Entities that are required to follow the guidance note
What are the entities that are required to follow the guidance note?
Banking, non-banking finance companies (NBFCs), housing finance companies and insurance entities follow derivative accounting promulgated by the respective regulatory authorities, viz, Reserve Bank of India (RBI), National Housing Bank (NHB), Insurance Regulatory and Development Authority (IRDA), etc. If the concerned regulatory authority has not prescribed any accounting treatment, then the recommendations as per this guidance note become applicable. It should be noted that as per the press note issued by the Ministry of Corporate Affairs dated 18 January, 2016, Ind AS will become applicable for scheduled commercial banks, insurance companies and non-banking finance companies for accounting periods beginning from 1 April, 2018 onwards. If Ind AS is applicable, then this guidance note is not relevant. At best, the above mentioned entities which are covered by the respective regulatory authorities may have to follow the guidance note till 1 April 2018 when Ind AS becomes applicable.
