In keeping with these developments, the financial reporting environment has gone through significant changes. One of the biggest changes in recent times is the convergence Indian Standards with International Financial Reporting Standards (IFRS), which came to be known as Indian Accounting Standard (Ind-AS). Navigating the complex world of Ind-AS involves handling many new concepts, which require a good deal of expertise in terms of proper estimation and judgement, along with detailed qualitative and quantitative disclosures.
Our team at Mukhya takes a personal approach and acts as your financial advisory specialist to help implement Ind-AS in your organization, while ensuring consistent application of the standards.
We have considerable knowledge across the domain of financial reporting and understand the finest nuances of Ind-AS), IFRS, and US GAAP that apply to our clients’ businesses. Besides performing reviews and providing an impact analysis of reporting under Ind-AS, we ensure that reporting is done adequately while also helping outline:
The naming and numbering of IND-AS are the same as International Financial Reporting Standards (IFRS). These standards are recommended by the National Financial Reporting Authority (NFRA) to the Ministry of Corporate Affairs (MCA). MCA determines and informs the accounting standards applicable for businesses in India. As of now, MCA has notified 41 IND-AS.
Phase I
IND-AS is compulsorily applied to all companies from 1st April 2016, given that:
Phase II
The mandatory basis for all companies from 1st April 2017, given that:
Phase III
The mandatory basis for all Banks, NBFCs, and Insurance companies from 1st April 2018, whose:
Phase IV
IND-AS mandatorily applicable to all NBFCs whose Net worth equal to or more than ₹250 crore but less than ₹500 crore with effect from 1st April 2019.
Yes. Organizations have a choice to voluntarily incorporate IND-AS in their reports for accounting periods starting on or after April 01, 2015. Such entities must include a comparative report for the periods ending 31 March 2015 or thereafter, where IND-AS have been incorporated to present a comparative view.
However, once you start reporting as per the IND AS, you cannot go back to reporting as
per previous laws.
Net worth is determined based on standalone accounts of an organization as on 31st March of a year or the first audited period ending after that date. Net worth is the total of paid-up capital and all reserves out of securities premium account and profit, after deducting accrued losses, deferred expenses, and miscellaneous expenses not written off. You can include only the capital reserve coming from promoters’ contributions and government grants received. But, you cannot include the reserves coming from revaluation of assets and written back depreciation.
Our business solutions are customized for your organization.
