The Companies (Indian Accounting Standards) Rules, 2015

  • All stakeholders are hereby informed that the Ministry of Corporate Affairs has notified roadmap for applicability of Indian Accounting Standards (Ind AS). These rules shall be called the Companies (Indian Accounting Standards) Rules, 2015 and contain thirty nine (39) Indian Accounting Standards(Ind AS) which shall come into force on 1st April, 2015.
  • Definition of Accounting Standards for the purpose of Indian Accounting Standards - “Accounting Standards” means the standards of accounting or any addendum thereto for companies or class of companies as specified.
  • The Companies and their auditors shall comply with the specified Indian Accounting Standards (Ind AS) in preparation of their financial statements and audit respectively, in the following manner-

(i) Any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1stApril, 2015.

(ii) The companies as specified shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2016.

(iii) The companies as specified shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2017.

  • Apart from the specified companies, any company opting to apply the Indian Accounting Standards (Ind AS) voluntarily for its financial statements shall prepare its financial statements as per the Indian Accounting Standards (Ind AS) consistently and once the Indian Accounting Standards (Ind AS) are applied voluntarily, it shall be irrevocable.
  • The Companies exempted to follow Indian Accounting Standards(Ind AS)  include-
  1. insurance companies,
  2. banking companies and
  3. non-banking finance companies

Such companies shall continue to comply with Accounting Standards as prescribed in Companies(Accounting Standards) Rules, 2006.

Read the Rules in detail

Read the Standards in detail