Roadmap & Sch III 1.

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ADDM
MAAP
PTTO
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ASS &
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SCCH
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LEE IIIIII –
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VIIS
SIIO
ONN IIII

1. INTRODUCTION OF IND AS IN INDIA

 Ind-AS are IFRS converged standards issued by the CG of India under the supervision ASB

of ICAI and in consultation with NACAS (National Advisory Committee on Accounting

Standards).

 NACAS recommends these standards to MCA. MCA has to spell out the accounting

standards applicable for companies in India.

 The Ind AS are named and numbered in the same way as the corresponding IFRS (IFRS

includes IAS).

 MCA has issued the Companies (Indian Accounting Standards) Rules, 2015 vide Notification

dated February 16, 2015 covering the revised roadmap of implementation of Ind AS for

companies OTHER THAN Banking companies, Insurance Companies and NBFCs.

2. WHAT ARE CARVE OUTS/INS IN IND AS?

 Since IND AS are IFRS converged, therefore changes made to IND AS during convergence

are categorised into Carve-Ins & Carve-Outs

 CARVE INS

 Terminology changes made to make it consistent with the terminology used in law.

Eg: ‘Statement of profit and loss’ in place of ‘Statement of comprehensive income’ and

‘Balance sheet’ in place of ‘Statement of financial position’.

 Removal of options in accounting principles and practices given in Ind AS vis-a-vis IFRS.

 If there is no guidance under IFRS for any particular transaction or event, then the

guidance provided under Ind AS is known as “Carve-Ins”.

 CARVE OUTS

 Certain changes have been made considering the economic environment in India, which is

different as compared to the economic environment presumed to be in existence by IFRS.

These diffferences which are in deviation to the accounting principles and practices stated in

IFRS, are commonly known as ‘Carve-outs’

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 Roadmap & Sch III 1.2

3. APPLICABILITY & IMPLEMENTATION OF IND AS

FOR COMPANIES

OTHER THAN BANKS, NBFCs & INSURANCE COMPANIES

Voluntary Basis Mandatory Basis

1st April, 2015 Phase I Phase II

From 1st April, 2016 From 1st April, 2017

a) All listed/Unlisted a) All Listed Companies

Companies having Net b) Unlisted Companies having
Worth > 500 cr. Net Worth > 250 cr

NOTE:

i) Net worth in case of companies shall be checked from 31.03.14 & thereafter. The company

meeting the specified threshold for the first time at the end of any accounting year shall

apply IND AS from the immediate next accounting year with comparatives.

ii) IND AS once applicable, always applicable

iii) An entity covered under IND-AS as per above will make its Parent, Subsidiary, Associate &

Joint Venture also covered under IND AS

iv) Application of Ind AS is for both standalone as well as consolidated financial statements if

threshold criteria met or adopted voluntarily.

v) If Parent, Subsidiary, Associate & Joint Venture is Bank/Insurance/NBFC, them IND AS to

such companies is applicable from their respective date (i.e. Dates Applicable to

Banks/Insurance/NBFCs)

vi) Companies listed on SME exchange not required to apply IND AS

vii) Comparatives shall also be presented as per IND AS

viii) Companies not covered above shall continue to apply Accounting Standards (AS)

#FRwithAK CA Aakash Kandoi

 Roadmap & Sch III 1.3

FOR BANKING COMPANIES, INSURANCE COMPANIES & NBFCs

BANKING INSURANCE
NBFCs
COMPANIES COMPANIES

Phase I Phase II
Deferred the Deferred the
From 1st April, 2018 From 1st April, 2019
implementation implementation
until further until further
a) All Listed NBFCs
notice notice a) All listed/Unlisted
NBFCs having Net b) Unlisted NBFCs
Worth > 500 cr. having Net Worth >
250 cr

NOTE:

i) Net worth in case of NBFCs shall be checked from 31.03.16 & thereafter.

ii) Voluntary adoption of IND AS is not allowed in case of Banks, Insurance & NBFCs

iii) Urban Cooperative banks (UCBs) and Regional Rural banks (RRBs) are not required to apply

Ind AS.

iv) Holding, Subsidiary, JV and Associate companies of above Banks, Insurance, NBFC other

than those already covered under corporate roadmap shall also apply IND AS from said

date.

v) Comparatives shall also be presented as per IND AS.

 Net Worth = Paid up Share Capital + All Reserves created out of profits + Securities

Premium – Accumulated losses – Deferred Expenditure – Miscellaneous expenditure not

written off.

BUT Net worth DOES NOT include reserves created out of revaluation of assets, write back

of depreciation, Amalgamation Reserve.

#FRwithAK CA Aakash Kandoi

 Roadmap & Sch III 1.4

 Sch III & Div II - IND AS BASED FINANCIAL STATEMENTS

PART I -BALANCE SHEET

Particulars Note Figures as at Figures as at

No. the end of the end of the
current previous
reporting period reporting
period

1 2 3 4

ASSETS

(1) NON – CURRENT ASSETS

a) Property, Plant and Equipment
b) Capital work-in-progress
c) Investment Property
d) Goodwill
e) Other Intangible assets
f) Intangible assets under development
g) Biological Assets other than bearer plants
h) Financial Assets
i) Investments
ii) Trade receivables
iii) Loans
i) Deferred tax assets (net)
j) Other non-current assets

(2) Current assets

a) Inventories
b) Financial Assets
i) Investments
ii) Trade receivables
iii) Cash and cash equivalents
iv) Bank balances other than (iii) above
v) Loans
vi) Others (to be specified)
c) Current Tax Assets (Net)
d) Other current assets

#FRwithAK CA Aakash Kandoi

 Roadmap & Sch III 1.5

TOTAL ASSETS

EQUITY & LIABILITIES

EQUITY
a) Equity Share capital
b) Other Equity
LIABILITIES

(1) Non-current liabilities

a) Financial Liabilities
i) Borrowings
ii) Trade Payables
(A) total outstanding dues of micro
enterprises and small enterprises; and
(B) total outstanding dues of creditors
other than micro enterprises
iii) Other financial liabilities (other than those
specified in item (b), to be specified)
b) Provisions
c) Deferred tax liabilities (Net)
d) Other non-current liabilities

(2) Current liabilities

a) Financial Liabilities
ii) Borrowings
iii) Trade payables
(A) total outstanding dues of micro
enterprises and small enterprises; and
(B) total outstanding dues of creditors
other than micro enterprises
iv) Other financial liabilities (other than those
specified in item (c)
b) Other current liabilities
c) Provisions
d) Current Tax Liabilities (Net)
TOTAL EQUITY & LIABILITIES

STATEMENT OF CHANGES IN EQUITY

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 Roadmap & Sch III 1.6

A. Equity Share Capital

Balance at the beginning of the Changes in equity share Balance at the end of the
reporting period capital during the year reporting period

B. Other Equity

#FRwithAK CA Aakash Kandoi

 1.7
Roadmap & Sch III
Share Equity Reserve and Surplus Debt Equity Effective Revaluation Exchange Other items of Money Total
application component Capital Securities Other Retained Instrument Instrument portion of Surplus difference Other received
on money of Reserve Premium Reserve Earning through other through Other Cash Flow on Comprehensive against
pending compound (Specify Comprehensive Comprehensive Hedges translating Income (Specify share
allotment financial nature) Income Income the FS nature) capital
instrument
Balance at the
beginning of the
reporting period
Changes in
accounting policy or
prior period errors
Restated balance at
the beginning of the
reporting period
Total comprehensive
Income for the year
Dividends
Transfer to retained
earnings
Any other change
(to be specified)
Balance at the end
of the reporting
period

#FRwithAK CA Aakash Kandoi

 Roadmap & Sch III 1.8

PART II - STATEMENT OF PROFIT AND LOSS

Particulars Note Figures as at Figures for the

No. the end of previous
current reporting
reporting period period

I Revenue from operations

II Other Income
III Total Income (l + Il)
IV EXPENSES
Cost of materials consumed
Purchases of Stock-in-Trade
Changes in inventories of finished goods, Stock-in -
Trade and work-in-progress

Employee benefits expense

Finance costs
Depreciation and Amortization Expenses
Other expenses
Total expenses (lV)
V Profit/(loss) before exceptional items and tax (I-IV)
VI Exceptional Items
VII Profit/ (loss) before tax(V-VI)
VIII Tax expense:
1) Current tax
2) Deferred tax
IX Profit (Loss) for the period from continuing operations
(VlI - VlII)
X Profit (Loss) from dis-continued operations
XI Tax expenses of discontinued operations
XII Profit/(loss) from Discontinued operations (after tax)
(X-XI)
XIII Profit/(loss) for the period (IX+XII)
XIV OTHER COMPREHENSIVE INCOME
A.
i) Items that will not be reclassified to profit or loss

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 Roadmap & Sch III 1.9

ii) Income tax relating to items that will not be

reclassified to profit or loss
B.
i) Items that will be reclassified to profit or loss
ii) lncome tax relating to items that will be reclassified
to profit or loss
XV Total Comprehensive Income for the period (XIII+XIV)
(Comprising Profit (Loss) and Other comprehensive
Income for the period)
XVI Earnings per equity share (for continuing
operation):
(1) Basic
(2) Diluted
XVII Earnings per equity share (for discontinued
operation):
(1) Basic
(2) Diluted
XVIII Earning per equity share (for discontinued &
continuing operation)
(1) Basic
(2) Diluted

 OTHER COMPREHENSIVE INCOME SHALL BE CLASSIFIED INTO:

A. Items that will NOT be reclassified to profit or loss:

i) Changes in revaluation surplus;

ii) Re-measurements of the defined benefit plans;

iii) Equity Instruments through Other Comprehensive Income;

iv) Fair value changes relating to own credit risk of financial liabilities designated at fair value

through profit or loss;

v) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not

to be classified into profit or loss; and

vi) Others (specify nature).

B. Items that will be reclassified to profit or loss:

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 Roadmap & Sch III 1.10

i) Exchange differences in translating the financial statements of a foreign operation;

ii) Debt instruments through Other Comprehensive Income;

iii) The effective portion of gains and loss on hedging instruments in a cash flow hedge;

iv) Share of other comprehensive income in Associates and Joint Ventures, to the extent to be

classified into profit or loss; and

v) Others (specify nature)

 Depending upon the turnover of the company, the figures appearing in the Financial

Statements shall be rounded off as below:

Turnover Rounding off

(i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or

millions, or decimals thereof

(li) one hundred crore rupees or more To the nearest, lakhs, millions or crores, or

decimals thereof.

Once a unit of measurement is used, it should be used uniformly in the Financial

Statements.

#FRwithAK CA Aakash Kandoi