The Hon'ble Finance Minister in the presentation of the Union Budget for 2014-15, proposed the adoption of Indian Accounting Standards (Ind AS) that are converged with International Financial Reporting Standards (IFRS).
In view of this, India will now have two sets of Accounting Standards (AS) viz. Existing Accounting Standards under Companies (Accounting Standard) Rules, 2006 and Ind AS under Companies (Indian Accounting Standard Rules), 2015.
Ministry of Corporate Affairs (MCA) has issued two notifications containing the roadmaps for implementation of Ind AS to the following: Companies other than the Banking, Insurance and Non-Banking Finance Companies; and Scheduled commercial banks (excluding RRBs), insurers/insurance companies and Non-Banking Financial Companies (NBFC’s)
As on date, MCA has notified 39 Ind AS under the Companies (Indian Accounting Standards) Rules, 2015. These shall be applicable to the companies from Financial Year (FY) 2015-16 on a voluntary basis and from FY 2016-17 on mandatory basis, along with necessary comparatives.
These reporting standards are contemporary and virtually at par with leading global standards. They will in turn improve India's place in global rankings on corporate governance and transparency in financial reporting.