IFRS-government-india-global-accountingThe government has issued the road-map for implementation of globally accepted accounting standards (Ind AS) for commercial banks, insurance companies and non banking financial companies. The new accounting standards that India would be moving to have been converged with International financial reporting standards (IFRS),

All scheduled commercial banks, term-lending refinancing institutions such as Exim Bank, NABARD, NHB and SIDBI and Insurance companies would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018 with comparatives for the periods ending March 31, 2018. The new accounting standards have been finalised by the ministry of corporate affairs in consultation with RBI, IRDA and PFRDA.

“Ind AS would be applicable to both consolidated and individual financial statements. The holding, subsidiary, joint venture or associate companies of banks and insurance companies would also be required to prepare Ind AS based financial statements,” government said in a statement.

Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) will not be required to apply Ind AS and will continue to comply with the existing Accounting Standards, for the time being.

NBFCs along with their associate companies will be required to prepare Ind AS based financial statements in two phases.

Under Phase I, NBFCs with net worth of Rs 500 crore and above would be required to prepare Ind AS based financial statements for accounting periods beginning from April 1, 2018. Under Phase II, NBFCs having net worth of Rs.250 crore or more will have to move to Ind AS by April 2019.

NBFCs with networth below than Rs 250 crore will continue to apply current accounting standards.