Applicability – Companies

• Currently, it is mandatory for the following types of companies to follow the Indian Accounting Standards:
  • 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
  • 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

• It is mandatory for NBFCs falling within the categories mentioned below to follow the Indian Accounting Standards:
  • NBFCs 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
• 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

The date of implementation of Ind AS by insurance companies has not yet been notified.