A. Implementation of Indian Accounting Standards (IND AS):

1. For Companies other than banks, NBFCs and Insurance Companies:

a) All companies which are listed/or in process of listing inside or outside India on Stock Exchanges (other than companies listed on SME Exchanges)

b) Unlisted companies having net worth* of ₹ 250 crore or more

c) Parent, Subsidiary, Associate and Joint venture of above


> Companies listed on SME exchange not required to apply Ind AS.

> Once Ind AS are applicable, an entity shall be required to follow the Ind AS for all the subsequent financial statements.

> Companies not covered above shall continue to apply existing Accounting Standards notified in Companies (Accounting Standards) Rules, 2006.

*Net worth shall have the same meaning as defined under section 2(57) of the Companies Act, 2013.

2. For Scheduled Commercial Banks (Excluding RRBs), Insurers/Insurance Companies and Non-Banking Financial Companies (NBFC’s):

♦ Non-Banking Financial Companies (NBFC’s):

  • NBFCs whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India.
  • NBFCs that are unlisted having net worth ₹ 250 crore or more.
  • Holding, Subsidiary, JV and Associate companies of above.


> Applicable for both Consolidated and Individual Financial Statements

>  NBFC having net worth below ₹ 250 crore shall not apply Ind AS.

>  Voluntary adoption of Ind AS is not allowed.

♦ Scheduled Commercial banks (excluding RRB’s):

  • Scheduled Commercial Banks (SCBs) excluding Regional Rural Banks (RRBs)* were initially required to implement Indian Accounting Standards (Ind AS) from 1 April 2018.
  • RBI vide a press release dated 5 April 2018, deferred the implementation of Ind AS by one year i.e. from 1 April 2019.
  • However, later on it deferred the Ind AS implementation till further notice RBI through a notification** dated 22 March 2019.

**https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT146F6A26AD4C30C4ED984F0AE5500CD    D  F72.PDF

* Regional Rural Banks (RRBs):

  • RRBs are Indian Scheduled Commercial Banks (Government Banks) operating at regional level in different States of India. They have been created with a view of serving primarily the rural areas of India with basic banking and financial services.
  • Each Regional Rural Bank is sponsored by a Public Sector Bank.
  • Shareholders in a RRB are: GoI (50%); Sponsored Bank (35%); and State Governments (15%).
  • Few RRB namely; Andhra Pragathi Grameena Bank, Baroda Gujarat Gramin Bank, for more list visit: https://m.rbi.org.in/scripts/Bs_viewcontent.aspx?Id=3657

♦ Insurers/Insurance companies:

  • Implementation from 1st April, 2021 (with comparatives):


> Holding, subsidiary, JV and Associates companies of insurers/insurance companies shall also apply from the said date irrespective of it being covered under corporate roadmap.

> Applicable for both Consolidated and individual Financial Statements.

A.1. Division of Schedule III to the Companies Act, 2013:

As per the Companies Act, 2013, Schedule III, there are three divisions namely-

1. Division I, which is applicable to a company whose financial statements are required to comply with the accounting standards.

2. Division II, which is applicable to a company whose financial statements are drawn up in compliance with Ind AS. (MCA Notification dated 6th April, 2016)

3. Division III, which is applicable to Non-Banking Finance Companies whose financial statements are drawn up in compliance with Ind AS. (MCA Notification in March, 2018)

♦ Points which merits consideration:

  • The requirements of Ind AS Schedule III, do not apply to companies as referred to in the proviso to Section 129(1) of the Act, i.e., any insurance or banking company, or any company engaged in the generation or supply of electricity or to any other class of company for which a form of Balance Sheet and Statement of Profit and Loss has been specified in or under any other Act governing such class of company
  • It may, however, be clarified that for companies engaged in the generation and supply of electricity, neither the Electricity Act, 2003, nor the rules framed thereunder, prescribe any specific format for presentation of Financial Statements by an electricity company. Section 1(4) of the Act states that the Act will apply to electricity companies, to the extent it is not inconsistent with the provisions of the Electricity Act. Keeping this in view, Ind AS Schedule III as applicable may be followed by such companies till the time any other format is prescribed by the relevant statute.
  • The Ind AS Schedule III requires that if the compliance with the requirements of the Act including Ind AS as applicable to the companies, require any change in presentation or disclosure in the Financial Statements, the requirements of Ind AS Schedule III will stand modified accordingly.
  • Disclosure requirements specified in Schedule III would be in addition to and not in substitution of the disclosure requirements specified in Ind AS. In situations where an accounting treatment or disclosure in an Ind AS is in conflict with the requirements of Schedule III, companies are required to comply with the relevant Ind AS.
  • Where any Act or Regulation (e.g. SEBI Guidelines for listed entities) requires specific disclosures to be made in the Financial Statements of a company, the said disclosures shall be made in addition to those required under Ind AS Schedule III.

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April 2021