The Companies Act, 2013 has been undergoing changes from time to time through various amendments to the Act, Rules and through notifications and circulars of the Ministry of Corporate Affairs which are issued to keep the law at par with various developments in the economic environment, regulatory requirement, policies of the country and globalization.
Further, the Government of India decided to converge Indian Accounting Standards with certain carve outs from International Financial Reporting Standards, in a phased manner to accomplish its commitment in G-20 summit with the objective of achieving high quality global accounting standards.
At this backdrop, the Ministry of Corporate Affairs vide its notification dated 6th April, 2016 notified amendments to Schedule III of the Companies Act, 2013 thereby inserting Division II to Schedule III for preparation of financial statements by those entities who have to comply with Indian Accounting Standards (Ind AS).
In the light of the notification of Division II to Schedule III, the Corporate Laws & Corporate Governance Committee (CL&CGC) of The Institute of Chartered Accountants of India (ICAI) has taken an initiative of bringing out a Guidance Note on Division II to Schedule III of the Companies Act, 2013 for companies required to comply with Ind AS. In formalising the Guidance Note on Division II- Ind AS Schedule III to the Companies Act, 2013, lot of efforts has been made.