The Ind AS shall be applicable to the companies as follows:

1. On voluntary basis for financial statements for accounting periods beginning on or after April 1, 2015, with the comparatives for the periods ending 31st March 2015 or thereafter;
2. On mandatory basis for the accounting periods beginning on or after April 1, 2016, with comparatives for the periods ending 31st March 2016, or thereafter, for the companies specified below:

1. Companies whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in India or outside India and having net worth of Rs. 500 Crore or more.
2. Companies other than those covered in (ii) (a) above, having net worth of Rs. 500 Crore or more.
3. Holding, subsidiary, joint venture or associate companies of companies covered under (ii) (a) and

2. (b) above.
3. On mandatory basis for the accounting periods beginning on or after April 1, 2017, with comparatives for the periods ending 31st March 2017, or thereafter, for the companies specified below:

1. Companies whose equity and/or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of less than rupees five hundred Crore.
2. Companies other than those covered in paragraph (ii) and paragraph (iii)(a) above that is unlisted companies having net worth of two hundred and fifty crore or more but less than rupees five hundred Crore.
3. Holding, subsidiary, joint venture or associate companies of companies covered under paragraph

3. (a) and (iii) (b) above.

The Ind-AS Applicability was deferred for Banking Company, Non-Banking Financial Company (NBFC) and Insurance Companies. But MCA gave road map for NBFC Companies to implement Ind-AS in II phases.

Phase I states that NBFCs having a net worth of 500 crore or more, it’s Holding, subsidiary, joint venture or associate companies of the above, other than those companies already covered under the corporate roadmap announced by MCA and Comparative information required for the period ending 31 March 2018 or thereafter.

Phase II states that 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 and having a net worth less than 500 crore, NBFCs that are unlisted companies, having a net worth of 250 crore or more but less than 500 crore, it’s Holding, subsidiary, joint venture or associate companies of companies covered above, other than those companies already covered under the corporate roadmap announced by MCA and Comparative information required for the period ending 31 March 2019 or thereafter.

MCA again deferred implementation of Ind-AS to banking and insurance companies until further noticed.

What is IFRS?

International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB). They specify how companies must maintain and report their accounts, defining types of transactions and other events with financial impact. IFRS were established to create a common accounting language, so that businesses and their financial statements can be consistent and reliable from company to company and country to country.

What does Ind-AS mean?

Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.

So, now we all know IFRS works globally and Ind-As is just Indian Version of IFRS. So, we all think why it is called as an Indian Version? It’s an Indian Version because it has few “Carve Outs and Carve In” which perfectly suits the Indian Business.

So, Let’s find out what are the Carve Outs:

1.First and foremost, difference is Component of Financial Statements

• As per IFRS: Statement of financial position, statement of profit or loss and other comprehensive income, statement of change in equity for the period and statement of cash flows for the period;

• As per Ind-AS: Balance sheet, statement of profit and loss account, cash flow statements (not applicable for SME’s), statement of change in equity, notes to accounts/financial statements and disclosure of significant accounting policies.

2.Ind-AS not Notified yet

There are Ind-AS 106 Exploration for and Evaluation of Mineral Resources, Ind AS 17 Leases and Ind AS 11 Construction Contracts are not notified by the MCA but corresponding IFRS are implemented.

3.Ind-AS 101 First time Adoption of Ind-AS and corresponding IFRS 1

IFRS 1 defines transitional date as beginning of the earliest period for which an entity presents full comparative information under IFRS. It is this date which is the starting point for IFRS and it is on this date the cumulative impact of transition is recorded based on assessment of conditions at that date by applying the standards retrospectively except to the extent specifically provided in this standard as optional exemptions and mandatory exceptions. Accordingly, the comparatives, i.e., the previous year figures are also presented in the first financial statements prepared under IFRS based on IFRS.

Carve Out: - Ind-AS 101, requires an entity to provide comparatives as per the existing notified Accounting Standards. It is provided that, in addition to aforesaid comparatives, an entity may also provide comparatives as per Ind AS on a memorandum basis.