By Saloni Madhok, Marketing Manager at Zuora
We delve into the newly converged revenue recognition guidelines as it relates to the country of India. Following today’s introduction, we will feature upcoming items on the impact to the country’s automobile industry and the dilemma of timing.
The country’s Ministry of Corporate Affairs (MCA) along with other government departments issued a road map for implementation of Indian Accounting Standards (IndAS) converged with International Financial Reporting Standards (IFRS). This proposed convergence will be conducted in various phases for first-time adoption in India.
In order to achieve convergence, there will be two separate sets of accounting standards:
The proposed IFRS-converged accounting standards would be applicable for preparation of consolidated financial statements of the specified class of companies, which includes: listed companies, unlisted companies having a net worth of 500 Crore INR or more and holding, subsidiary, joint venture or associate companies of companies mentioned before.
IFRS Roadmap Overview
The MCA roadmap has provided specific dates for adoption of IFRS in India on the basis of a company’s net worth as indicated by the exchange on which they are traded. The IFRS conversion roadmap for banks and insurance companies will follow separately, according to this EY publication.
Stay tuned for more updates and guidance for adoption of Indian Accounting Standards converged with International Financial Reporting Standards for various industries in India!
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