Proposed New Roadmap for Implementation of Indian Accounting Standards (Ind AS)
April, 11th 2014
Proposed New Roadmap for Implementation of Ind AS converged with IFRS
For convergence of Indian Accounting Standards with International Financial Reporting
Standards (IFRSs), a Press Release (No.2/2010) laying down roadmap for application of
converged Indian Accounting Standards (Ind AS) by companies (other than Banking
companies, Insurance companies and Non-Banking Finance Companies) was issued on
22nd January, 2010. Further, a Press Release (No.3/2010) related to the roadmap for the
application of the converged Indian Accounting Standards (Ind AS) by the Banking
Companies, Insurance companies and Non- Banking Finance Companies was issued on
31st March, 2010. Subsequently, in response to the requests seeking clarifications on the
roadmaps, a Press Release (No. 4/2010) containing a consolidated statement on
clarification of roadmap was issued on May 04, 2010. However, the Ind AS placed on
the website of the MCA could not be implemented due to various reasons from 1st April,
2011 as per the aforesaid roadmaps issued.
A revised roadmap for implementation of Indian Accounting Standards (Ind AS)
finalised by the Council of the ICAI, at its last meeting, held on March 20-22, 2014, as
follows, has been submitted to the Ministry of Corporate Affairs for its consideration:
1. As stated in earlier roadmaps for achieving convergence, there shall be two separate
sets of Accounting Standards notified under the Companies Act, 1956. First set
would comprise the Indian Accounting Standards (Ind AS) converged with the
IFRSs which shall be applicable for preparation of consolidated financial statements
as defined in the Companies Act, 2013, of the specified class of companies. The
second set would comprise the existing notified Accounting Standards (AS) and
shall be applicable for preparation of individual financial statements of the
companies preparing consolidated financial statements as per Ind AS and for
financial statements of other companies.
2. The first set of Accounting Standards i.e. converged Indian Accounting Standards
(Ind AS) shall be applied to the following specified class of companies for preparing
their first Indian Accounting Standards (Ind AS) consolidated financial statements
for the accounting period beginning on or after April 1, 2016, with comparatives for
the year ending 31st March 2016 or thereafter:
(a) Whose equity and/or debt securities are listed or are in the process of listing
on any stock exchange in India or outside India; or
(b) Companies other than those covered in (a) above, having net worth of Rs.
500 crore or more
(c) Holding, subsidiary, joint venture or associate companies of companies
covered under (a) or (b) above.
3. Companies to which Indian Accounting Standards (Ind AS) are applicable shall
prepare their first set of consolidated financial statements in accordance with the
Indian Accounting Standards (Ind AS) effective at the end of its first Ind AS
reporting period unless otherwise specified, i.e., companies preparing consolidated
financial statements for the accounting period beginning on or after April 1, 2016
shall be required to apply the Ind AS effective for financial year ending on 31st
4. Calculation of net worth
For the purpose of calculation of qualifying net worth of companies, the following
rules shall apply:
(a) The net worth shall be calculated as per the stand alone audited balance sheet of
the company falling under any of the categories covered under 2 above as at 31st
March 2014 or the first balance sheet for accounting periods which end after that
(b) The net worth shall be calculated as the paid-up Share Capital plus Reserves and
Surplus less Revaluation Reserve.
(c) For companies which are not in existence on 31st March 2014 or an existing
company meets the criteria for the first time after 31st March, 2014, the net worth
shall be calculated on the basis of the first balance sheet ending after that date.
5. Voluntary Adoption
(a) Companies not mandatorily required to follow Indian Accounting Standards (Ind
AS) shall have the option to apply the Indian Accounting Standards (Ind AS)
voluntarily for their consolidated financial statements provided they prepare
consolidated financial statements under the Indian Accounting Standards (Ind
AS) consistently thereafter.
(b) The option to apply the Indian Accounting Standards (Ind AS) voluntarily, once
exercised, therefore, shall be irrevocable. Such companies would not be
required to prepare another consolidated financial statements in accordance with
existing Accounting Standards (AS).
6. Discontinuing use of the first set of Accounting Standards (i.e. the Indian
Once a company starts following the first set of Accounting Standards for
consolidated financial statements, i.e., the Indian Accounting Standards (Ind AS) on
the basis of the eligibility criteria, it shall be required to follow such Accounting
standards for all the subsequent Consolidated Financial Statements even if any of the
eligibility criteria does not subsequently apply to it.
7. The roadmap for banks, NBFCs and Insurance Companies will be decided in
consultation with RBI and IRDA.