Only capital Reserve arising out of Promoters Contribution and Government Grants received can be included. Net Worth Calculation Net worth will be determined based on the stand-alone accounts of the company as on 31st Marchor the first audited period ending after that date.
For those issuer companies filing an offer document these points can be noted: Reserves created out of revaluation of assets and written back depreciation cannot be included.
This clarification does not apply to issuer companies making rights issue. Accounting and Reporting The ICAI also stated that the Ind AS offers clarity in areas involving multiple element contracts or bundled products, licensing, royalties for intellectual properties, financing components, and variable consideration.
The major standards are listed here below: These principles include the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. Typically, SEBI requires issuer companies to disclose financial information for the previous 5 financial years immediately preceding the year of filing of the offer document, while following uniform accounting policies for each of the financial years.
As explained by the Ministry of Corporate Affairs, the Ind AS lays down the principles to be applied by an entity in order to report useful information to users of financial statements.
This will impact a broad range of sectors in India, including technology, real estate, mining and metals, engineering-procurement-construction, and telecom as the standard incorporates new concepts of revenue recognition. Between April 1,and March 31,disclosures in the previous three financial years immediately preceding the relevant financial year will have to be made under the IND AS principles, while disclosures for the remaining two financial years may be done under Indian GAAP.
Companies based in India will need to adopt a more detailed process for revenue recognition as the Ind AS removes scope for interpretation in several areas.
Net worth is more than or equal to INR crore with effect from 1st April Further, the existing standards Ind AS 18 and 11, which are used to examine revenue and construction contracts, respectively — will be withdrawn as the Ind AS comes into effect.
NBFCs include core investment companies, stock brokers, venture capitalists, etc. IND AS shall be adopted by specific classes of companies based on their Net worth and listing status.
Experts believe the new accounting standard will bring in much needed transparency in the accounting and audit process by improving disclosures. While reporting, such companies must include a comparative report for the periods ending 31 March or thereafter, where IND AS have been incorporated to present a comparative view.
On or after April 1,disclosures in all the previous five financial years will have to be made as per the IND AS principles. It is a listed company or is in the process of being listed as on Voluntary adoption Companies can voluntarily choose to incorporate IND AS in their reports for accounting periods beginning on or after April 01, It is a listed or unlisted company Its Net worth is greater than or equal to Rs.ICAI - The Institute of Chartered Accountants of India set up by an act of parliament.
ICAI is established under the Chartered Accountants Act, (Act No. XXXVIII of ). The Ministry of Corporate Affairs (MCA) on 16 February issued Ind AS (Indian Accounting Standards) comprising 40 accounting standards that.
The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Amendment Rules, (the ‘Rules’) on 28 March The Rules notify the new revenue standard Ind ASRevenue from Contracts with Customers and also bring in amendments to existing Ind AS.
Housing finance companies are best placed to face the transition to the new accounting standards, applicable to non-banking finance companies in the ongoing financial year.
The corporate lenders, however, are likely to be adversely affected. Training, seminar on Ind AS - Indian Accounting Standards in Mumbai and Delhi by Princeton Academy, Leaders in executive education, corporate training.
The Accounting Standards (i.e. AS 1~32) have been issued/ amended by "Accounting Standards Board" of the ICAI from time to time, to establish uniform standards for preparation of financial statements, in accordance with generally accepted accounting practices in India (i.e. Indian GAAP) and for better understanding of the users.Download