IFRS are the global International Financial Reporting Standards followed worldwide. While here in India, on similar lines about 40 standards have been made. In MyIndia, we are starting a series of articles on IFRS and Ind-AS, on their practical challenges. We are sharing some views in terms of how these are practically adhered upon. There will be a series of articles on these aspects and we will share our thoughts in the same. Let us first understand the basic concepts of IFRS and Ind AS and how they are evolved? This will be series of articles in which we will be helping our friends and students to understand the Ind AS and follow the same in practical life. There are certain major aspects which you need to understand.
1. While IFRS are global standards and are followed by more than 130 countries, India has converged in IFRS and have made standards known by the name Ind AS.
2. There are 2 set of standards, IFRS and IAS and 2 sets of Interpretations – IFRIC and SIC. India has only 1 set being Ind AS and all 4 are merged together in India.
3. There are 2 series in India – 1 to 41 (Total 41 however only 24 are effective) and 101 to 116 (16 re effective). This is how it works:
| S no. | IAS/IFRS | Name of Standard | IND AS |
| 1 | IAS 1 | Presentation of Financial Statements | Ind AS 1 |
| 2 | IAS 2 | Inventories | Ind AS 2 |
| IAS -3, 4, 5,6 are deleted | Ind AS -3,4,5,6 are not made | ||
| 3 | IAS 7 | Statement of Cash Flows | Ind AS 7 |
| 4 | IAS 8 | Accounting Policies, Changes in Accounting Estimates and Errors | Ind AS 8 |
| N/a | IAS-9 is deleted | Not made | |
| 5 | IAS 10 | Events after the Reporting Period | Ind AS 10 |
| N/a | IAS 11 | Construction Contracts | Merged in Ind AS 115 |
| 6 | IAS 12 | Income Taxes | Ind AS 12 |
| IAS-13 to 15 are deleted | not made | ||
| 7 | IAS 16 | Property, Plant and Equipment | Ind AS 16 |
| N/a | IAS 17 | Leases (not applicable from April,2019) | Merged in Ind AS 116 |
| N/a | IAS 18 | Revenue | Merged in Ind AS 115 |
| 8 | IAS 19 | Employee Benefits | Ind AS 19 |
| 9 | IAS 20 | Accounting for Government Grants and Disclosure of Government Assistance | Ind AS 20 |
| 10 | IAS 21 | The Effects of Changes in Foreign Exchange Rates | Ind AS 21 |
| 11 | IAS 23 | Borrowing Costs | Ind AS 23 |
| 12 | IAS 24 | Related Party Disclosures | Ind AS 24 |
| 13 | IAS 26 | Accounting and Reporting by Retirement Benefit plan | Not made |
| 14 | IAS 28 | Investments in Associates | Ind AS 28 |
| 15 | IAS 29 | Financial Reporting in Hyperinflationary Economies | Ind AS 29 |
| 16 | IAS 31 | Interests in Joint Ventures | Ind AS 31 |
| 17 | IAS 32 | Financial Instruments: Presentation | Ind AS 32 |
| 18 | IAS 33 | Earnings per Share | Ind AS 33 |
| 19 | IAS 34 | Interim Financial Reporting | Ind AS 34 |
| 20 | IAS 36 | Impairment of Assets | Ind AS 36 |
| 21 | IAS 37 | Provisions, Contingent Liabilities and Contingent Assets | Ind AS 37 |
| 22 | IAS 38 | Intangible Assets | Ind AS 38 |
| 23 | IAS 40 | Investment Property | Ind AS 40 |
| 24 | IAS 41 | Agriculture | Ind AS 41 |
| 25 | IFRS 1 | First-time Adoption of IFRS | Ind AS 101 |
| 26 | IFRS 2 | Share-based Payment | Ind AS 102 |
| 27 | IFRS 3 | Business Combinations | Ind AS 103 |
| 28 | IFRS 4 | Insurance Contracts | Ind AS 104 |
| 29 | IFRS 5 | Non-Current Assets Held for Sale and Discontinued Operations | Ind AS 105 |
| 30 | IFRS 6 | Exploration for and Evaluation of Mineral Resources | Ind AS 106 |
| 31 | IFRS 7 | Financial Instruments: Disclosures | Ind AS 107 |
| 32 | IFRS 8 | Operating Segments | IND AS 108 |
| 33 | IFRS 9 | Financial Instruments – Assets (effective date Jan-2015) | IND AS 109 |
| 34 | IFRS 10 | Consolidated Financial Statements (to replace IAS 27) | IND AS 110 |
| 35 | IFRS 11 | Joint Arrangements – revised 28 June 2012 | IND AS 111 |
| 36 | IFRS 12 | Disclosure of Interests in Other Entities | IND AS 112 |
| 37 | IFRS 13 | Fair Value Measurement | IND AS 113 |
| 38 | IFRS 14 | Regulatory Deferral Accounts | IND AS 114 |
| 39 | IFRS 15 | Revenue from Contract with Customers | IND AS 115 |
| 40 | IFRS 16 | Lease | IND AS 116 |
So we can see that on this table, there is 1 to 1 linkage of IAS and IFRS with Ind AS .
4. As far as applicability are concerned , the application as of now is for :
a) All companies which are Listed In India including their subsidiaries and Joint ventures. This is irrespective of their net worth
b) All companies in India whose net worth is more than 250 crores ( Rs. 2500 million)
c) Companies who may not meet the criteria can on voluntary basis , start applying the same.
5. Banks and insurance companies are to be done from 2020 onward.
We will be publishing more articles in this series …Happy Mapping and Happy Ind AS application.
