IND AS: India's Accounting Standards Converged with the IFRS - (IND AS Adoption and Applicability for Indian Companies)

India made a commitment towards the convergence of Indian accounting standards with IFRS at theG20 summit in 2009. In line with this, the Ministry of Corporate Affairs, Government of India (MCA)previously issued a roadmap for implementation of Indian Accounting Standards (Ind AS) convergedwith International Financial Reporting Standards (IFRS) beginning April 2011. However, this planwas suspended due to unresolved tax and other issues.In the presentation of the Union Budget 2014'“15, the Honorable Minister for Finance, CorporateAffairs and Information and Broadcasting proposed the adoption of Ind AS. The Minister clarifiedthat the respective regulators will separately notify the date of implementation for banks andinsurance companies. Also, standards for tax computation would be notified separately. Inaccordance with the Budget statement, the MCA has notified Company (Indian AccountingStandard) Rules 2015 vide its G.S.R dated 16 February 2015. Accordingly, it has notified 39 Ind ASand has laid down an Ind AS transition road map for companies other than banking companies,insurance companies and non- banking finance companies.Though the adoption of Ind AS could create certain complexities, in the long run, this major regulatory reform will help them catapult into the global league by having a financial reporting structure that is not only comparable with the best in the world but also more acceptable amongst global stakeholders thereby providing a more transparent view of their financial results. Overall, the MCA and the Institute of Chartered Accountants of India (ICAI) swiftly worked towards drafting the new accounting framework, this '˜mandate' is perceived as a step in the right direction and the industry is taking steps to keep pace with this landmark development. N. Sharadha | Prof. V. Manickavasagam"IND AS: India's Accounting Standards Converged with the IFRS - (IND AS Adoption and Applicability for Indian Companies)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-2 , February 2018, URL: http://www.ijtsrd.com/papers/ijtsrd9428.pdf http://www.ijtsrd.com/management/accounting-and-finance/9428/ind-as-india's-accounting-standards-converged-with-the-ifrs---ind-as-adoption-and-applicability-for-indian-companies/n-sharadha