MCA has issued Companies (Indian Accounting Standards) Rules, 2015 under the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956).
These Accounting Standards (Ind AS) that are inline with upcoming International Financial Reporting Standards, which will alter the way transactions get accounted in India.
During the first phase all companies, listed and unlisted, with net worth over of Rs 500 crore and their holding, subsidiary, joint venture or associate companies have to report under these standards for financial year, beginning April 1, 2016.
The second phase, from financial year 2017-18, covers the companies which have equity or debt securities listed Indian or International stock exchanges and have net worth under Rs 500 crore. It also includes other companies having net worth of rupees 250 crore but less than 500 crore and their holding, subsidiary, joint venture or associate companies.
Net worth will be measured as of March 31, 2014.
Firms can voluntarily follow these from April 1 this year itself.
Notably, companies that are listed or in the process of listing on SME platform or ITP platform are exempt. However, they may voluntarily adopt Ind AS
Riskpro is planning to conduct training on various topics please visit http://www.riskpro.in/training to find out more