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IFRS 9 (Ind AS 109) - India first country to mandatorily early converge!!


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Abstract of the Ministry of Corporate Affairs (MCA) Notification - Companies (Indian Accounting Standards) Rules, 2015 

Effective from: 1-April-2015




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 (39 standards in total) to these rules in preparation of their financial statements and audit respectively, in the following manner, namely:- 
    • 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; 

    • 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) 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) and sub-clause (b) as the case may be; and 

    • the following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1 st 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) 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) and sub-clause (b), as the case may be.

“Comparatives” shall mean comparative figures for the preceding accounting period. 

For the purposes of calculation of net worth of companies, the following principles shall apply, namely:- 
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; 

Standards in Annexure to the rules once required to be complied with in accordance with these rules, shall apply to both stand-alone financial statements and consolidated financial statements.

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.

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