Preparing for the new accounting norms, chartered accountants’ apex body ICAI has set up an expert group to address issues related to the implementation of Indian Accounting Standards.
Ind AS, that are converged with global accounting norms, will be compulsorily applicable on a certain class of corporates from April 1, 2016. Ind AS are converged with International Financial Reporting Standards (IFRS).
The Institute of Chartered Accountants of India (ICAI) has set up ‘Ind AS Transition Facilitation Group’.
ICAI President Manoj Fadnis said that the group, which is already functional, would address various issues related to Ind AS.
“Conceptual, interpretation and operational issues with respect to Ind AS implementation will be addressed by this group,” he noted.
The group would refer interpretation issues with regard to Ind ASs requiring issuance of guidance or educational material to the concerned board or committee of ICAI.
Besides, ICAI is in discussions with capital market regulator Sebi to sort out “certain specific issues” pertaining to Ind AS implementation by listed companies.
Fadnis said certain specific issues have arisen in terms of listed companies and those are being discussed by officials from the institute and Securities and Exchange Board of India (Sebi).
Companies with a networth of Rs 500 crore or more will have to mandatorily follow Ind AS from April 1, 2016.
Entities having a net worth of less than Rs 500 crore but are listed or in the process of getting listed will have to compulsorily follow the new norms from April 1, 2017.
The roadmap, announced by the Corporate Affairs Ministry last year, exempts banking, insurance and non-banking finance companies.
Ind AS would be mandatory for “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 networth of Rs 500 crore or more”, from April 1, 2016.
The deadline would be applicable for other entities having networth of Rs 500 crore or more. It would also apply to holding, subsidiary, joint venture or associate companies of these two class of entities.