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On February 16, 2015, the ministry of corporate affairs notified the Indian version of International Financial Reporting Standards (IFRS), to be referred as Ind AS. 39 IND AS are issued aimed at convergence of the Indian accounting framework with globally recognised IFRS. It is not full adoption of IFRS, but only convergence.

These set of accounting and reporting standards is required to be applied by prescribed class f companies effective April 1, 2016, with a mandatory comparative period for the year ended March 31, 2016. So, essentially covered companies will be required to transition to Ind AS as on April 1, 2015 itself.

Ind AS Roadmap

Phase
Types of Companies
Networth
Applicable to Financial Year beginning on or after
Comparative for the period ending on or after
I
All Companies (whether listed or not)
Rs. 500 crore or more
1st April 2016
31st March , 2016
II
Other companies  listed or in the process of listing on stock exchange in India or outside India
-
1st April 2017
31st March , 2017
II
Unlisted company
Rs. 250 crore or more
1st April 2017
31st March , 2017

Notes:
1.    H/S/A/J are also covered:
Also applicable to Holding, Subsidiary, Joint venture or Associate companies of companies covered above.
Overseas subsidiary, associate, joint venture and other similar entities of Indian company may prepare its standalone financial statements in accordance with the requirement of specific jurisdiction.

2.    Net Worth :
             Section 2 (57) of Companies Act 2013 defines Net Worth as ‘the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation’.

To be calculated in accordance with the Stand-alone financial statements of the company as on 31st March, 2014 or the first audited financial statements for accounting period which ends after that date;


     3.   Apply to Consolidated FS also

Note: Above Content is Contributed by CA. Chintan Patel

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