1. APPLICABILITY OF INDIAN ACCOUNTING STANDARDS
The Accounting Standard Board (ASB), a committee of the ICAI is responsible for the formulation of accountingstandards in India. First, the ASB prepares a preliminary draft of the standard in the identified area. Then this
preliminary draft is circulated to all concerned authorities, like the Department of Company Affairs (DCA), the SEBI,the CBDT, Standing Conference of Public Enterprises (SCPE), Comptroller and Auditor General of India etc. Then it
is finalized as exposure draft and presented to the public for their review and comments. After due considerationof the comments, the final draft is prepared and brought under review of the Council of ICAI. Finally, the Central
Government of India issues Indian Accounting Standards in consultation with the National Advisory Committee onAccounting Standards (NACAS). National Advisory Committee on Accounting Standards (NACAS) recommends
the standards to the Ministry of Corporate Affairs. Ministry of Corporate Affairs (MCA) makes Ind AS applicable onthe companies in India. In 2006, ICAI initiated the process of shifting towards the International Financial Reporting
Standards (IFRS). Indian AS (Ind AS) are IFRS converged standards. They are named and numbered in the sameway as their corresponding IFRS.
Ind AS has become applicable in following phases
The Companies (Indian Accounting Standards) Rules, 2015 (and subsequent amendments to the Rules) made
Ind AS applicable to the companies as specified below, leaving AS [as per the Companies (Indian Accounting
Standards) Rules, 2006] applicable to other companies.
A. On and with effect from1st April 2016 till 31st March 2017— Mandatory Basis
(a) Companies listed/ in the process of listing on Stock Exchanges in India or Outside India having net worth of
more than INR 5 Billion
(b) Unlisted Companies having net worth of more than INR 5 Billion
(c) Parent, Subsidiary, Associate and Joint Venture of above
B. On and with effect from 1st April 2017— Mandatory Basis
(a) All companies which are listed/ or in the process of listing inside or outside India on Stock Exchanges not
covered in Phase One (other than companies listed on SME Exchanges)
(b) Unlisted companies having net worth more than 2.5 Billion
(c) Parent, Subsidiary, Associate and Joint Venture of above
C. On and with effect from 1st April 2018 till 31st March 2019 — Mandatory Basis
(a) NBFCs having a net worth of `500 crore or more
(b) Holding, subsidiary, joint venture or associate companies of the above, other than those companies already
covered under the corporate roadmap announced by MCA
D. On and with effect from1st April 2019 — Mandatory Basis
(a) NBFCs whose equity and/or debt securities are listed or are in the process of listing on any stock exchange in
India or outside India
(b) NBFCs that are unlisted companies, having a net worth of `250 crore or more
(c) Holding, subsidiary, joint venture or associate companies of the above, other than those companies already
covered under the corporate roadmap announced by MCA
E. On 1st April 2019 - Mandatory Basis — (as postponed by RBI)
(a) Scheduled commercial Banks , excluding RRBs
(b) India term-lending refinancing institution i.e. Exim bank, NABARD etc.
(c) Holding, subsidiary, joint venture or associate companies of scheduled commercial banks
F. On 1st April 2020 — Mandatory Basis — (as postponed by IRDA)
(a) Insurers/insurance companies
(b) Holding, subsidiary, joint venture or associate companies of the above, other than those companies already
covered under the corporate roadmap announced by MCA
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