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IND-AS applicability on Insurance companies

Sunny Verma (Chartered Accountant) (73 Points)

20 March 2021

can anyone please tell me whether the financial statements for the FY 2020-21 of insurance companies are to be prepared in accordance with Ind-AS???

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 20 March 2021

Yes and insurance contracts standard. There are some standards which allow limited treatment like repurchase agreements like forward or call option, but, not insurance contracts within the scope of Ind AS 104, Insurance Contracts. Similarly, go though financial instruments Indas 2.1.E. Another example, employers’ rights and obligations under employee benefit plans, to which Ind AS 19 Employee Benefits applies. On the whole statements are from Indas 1. So go through SCOPE carefully.

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Sunny Verma (Chartered Accountant) (73 Points)
Replied 20 March 2021

Unable to understand what you are trying to say. please elaborate

prasad Nilugal (3924 Points)
Replied 20 March 2021

For F.Y 20-21 Ind As applicable or not , you have confirm from IRDA office . please write mail .

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 20 March 2021

Yes apply Mandatory applicability of IND AS to all Banks, NBFCs, and Insurance companies from 1st April 2018, whose: Net worth is more than or equal to INR 500 crore with effect from 1st April 2018.

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Sunny Verma (Chartered Accountant) (73 Points)
Replied 20 March 2021

In jan 2020, it was deferred. There is no clear status on applicability on Ind-AS. Last option is to write an email only.

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prasad Nilugal (3924 Points)
Replied 20 March 2021

Yes Sir that's why I inform you to confirm from IRDA office .

BISHNU MOHAN NAYAK (Student) (82 Points)
Replied 20 March 2021

As of now Banking and insurance cos continue to follow AS.

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Shubham Garg (18 Points)
Replied 20 March 2021

Circular dated 28th June 2017 hereby, stands withdrawn and the requirement of Proforma Ind AS financial statements being submitted on a quarterly basis as directed in the circular under reference stands dispensed with.

https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo4016&flag=1#:~:text=Implementation%20of%20Ind%20AS%20in%20the%20Insurance%20Sector.&text=Sub%3A%20Implementation%20of%20Ind%20AS,deferred%20to%20FY%202020%2D21.