IND AS ROADMAP
1. For Companies other than banks, NBFC, and Insurance companies:
PHASE-1: 1st April,2015 or thereafter – Voluntary Basis for all companies (with comparatives)
: 1st April,2016 – Mandatory Basis
1. Companies listed/in process of listing on Stock Exchange in India or outside India having net worth greater than or equal to INR 5 Billion.
2. Unlisted companies having net worth greater than or equal to INR 5 Billion.
3. Parent, Subsidiary, Associate and Joint Venture of above
PHASE-II: 1st April,2017 – Mandatory Basis
1. All Companies which are listed/or in process of listing inside or outside India on Stock Exchanges not covered in Phase-1 (other than companies listed on SME Exchanges)
2. Unlisted companies having net worth between INR 2.5 Billion and INR 5 billion.
3. Parent, Subsidiary, Associate, and Joint Venture of above
- Companies listed on SME Exchanges not required to apply IND AS
- Once IND AS are applicable, an entity should be required to follow IND AS for all the subsequent financial statements.
- Companies not covered by the above shall continue to apply existing Accounting standards notified in Companies (Accounting Standards) Rules, 2006.
2. For Scheduled Commercial Banks (excluding RRBs), Insurers/Insurance companies and Non-Banking Financial Companies (NBFC)
Non-Banking Financial Companies (NBFC) –
PHASE-I: From 1st April,2018 (with comparatives)
1. NBFC (whether listed or unlisted) having net worth 500 crores or more
2. Holding, Subsidiary, JV and Associate companies of above NBFC other than those already covered above corporate roadmap shall also apply from said date.
PHASE-II: From 1st April,2019 (with comparatives)
1. NBFC whose equity and/or debt securities are listed or are in process of listing on any stock exchange in India or outside India and having net worth less than 500 crores.
2. NBFC that are unlisted having net worth between 250 crores and 500 crores
3. Holding, Subsidiary, JV and Associate companies of above NBFC other than those already covered above corporate roadmap shall also apply from said date.
- Applicable for both Consolidated and Individual Financial Statements.
- NBFC having net worth below 250 crores shall not apply IND AS.
- Adoption of IND AS is allowed only when required as per roadmap.
- Voluntary Adoption of IND AS is not allowed.
Scheduled Commercial Banks (excluding RRBs) and Insurers/Insurance companies
- From 1st April, 2018 (with comparatives)
- Holding, Subsidiary, JV and Associate companies of Scheduled Commercial Banks (excluding RRBs) shall also apply from said date irrespective of it being covered under corporate roadmap.
- Applicable for both Consolidated and Individual Financial Statements
- Urban Cooperative Banks and Rural Regional Banks are not required to apply IND AS.
- However, IRDA has deferred the implementation of IND AS in the insurance sector in INDIA by two years i.e. IND AS would be applicable from 01/04/2020
- However, RBI has deferred the implementation of IND AS on commercial banks (except RRBs) by one year i.e. IND AS would be applicable from 01/04/2019
IND AS application on companies
Listed Company/Company in process of Listing –
– NET WORTH >/= 500 Cr – applicable from 01/04/2016
– NET WORTH < 500 Cr – applicable from 01/04/2017
Unlisted Co –
– NET WORTH => 500 Cr – applicable from 01/04/2016
– NET WORTH 250 and 500 Cr – applicable from 01/04/2017
IND AS Application on specified sectors
Banks
- applicable from 01/04/2018
* However, RBI has deferred the implementation of IND AS on commercial banks (except RRBs) by one year i.e. IND AS would be applicable from 01/04/2019
NBFC (listed)
– NET WORTH >/= 500 Cr – applicable from 01/04/2018
– NET WORTH < 500 Cr – applicable from 01/04/2019
NBFC (unlisted)
– NET WORTH => 500 Cr – applicable from 01/04/2018
– NET WORTH 250 and 500 Cr – applicable from 01/04/2019
Insurance co.
- applicable from 01/04/2018
* However, IRDA has deferred the implementation of IND AS in the insurance sector in INDIA by two years i.e. IND AS would be applicable from 01/04/2020
Summary
| Types of Companies/entities
|
Threshold Limit of Net worth | Applicable from | Present Status as on 01/04/19 | Remarks |
| Listed Co/ Co in process of Listing | >/= 500 Cr | 01/04/2016 | Applicable | Applicable for all listed companies and companies in process of listing |
| < 500 Cr | 01/04/2017 | Applicable | ||
| Unlisted Co | => 500 Cr | 01/04/2016 | Applicable | Applicable for all whose networth > 250 cr |
| 250 and 500 Cr | 01/04/2017 | Applicable | ||
| < 250 Cr | Not Applicable | |||
| Co listed in SME | Not Applicable | Not to apply IND AS | ||
| Banks.
|
No Limit | 01/04/2019 | Applicable | Applicable for all |
| Insurance co | No Limit | 01/04/2020 | Applicable | Applicable for all |
| Urban Cooperative Bank | Not Applicable | Not to apply IND AS | ||
| Rural Regional Bank | Not Applicable | Not to apply IND AS | ||
| NBFC – Listed
|
>/= 500 Cr | 01/04/2018 | Applicable | Applicable for all listed NBFC |
| < 500 Cr | 01/04/2019 | Applicable | ||
| NBFC – Unlisted
|
>/= 500 Cr | 01/04/2018 | Applicable | Applicable for all whose net worth > 250 cr |
| 250 and 500 Cr | 01/04/2019 | Applicable | ||
| < 250 Cr | Not Applicable | |||
Don’t forget to check ind as applicability.
Author Bio
i have a small query:
A is holding company covered under IND AS. accordingly its subsidiary will also be covered by IND AS. but say another company C who has no relation with company A, holds investment in equity shares (24%)of company B. so company B is an associate of company C. company B does not have any investments in company C. will IND AS be applicable on company C.
another query is company A is associate company(say holding 30%) of company B. IND AS is applicable on company B but company is not holding any shares in company A. will IND AS become applicable on company A. if yes, will IND AS become applicable on company AA which is holding company of company A.
will appreciate your reply.
thanks