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IAI Actuarial Core Principles · Business Finance · Regulation of financial reporting of incorporated entities

Which statement best describes how Ind AS applicability is generally determined for Indian companies under the Companies (Indian Accounting Standards) Rules?

Ind AS applicability is determined mainly by listing status and net worth thresholds, applied in phases, and it extends to holding, subsidiary, associate and joint venture companies of covered entities. It is not driven by industry, headcount, incorporation year or auditor preference.

  1. AIt depends only on the company's industry sector
  2. BIt depends on the auditor's preference
  3. CIt depends on the number of employees
  4. DIt depends on the company's year of incorporation
  5. It depends mainly on listing status and net worth thresholds, with phased roll-outCorrect

Explanation

The rules phased in Ind AS by listing status and net worth thresholds, extending to holding, subsidiary, joint venture and associate companies of those covered. Industry, employee count, incorporation year and auditor choice are not the criteria.

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