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What is IND AS

Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.

The Ind AS are named and numbered in the same way as the International Financial Reporting Standards (IFRS). National Financial Reporting Authority (NFRA) recommend these standards to the Ministry of Corporate Affairs (MCA). MCA has to spell out the accounting standards applicable for companies in India. As on date MCA has notified 41 Ind AS. This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis.
Based on the international consensus, the regulators will separately notify the date of implementation of Ind-AS for the banks, insurance companies etc. Standards for the computation of Tax has been notified as ICDS in February 2015.

Why IND AS

  • The ICAI recognizes the need for a global standard in these global times. Thus, the Government of India along with ICAI decided not to adopt the IFRS the way they are. Instead, it introduced the Indian AS, popularly known as Ind AS. Let us take a look closure look at Indian AS; its history and a few of its main concepts.
  • The Institute of the Chartered Accountants of India (ICAI) is the body that sets up the Accounting Standards in India. In 2006, ICAI initiated the process of shifting towards the International Financial Reporting Standards (IFRS). International Accounting Standards Board (IASB) issues the IFRS. The purpose of the ICAI to shift towards the IFRS is to increase the acceptability and transparency of the financial statements of the Indian corporates on the global platform.
  • The government and ICAI first analysed the requirements of IFRS in detail. They then decided to converge it. Accounting Standards Board (ASB) has formulated the Ind AS. It has tried it's best to keep them in line with the IFRS. Only absolutely essential changes were made.
  • The Central Government of India issued Indian Accounting Standards in consultation with the National Advisory Committee on Accounting Standards (NACAS). It did this under the supervision and control of the Accounting Standards Board (ASB) of ICAI.
  • Indian AS (Ind AS) are IFRS converged standards. They are named and numbered in the same way as their corresponding IFRS. National Advisory Committee on Accounting Standards (NACAS) recommended these standards to the Ministry of Corporate Affairs. Ministry of Corporate Affairs (MCA) makes Ind AS applicable on the companies in India. So far 40 Indian AS have been issued.

Conversion Roadmap

ROADMAP FOR IMPLEMENTATION OF THE INDIAN ACCOUNTING STANDARDS (IND AS)

For Companies other than banks, NBFCs and Insurance Companies

Phase I

1st April 2015 or thereafter: Voluntary Basis for all companies (with Comparatives)

 

1st April 2016: Mandatory Basis

 

(a) Companies listed / in process of listing on Stock Exchanges in India or Outside India having net worth > ` 500 crore

 

(b) Unlisted Companies having net worth > ` 500 crore

 

(c) Parent, Subsidiary, Associate and Joint venture of above

Phase II

1st April 2017: Mandatory Basis

 

(a) All companies which are listed/or in process of listing inside or outside India on Stock Exchanges not covered in Phase I (other than companies listed on SME Exchanges)

 

(b) Unlisted companies having net worth of 250 crore or more

 

(c) Parent, Subsidiary, Associate and Joint venture of above

  • Companies listed on SME exchange not required to apply Ind AS.
  • Once Ind AS are applicable, an entity shall be required to follow the Ind AS for all the subsequent financial statements.

Companies not covered by the above roadmap shall continue to apply existing Accounting Standards notified in Companies (Accounting Standards) Rules, 2006.

For Scheduled Commercial Banks (Excluding RRBs), Financial Companies (NBFC's)Insurers/Insurance Companies and Non-Banking

Non-Banking Financial Companies (NBFC's)

Phase I:

From 1st April, 2018 (with comparatives)

 

  • NBFCs (whether listed or unlisted) having net worth ` 500 crore or more

 

  • Holding, Subsidiary, JV and Associate companies of above NBFC other than those already covered under corporate roadmap shall also apply from said date

Phase II:

From 1st April, 2019 (with comparatives)

 

  • NBFCs 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 less than 500 crore

 

  • NBFCs that are unlisted having net worth ` 250 crore or more but less 500 crore

 

  • Holding, Subsidiary, JV and Associate companies of above other than those already covered under corporate roadmap shall also apply from said date
  • Applicable for both Consolidated and Individual Financial Statements
  • NBFC having net worth below ` 250 crore shall not apply Ind AS.
  • Adoption of Ind AS is allowed only when required as per the roadmap.
  • Voluntary adoption of Ind AS is not allowed.
  • Scheduled Commercial banks (excluding RRB’s)
  • Scheduled Commercial Banks (SCBs) excluding Regional Rural Banks (RRBs) were initially required to implement Indian Accounting Standards (Ind AS) from 1 April 2018. RBI vide a  press release dated 5 April 2018, deferred the implementation of Ind AS by one year i.e. from   1 April 2019. However, later on it deferred the Ind AS implementation till further notice RBI through a notification dated 22 March 2019.
  • Insurers/Insurance companies
  • From 1st April, 2021 (with comparatives):
  • Holding, subsidiary, JV and Associates companies of insurers/insurance companies shall also apply from the said date irrespective of it being covered under corporate roadmap.
  • Applicable for both Consolidated and individual Financial Statements.
  • Companies shall follow Ind AS either Voluntarily or Mandatorily. Once a company follows Indian AS, either mandatorily or voluntarily, it can't revert to old method of Accounting.

Indian Accounting Standards Converged with IFRS Notified

Reliable, consistent and uniform financial reporting is important part of good corporate governance practices worldwide in order to enhance the credibility of the businesses in the eyes of investors to take informed investment decisions. In pursuance of G-20 commitment given by India, the process of convergence of Indian Accounting Standards with IFRS has been carried out in Ministry of Corporate Affairs through wide ranging consultative exercise with all the stakeholders. MCA has to spell out the accounting standards applicable for companies in India. As on date MCA has notified 41 Ind AS. This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis..

These are: IND ASs Ind AS 101, 102 ,103, 104, 105, 106,107, 108,109,110,111,112,113,114,115,116,1,2,7,8,10,11,12,
16,17,18,19,20,21,22,23,24,27,28,29,32,33,34,36,37,38,40,41

The Ministry of Corporate Affairs will implement the IFRS converged Indian Accounting Standards in a phased manner after various issues including tax related issues are resolved with the concerned Departments. It would be ensured that the implementation of the converged standards in a phased manner is smooth for the stakeholders

and are converged standards for IFRS (International Financial Reporting Standards). To ensure that India converge globally accepted standards, IFRS, Ind AS were adopted by the country and was made mandatory for selected companies was made mandatory for companies in phases discussed below:

Why We?

S.M.Gupta & Co. is the Indian network of professional services Firms whose aim is to turn understanding of information, industries and business trends into value. As a member of a cohesive business unit we respond to a client service environment by leveraging the resources of a national network of Firms, providing detailed knowledge of local laws, deregulations, markets and competition.

Our co-ordinate approach is scalable, tailored to individual needs and uses tested methodologies and tools that have been used successfully on IND AS projects. The methodology used by us in providing IND AS conversion project assistance, resolves around five work steams: 1) Accounting and repenting 2) Business impacts 3) Systems and processes 4) People issues 5) Project management.

As important as the eight deliverable and tools, is the ability to provide a tailored approach. To anticipate charging events and adjust whenever necessary are equally critical to successive IND AS conversions. Our people coil endeavour to be around when you want them to be and provide continuing support for as long as you need it. We also adopt a totally open approach to issues, encouraging team work with our clients to solve problems together. We have experienced trainers and IND AS training mate rids that we can quickly adapt to take into account the unique skull sets and knowledge equipments within each client organization. The net result is poetical IND AS conversion assistance in which our knowledge is twined into real value.

 
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