1 2 Answer Now Comment Report
Dear Preetham, As far as your question is concerned whether IFRS is applicable in India or not. The answer to your question is Partly yes and partly no. Indian Accounting Standards (Indian Version of IFRS) are based on IFRS, however, there are certain carve outs in Ind-AS with IFRS. Ind - AS in totality are not 100 % IFRS based. The MCA through notification dated 16 February 2015 has issued the Companies (Indian Accounting Standards) Rules, 2015 (Rules) which lay down a roadmap for companies other than insurance companies, banking companies and non-banking finance companies (NBFC) for implementation of Ind AS converged with IFRS. The Ind AS shall be applicable to companies as follows: 1) 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; Voluntarily, however, once followed, then irrevocable 2) For the following Companies Ind - AS applicable from FY 01/04/2016 i.e. FY 2016-17 (mandatory) 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 subrule (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 3) For the following Companies Ind - AS applicable from FY 01/04/2017 i.e. FY 2017-18 (mandatory) 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 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;
Important Note – Preparing for IFRS?
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Not yet, it will be implemented in phases.. As of now the companies with turnover above rs 1000 crore will have to implement IFRS by 1/4/2015 and companies with turnover between 500-1000 crore will have to do it by 1/4/2016. For any video classes, text books and scanners you can visit India's best website www.cakart.in for availing 6% discount use my coupon cide :CAKARTAMB1671782
Dear Preetham, in India IFRS conversion version i.e. IND-AS is going to applicable. The road map on its applicability was issued by the MCA and such roadmap is also approved by the ministry. as per such road map IND-AS is applicable for big corporate from 01/04/2016 along with comparative financial statement of 31/03/2016 i.e. efecitive from 01/04/2015 and for others 1 year extension provision are there. Any other query feel free to contact us Writer CA Chitranjan Agarwal