Ind As Implementation Roadmap | Phase 1 Explained Simply | Ind As Simplified | Professionals

Ind AS Roadmap – Phase 1 Explained What does the roadmap for Ind AS implementation in India look like? How was it planned? At the outset, it was decided that banks, NBFCs, and insurance companies would not be covered immediately. Their implementation was scheduled for a later stage. So initially, the focus was on corporate entities other than these sectors. To understand the full roadmap, we divide it into four parts: Companies (other than banks, NBFCs, insurance) NBFCs Banks Insurance companies Let’s begin with companies. Applicability – Phase 1 (From 1 April 2016) Keep one thing very clear: Indian Accounting Standards (Ind AS) applies only to corporates. Phase 1 started from 1st April 2016. It was mandated that: All listed companies with net worth ≥ ₹500 crore, and All unlisted companies with net worth ≥ ₹500 crore must prepare their financial statements in compliance with Ind AS. Important Clarification Net worth refers to equity / shareholders’ funds, not turnover. Financial statements for 2016–17 must be Ind AS compliant. Comparatives for 2015–16 must also be restated as per Ind AS. Group Applicability Once a company becomes Ind AS compliant: Its holding company Subsidiaries Associates Joint ventures (JVs) also become mandatorily covered under Ind AS. Simple Summary The concept is straightforward: Any company—listed or unlisted—with net worth of ₹500 crore or more had to adopt Ind AS from 1 April 2016, along with its entire group structure. #IndianAccountingStandards #Phase1 #AccountingRoadmap #CorporateAccounting #NetWorth500Crore #ListedCompanies #UnlistedCompanies #FinancialStatements #FinanceIndia