Accounting Standards Transition: iGAAPto IndAS

Standardizing Accounting Procedures to Strengthen Economic ties, Trade &Relations

Set to Interlink International Business Strategy, Market &Leadership in Mutual Understandings

Consolidation of finance statements and reporting by following standards have assumed great importance in business world. It becoming a necessary view of the operations of cooperation’s.The operations are consolidated for legal as well as managerial reporting purposes with well defined regulatory guidance by international and national agency. As it sets to bring uniformity to compliance with global acceptance and help to bring ease in company policy understandings.

The demand for investor and regulator to required assurance as regards the integrity and reliability of financial reports is now accepted worldwide. Therefore the foundation for trust are the standards of auditing, as a fundamental factor in helping to maintaining quality of auditing &accounting.

•   The Ministry of Cooperate Affairs,MCA notified the Ind AS (Indian Accounting Standards) Rules,2015 applicable to particular class of companies and dates of applicability.
• Indian GAAP, iGAAP are the standards notified by central government under Company (Accounting Standard) Rules, 2006 applicable to all companies
•  IFRSs are standards and interpretations adopted by IASB comprises International Finance Reporting Standards, International Accounting Standards and Interpretations.

Indian Accounting Standards Converged with IFRS sets to Reliable, Uniform and Consistent financial reporting. This is an important steps to be undertaken in practice of Good Governance practices. It further helps in enhancing the credibility of business to have a informed investor for investment to be made independently. Overall Thirty five Indian Accounting Standards converged with International Financial Reporting Standards,IFRS.

All above standards denotes a discipline, which provides  guidelines, yardsticks for evaluation, uniformity, comparability, transparency, rationalization and adaptability in field of accounting.

With Upcoming Ind AS to particular class of companies will be set to adopting the standards from notified date by ministry of cooperate affairs. The Big picture includes-

1. MCA on road map for mandatory Ind-AS implementation
2. Companies net worth Rs 500 Cr &above will First reporting for year ending March 31,2017, comparative information of year ending March 31,2016 and opening balanced sheet April 01,2015.
3. Companies net worth exceeds Rs 250 Cr will First reporting for year ending March 31,2018, comparative information of year ending March 31,2017 and opening balanced sheet April 01,2016.
4. Dual books are not required
5. Applies to consolidated and standalone financial statements
6. Balance sheet sizes substantially change
7. Financial ratio might affect adversely

START PREPARING &LEARNING THE TRANSITION in ACCOUNTING STANDARDS.

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