Indian Accounting Standards (Ind AS) & IND AS applicability

ENACTMENT OF IND AS IN INDIArnIndian 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.rnThe 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.rnThe 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.rnIt 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.rnIndia 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.rnThe 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.rnMCA had notified Companies (Indian Accounting Standard Rules) 2015, which listed out the applicability and adoption.rnObligation to comply with Indian Accounting Standards (Ind AS)rnThe Companies and their auditors shall comply with the Indian Accounting Standards (Ind AS) in the following manner, namely:rnVoluntary Adoption of Ind AS:rnany 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;rnFinancial Year 2015–2016rnDate of transition 1 April 2014rnComparative Ind AS complied Balance sheet: 31 March 2015rnFirst Ind AS complied Balance sheet (if adopted voluntarily) : 31 March 2016rnMandatory application of Ind AS:rnThe 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:-rnFinancial Year: 2016–2017rnDate of transition: 1 April 2015rnComparative Ind AS complied Balance sheet: 31 March 2016rnFirst Ind AS complied Balance sheet (Mandatory): 31 March 2017rnTO KNOW MORE ABOUT IND AS APPLICABILITY VISIT TAKSHILA LEARNING….rnALSO READ:rnIntroduction to Indian Accounting Standard — IND ASrnChange in exam pattern of ACCA IFR Exam/ Dip IFR ExamrnTakshila 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.