ind AS) 109 Financial Instruments
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13. LIST OF IND-AS
Indian Accounting Standard (Ind AS) 110 Consolidated Financial Statements
Indian Accounting Standard (Ind AS) 111 Joint Arrangements
Indian Accounting Standard (Ind AS) 112 Disclosure of Interests in Other Entities
Indian Accounting Standard (Ind AS) 113 Fair Value Measurement
Indian Accounting Standard (Ind AS) 114 Regulatory Deferral Accounts
Indian Accounting Standard (Ind AS) 115 Revenue from Contracts with Customers
Indian Accounting Standard (Ind AS) 1 Presentation of Financial Statements
Indian Accounting Standard (Ind AS) 2 Inventories
Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows
Indian Accounting Standard (Ind AS) 8 Accounting Policies, Changes in Accounting Estimates and Errors
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14. LIST OF IND-AS
Indian Accounting Standard (Ind AS) 10 Events after the Reporting Period
Indian Accounting Standard (Ind AS) 12 Income Taxes
Indian Accounting Standard (Ind AS) 16 Property, Plant and Equipment
Indian Accounting Standard (Ind AS) 17 Leases
Indian Accounting Standard (Ind AS) 19 Employee Benefits
Indian Accounting Standard (Ind AS) 20 Accounting for Govt. Grants and Disclosure of Govt. Assistance
Indian Accounting Standard (Ind AS) 21 The Effects of Changes in Foreign Exchange Rates
Indian Accounting Standard (Ind AS) 23 Borrowing Costs
Indian Accounting Standard (Ind AS) 24 Related Party Disclosures
Indian Accounting Standard (Ind AS) 27 Separate Financial Statements
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15. LIST OF IND-AS
Indian Accounting Standard (Ind AS) 28 Investments in Associates and Joint Ventures
Indian Accounting Standard (Ind AS) 29 Financial Reporting in Hyperinflationary Economies
Indian Accounting Standard (Ind AS) 32 Financial Instruments: Presentation
Indian Accounting Standard (Ind AS) 33 Earnings per Share
Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting
Indian Accounting Standard (Ind AS) 36 Impairment of Assets
Indian Accounting Standard (Ind AS) 37 Provisions, Contingent Liabilities and Contingent Assets
Indian Accounting Standard (Ind AS) 38 Intangible Assets
Indian Accounting Standard (Ind AS) 40 Investment Property
Indian Accounting Standard (Ind AS) 41 Agriculture
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16. BENEFIT OF IND-AS
The move to Ind AS standards may significantly enhance
the quality of and transparency in financial reporting by
Indian companies. It may also enhance the international
comparability of financial statements of Indian companies
and make the Indian capital markets more attractive. It may
also reduce capital costs and facilitate international fund-
raising by Indian companies. Applying IFRS converged
standards has significant potential benefits for Indian
multinationals operating across the world and for
multinationals operating in India.
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17. DIFFERENCE IN AS AND IND-AS
Indian Accounting Standards, (abbreviated as Ind AS) are
a set of accounting standards notified by the Ministry of
Corporate Affairs which are converged with International
Financial Reporting Standards (IFRS). These accounting
standards are formulated by Accounting Standards Board
of Institute of Chartered Accountants of India. Now India
will have two sets of accounting standards viz. existing
accounting standards under Companies (Accounting
Standard) Rules, 2006 and IFRS converged Indian
Accounting Standards(Ind AS). The Ind AS are named
and numbered in the same way as the corresponding
IFRS. NACAS recommend these standards to the
Ministry of Corporate Affairs..
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18. DIFFERENCE IN AS AND IND-AS
The Ministry of Corporate Affairs has to spell
out the accounting standards applicable for
companies in India. As on date the Ministry
of Corporate Affairs notified 35 Indian
Accounting Standards(Ind AS). But it has not
notified the date of implementation of the
same.
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