The Indian Accounting Standards (Ind AS) converged with the International Financial Reporting Standards (IFRS) shall be applicable to the companies as follows:
(i) Voluntary Compliance: Any company (and its holding, subsidiary, JV, associates) may comply with Ind AS for accounting period commencing on or after 01.04.2015
(ii) Mandatory Compliance:
(a) On or after 01.04.2016 i.e. FY 2016-17 with comparatives of previous year
- Companies whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India AND having net worth of Rs. 500 Crore or more.
- Other Companies having net worth of Rs. 500 Crore or more.
- Holding, subsidiary, joint venture or associate companies of companies of above.
(b) On or after 01.04.2017 i.e. FY 2017-18 with comparatives of previous year
- Companies whose equity and/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 of less than Rs. 500 Crore.
- Unlisted companies having net worth of rupees 250 crore or more but less than rupees 500 Crore.
- Holding, subsidiary, joint venture or associate companies of companies of above.
(c) On or after 01.04.2018 i.e. FY 2018-19 with comparatives of previous year
- NBFCs having net worth Rs. 500 crores or more and its holding, subsidiary, JV or associates
- Holding, subsidiary, JV or associates of scheduled commercial banks (excluding RRBs)
(d) On or after 01.04.2019 i.e. FY 2019-20 with comparatives of previous year
- NBFCs whose equity and/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 of less than Rs. 500 Crore.
- Unlisted NBFCs having net worth of rupees 250 crore or more but less than rupees 500 Crore.
- Holding, subsidiary, joint venture or associate companies of companies of above.
Notes:
- Companies which satisfies the above conditions for the first time at the end of the year shall apply Ind AS from next year e.g. A company satisfy the above condition on 01.01.2018, it shall apply Ind AS for FY 2018-19 onwards.
- Companies whose securities are listed or in the process of listing on SME exchanges shall not be required to apply Ind AS. Such companies shall continue to comply with the existing Accounting Standards unless they choose otherwise.
- Once a company opts to follow the Indian Accounting Standards (Ind AS), it shall be required to follow the Ind AS for all the subsequent financial statements.
- Companies not covered by the above shall continue to apply existing Accounting Standards prescribed in Annexure to the Companies (Accounting Standards) Rules, 2006
- Banking and Insurance company shall apply Ind AS as notified by RBI and IRDA respectively.