ind as - an overview

Ind AS Implementation – An Overview

February, 2016

Ind AS Implementation – An Overview P. G. Joshi & Co., Chartered Accountants

Our Understanding of Ind AS

The MCA through notification dated 16 February 2015 has issued the Companies

(Indian Accounting Standards) Rules, 2015 (Rules) which lay down a roadmap for

companies other than insurance companies, banking companies and non-

banking finance companies (NBFC) for implementation of Ind AS converged with

IFRS.

Background

Phase I

Ind AS will be mandatorily applicable to

the following companies for periods

beginning on or after 1 April 2016, with

comparatives for the period ending 31

March 2016 or thereafter;

• 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 net worth of 500 Crore

INR or more;

• Companies having net worth of 500

Crore INR or more other than those

covered above; and

• Holding, subsidiary, joint venture or

associate companies of companies

covered above.

Companies can voluntarily adopt Ind AS for accounting periods beginning on or

after 1 April 2015 with comparatives for period ending 31 March 2015 or

thereafter. However, once they have chosen this path, they cannot switch back.

Voluntary Adoption

Mandatory Adoption


Timelines

Phase II

Ind AS will be mandatorily applicable to

the following companies for periods

beginning on or after 1 April 2017, with

comparatives for the period ending 31

March 2017 or thereafter:

• Companies whose equity and/or debt

securities are listed or are in the

process of being listed on any stock

exchange in India or outside India

and

having net worth of less than rupees

500 Crore.

• Unlisted companies other than those

covered in Phase I and Phase II

whose net worth are more than 250

crore INR but less than 500 crore INR.

• Holding, subsidiary, joint venture or

associate companies of above

companies.

Our Understanding of Ind AS

Phase First Ind AS Compliant

Financials as on Comparative Figures

for Opening Balance Sheet

Dated

I 31st March, 2017 31st March, 2016 1st April, 2015

II 31st March, 2018 31st March, 2017 1st April, 2016

Time lines for implementing Ind AS and generating Ind AS compliant Financials are

as below:

The date of Opening Balance Sheet is the date of conversion to Ind AS.

Reconciliations to equity and profits will be needed to be provided to explain the

transition to Ind AS.

Listed companies would need to present their Interim Financial Reports also as per

Ind AS. Hence, the first Ind AS compliant financial statements for such Companies

would be the results for the quarter ended 30th June 2016/17 with appropriate

comparatives.


A typical Ind-AS implementation

exercise would involve:

1. Identifying the significant areas

that a conversion to Ind AS would

involve.

2. Preparation of the Ind AS

Opening Balance Sheet as on 1st

April 2015/16 along with

reconciliations to profits and

equity.

3. Understanding the mandatory

and optional exemptions

provided in Ind AS 101 and

assessing the impact of the same.

4. Mapping the differences between

Indian GAAP and Ind AS which

would impact the preparation of

5. the financial statements of The

Company for the year ended 31st

March, 2017/18 along with

comparatives for the year ended

31st March 2016/17.

6. Coordinating with the ERP team

to decide the changes in the ERP

package that would be needed

once Ind AS is implemented.

7. Valuation of assets and financial

instruments to comply with

disclosure and provisioning

norms.

8. Formulation and preparation of

the disclosures needed by Ind AS

standards and preparation of the

Ind AS Accounts Manual.

Implementation


Ind-AS implementation will change

the way Companies prepare their

Financial Statements. With major

changes in definitions (Holding-

Subsidiary relation) and disclosure

norms (increased disclosures on part

of the management), there would be

a sea change in the way Financial

Statements are finalized in

companies.

With timelines closing in, companies

need to assess the impact of the

implementation of Ind-AS and

prepare themselves to ensure a

smooth transition.

Summing Up

We help our clients understand the

nature and extent of impact Ind-As

would have on their financials. We

assist them in preparation of the

Opening Balance Sheet and later

support them for a hassle free

transition into the Ind-AS regime.

Our team consists of Experts in the

Ind-AS area who have great

experience in implementation and

first time adoption of Ind-AS. With

their experience and guidance, we

help our clients to prepare Ind-AS

compliant financial statements in

time with maximum accuracy.

How Can We Help


Founded in the year 1954, P. G. Joshi & Co. is a professionally managed Chartered

Accountancy Firm headquartered at Nagpur. It has a strong presence in the

western region of India.

With collaborations with subject matter experts who are acknowledged at a

National level, we have strengthened and widened the services offered by us. Our

partners include CA Mohan Lavi, who has authored books on IFRS, Ind AS & SOX

Compliance published in India & the UK. He has been working in the area of Ind-AS

for the past 5 years.

We strongly believe in

• Upholding ethical codes in all our

practices

• Professionalism

• Working in accordance with the

professional standards

• Honesty with clients & dedication to

work

• Maintaining & respecting clients'

confidentiality

About P. G. Joshi & Co.


This document is intended for private circulation to the addressee only on specific request by him and is not meant for re-circulation. Any form of reproduction dissemination, copying, disclosure, modification, distribution and/or publication of this document is strictly prohibited. The document is not intended to be an advertisement or a solicitation. This document contains information in summary form and is therefore intended for general guidance only. The contents of this document are solely meant to inform the legal developments and is not a substitute for professional advice. Legal advice should be sought for based on the specific circumstances of each case before relying on the contents of this document or before taking any decision based on the information contained in this document. P. G. Joshi & Co. disclaims all responsibility and accepts no liability for the consequences of any person acting or refraining from acting on the basis of such information.

Our Offices

Reach us at

Nagpur Dhanwate Chambers,

Pt. Malviya Road, Sitabuldi, Nagpur - 400 012

[email protected] Tel : + 91 712 242 5309 / 254 7053

Fax: + 91 712 255 4619

Pune Flat No.6, Janhavi Apartments, CTS No. 40/22, Bhonde Colony,

Erandawane, Pune- 411 004 [email protected]

Tel-Fax: + 91 20 2542 4511

www.pgjco.com

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