The document discusses the applicability and requirements of IND AS 19 in India. It states that certain large companies must adopt IND AS 19 for financial reporting starting in 2016. Exemptions are provided for insurance, banking, and non-banking financial companies. The standards aim to increase transparency and comparability of financial statements. Companies must provide disclosures on plan characteristics and risks, amounts in financial statements, and future cash flow uncertainty.

1. Presentation on
IND AS 19
BY N. SRINIVASAN
CONSULTING ACTUARY
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2. Purpose
• As per Notification of MCA date 16th February 2015, MCA have given
roadmap for applicability of Ind AS 19 to various companies.
• These standards are prepared in line with International Financial
Reporting Standards (IFRS).
• This increase the transparency and comparability in financial
statements of various companies.
• In a nutshell, IND AS Schemes are modified versions of IFRS/IAS
with some changes to suit the Indian Economic Scenarios.
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3. Applicability
• A net worth based road map for the phased implementation of IND
AS 19 has been announced by the Ministry of Corporate Affairs
(MCA), for the following class of companies:
o Listed Companies with Net worth exceeding than 500 Crores
o Unlisted Companies with Net worth more than 250 Crores
• Adoption of IND AS 19 is mandatory from 01-04-2016.
• Applicability for apply to holding, subsidiary, joint venture or
associate companies also
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4. IND AS 19 Not Applicable To
• These companies are not required to be complaint with
IND AS 19,
o Securities listed companies
o Companies in the process of being listed as Small & Medium Sized
Companies (SME)
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5. Exemptions
• Following companies shall not be required to apply IND AS for
preparation for financial statements either voluntarily or
mandatorily:
o Insurance Companies
o Banking Companies
o Non-banking Finance Companies
• Companies to which Ind AS is not applicable should follow
Accounting Standards specified in Annexure to “Companies
(Accounting Standards) Rules”, 2006.
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6. Disclosures under Ind AS 19
Characteristics of Plan
and associated risks
Three kinds of disclosures
Explain amounts
arising in financial
statements
Amount, timing and
uncertainty of future
cash flows

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14. Characteristics of Plan and Associated Risks
• Entities are required to disclose information about
detailed benefits plan including
– The nature of the benefits provided by the plan.
– A description of the regulatory framework in which the plan
operates, and any effect of the regulatory framework on plan.
– A description of any other entity’s responsibilities for the
governance of the plan.
• Shall also disclose a description of the risks exposed to
the entity by the plan (including un-usual entity specific
or plan specific risks)
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16. Methodology
• Benefits under the plan are attributed to years of service,
taking into consideration
– Future salary increase and
– The plan’s benefit allocation formula.
• Benefit obligation is the total present value of the
individual’s attributed benefits for valuation purposes at
the measurement date.
• Service cost is the total present value of the individual’s
benefits attributable to service during the year
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17. Thank You
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