What are Ind AS accounting standards?
The Ministry of Corporate Affairs (MCA) on 16th February 2015 notified the Companies (Indian Accounting Standards) Rules, 2015 containing 39 Indian Accounting Standards (Ind ASs). Ind ASs are based on International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB).
The roadmap for applicability of Ind AS mentions that Ind AS will be applicable in a phased manner depending upon the listing status as well as the net worth of the company. The roadmap is applicable to non-financial companies, i.e., companies other than banking, insurance and NBFCs. During these phases, the financial companies, i.e., banking, insurance and NBFCs, will not be required to apply Ind AS for preparation of their financial statements either voluntarily or mandatorily.
Net worth is the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium amounts after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off as per the audited balance sheet. This does not include reserves created out of the revaluation of assets, write-back of depreciation and amalgamation. Net worth is calculated as per the standalone financial statements of the company as on 31st March 2014 or the first audited balance sheet for accounting period which ends after that date for the purpose of first-time adoption Ind AS.