Applicability of Ind AS - NBFC, Banks & Insurance

RBI ROADMAP

NBFC and ARC GOVERNED BY RBI


Ind AS will be applicable to Indian Non-Banking Financial companies (NBFC) and Asset Reconstruction Companies (ARC) in Two Phases


PHASE I


Applicability in Phase I

Net worth to be tested from 31st March 2018

1. NBFC having net worth of Rs.500 crores or more

2. Once a NBFC is covered then even its related companies will also have to prepare its financial statement as per IND AS



PHASE II


Applicability in phase II

Net worth to be tested from 31st March 2019 or onwards

1. NBFC having net worth of Rs.250 crores or more but less than 500 crores.

2. All listed NBFC which are not covered in Phase 1.

3. Once a NBFC is covered then even its related companies will also have to prepare its financial statement as per IND AS.


NBFC here refers to -

i) NBFC which is Listed either in India or outside India – (i.e. listing can be of either equity or debt securities or both)

ii) NBFC which are Unlisted it can be either private or public companies.

iii) NBFC which is in the Process of Listing

Related companies here refer to -

i) Its Holding Company

ii) Its Joint Venture

iii) Its Associates company

iv) Its Subsidiaries company



BANKS GOVERNED BY RBI

As of now the IND AS is not applicable to banks until further notification


Other Requirements

1. Voluntary Applicability does not exist

2. NBFC and BANK have to mandatory adopt RBI roadmap irrespective of companies Act/MCA Road map



IRDA ROADMAP


INSURANCE COMPANY GOVERNED BY IRDA

The Indian Insurance Regulator IRDAI has postponed the IND AS applicability to all insurance companies, which was supposed to be applicable from financial year 2020-21, indefinitely for the domestic insurance sector. The effective date of implementation shall be decided after the finalization of IFRS 17 by IASB, says IRDAI. Also, once applicable in future, there seems to be no net worth criteria.

 
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