Four phases for convergence to IND AS from current accounting standards have been notified by the Ministy of Corporate Affairs.
Phase I: Applicability w.e.f. 1st April 2016
A company, listed or unlisted, shall be mandatorily required to apply IND AS from 1st April 2016 provided :
I. Its Net Worth is greater than or equal to Rs. 500 Crores.
Note
a) Net worth shall be checked for previous 3 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016
b) IND AS shall be applicable if Net Worth of company is more than equal to INR 500 Crores on any of the above dates.
c) Net Worth means: [Paid up share Capital + all reserves created from out of profit* & securities premium account - accumulated losses, deferred expenditure and miscellaneous expenditure not written off]
* Capital Reserve shall not be included in calculation of Net Worth, except when arising out of Promoters Contribution and Govt. Grant Recieved.
Phase II: Applicability w.e.f. 1st April 2017
A company shall be mandatorily required to apply IND AS from 1st April 2016 provided :
I. It is a listed company or is in the process of being listed; or
II. Its Net Worth is greater than or equal to Rs. 250 Crores but less than Rs. 500 Crores.
Note
a) Listing status shall be checked as on 31.03.16.
b) Net worth shall be checked for previous 4 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016 & as on 31.03.2017.
I. Its Net Worth is greater than or equal to Rs. 500 Crores.
Note
a) Net worth shall be checked for previous 3 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016
b) IND AS shall be applicable if Net Worth of company is more than equal to INR 500 Crores on any of the above dates.
c) Net Worth means: [Paid up share Capital + all reserves created from out of profit* & securities premium account - accumulated losses, deferred expenditure and miscellaneous expenditure not written off]
* Capital Reserve shall not be included in calculation of Net Worth, except when arising out of Promoters Contribution and Govt. Grant Recieved.
Phase II: Applicability w.e.f. 1st April 2017
A company shall be mandatorily required to apply IND AS from 1st April 2016 provided :
I. It is a listed company or is in the process of being listed; or
II. Its Net Worth is greater than or equal to Rs. 250 Crores but less than Rs. 500 Crores.
Note
a) Listing status shall be checked as on 31.03.16.
b) Net worth shall be checked for previous 4 Financial Years i.e. as on 31.03.2014, 31.03.2015 & 31.03.2016 & as on 31.03.2017.
c) IND AS shall be applicable if Net worth of company is more than equal to INR 250 Crores but less than INR 500 crores on any of the above dates.
Phase III: Applicability w.e.f. 1st April 2018
Banks, NBFC, Insurance companies shall adopt IND AS from 1st April 2018.
I. NBFC: NBFC whose Net Worth is more than or equal to INR 500 crores shall apply IND AS w.e.f. 1st April 2018.
II. Banks & Insurance Companies shall adopt a separate set of IND AS w.e.f. 1st April 2018 as notified by IRDA.
Note
a) NBFC includes core investment companies, stock brokers, venture capitalists, etc.
b) Net Worth to be checked for 3 years i.e. 31.03.2016, 31.03.2017 & 31.03.2018
Phase IV: Applicability w.e.f. 1st April 2019
I. NBFC: NBFC whose Net Worth is more than or equal to INR 250 crores but less than 500 crores shall apply IND AS w.e.f. 1st April 2019.
General Note
If IND AS becomes applicable to a company then, IND AS shall be automatically applicable to all subsidiaries, holding companies, associate companies and joint ventures irrespective of individual qualification of such companies.
Phase III: Applicability w.e.f. 1st April 2018
Banks, NBFC, Insurance companies shall adopt IND AS from 1st April 2018.
I. NBFC: NBFC whose Net Worth is more than or equal to INR 500 crores shall apply IND AS w.e.f. 1st April 2018.
II. Banks & Insurance Companies shall adopt a separate set of IND AS w.e.f. 1st April 2018 as notified by IRDA.
Note
a) NBFC includes core investment companies, stock brokers, venture capitalists, etc.
b) Net Worth to be checked for 3 years i.e. 31.03.2016, 31.03.2017 & 31.03.2018
Phase IV: Applicability w.e.f. 1st April 2019
I. NBFC: NBFC whose Net Worth is more than or equal to INR 250 crores but less than 500 crores shall apply IND AS w.e.f. 1st April 2019.
General Note
If IND AS becomes applicable to a company then, IND AS shall be automatically applicable to all subsidiaries, holding companies, associate companies and joint ventures irrespective of individual qualification of such companies.
