Conversion is much more than a technical accounting issue. Ind AS (the converged IFRS standards) in India may significantly affect a company’s day-to-day operations and may even impact the reported profitability of the business itself. Conversion brings a one-time opportunity to comprehensively reassess financial reporting.

On 2 January 2015, Government of India, Ministry of Corporate Affairs (MCA) issued a note outlining the various phases in which Indian Accounting Standards converged with IFRS (Ind AS) is proposed to be implemented in India, for Companies other than Banking Companies, Insurance Companies and NBFCs.

While announcing the Ind AS implementation in his 2014 Budget speech, Finance Minister Arun Jaitley also said that the standards for the computation of tax would be notified separately.

Salient features:

  • Early adoption permitted from 1 April 2015, with one year comparatives
  • Once adopted, cannot be revoked
  • Companies not covered by the roadmap to continue to apply existing standards
  • Phase I applicable from 1 April 2016 onward to:
  • Listed or unlisted companies whose net worth is >= INR 500 crores
  • Holding, subsidiaries, joint ventures or associates of these companies
  • Phase 2 is applicable from 1 April 2017 onward to:
  • Listed companies whose net worth is < INR 500 crores
  • Unlisted companies whose net worth is >= INR 250 cr. but < INR 500 cr.
  • Holding, subsidiaries, joint ventures or associates of these companies

How SGA value Leader can help you in implementation
SGA-value Leader (SGA) can help you convert to Ind AS/IFRS in a cost-effective and efficient way. We can guide you through the implementation process and help you manage the risks inherent in your conversion project. With a proven track-record of successful conversions, our experienced professionals will work with you to create solutions that meet your unique needs.

To begin with we can organise training sessions and workshops on accounting topics and practical implementation issues. Then we can help you adapt your MIS-Management information systems (review system processes and limitations; design group reporting packages to gather information from subsidiaries; integrate your internal and external reporting requirements), of course SGA can help you to adequately communicating the impact of Ind AS adoption on key financial ratios to shareholders and analysts.

At SGA we constantly demonstrate our proactive approach in the identification and ultimate resolution of issues and “getting the job done”.

Please speak to your SGA Value Leader if you would like to discuss any aspects of IFRS:

India Contact Resource Person- CA & CPA(USA) Eish Taneja