All stakeholders are hereby informed
that the Ministry of Corporate Affairs has notified Roadmap for applicability
of Indian Accounting Standards (Ind AS) for compliance by the class of
companies specified in the said roadmap. The notification has been uploaded on
www.mca.gov.in along with the thirty nine (39) Indian Accounting Standards (Ind
AS).Companies which are not required to follow Indian Accounting Standards (Ind
AS) shall continue to comply with Accounting Standards as prescribed in
Companies (Accounting Standards) Rules, 2006.
Government of India
Ministry of Corporate Affairs
Notification
New Delhi, dated 16th
February 2015
G.S.R 111(E).- In exercise of the powers conferred
by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013)
and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the
Central Government, in consultation with the National Advisory Committee on
Accounting Standards, hereby makes the following rules, namely:-
1. Short title and commencement.- (1) These rules may be called the
Companies (Indian Accounting Standards) Rules, 2015.
(2) They shall come into force on
the 1st day of April, 2015
2. Definitions.– (1) In these
rules, unless the context otherwise requires,-
(a) “Accounting Standards” means the
standards of accounting, or any addendum thereto for companies or class of
companies as specified in rule 3;
(b) “Act” means the Companies Act,
2013 (18 of 2013);
(c) “Annexure” in relation to these
rules means the Annexure containing the Indian Accounting Standards (Ind AS)
appended to these rules;
(d) “entity” means a company as
defined in clause (20) of section 2 of the Act;
(e) “financial statements” means
financial statements as defined in clause (40) of section 2 of the Act;
(f) “net worth” shall have the
meaning assigned to it in clause (57) of section 2 of the Act.
(2) Words and expressions used
herein and not defined in these rules but defined in the Act shall have the
same meaning respectively assigned to them in the Act.
3. Applicability of Accounting
Standards. – (1) The accounting standards as specified in the Annexure to
these rules to be called the Indian Accounting Standards (Ind AS) shall be the
accounting standards applicable to classes of companies specified in rule 4.
(2) The Accounting standards as
specified in Annexure to the Companies (Accounting Standards) Rules, 2006 shall
be the Accounting Standards applicable to the companies other than the classes
of companies specified in rule 4.
(3) A company which follows the
Indian Accounting Standards (Ind AS) specified in Annexure to these rules in
accordance with the provisions of rule 4 shall follow such standards only.
(4) A company which follows the
accounting standards specified in Annexure to the Companies (Accounting
Standards) Rules, 2006 shall comply with such standards only and not the
Standards specified in Annexure to these rules.
4. Obligation to comply with
Indian Accounting Standards (Ind AS). – (1) The Companies and their
auditors shall comply with the Indian Accounting Standards (Ind AS) specified
in Annexure to these rules in preparation of their financial statements
and audit respectively, in the following manner, namely:-
(i) any 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;
(ii) the 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:-
(a) companies whose equity 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 rupees five hundred
crore or more;
(b) companies other than those
covered by sub-clause (a) of clause (ii) of sub rule (1) and having net worth
of rupees five hundred crore or more;
(c) holding, subsidiary, joint
venture or associate companies of companies covered by sub-clause (a) of clause
(ii) of sub- rule (1) and sub-clause (b) of clause (ii) of sub- rule (1) as the
case may be; and
(iii) the following companies shall
comply with the Indian Accounting Standards (Ind AS) for the accounting periods
beginning on or after 1st April, 2017, with the comparatives for the periods
ending on 31st March, 2017, or thereafter, namely:-
(a) companies whose equity 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;
(b) companies other than those
covered in clause (ii) of sub- rule (1) and subclause (a) of clause (iii) of
sub-rule (1), that is, unlisted companies having net worth of rupees two
hundred and fifty crore or more but less than rupees five hundred crore.
(c) holding, subsidiary, joint
venture or associate companies of companies covered under sub-clause (a) of
clause (iii) of sub- rule (1) and sub-clause (b) of clause (iii) of sub- rule
(1), as the case may be:
Provided that nothing in this
sub-rule, except clause (i), shall apply to companies whose securities are
listed or are in the process of being listed on SME exchange as referred to in
Chapter XB or on the Institutional Trading Platform without initial public
offering in accordance with the provisions of Chapter XC of the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009.
Explanation 1. – SME Exchange shall
have the same meaning as assigned to it in Chapter XB of the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009.
Explanation 2. – “Comparatives”
shall mean comparative figures for the preceding accounting period.
(2) For the purposes of calculation
of net worth of companies under sub-rule (1), the following principles shall
apply, namely:-
(a) the net worth shall be
calculated in accordance with the stand-alone financial statements of the
company as on 31st March, 2014 or the first audited financial statements for
accounting period which ends after that date;
(b) for companies which are not in
existence on 31st March, 2014 or an existing company falling under any of
thresholds specified in sub-rule (1) for the first time after 31st March, 2014,
the net worth shall be calculated on the basis of the first audited financial
statements ending after that date in respect of which it meets the thresholds
specified in sub-rule (1).
Explanation.- For the purposes of
sub-clause (b), the companies meeting the specified thresholds given in
sub-rule (1) for the first time at the end of an accounting year shall apply
Indian Accounting Standards (Ind AS) from the immediate next accounting year in
the manner specified in sub-rule (1).
Illustration .- (i) The companies
meeting threshold for the first time as on 31st March, 2017 shall
apply Ind AS for the financial year 2017-18 onwards.
(ii) The companies meeting threshold
for the first time as on 31st March, 2018 shall apply Ind AS for the financial
year 2018-19 onwards and so on.
(3) Standards in Annexure to
these rules once required to be complied with in accordance with these rules,
shall apply to both stand-alone financial statements and consolidated financial
statements.
(4) Companies to which Indian
Accounting Standards (Ind AS) are applicable as specified in these rules shall
prepare their first set of financial statements in accordance with the Indian
Accounting Standards (Ind AS) effective at the end of its first Indian
Accounting Standards (Ind AS) reporting period.
Explanation.- For the removal of
doubts, it is hereby clarified that the companies preparing financial
statements applying the Indian Accounting Standards (Ind AS) for the accounting
period beginning on 1stApril, 2016 shall apply the Indian Accounting Standards
(Ind AS) effective for the financial year ending on 31st March, 2017.
(5) Overseas subsidiary, associate,
joint venture and other similar entities of an Indian company may prepare its
standalone financial statements in accordance with the requirements of the
specific jurisdiction:
Provided that such Indian company
shall prepare its consolidated financial statements in accordance with the
Indian Accounting Standards (Ind AS) either voluntarily or mandatorily if it
meets the criteria as specified in sub-rule (1).
(6) Indian company which is a
subsidiary, associate, joint venture and other similar entities of a foreign
company shall prepare its financial statements in accordance with the Indian
Accounting Standards (Ind AS) either voluntarily or mandatorily if it meets the
criteria as specified in sub-rule (1).
(7) Any company opting to apply the
Indian Accounting Standards (Ind AS) voluntarily as specified in sub-rule (1)
for its financial statements shall prepare its financial statements as per the
Indian Accounting Standards (Ind AS) consistently.
(8) Once the Indian Accounting
Standards (Ind AS) are applied voluntarily, it shall be irrevocable and such
companies shall not be required to prepare another set of financial statements
in accordance with Accounting Standards specified in Annexure to
Companies (Accounting Standards) Rules, 2006.
(9) Once a company starts following
the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily on
the basis of criteria specified in sub-rule (1), it shall be required to follow
the Indian Accounting Standards (Ind AS) for all the subsequent financial
statements even if any of the criteria specified in this rule does not
subsequently apply to it.
5. Exemptions.– The insurance
companies, banking companies and non-banking finance companies shall not be
required to apply Indian Accounting Standards (Ind AS) for preparation of their
financial statements either voluntarily or mandatorily as specified in sub-rule
(1) of rule 4.
[File Number 01/01/2009/CL-V(Part)]
[Ajai Das Mehrotra]
Joint Secretary to Government of India
Annexure
[See rule 3]
A. General Instruction. – (1) Indian Accounting Standards, which
are specified, are intended to be in conformity with the provisions of
applicable laws. However, if due to subsequent amendments in the law, a particular
Indian Accounting Standard is found to be not in conformity with such law, the
provisions of the said law shall prevail and the financial statements shall be
prepared in conformity with such law.
(2) Indian Accounting Standards are
intended to apply only to items which are material.
(3) The Indian Accounting Standards
include paragraphs set in bold italic type and plain type, which have equal
authority. Paragraphs in bold italic type indicate the main principles. An
individual Indian Accounting Standard shall be read in the context of the
objective, if stated, in that Indian Accounting Standard and in accordance with
these General Instructions.
B. Indian Accounting Standards (Ind
AS)
|
First-time Adoption of Indian
Accounting Standards
|
|
|
Share-based Payment
|
|
|
Business Combinations
|
|
|
Insurance Contracts
|
|
|
Non-current Assets Held for Sale
and Discontinued Operations
|
|
|
Exploration for and Evaluation of
Mineral Resources
|
|
|
Financial Instruments: Disclosures
|
|
|
Operating Segments
|
|
|
Financial Instruments
|
|
|
Consolidated Financial Statements
|
|
|
Joint Arrangements
|
|
|
Disclosure of Interests in Other
Entities
|
|
|
Fair Value Measurement
|
|
|
Regulatory Deferral Accounts
|
|
|
Revenue from Contracts with
Customers
|
|
|
Presentation of Financial
Statements
|
|
|
Inventories
|
|
|
Statement of Cash Flows
|
|
|
Accounting Policies, Changes in
Accounting Estimates and Errors
|
|
|
Events after the Reporting Period
|
|
|
Income Taxes
|
|
|
Property, Plant and Equipment
|
|
|
Leases
|
|
|
Employee Benefits
|
|
|
Accounting for Government Grants
and Disclosure of Government Assistance
|
|
|
The Effects of Changes in Foreign
Exchange Rates
|
|
|
Borrowing Costs
|
|
|
Related Party Disclosures
|
|
|
Separate Financial Statements
|
|
|
Investments in Associates and
Joint Ventures
|
|
|
Financial Reporting in
Hyperinflationary Economies
|
|
|
Financial Instruments:
Presentation
|
|
|
Earnings per Share
|
|
|
Interim Financial Reporting
|
|
|
Impairment of Assets
|
|
|
Provisions, Contingent Liabilities
and Contingent Assets
|
|
|
Intangible Assets
|
|
|
Investment Property
|
|
|
Agriculture
|
No comments:
Post a Comment