The Ministry of Corporate Affairs (MCA) has ruled and published a road map for adoption of the Indian Accounting Standards (Ind AS), which are largely convergent with IFRS.
Ind AS will come into force on 1 April 2015 according to the ruling. And Companies with a net worth of INR 5bn or more will have to mandatorily follow Ind AS from 1 April 2016. Corporates having a net worth of less than INR 5bn but are listed, or in the process of getting listed, and companies with a net worth of INR 2.5bn or more will have to follow the new norms from 1 April 2017.
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However, the road map exempts banking, insurance and non-banking finance companies.
The MCA ruling comes a few weeks after the Ministry had announced plans to implement IFRS for all listed companies by 2016, with the exception of banks, insurers and shadow banking companies.
This echoed the call made in July 2014 by Minister Arun Jaitley, who proposed the mandatory adoption of Ind AS by financial year 2016-2017 and on a voluntary basis from April 2015.
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