In 2015, the Ministry of Corporate Affairs has issued a notification stating a roadmap for implementation of IND-AS converged with IFRS. IND-AS are required to be adopted in a phased manner for the financial year beginning on or after 1 April 2016 with comparatives for the year ending 31 March 2016 for certain class of companies.
Accordingly , following companies are required to adopt Indian Version of International Financial Reporting Standards,(IFRS ) i.e. IND AS :
The following companies will have to adopt IND-AS for financial statements from the above mentioned date: –
The following companies will have to adopt IND-AS for financial statements from the above mentioned date: –
Once a company starts following the IND-AS mandatory on the basis of criteria specified above, it will be required to follow the IND-AS for all the subsequent financial statements even if any of the criteria specified do not subsequently apply to it. Companies to which IND-AS are applicable should prepare their first set of financial statements in accordance with the IND-AS effective at the end of its first IND-AS reporting period i.e. companies preparing financial statements applying the IND-AS for the accounting period beginning on 1 April 2016 should apply the IND-AS effective for the financial year ending as on 31 March 2017.
Voluntary adoption Companies may voluntarily adopt IND-AS for financial statements for accounting periods beginning on or after 1 April 2015, with the comparatives for the periods ending on 31 March 2015 or thereafter. Once a company opts to follow IND-AS, it will be required to follow the IND-AS for all the subsequent financial statements (the option is irrevocable). Once the option to voluntary follow IND-AS is adopted, companies will not be required to prepare another set of financial statements in accordance with Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006.
Considering the MCA notification of applicability of IND-AS in India, many companies are getting ready for their existing financial reporting policies and practices. Further, multi-national companies are subject to group reporting requirements to report their financial statements in several GAAPs namely IFRS/ US GAAP/ UK GAAP. Such multiple reporting requirements requires robust knowledge of various GAAPs and leads to resource constraints in finance function.
7, Saraswati Heights,Behind Goodluck Cafe, Deccan Gymkhana, Pune -411004
Phone : +91-7722063311
Tulasi Green, Office 1, B/H- D-Mart, Baner Road, Nandan Prospera Rd, Laxman Nagar, Baner, Pune, Maharashtra 411045
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A.N GAWADE & CO LLP
5B, Maker Bhavan, No 2, 5th Floor,S V Thackersy Marg,New Marine Lines,
Mumbai-400020.
Mobile : +91-8983424134
7, Saraswati Heights,Behind Goodluck Cafe, Deccan Gymkhana, Pune -411004
Phone : +91-7722063311
Email : ang@angca.com
Tulasi Green, Office 1, B/H- D-Mart, Baner Road, Nandan Prospera Rd, Laxman Nagar, Baner, Pune, Maharashtra 411045
Phone : +91-9420442921
Email : ang@angca.com
A.N GAWADE & CO LLP
5B, Maker Bhavan, No 2, 5th Floor,S V Thackersy Marg,New Marine Lines,
Mumbai-400020.
Mobile : +91-8983424134
Email : ang@angca.com
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