In 2015, the Ministry of Corporate Affairs has issued a notification stating a roadmap for implementation of IND-AS converged with IFRS. IND-AS are required to be adopted in a phased manner for the financial year beginning on or after 1 April 2016 with comparatives for the year ending 31 March 2016 for a certain class of companies.

Accordingly, the following companies are required to adopt Indian Version of International Financial Reporting Standards,(IFRS ) i.e. IND AS :

For The Accounting Period Beginning On or After 1 April 2016 (Phase 1)

The following companies will have to adopt IND-AS for financial statements from the above-mentioned date: –

· Unlisted companies having a net worth of Rs. 500 crores or more.

· Holding, subsidiary, joint venture or associate companies of the listed and unlisted companies covered above.

· Comparative for these financial statements will be periods ending 31 March 2016 or thereafter.

· Companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India (listed companies) and having a net worth of Rs. 500 crores or more.

For The Accounting Period Beginning On or After 1 April 2017 (Phase 2)

The following companies will have to adopt IND-AS for financial statements from the above-mentioned date: –

· Listed companies having a net worth of less than Rs. 500 crore.

· Unlisted companies having a net worth of Rs. 250 crore or more but less than Rs. 500 crore.

· Holding, subsidiary, joint venture or associate companies of the listed and unlisted companies covered above.

Comparative for these financial statements will be periods ending 31 March 2017 or thereafter.

Once a company starts following IND-AS mandatorily on the basis of criteria specified above, it will be required to follow the IND-AS for all the subsequent financial statements even if any of the criteria specified do not subsequently apply to it. Companies to which IND-AS are applicable should prepare their first set of financial statements in accordance with the IND-AS effective at the end of its first IND-AS reporting period i.e. companies preparing financial statements applying the IND-AS for the accounting period beginning on 1 April 2016 should apply the IND-AS effective for the financial year ending as on 31 March 2017.

Voluntary adoption: Companies may voluntarily adopt IND-AS for financial statements for accounting periods beginning on or after 1 April 2015, with the comparatives for the periods ending on 31 March 2015 or thereafter. Once a company opts to follow IND-AS, it will be required to follow the IND-AS for all the subsequent financial statements (the option is irrevocable). Once the option to voluntarily follow IND-AS is adopted, companies will not be required to prepare another set of financial statements in accordance with Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006.

Non-applicability – The road map will not be applicable to –

· Companies whose securities are listed or in the process of listing on SME exchanges as referred to in Chapter XB or on the Institutional Trading Platform without initial public offering in accordance with the provisions of Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

· Companies not covered by the road map in the “Mandatory adoption” categories above.

These companies should continue to apply existing Accounting Standards prescribed in the Annexure to the Companies (Accounting Standards) Rules, 2006 unless they opt for voluntary adoption.

Considering the MCA notification of the applicability of IND-AS in India, many companies are getting ready for their existing financial reporting policies and practices. Further, multi-national companies are subject to group reporting requirements to report their financial statements in several GAAPs namely IFRS/ US GAAP/ UK GAAP. Such multiple reporting requirements requires robust knowledge of various GAAPs and leads to resource constraints in the finance function.

For such companies, we provide the following services –

· Impact assessment, highlighting the differences between Indian GAAP and Ind AS/ IFRS/ US GAAP.

· Assistance in the implementation of accounting differences.

· Preparation of full-fledged IFRS/ Ind AS compliant financial statements.

· Training to the staff of the Company and preparing the first set of IFRS/Ind AS financial statements.

· Consolidation of Financial Statements under I-GAAPs / IND-AS /IFRS.

· Peer review audit certification and restatement of financial statements for Companies going for Initial Public Offering (IPO).