India
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Standards are required for domestic public companies | Indian Accounting Standards (Ind AS) are based on and substantially converged with IFRS Standards as issued by the Board. India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards. | |
| IFRS Standards are permitted but not required for domestic public companies | ||
| IFRS Standards are required or permitted for listings by foreign companies | No. | |
| The IFRS for SMEs Standard is required or permitted | No. | |
| The IFRS for SMEs Standard is under consideration | No. |
Organisation
Role of the organisation
The role of ICAI is recognised as a standard-setter under Indian law (section 133 of Companies Act, 2013):
“The Central Government prescribes the standards of accounting or any addendum thereto, as recommended by the ICAI, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority (NFRA).”
The Ministry notifies the standards under the Companies Act by publishing them in The Gazette of India. Notified standards are authoritative under Indian law. For non-corporate entities, Accounting Standards are issued by the ICAI.
Website
Email contact
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
Yes.
The Preface to the ICAI’s Statements of Accounting Standards (revised in 2004) states:
2.3 The ICAI, being a full-fledged member of the International Federation of Accountants (IFAC), is expected, inter alia, to actively promote the International Accounting Standards Board’s (IASB) pronouncements in the country with a view to facilitate global harmonisation of accounting standards. Accordingly, while formulating the Accounting Standards, the [Indian Accounting Standards Board] will give due consideration to International Accounting Standards (IASs) issued by the International Accounting Standards Committee (predecessor body to IASB) or International Financial Reporting Standards (IFRSs) issued by the IASB, as the case may be, and try to integrate them, to the extent possible, in the light of the conditions and practices prevailing in India.
At the G20 summit held in Pittsburgh in 2009, the then Hon’ble Prime Minister of India made a commitment towards convergence with single set of high quality globally acceptable accounting standards (IFRS Standards). That commitment was reiterated in India’s Finance Minister’s budget message of July 2014:
128. There is an urgent need to converge the current Indian accounting standards with the International Financial Reporting Standards.
What is the jurisdiction's status of adoption?
India issues Indian Accounting Standards (Ind AS) which are based on IFRS Standards. They contain certain carve-outs and carve-ins.
The modifications to IFRS Standards are explained later in this profile.
Voluntary adoption of Ind AS is permitted for all companies other than insurance companies, banking companies, and non-banking finance companies (NBFCs).
For companies, other than insurance companies, banking companies, and non-banking finance companies the mandatory adoption of Ind AS is as follows:
| Phase I | Phase II | |
|---|---|---|
| Mandatory adoption | FY 2016–17 | FY 2017–18 |
| (a) Listed companies |
All companies listed or in the process of being listed with net worth >= INR 500 crore (US$ 72 million approx.) |
All companies listed or in the process of being listed not covered in Phase I |
| (b) Unlisted companies |
All companies with net worth >= INR 500 crore (US$ 72 million approx.) |
Companies having a net worth >= INR 250 crore (US$ 36 million approx.) |
| (c) Group companies |
Applicable to holding, subsidiaries, joint ventures, or associates of companies covered in (a) and (b) above |
|
For NBFCs, the roadmap for implementation of Ind AS is as follows:
| Phase III | Phase IV | |
|---|---|---|
| Mandatory adoption | FY 2018–19 | FY 2019–20 |
| (a) Listed companies |
All companies listed or in the process of being listed with net worth >= INR 500 crore (US$ 72 million approx.) |
All companies listed or in the process of being listed not covered in Phase III |
| (b) Unlisted companies |
All companies with net worth >= INR 500 crore (US$ 72 million approx.) |
Companies having a net worth >= INR 250 crore (US$ 36 million approx.) |
| (c) Group companies |
Applicable to holding, subsidiaries, joint ventures, or associates of companies covered in (a) and (b) above |
|
The above tables indicate INR/ US$ exchange rate as on 01.04.2019
The roadmap is applicable to both, consolidated financial statements and separate financial statements.
For insurance companies and banks, Ind AS will be applicable from a future date.
Additional comments provided on the adoption status?
None.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
IFRS Standards are not permitted or required. However, all domestic companies whose securities trade in a public market (except banking companies and insurance companies) are required to apply Ind AS while companies listed on SME Exchange are permitted to follow Ind AS. In case of banks and insurance companies Ind AS will be applicable at a future date.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
IFRS Standards are not required. Ind AS are required for some (based on a net worth criteria) and permitted for others in this category.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
Not applicable. Currently, Ind AS are required, if such an entity meets the specified criteria.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Yes, but unlikely due to differences between Ind AS and IFRS Standards.
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
The Central Government prescribes the standards of accounting or any addendum thereto, as recommended by the ICAI, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority (NFRA). The Ministry notifies the Standards under the Companies Act, 2013 (section 133) by publishing them in The Gazette of India Notified standards are authoritative under Indian law. For non-corporate entities, Accounting Standards are issued by the ICAI.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
The Central Government prescribes the standards of accounting or any addendum thereto, as recommended by the ICAI, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority (NFRA). The Ministry notifies the standards under the Companies Act by publishing them in The Gazette of India. Notified standards are authoritative under Indian law.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Ind AS are modified versions of IFRS Standards as issued by the International Accounting Standards Board. Some modifications are so-called ‘carve-outs’ and ‘carve-ins’. Other changes include: the use of different terminology; the elimination of a few options; changes in certain disclosures; and other modifications to certain requirements of some IFRS Standards.
Some of these modifications are mandatory while others are optional.
Each individual Ind AS includes an appendix to highlight the ‘major differences, if any, between the Indian Accounting Standard (Ind AS) and the corresponding IFRS Standard’.
The major differences between Ind AS and IFRS Standards and the reasons for the differences are listed in the appendices of the respective Ind AS and in a document on the ICAI’s website.
