The government on Monday issued the roadmap for the implementation of the Indian Accounting Standards (Ind-AS) for commercial banks, non-banking financial companies (NBFC) and insurance companies. Regional rural banks and urban cooperative banks wouldn't need to implement these standards at present.
"Scheduled commercial banks, all-India term-lending refinancing institutions (such as Exim Bank, NABARD, NHB and SIDBI) and insurance companies would be required to prepare Ind-AS based financial statements for accounting periods beginning from April 1, 2018 onwards," said an official statement.
The Ind AS would be applicable to both consolidated and individual financial statements.
Similarly, the holding, subsidiary, joint venture or associate companies of the commercial banks would also be required to prepare Ind-AS based financial statements from the financial year 2018-19.
Under phase one, NBFCs, having net worth of Rs 500 crores or more, would also need to need to prepare such financial statements from 2018-19. Just like commercial banks, the holding, subsidiary, joint venture or associate companies of NBFCs would also be applying these accounting norms from 2018-19.
Under phase two, listed NBFCs and the ones which are in the process of listing in India or outside India, would need to prepare Ind-AS compliant financial statements from 2019-20. Here too, the Ind AS would be applicable to both consolidated and individual financial statements.
Unlisted NBFCs, which have a net worth between Rs 250 crores and Rs 500 crores, would need to apply Ind-AS from 2019-20.
However, the government has made it clear that NBFCs, commercial banks and insurance companies would not have the choice of voluntarily preparing the Ind-AS compliant financial statements. "This, however, does not preclude an insurer, NBFC from providing Ind-AS compliant financial statement data for the purposes of preparation of consolidated financial statements by its parent, investor," added the statement.
For companies, the government had issued the roadmap last year only which said that listed and unlisted entities - having net worth of more than Rs 500 crores - would need to implement Ind-AS from 2016-17.
In the second phase, listed companies with net worth below Rs 500 crore and unlisted companies with net worth between Rs 250 crore and Rs 500 crore will have to follow these norms from April 1, 2017.
