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Indian Accounting Standards (Ind AS) & IND AS applicability

Indian Accounting Standards (Ind AS) & IND AS Applicability


Indian accounting goes global in phases, with application of Ind AS (IFR)In our previous article we briefed you about Indian Accounting Standard – IND AS which is based on IFR, which is in great demand globally as International Accounting Standards Board (IASB) is committed to globalize the accounting standards internationally so that companies can produce a set of financial statements which are universal. The dream of one common accounting language of business is becoming a reality sooner or later across the globe. So, in this article you will get to know about the enactment of IND AS in India which is done in phases. Let’s dive in:India decided to move to Ind AS in April 2011, which was later postponed to year 2015 and have finally applied in the financial year beginning 1 April 2016, with the mandatory date of transition of 1 April 2015.


The learning curve in accounting had taken a turn with the introduction of new accounting norms, creating an opportunity as well as nervousness among accounting & finance professionals to keep abreast with and update, according to the new accounting & business language.

The professionals learnt many new key terms, the concepts of fair value, time value of money, retrospective & prospective application, discounting to present value, fair valuation of net assets on acquisition of subsidiaries, and concept of other comprehensive income (OCI) and an additional requirement of statement of changes in equity.

It was also an opportunity to understand and implement the change in GAAP and application of first time adoption of Ind AS, the impacts of change on the financial statements.


India has moved to Ind AS (DipIFR) in phases and have reached the final stage of Ind AS implementation with only Banks & Insurance companies, yet to implement Ind AS, the final opportunity of learning Ind AS implementation and how it going to change the perspective of reading financial statements for financial services sector.

The Ministry of Corporate Affairs announced applicability of Indian Accounting Standards (IND AS) to transition to converged form of IFR in April 2011, to help companies prepare and present financial statements in compliance with global accounting requirements.

MCA had notified Companies (Indian Accounting Standard Rules) 2015, which listed out the applicability and adoption.


Obligation to comply with Indian Accounting Standards (Ind AS)

The Companies and their auditors shall comply with the Indian Accounting Standards (Ind AS) in the following manner, namely:

Voluntary Adoption of Ind AS:

  • any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st April, 2015, with the comparatives for the periods ending on 31st March, 2015, or thereafter;

Financial Year 2015-2016
Date of transition 1 April 2014
Comparative Ind AS complied Balance sheet: 31 March 2015
First Ind AS complied Balance sheet (if adopted voluntarily) : 31 March 2016


Mandatory application of Ind AS:

  • The following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2016, with the comparatives for the periods ending on 31st March, 2016, or thereafter, namely:-

Financial Year: 2016-2017
Date of transition: 1 April 2015
Comparative Ind AS complied Balance sheet: 31 March 2016
First Ind AS complied Balance sheet (Mandatory): 31 March 2017



IND AS is applied in 4 phases, viz.,

Phase I:
In Phase 1 IND AS is applied to Listed and unlisted companies with net worth of Rs 500 crore (FY 2016-17).


Phase II:
In Phase 2 of IND AS, the Indian Accounting Standards is applied to the remaining listed and unlisted companies with net- worth of Rs 250 crore (FY 2017-18).


Phase III:
Banks, NBFCs and insurance companies where net worth is more than or equal to Rs 500 crore (FY 2018-19) are put under IND AS.


Phase IV:
All NBFCs whose net worth is more than/ equal to Rs 250 crore but less than 500cr (FY 2019-20) comes under Indian Accounting Standards.


NOTE: Banks implementation of Ind AS is deferred for indefinite period, as of today.Insurance companies are expected to apply Ind AS from 1 April 2023.

Let’s understand the applicability of Ind AS in phases through the video by ACCA Amit Kumar, who has been part of Ind AS implementation and have delivered lectures on IFR/Ind AS to thousands of finance & accounting professionals in India since year 2009, one of the most experienced IFR/Ind AS corporate trainers.

Introduction to Indian Accounting Standard – IND AS
Change in exam pattern of ACCA IFR Exam/ Dip IFR Exam


Takshila Learning is providing Best Dip IFR course online thereby helping students to get ACCA IFR Certification. We are providing Online Classes for various Courses such as School from K-12, Professional Courses, i.e., CA/CS/CMA/IFR, Skill Development courses, i.e, Digital Marketing and Competitive Exams, i.e., SSC/Banking/Insurance/Railways.

April 8, 2020

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