Financial Reporting & Audit Requirements

Applicability - Companies

  • On a voluntary basis, for financial statements for accounting periods beginning on or after 1 April 2015 with the comparatives for the period ending 31 March 2015 or thereafter.
  • On a mandatory basis, for accounting periods beginning on or after 1 April 2016 with the comparatives for the period ending 31 March 2016 or thereafter, for companies with a net worth of INR 5 billion or more and holding, subsidiary, joint ventures or associates of such companies.
  • On a mandatory basis, for accounting periods beginning on or after 1 April 2017 with the comparatives for the period ending 31 March 2017 or thereafter for:
    • Listed companies (irrespective of net worth)
    • Unlisted companies with a net worth of INR 2.5 billion or more
    • Companies whose equity and/or debt security are in the process of being listed with a net worth of less than INR 5 billion
    • Holding, subsidiary, joint ventures or associates of the companies mentioned above

However, companies that are listed or in the process of being listed on Small and Medium Enterprise (SME) exchanges shall not be required to apply Ind AS.

Once a company opts to follow Ind AS, it shall be required to follow these standards for all subsequent financial statements

Companies not covered by the above criteria shall continue to apply existing accounting standards prescribed in the annexure to the Companies (Accounting Standards) Rules, 2006.

Applicability- NBFCs

  • 1 April 2018 onwards
    • NBFCs with net worth >INR 5 billion
    • Holding/subsidiary/joint venture/associate companies of the above mentioned NBFCs. If such companies were covered by the corporate roadmap, they would have to follow the timeline specified in the corporate roadmap
  • 1 April 2019 onwards
    • NBFCs having a net worth < INR 5 billion and whose equity and/or debt securities are in the process of listing or are listed on any stock exchange in India or outside India
    • Unlisted NBFCs having a net worth > INR 2.5 billion but net worth < INR 5 billion.
  • Holding/subsidiary/joint venture/associate companies of the above mentioned NBFCs. If such companies were covered by the corporate roadmap, they would have to follow the timeline specified in the corporate roadmap.

Applicability - Banks

  • The Reserve Bank of India (RBI) has decided to defer the implementation of Ind AS until further notice.

Applicability - Insurance companies

Insurance companies must comply with Ind AS for financial statements for accounting periods beginning from 1 April 2018, onwards, with comparatives for the periods ending 31 March 2018.

  • The IRDA deferred the implementation of Ind AS in the insurance sector in India for a period of two years Accordingly, Ind AS for Indian insurance companies would be applicable from 1 April 2020 (instead of 1 April 2018).
Get in Touch
Mayank Lakhani
Senior Managing Director Assurance Advisory,
Greenfield, Indirect Tax and GCC Region Corporate Services

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