From April 2016, companies with a net worth of
Rs.500 crore or more will have to mandatorily follow the new accounting norms
that are converged with global standards, Indian government said.
Besides, corporates having a net worth of less than
Rs.500 crore but are listed, or in the process of getting listed, will have to
compulsorily follow the new norms from 1 April 2017. Indian Accounting
Standards (IndAs) are converged with the International Financial Reporting
Standards (IFRS).
The corporate affairs ministry on Friday said the
new road map has been drawn up after “wide consultations with various
stakeholders and regulators”.
Finance minister Arun Jaitley had in his budget
speech in July 2014 said there was an urgent need to converge the current
Indian accounting standards with IFRS. However, the new road map for Indian
accounting standards exempts banking, insurance and non-banking finance
companies.
Indian accounting standards would be mandatory for “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,” from 1 April 2016.
Indian Accounting Standards would be mandatory for “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,” from 1 April 2016.
Indian accounting standards would be mandatory for “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,” from 1 April 2016.
Indian Accounting Standards would be mandatory for “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,” from 1 April 2016.
The deadline would be applicable for other entities
having net worth of Rs.500 crore or more. It would also apply for holding,
subsidiary, joint venture or associate companies of these two classes of
entities, the corporate affairs ministry said in a statement.
It would be applicable on a voluntary basis for period starting 1 April 2015. Further, Indian Accounting Standards would be mandatory from 1 April 2017, for companies—whose equity and/or debt securities are listed or are in the process of being listed within India or outside—having a net worth of less than Rs.500 crore. Other companies that are unlisted and having a net worth of Rs.250 crore or more but less than Rs.500 crore also would have to start implementing Indian Accounting Standards from 1 April 2017.
It would be applicable on a voluntary basis for period starting 1 April 2015. Further, Indian Accounting Standards would be mandatory from 1 April 2017, for companies—whose equity and/or debt securities are listed or are in the process of being listed within India or outside—having a net worth of less than Rs.500 crore. Other companies that are unlisted and having a net worth of Rs.250 crore or more but less than Rs.500 crore also would have to start implementing Indian Accounting Standards from 1 April 2017.
Holding, subsidiary, joint venture or associate
companies of these entities would have to comply with this deadline. “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,” the statement
said.
Once a company opts for Ind AS, it has to follow the same for all the subsequent financial statements. “Companies not covered by the above roadmap shall continue to apply existing accounting standards prescribed in Annexure to the Companies (Accounting Standards) Rules, 2006,” the statement said.
Once a company opts for Ind AS, it has to follow the same for all the subsequent financial statements. “Companies not covered by the above roadmap shall continue to apply existing accounting standards prescribed in Annexure to the Companies (Accounting Standards) Rules, 2006,” the statement said.
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