India committed to G20 to adopt IFRS from 2011, opting for convergence of accounting standards rather than full adoption, leading to the introduction of 39 Ind AS by the MCA in 2015. Ind AS are designed to align Indian financial reporting with international standards while allowing for specific deviations known as carve outs. The implementation dates for various classes of companies were specified, beginning April 1, 2016, with ongoing enhancements to the reporting framework.

2. India made a commitment to
the G20 to follow IFRS from
2011
Accordingly, core group was
formed by MCA consisting of
people from MCA, Industry,
ICAI and other regulators.
Core Group concluded that
convergence is a better
option than adoption
35 Converged Standards
called as Ind-AS were issued
by MCA in February 25, 2011
to become effective from
April 2011.
Implementation was deferred
due to unknown reasons.
Ind AS gained momentum
again after Mr Arun Jaitley
announced intention to move
to Ind AS in his budget speech
in July 2014.
NACAS was reconstituted in
September 2014.
39 Ind-AS, revised, where
required, were notified by
MCA on February 16,2015 for
implementation.
India specific carve outs have
been made to address specific
concerns.
INDIAN APPROACH TO MOVE TO IFRS

3. An overview of the Indian Accounting Standards (Ind AS)
Indian Accounting Standard or the Ind AS is a thoughtful step of the MCA along with the Institute of
Chartered Accountants of India in the improvement and betterment of the reporting framework under the
Indian GAAP.
It not only endeavors to better the reporting framework but also align the financial statements presented in
India to the best international practices.
Accordingly, India has chosen the path of IFRS convergence rather than adoption. Accordingly, certain
differences have remained between the IFRS as issued by the IASB and our Ind AS which are known as
carve outs.

4. Convergence means changing the existing Indian accounting standards
to bring them in line with the principles of IFRS.
Convergence leaves a scope for making country specific departures
Some EU countries, Cyprus, Hong Kong, etc. have also made certain
departures/exceptions to IFRS as issued by IASB.
CONVERGENCE-A BETTER OPTION THAN ADOPTION

5. Roadmap and Implementation of Ind AS
The applicability of Ind AS as per the MCA notification dated 16th February, 2015 is tabulated below:
Note: Any company presenting the financials as per the Ind AS shall also present the comparatives in
accordance with the Ind AS.
Phase Date of
applicability
Class of companies (fulfilling either of the criteria)
I On or after 1st
April, 2016
Listed or unlisted companies with a net worth >= Rs 500 cr and holding,
subsidiary, joint venture or associate companies of such companies.
II On or after 1st
April, 2017
• All listed companies with a net worth of less than Rs 500 cr or
• Unlisted companies with a net worth of >=Rs. 250 cr and <500 cr.
and holding, subsidiary, joint venture or associate companies of such
companies.
Listed companies also includes companies in the process of listing.
Further, any other company may, voluntarily, apply these Accounting Standards in preparation of their
financial statements for the period ended 31st March, 2015 and onwards.

6. Applicability of Ind AS in special cases
Overseas Subsidiary, Associate, Joint Venture and Other Similar Entities of an Indian Company
They may prepare their standalone financial statements in accordance with the requirements of the specific
jurisdiction. However, the Consolidated Financial Statements of the Indian company shall be prepared in
accordance with the Ind AS only as applicable to the company.
Insurance Companies, Banking Companies and Non-Banking Finance Companies
As of now, these companies cannot apply these notified Ind AS in preparation of their Financial Statements
as on date.

7. OtherFeatures
• Better
comparison
of investment
options
• Ease in
implementing
cross border
transactions.

8. Indian
Accounting
Standards
Accounting
Standards
Now follows a comparative list of Ind AS and the Accounting Standards

9. Ind AS Accounting Standards
Ind AS 101 : First-time Adoption of Indian Accounting
Standards No corresponding AS
Ind AS 102 : Share-based Payment
No corresponding AS but, GN on accounting for
employee Share-based Payment
Ind AS 103 : Business Combinations AS 14 : Accounting for amalgamations
Ind AS 104 : Insurance Contracts No corresponding AS
Ind AS 105 : Non-current Assets Held for Sale and
Discontinued Operations AS 24 : Discontinuing Operations
Ind AS 106 : Exploration for and Evaluation of Mineral
Resources
No corresponding AS but, GN on accounting for oil and
gas producing companies
Ind AS 107 : Financial Instruments: Disclosures AS 32 : Financial Instruments: Disclosures
Ind AS 108 : Operating Segments AS 17 : Segment reporting
Ind AS 109 : Financial Instruments
AS 13 : Accounting for investments
AS 30 : Financial Instruments: Recognition and
Measurement
Ind AS 110 : Consolidated Financial Statements AS 21 : Consolidated Financial Statements
Ind AS 111 : Joint Arrangements
AS 27 : Financial Reporting of Interests in Joint
Ventures
Ind AS 112 : Disclosure of Interests in Other Entities No corresponding AS
Ind AS 113 : Fair Value Measurement No corresponding AS
Ind AS 114 : Regulatory Deferral Accounts No corresponding AS
Ind AS 115 : Revenue from Contracts with Customers
AS 9 : Revenue Recognition
AS 7 : Construction Contracts
GN on accounting for Real Estate transactions

10. Ind AS Accounting Standards
Ind AS 1 : Presentation of Financial Statements
AS 1 : Disclosure of accounting policies
AS 5 : Net P/L, PPI and Change in estimates
Ind AS 2 : Inventories AS 2 : Valuation of Inventories
Ind AS 7 : Statement of Cash Flows AS 3 : CFS
Ind AS 8 : Accounting Policies, Changes in Accounting
Estimates and Errors AS 5 : Net P/L, PPI and Change in estimates
Ind AS 10 : Events after the Reporting Period
AS 4 : Contingencies and events occurring
after balance sheet date
Ind AS 12 : Income Taxes AS 22 : Accounting for income Taxes
Ind AS 16 : Property, Plant and Equipment
AS 6 : Depreciation
AS 10 : Accounting for fixed assets
Ind AS 17 : Leases AS 19 : Leases
Ind AS 19 : Employee Benefits AS 15 : Employee Benefits
Ind AS 20 : Accounting for Government Grants and
Disclosure of Government Assistance AS 12 : Accounting for government grants
Ind AS 21 : The Effects of Changes in Foreign Exchange
Rates
AS 11 : The Effects of Changes in Foreign Exchange
Rates
Ind AS 23 : Borrowing Costs AS 16 : Borrowing Costs
Ind AS 24 : Related Party Disclosures AS 18 : Related Party Disclosures
Ind AS 27 : Separate Financial Statements AS 21 : Consolidated Financial Statements
Ind AS 28 : Investments in Associates and Joint
Ventures
AS 23 : Accounting for Investments in Associates in
Conso Fin Statements

11. Ind AS Accounting Standards
Ind AS 29 : Financial Reporting in Hyperinflationary
Economies No corresponding AS
Ind AS 32 : Financial Instruments: Presentation AS 31 : Financial Instruments: Presentation
Ind AS 33 : Earnings per Share AS 20 : Earnings per Share
Ind AS 34 : Interim Financial Reporting AS 25 : Interim Financial Reporting
Ind AS 36 : Impairment of Assets
AS 28 : Impairment of Assets
AS 26 : Intangible Assets
Ind AS 37 : Provisions, Contingent Liabilities and
Contingent Assets
AS 29 : Provisions, Contingent Liabilities and
Contingent Assets
Ind AS 38 : Intangible Assets AS 26 : Intangible Assets
Ind AS 40 : Investment Property AS 13 : Accounting for investments
Ind AS 41 : Agriculture No corresponding AS

12. Complete set of financial statements
Balance Sheet
Statement of profit
and loss
Statement of
changes in equity
Cash Flow
Statement
Notes
Profit or Loss Section
Other Comprehensive
Income
1. Each component shall include comparative information for atleast 1 preceding period.
2. Specific disclosures to be made have also been prescribed which have been covered later in this section.
3. Frequency of reporting has also been prescribed for the first time as a minimum of an annual period with departure being allowed under
exceptional circumstances with the fact being disclosed.
GeneralFeatures
•True and fair view
•Based on fundamental
accounting assumption
of:
•Going Concern
•Accrual Basis
•Consistent
•Materiality
•Frequent
•Comparable
For an exposure draft or model set of Ind AS
financials, drop an email on the id given in the end.

13. Consolidation
Financial
Instruments
Business
Acquisition
Revenue
Recognition
Taxes
Key Areas of Impact

14. Ind AS, as you could make from the introduction, is
quiet vast and you need to stay tuned for further
coverage and related aspects on the Ind AS.
But in the meantime, I bet you’ve got good amount of
piece on Ind AS (if not plenty) to stick to.
Stay tuned for more.
Till then, Happy Reading to you !!
READ, LIKE AND SHARE!!!!
Prepared by: Nitish Aggarwal
e-mail: nitishaggarwal7@gmail.com