IND AS Applicability-NBFC

This query is : Resolved

pardeep jindal (Querist)
Follow

13 April 2023 if Net worth of a NBFC crosses 250 cr in FY 22-23 then first Ind AS balance sheet will be prepared for FY 22-23 or 1 year extension in available ??

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

13 April 2023 As per the regulatory framework for NBFCs in India, if the net worth of an NBFC exceeds Rs. 250 crore, it is required to prepare its financial statements as per Indian Accounting Standards (Ind AS).
The Reserve Bank of India (RBI) has provided a timeline for NBFCs to transition to Ind AS. As per the RBI's circular dated April 27, 2018, NBFCs with a net worth of Rs. 250 crore or more as on March 31, 2017, were required to prepare their financial statements as per Ind AS from April 1, 2018, onwards.
For NBFCs whose net worth crosses Rs. 250 crore after March 31, 2017, the RBI has not provided any specific timeline. However, as per the Ind AS roadmap issued by the Ministry of Corporate Affairs, such NBFCs are required to prepare their financial statements as per Ind AS from the financial year in which their net worth crosses Rs. 250 crore.
Therefore, if the net worth of an NBFC crosses Rs. 250 crore in FY 2022-23, it will be required to prepare its financial statements as per Ind AS for FY 2022-23 onwards. There is no provision for an extension in this case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now