Regarding Applicability of IND AS.
This query is : Resolved
Divyesh Ajmera
(Querist)
26 January 2025
If Networth of unlisted company as on 31/03/2025 will be more than 250 crores then when to apply IND AS? Since as per section -2(57) of companies act, 2013 which defines Networth include networth "as per audited balance sheet " then on what basis we applies IND AS from 01.04.2025 if audit will done by September month and and also in some cases done by November month?
12 August 2025
Great question about IND AS applicability!
Here’s how it works:
IND AS applicability for a financial year is determined based on the net worth as per the audited financial statements of the previous financial year.
So, for the financial year starting 1st April 2025 (FY 2025-26), you check the net worth as per the audited balance sheet of the previous year i.e., FY 2024-25.
Even if the audit for FY 2024-25 is completed later (September/November 2025), the applicability is based on the net worth as on 31st March 2025, once audited.
Implication:
If the net worth as per the audited balance sheet dated 31 March 2025 is more than ₹250 crores, IND AS is mandatorily applicable from 1 April 2025 (FY 2025-26).
You must apply IND AS for the whole FY 2025-26 even if the audit is done later.
If audit is delayed, you still have to apply IND AS once the audit is complete because the net worth as of 31/03/2025 determines applicability.
Here’s how it works:
IND AS applicability for a financial year is determined based on the net worth as per the audited financial statements of the previous financial year.
So, for the financial year starting 1st April 2025 (FY 2025-26), you check the net worth as per the audited balance sheet of the previous year i.e., FY 2024-25.
Even if the audit for FY 2024-25 is completed later (September/November 2025), the applicability is based on the net worth as on 31st March 2025, once audited.
Implication:
If the net worth as per the audited balance sheet dated 31 March 2025 is more than ₹250 crores, IND AS is mandatorily applicable from 1 April 2025 (FY 2025-26).
You must apply IND AS for the whole FY 2025-26 even if the audit is done later.
If audit is delayed, you still have to apply IND AS once the audit is complete because the net worth as of 31/03/2025 determines applicability.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Capitalgain tax purposes for valuation report compulsory
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- Non filing of I T Returns
- Under marginal scheme
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- TAX AUDIT ON PROFESSIONAL INCOME
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
