With the new accounting norms set to be implemented from April this year, the Corporate Affairs Ministry has sought views from stakeholders on the draft format for financial statements that complies with the Indian Accounting Standards.
Ind AS, that are converged with global accounting norms, would be compulsorily applicable on certain class of companies from April 1 this year.
The Ministry has sought suggestions and comments on the draft revised Schedule III to the Companies Act, 2013 which is applicable for a company whose financial statements are drawn up in compliance of companies (Indian Accounting Standards) Rules, 2015.
According to the draft, financial statements should disclose all material items such as those which can "individually or collectively, influence the economic decisions that users make on the basis of the financial statements".
Materiality depends on the size and nature of the item judged in the particular circumstances, it added.
Besides, the financial statements should contain the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown, including notes.
Suggestions can be submitted to the Ministry till February 23.
Companies with a net worth of Rs 500 crore or more would have to mandatorily follow Ind AS from April 1, 2016.
Entities having a net worth of less than Rs 500 crore but are listed or in the process of getting listed would have to compulsorily follow the new norms from April 1, 2017.
For scheduled commercial banks and insurance companies, the road map is for implementing Ind AS from April 1, 2018.
Ind AS are converged with International Financial Reporting Standards (IFRS).
