Ind AS Implementation Services
Once a company’s net worth reaches ₹250 crore, or it lists, Indian Accounting Standards (Ind AS) replace the old accounting standards, and so do its holding company, subsidiaries, joint ventures and associates. We assess the impact, then build your opening Ind AS balance sheet and first Ind AS accounts for your auditor.
What it is
Ind AS are the Indian Accounting Standards, converged with IFRS and notified under Section 133 of the Companies Act, 2013. Who must follow them is set by Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015. Every other company keeps using the older Accounting Standards (AS).
Ind AS implementation is the project of moving from AS to Ind AS. It runs from the applicability check to your first Ind AS accounts in Division II of Schedule III, and it is a one-time conversion. If you want ongoing finance support afterwards, our virtual CFO services pick up from there.
Who it applies to
Your net worth has crossed ₹250 crore
An unlisted company with net worth of ₹250 crore or more must move to Ind AS.
You are listed or about to list
Companies listed on a main-board stock exchange, or in the process of listing, follow Ind AS whatever their net worth. Companies listed only on an SME exchange are exempt.
You belong to a covered group
Holding companies, subsidiaries, joint ventures and associates of a covered company follow Ind AS too. A Faridabad forging company bought by a listed auto group moves to Ind AS, however small it is.
Why it matters
Your reported profit can change
Revenue, financial instruments and leases are all measured differently. Take leases: a company renting its plant and warehouses on long leases suddenly shows right-of-use assets and lease liabilities.
You must restate last year
Your first Ind AS accounts show last year under Ind AS too, so the work starts a year before adoption.
You cannot switch back
Once applied, Ind AS stays for good, even if net worth later falls or the company delists.
Documents required
Financial records
- Audited accounts for the last two to three years
- Trial balance and ledgers for the comparative year, with the fixed asset register
Contracts and arrangements
- Major customer contracts, including discounts and warranties
- Lease and rent agreements
- Loan agreements and investment details
- Employee benefit and ESOP schemes
Group information
- Group structure with shareholding percentages
- Details of subsidiaries, joint ventures and associates
- Inter-company balances and transactions
Ind AS applicability at a glance
| Who | From |
|---|---|
| Any company choosing to adopt voluntarily | Accounting periods beginning on or after 1 April 2015 |
| Listed or unlisted companies with net worth of ₹500 crore or more, and their group companies | 1 April 2016 |
| Listed companies (and those in the process of listing) below ₹500 crore, unlisted companies with net worth of ₹250 crore to ₹500 crore, and their group companies | 1 April 2017 |
| NBFCs with net worth of ₹500 crore or more | FY 2018-19 |
| Listed NBFCs and unlisted NBFCs with net worth of ₹250 crore or more | FY 2019-20 |
A company that reaches ₹250 crore later applies Ind AS from the following year. So if your audited accounts for FY 2024-25 first show ₹250 crore, Ind AS applies from FY 2025-26, with FY 2024-25 restated as the comparative and 1 April 2024 as the transition date. Banks and insurance companies follow their own regulators’ timelines.
How it works
Confirm applicability and the transition date
We check net worth, listing and group links, then fix your first Ind AS year and transition date.
Assess the impact standard by standard
We list every AS-to-Ind AS difference in your contracts, assets and liabilities, with its estimated effect on equity and profit.
Choose policies and Ind AS 101 exemptions
Ind AS 101 offers optional exemptions at transition, such as deemed cost for fixed assets. We recommend and document the right ones.
Prepare the opening balance sheet and restate
We prepare the opening Ind AS balance sheet at the transition date, adjusting retained earnings, then restate the comparative year.
Draft the first Ind AS financial statements
We present the accounts in Schedule III Division II, with the reconciliations of equity and profit that Ind AS 101 requires, and support your auditor through the review.
Timelines
Fix the transition date
The first day of the comparative year. For first Ind AS accounts for FY 2026-27, that is 1 April 2025.
Get the opening balance sheet ready early
In practice, finish it during the comparative year and track that year under both standards as you go.
File the first Ind AS accounts
Filed in Form AOC-4 within 30 days of the AGM, in XBRL, which every Ind AS company must use.
What happens if you miss the switch
Accounts that do not comply
Section 129 requires the applicable accounting standards. Breach it and the managing director, CFO or finance director (or every director, if none) faces up to one year’s imprisonment, a fine of ₹50,000 to ₹5 lakh, or both.
A qualified audit report
An auditor cannot give a clean opinion on accounts prepared under the wrong framework, and every lender reading them will see it.
A rushed restatement
Here is the catch: spot the switch late and you rebuild two years of numbers in a few months, often with the audit already running.
Frequently asked questions
Which companies must follow Ind AS?
Listed companies, and unlisted companies with net worth of ₹250 crore or more, must follow Ind AS, along with their holding companies, subsidiaries, joint ventures and associates. Companies listed only on an SME exchange are exempt. NBFCs follow their own phases, starting from FY 2018-19. Every other company continues with the Accounting Standards, though it may adopt Ind AS voluntarily. We confirm your position with a short applicability check.
How is net worth calculated for Ind AS?
Net worth is taken from the company’s standalone financial statements, using the Section 2(57) definition: paid-up capital plus reserves from profits and securities premium, less accumulated losses and deferred expenditure not written off. Revaluation reserves do not count. The rules originally measured it as on 31 March 2014; a company crossing ₹250 crore later applies Ind AS from the year after it crosses. We work it out from your audited balance sheet.
Does a small subsidiary have to follow Ind AS?
Yes, if its holding company is covered. Rule 4 extends Ind AS to the holding company, subsidiaries, joint ventures and associates of every covered company, whatever their own size. So a private subsidiary with a modest net worth still prepares Ind AS accounts if its parent is listed or crosses ₹250 crore. Working on the whole group together keeps the policies consistent and the consolidation straightforward.
What is the transition date under Ind AS 101?
It is the beginning of the earliest comparative period shown in your first Ind AS financial statements. If your first Ind AS year is FY 2026-27 with one comparative year, the transition date is 1 April 2025. You prepare an opening Ind AS balance sheet on that date and take the differences to retained earnings. Starting early in the comparative year makes the restatement much easier.
Can a company stop following Ind AS later?
No. Once a company applies Ind AS, voluntarily or because it must, it continues for all later financial statements, even if its net worth falls below ₹250 crore or it delists. Voluntary adoption is irrevocable too. Plan the conversion properly the first time. We help you weigh voluntary adoption before you commit.
What are the biggest differences between AS and Ind AS?
For most companies, three standards cause the biggest changes. Ind AS 115 sets revenue recognition on a five-step contract model, Ind AS 109 measures financial instruments at fair value or amortised cost and Ind AS 116 puts most leases on the balance sheet. Our impact assessment shows which of these affect your business, and by how much.
Can our statutory auditor do our Ind AS conversion?
No. Section 144 of the Companies Act, 2013 bars the statutory auditor from providing accounting services, designing financial information systems and management services to the company it audits. Conversion work falls in that space, so it needs a separate firm. We do the conversion, and your auditor then audits the result independently.
Is there any government fee for Ind AS implementation?
No. Ind AS implementation is an accounting exercise with no government fee. You pay our professional fee, plus the usual ROC fee when the financial statements are filed in Form AOC-4. That filing must be in XBRL for an Ind AS company. We quote our fee after the applicability check, once we know how many entities and standards are involved.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
The conversion carries no government fee; the usual AOC-4 fee applies on filing.
Ready to begin?
Share your latest audited balance sheet and group chart, and we will tell you if and when Ind AS applies.