Ind AS – Standard for financial reporting in India

The Indian financial reporting process is about to revolutionize thanks to the new Ind AS standard. The Indian Accounting Standards (Ind AS) are a set of accounting principles and standards developed by (ICAI) the Institute of Chartered Accountants of India to bring Indian accounting practices in line with global standards.

This new standard is anticipated to create more transparency in financial reporting, improve the comparability of financial statements, and give investors a better understanding of corporate performance. This blog post will look closely at Ind AS, how it will be implemented, and the potential implications for Indian businesses.

What is Ind AS?

Ind AS ?is a set of accounting standards prescribed by the Ministry of Corporate Affairs in India. It was designed to harmonize Indian financial reporting standards with those of other nations and follows the IFRS (International Financial Reporting Standards). Ind AS is intended to provide a single set of high-quality accounting standards to ensure greater transparency and accuracy in financial reporting.

Who needs to comply with Ind AS?

Ind AS is applicable for all companies listed or in the process of recording their securities, as well as any non-governmental companies with a net worth of Rs. 500 crores or more. Banks and insurance companies must comply with Ind AS, and all these organizations must follow the new financial reporting standard. (Read also:?Financial planning & analysis: Meaning and its benefits )

The benefits of complying with Ind AS

Ind AS brings several benefits to companies in India. Companies can improve their financial reporting processes by complying with the new standard, gaining access to new capital markets, and increasing investor confidence. Moreover, compliance with Ind AS will help Indian businesses become more competitive globally.

The key provisions of Ind AS

Ind AS is a set of accounting standards applicable to all companies listed on Indian stock exchanges. These standards aim to make the financial reporting process in India more transparent and improve its consistency with international standards. Critical provisions of Ind AS include recognition of revenue, asset and liability recognition, measurement of profits and losses, disclosure requirements, and presentation of financial statements.

The timeline for implementing Ind AS

India has adopted Ind AS since April 1, 2016. It is the new standard for financial reporting in the country and will replace the existing Indian GAAP (Generally Accepted Accounting Principles).

All companies listed on the National Stock Exchange and BSE must comply with Ind AS?from April 1, 2018. A company’s net worth must be greater than Rs 500 crore mandated to implement Ind AS?from April 1, 2017. Smaller companies are given an additional year to comply with the new standard.

This content is meant for information only and should not be considered as advice, legal opinion, or otherwise.?AKGVG & Associates ?does not intend to advertise its services through this.