SEBI facilitates transition for listed entities covered under IND-AS

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Customer Care No. 91-11-45562222
SEBI facilitates transition for listed entities
covered under IND-AS
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• Background
• MCA vide notification no. G.S.R. 111(E) dated
  16th February, 2015 had issued the Companies
  (Indian Accounting Standards) Rules, 2015
  ('IND-AS Rules'). According to IND-AS Rules, the
  Companies and their auditors shall comply with
  the IND-AS Rules in preparation of their
  financial statements and auditor's reports
  respectively. IND-AS Rules are aligned with the
  International Financial Reporting Standards
  (IFRS) and are mandatorily applicable on certain
  class of companies from April 1, 2016.
• List A
• (a) companies whose equity or debt securities are
  listed or are in the process of being listed on
  any stock exchange in India or outside India and
  having net worth of rupees five hundred crore or
  more
• (b) companies other than those above and having
  net worth of rupees five hundred crore or more
• (c)holding, subsidiary, joint venture or
  associate companies of companies covered by
  sub-clause (a) and (b) above

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• List B
• (a) companies whose equity or debt securities are
  listed or are in the process of being listed on
  any stock exchange in India or outside India and
  having net worth of less than rupees five hundred
  crore
• (b) companies other than those covered under List
  A and (a) above, that is, unlisted companies
  having net worth of rupees two hundred and fifty
  crore or more but less than rupees five hundred
  crore.
• (c) holding, subsidiary, joint venture or
  associate companies of companies covered by
  sub-clause (a) and (b) above under List B
• Companies that meet threshold for the first time
  as on 31st March 2017 shall apply IND-AS from FY
  2017-18 onwards. Similarly, companies that meet
  threshold for the first time as on 31st March,
  2018 shall apply IND-AS from FY 2018-19.
• Entities exempted from applicability of IND-AS
• IND-AS Rules exempts companies whose securities
  are listed or are in the process of being listed
  on SME exchange as referred to in Chapter XB or
  on the Institutional Trading Platform without
  initial public offering in accordance with the
  provisions of Chapter XC of the Securities and
  Exchange Board of India (Issue of Capital and
  Disclosure Requirements) Regulations, 2009 need
  not comply with above.
• Further, the insurance companies, banking
  companies and non-banking finance companies shall
  not be required to apply IND-AS Rules for
  preparation of their financial statements either
  voluntarily or mandatorily.

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• SEBI Circular
• Para 5 of SEBI Circular dated November 30,
  2015 provided that companies required to comply
  with IND-AS Rules while publishing quarterly/
  annual financial results under Regulation 33
  shall ensure that the comparatives filed along
  with such quarterly/ annual financial results
  shall also be IND-AS compliance.
• In order to facilitate smooth transition during
  the first year of IND-AS implementation,
  Securities Exchange Board of India ('SEBI')
  issued Circular No. CIR/CFD/FAC/62/2016 dated
  July 05, 2016 ('the Circular').
• Listed entities can continue to report in the
  format prescribed under SEBI Circular dated
  November 30, 2015 till the period ending December
  31, 2016.
• For period ending March 31, 2017 the Circular
  prescribes following the format under Schedule
  III to Companies Act, 2013 (Act, 2013) for
  submission of Unaudited/Audited quarterly
  financial results i.e. Statement of Profit and
  Loss and the Unaudited/Audited Half-Yearly
  Balance Sheet.
•  

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