The Ministry of Corporate Affairs vide Notification dated February 16, 2015 has issued the Companies (Indian Accounting Standards) Rules, 2015, thereby notifying Roadmap for applicability of Indian Accounting Standards (Ind AS) for compliance by the class of companies specified in the said Rules.
Following companies shall comply with the Ind AS for the accounting periods beginning on or after April 1, 2016, with the comparatives for the periods ending on March 31, 2016, or thereafter:
These norms which are converged with the International Financial Reporting Standards (IFRS), shall be applicable on a voluntary basis for period starting April 1, 2015 and would become mandatory from April 1, 2017, for companies whose equity and/ or debt securities are listed or are in the process of being listed within India or outside, having a net worth of less than Rs. 500 crore.
Other companies that are unlisted and having a net worth of Rs. 250 crore or more but less than Rs. 500 crore also would have to start implementing Ind AS from April 1, 2017.
Companies not required to follow Ind AS shall continue to comply with Accounting Standards as prescribed in Companies (Accounting Standards) Rules, 2006.