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CS Executive · Corporate Accounting and Financial Management · Introduction to Accounting

Which statement about the roadmap for Ind AS applicability to companies in India is correct?

Ind AS applies to listed or to-be-listed companies and to unlisted companies meeting the prescribed net worth threshold, together with their holding, subsidiary, associate and joint venture companies. Other smaller companies continue with the notified Accounting Standards, so it is not universal for all companies.

  1. AInd AS applies to all companies irrespective of size or listing status
  2. BInd AS applies to listed companies and companies meeting prescribed net worth thresholds, along with their holding, subsidiary, joint venture and associate companiesCorrect
  3. CInd AS applies only to companies listed on a stock exchange outside India
  4. DInd AS applies only to banking and insurance companies

Explanation

The Companies (Indian Accounting Standards) Rules apply Ind AS to listed or about-to-be-listed companies and to unlisted companies with net worth of Rs 250 crore or more, and extend to their holding, subsidiary, associate and joint venture companies. Smaller unlisted companies follow the Accounting Standards. Banks and insurers follow separate regulatory formats.

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