2. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
Our Understanding of Ind AS
The MCA through notification dated 16 February 2015 has issued the Companies
(Indian Accounting Standards) Rules, 2015 (Rules) which lay down a roadmap for
companies other than insurance companies, banking companies and non-
banking finance companies (NBFC) for implementation of Ind AS converged with
IFRS.
Background
Phase I
Ind AS will be mandatorily applicable to
the following companies for periods
beginning on or after 1 April 2016, with
comparatives for the period ending 31
March 2016 or thereafter;
• Companies whose equity and/or
debt securities are listed or are in the
process of listing on any stock
exchange in India or outside India
and having net worth of 500 Crore
INR or more;
• Companies having net worth of 500
Crore INR or more other than those
covered above; and
• Holding, subsidiary, joint venture or
associate companies of companies
covered above.
Companies can voluntarily adopt Ind AS for accounting periods beginning on or
after 1 April 2015 with comparatives for period ending 31 March 2015 or
thereafter. However, once they have chosen this path, they cannot switch back.
Voluntary Adoption
Mandatory Adoption
3. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
Timelines
Phase II
Ind AS will be mandatorily applicable to
the following companies for periods
beginning on or after 1 April 2017, with
comparatives for the period ending 31
March 2017 or thereafter:
• Companies whose equity and/or debt
securities are listed or are in the
process of being listed on any stock
exchange in India or outside India
and
having net worth of less than rupees
500 Crore.
• Unlisted companies other than those
covered in Phase I and Phase II
whose net worth are more than 250
crore INR but less than 500 crore INR.
• Holding, subsidiary, joint venture or
associate companies of above
companies.
Our Understanding of Ind AS
Phase
First Ind AS Compliant
Financials as on
Comparative Figures
for
Opening Balance Sheet
Dated
I 31st March, 2017 31st March, 2016 1st April, 2015
II 31st March, 2018 31st March, 2017 1st April, 2016
Time lines for implementing Ind AS and generating Ind AS compliant Financials are
as below:
The date of Opening Balance Sheet is the date of conversion to Ind AS.
Reconciliations to equity and profits will be needed to be provided to explain the
transition to Ind AS.
Listed companies would need to present their Interim Financial Reports also as per
Ind AS. Hence, the first Ind AS compliant financial statements for such Companies
would be the results for the quarter ended 30th June 2016/17 with appropriate
comparatives.
4. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
A typical Ind-AS implementation
exercise would involve:
1. Identifying the significant areas
that a conversion to Ind AS would
involve.
2. Preparation of the Ind AS
Opening Balance Sheet as on 1st
April 2015/16 along with
reconciliations to profits and
equity.
3. Understanding the mandatory
and optional exemptions
provided in Ind AS 101 and
assessing the impact of the same.
4. Mapping the differences between
Indian GAAP and Ind AS which
would impact the preparation of
5. the financial statements of The
Company for the year ended 31st
March, 2017/18 along with
comparatives for the year ended
31st March 2016/17.
6. Coordinating with the ERP team
to decide the changes in the ERP
package that would be needed
once Ind AS is implemented.
7. Valuation of assets and financial
instruments to comply with
disclosure and provisioning
norms.
8. Formulation and preparation of
the disclosures needed by Ind AS
standards and preparation of the
Ind AS Accounts Manual.
Implementation
5. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
Ind-AS implementation will change
the way Companies prepare their
Financial Statements. With major
changes in definitions (Holding-
Subsidiary relation) and disclosure
norms (increased disclosures on part
of the management), there would be
a sea change in the way Financial
Statements are finalized in
companies.
With timelines closing in, companies
need to assess the impact of the
implementation of Ind-AS and
prepare themselves to ensure a
smooth transition.
Summing Up
We help our clients understand the
nature and extent of impact Ind-As
would have on their financials. We
assist them in preparation of the
Opening Balance Sheet and later
support them for a hassle free
transition into the Ind-AS regime.
Our team consists of Experts in the
Ind-AS area who have great
experience in implementation and
first time adoption of Ind-AS. With
their experience and guidance, we
help our clients to prepare Ind-AS
compliant financial statements in
time with maximum accuracy.
How Can We Help
6. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
Founded in the year 1954, P. G. Joshi & Co. is a professionally managed Chartered
Accountancy Firm headquartered at Nagpur. It has a strong presence in the
western region of India.
With collaborations with subject matter experts who are acknowledged at a
National level, we have strengthened and widened the services offered by us. Our
partners include CA Mohan Lavi, who has authored books on IFRS, Ind AS & SOX
Compliance published in India & the UK. He has been working in the area of Ind-AS
for the past 5 years.
We strongly believe in
• Upholding ethical codes in all our
practices
• Professionalism
• Working in accordance with the
professional standards
• Honesty with clients & dedication to
work
• Maintaining & respecting clients'
confidentiality
About P. G. Joshi & Co.
7. Ind AS Implementation – An OverviewP. G. Joshi & Co., Chartered Accountants
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P. G. Joshi & Co. disclaims all responsibility and accepts no liability for the
consequences of any person acting or refraining from acting on the basis of such
information.
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