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Ind as applicable

27 April 2016

If a Co having Rs 500 crs turnover whose Balance Sheet is made as on 31st Dec 2015, is Ind As applicable to them? As they will do Tax Audit of Accounts made on 31st March 2016

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5 Replies

(Guest)

Hi,

As per the roadmap, Ind-AS is applicable if the Networth crosses the prescribed limit as on the last day of the Financial Year. Please note that Ind-AS applicability is based on Networth and not on the basis of turnover. In the query, you have mentioned that Turnover is 500 Crores.

madhurima samanta (9 Points)
Replied 27 April 2016

Sorry my mistake it is Net Worth. Please suggest me can the company comply IndAs in the middle of the year i.e. 31.03.2016? Because the company will start its accounting from 01.01.2016.

Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 27 April 2016

Hi,

As per Roadmap, net worth criteria has to be satisfied on 31 march 15. If it is met then Ind AS are applicable form 1st April 16.

(Guest)

Originally posted by : madhurima samanta
	Sorry my mistake it is Net Worth. Please suggest me can the company comply IndAs in the middle of the year i.e. 31.03.2016? Because the company will start its accounting from 01.01.2016.

As per the roadmap, Networth criteria should be satisfied as on 31st March of preceding Financial Year. But you have mentioned that accounts closes as on 31st December - As per Sec 2(41) of the Companies Act,2013, Financial Year of any body corporate or any company should end on 31st March (only exception being a Co whose holding / subsidiary incorporated outside India may follow a different Financial Year - here you should see if its holding/subsidiary/associate/ Joint venture meets the Networth criteria as on 31st March of preceding FY to check the appilcability of Ind AS).

madhurima samanta (9 Points)
Replied 03 May 2016

The said Company is a Subsidiary of a Foreign Compnay for which it has to close its accounts as on 31.12.2015. please suggest. and Turnover is over 500 crores as on 31.03.2016.