Applicability of Ind AS

Below are some of the important points on applicability of Ind AS in a nut shell.

1. Ind AS are made mandatory for the specified companies in 2 phases (Phase -I and Phase-II)
2. In Phase-I, the following companies are made mandatory to follow Ind AS from Apr,1 2016, i.e, FY 2016-17 onwards.(a) Listed Companies or the Companies in the process of listing, Unlisted companies having networth of 500 Crores or more as on March 31, 2014, (b) Holding/Subsidiary/Associate or Joint Venture of the above mentioned companies. So, for the Financial Statements of FY 2016-17, comparatives of FY 2015-16 also should comply with Ind AS.
3. In Phase-II, the following companies are made mandatory to follow Ind AS from Apr,1 2017, i.e, FY 2017-18 onwards.(a) Listed Companies having networth less than 500 Crores, Unlisted companies having Networth more than 250 Crores and less than 500 Crores as on March 31, 2014, (b) Holding/Subsidiary/Associate or Joint Venture of the above mentioned companies. So, for the Financial Statements of FY 2017-18, comparatives of FY 2016-17 also should comply with Ind AS. 

Points worth noting:

1. Ind AS are not applicable to Insurance Companies, Banking Companies and NBFCs
2. If a parent company is listed outside India (MNC) and crossing threshold limits as specified in Phase-I & Phase-II, then its subsidiary incorporated in India, even if unlisted and not crossing threshold limits, still that subsidiary is required to follow Ind AS as specified in Phase-I, point (b) in this e-mail.