Roadmap for transition to IFRS-converged Indian standards

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08 Feb 2010

The Ministry of Corporate Affairs of India has adopted a plan for phased transition to 'notified Indian standards that have been converged with IFRS' (notified standards) by listed and large Indian companies, other than banks and insurance companies.

Click for Ministry of Corporate Affairs Press Release(PDF 33k). Here is an overview:


PhaseDateWhich companies?
Phase 1 Opening balance sheet as at 1 April 2011*
  • Companies that are part of NSE Index - Nifty 50
  • Companies that are part of BSE Sensex - BSE 30
  • Companies whose shares or other securities are listed on a stock exchange outside India
  • Companies, whether listed or not, having net worth** of more than Rs 1,000 crore (1 crore = 10 million. Rs 1,000 crore = US$ 212,000,000)
Phase 2 Opening balance sheet as at 1 April 2013* Companies not covered in phase 1 and having net worth** exceeding Rs 500 crore
Phase 3 Opening balance sheet as at 1 April 2014* Listed companies not covered in the earlier phases (ie net worth** Rs 500 crore or less)
* If the financial year of a company commences at a date other than 1 April, then it shall prepare its opening balance sheet at the commencement of immediately following financial year.
** Balance sheet net worth under Indian GAAP, not market capitalisation

IFRS 1 requires at least one year of comparative IFRS financial statements when IFRSs are first adopted. It is unclear from the reference to 'opening balance sheet' in the Ministry's release whether, for instance, Phase 1 companies will be exempted from preparing comparative financial statements for year ended 31 March 2011 using the notified standards. Companies in the following categories will not be required to follow the notified standards (though they may voluntarily opt to do so) but need to follow only the 'notified accounting standards that are not converged with the IFRS':

  • Non-listed companies with a net worth of Rs 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India
  • Small and Medium Companies ('SMCs').
A separate roadmap for banking and insurance companies is expected to be published by the end of February, 2010.

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