Roadmap for implementing Ind AS
The roadmap for implementing Ind AS in a phased manner is given below.
All non-financial companies
For companies other than banks, NBFC and Insurance companies:
Voluntary Phase
1st April 2015 or thereafter: Voluntary Basis for all companies (with comparatives)
Phase I
1st April 2016: Mandatory Basis
- All listed on Stock Exchange in India or outside having net worth equal to or more than Rs 500 crore
- Unlisted companies having net worth equal to more than Rs 500 crore
- Parent, Subsidiary, Associate and Joint Venture of above
Companies can voluntarily apply Ind AS for accounting periods beginning on or after 1st April 2015. If an entity applies Ind AS voluntarily for any year, it shall be irrevocable, which means it should continue to apply Ind AS for all the subsequent years mandatorily.
Phase II
1st April 2017 – Mandatory Basis
- All companies which are listed/or in the process of listing inside or outside India on Stock Exchanges, not covered in Phase 1 (other than companies listed on SME Exchanges)
- Unlisted companies having net worth equal to or more than Rs 250 crore up to Rs 500 crore
- Parent, Subsidiary, Associate and Joint Venture of above
Note: Companies listed on SME Exchanges not required to apply IND AS. Once IND AS are applicable, an entity should be required to follow IND AS for all the subsequent financial statements. Companies not covered by the above shall continue to apply existing Accounting standards notified in Companies (Accounting Standards) Rules, 2006.
Scheduled commercial banks (excluding RRB)
As per the Notification dated 22nd March 2019 from Reserve Bank of India, the legislative amendments recommended by the Reserve Bank are under consideration of the Government of India. Accordingly, it has been decided to defer the implementation of Ind AS till further notice.
Non-Banking Financial Companies (NBFCs)
Phase 1:
From 1st April 2018 (with Comparatives)
- NBFC (whether listed or unlisted) having net worth of Rs. 500 crores or more
- Holding, Subsidiary, Joint Venture or Associate companies of the above NBFC other than those already covered under the corporate roadmap shall also apply from the said date
Phase 2
From 1st April 2019 (with Comparatives)
- NBFCs whose equity 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 less than Rs. 500 crores
- NBFCs that are unlisted and having net worth Rs. 250 crores or more but less than Rs. 500 crores
- Holding, Subsidiary, Associate and Joint Venture companies of the above NBFC other than those already covered under the corporate roadmap shall also apply from the said date
- Applicable for the preparation of both individual and consolidated financial statements
- Adoption of Ind AS is allowed only when required as per roadmap. Voluntary adoption of Ind AS is not allowed
- NBFC having net worth below Rs. 250 crores need not apply Ind AS
Insurers/Insurance companies
From 1st April 2020 onwards with comparatives
- Holding, Subsidiary, Joint venture and Associate companies of the above Insurers/Insurance companies other than those already covered under the corporate roadmap shall also apply from the said date
- Applicable for both consolidated and individual financial statements
- Urban Co-operative Banks (UCB) and Rural Regional Banks (RRB) are not required to apply IND AS
Notification by RBI
Deferment of Indian Accounting Standards (Ind AS) implementation issued on 5th April 2018
Scheduled Commercial Banks (SCBs), excluding Regional Rural Banks (RRBs), were required to implement Indian Accounting Standards (Ind AS) from 1st April 2018 vide Circular dated 11th February 2016. However, necessary legislative amendments – to make the format of financial statements, prescribed in the Third Schedule to Banking Regulation Act 1949, compatible with accounts under Ind AS – are under consideration of the Government. In view of this, as also the level of preparedness of many banks, it has been decided to defer implementation of Ind AS by one year when the necessary legislative changes are expected.
However, pursuant to another Notification by RBI dated 22nd March 2019, the legislative amendments recommended by the Reserve Bank are under consideration of the Government of India. Accordingly, it has been decided to defer the implementation of Ind AS till further notice.
Ind AS 37 – Provisions, contingent liabilities and contingent assets
