R. 1 Short title and commencement
Short title and commencement.-
(1) These rules may be called the Companies (Indian Accounting Standards) Rules, 2015.
(2) They shall come into force on the 1st day of April, 2015.
Ind AS Rules
Notification dated 16.02.2015
The Companies (Indian Accounting Standards) Rules, 2015
Applicability of the Indian Accounting Standards, the phased obligation of the classes of company required to comply with them, and the exemptions available. The standards themselves are set out in the Annexure.
5
Rules
40 in Annexure
Standards
133
Section
14 Aug 2026
Text as on
Made under
The Companies Act, 2013 Chapter IX
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Opening text
Preamble
NOTIFICATION
New Delhi, the 16th February, 2015
In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the National Advisory Committee on Accounting Standards, hereby makes the following rules, namely:-
Chapter I
5 rules
Applicability of Indian Accounting Standards
R. 2 Definitions
Definitions.-
(1) In these rules, unless the context otherwise requires,-
(a)“Accounting Standards” means the standards of accounting, or any addendum thereto for companies or class of companies as specified in rule 3;
(b)“Act” means the Companies Act, 2013 (18 of 2013);
(c)“Annexure” in relation to these rules means the Annexure containing the Indian Accounting Standards (Ind AS) appended to these rules;
(d)“entity” means a company as defined in clause (20) of Section 2 of the Act;
(e)“financial statements” means financial statements as defined in clause (40) of Section 2 of the Act;
(f)“net worth” shall have the meaning assigned to it in clause (57) of Section 2 of the Act.
(2) Words and expressions used herein and not defined in these rules but defined in the Act shall have the same meaning respectively assigned to them in the Act.
R. 3 Applicability of Accounting Standards
Applicability of Accounting Standards. -
(1) The accounting standards as specified in the Annexure to these rules to be called the Indian Accounting Standards (Ind AS) shall be the accounting standards applicable to classes of companies specified in rule 4.
(2) The Accounting standards as specified in Annexure to the Companies (Accounting Standards) Rules, 2006 shall be the Accounting Standards applicable to the companies other than the classes of companies specified in rule 4.
(3) A company which follows the Indian Accounting Standards (Ind AS) specified in Annexure to these rules in accordance with the provisions of rule 4 shall follow such standards only.
(4) A company which follows the accounting standards specified in Annexure to the Companies (Accounting Standards) Rules, 2006 shall comply with such standards only and not the Standards specified in Annexure to these rules.
R. 4 Obligation to comply with Indian Accounting Standards (Ind AS)
Obligation to comply with Indian Accounting Standards (Ind AS). -
(1) The Companies and their auditors shall comply with the Indian Accounting Standards (Ind AS) specified in Annexure to these rules in preparation of their financial statements and audit respectively, in the following manner, namely:-
(i) any company may comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning on or after 1st April, 2015, with the comparatives for the periods ending on 31st March, 2015, or thereafter;
(ii) the following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2016, with the comparatives for the periods ending on 31st March, 2016, or thereafter, namely:-
(a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of rupees five hundred crore or more;
(b) companies other than those covered by sub-clause (a) of clause (ii) of sub-rule (1) and having net worth of rupees five hundred crore or more;
(c) holding, subsidiary, joint venture or associate companies of companies covered by sub-clause (a) of clause (ii) of sub-rule (1) and sub-clause (b) of clause (ii) of sub-rule (1) as the case may be; and
(iii) the following companies shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on or after 1st April, 2017, with the comparatives for the periods ending on 31st March, 2017, or thereafter, namely:-
(a) companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of less than rupees five hundred crore;
(b) companies other than those covered in clause (ii) of sub-rule (1) and sub clause (a) of clause (iii) of sub-rule (1), that is, unlisted companies having net worth of rupees two hundred and fifty crore or more but less than rupees five hundred crore.
(c) holding, subsidiary, joint venture or associate companies of companies covered under sub-clause (a) of clause (iii) of sub-rule (1) and sub-clause (b) of clause (iii) of sub-rule (1), as the case may be:
Provided that nothing in this sub-rule, except clause (i), shall apply to companies whose securities are listed or are in the process of being listed on SME exchange as referred to in Chapter XB or on the Institutional Trading Platform without initial public offering in accordance with the provisions of Chapter XC of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.
Explanation 1. - SME Exchange shall have the same meaning as assigned to it in Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.
Explanation 2. - “Comparatives” shall mean comparative figures for the preceding accounting period.
(2) For the purposes of calculation of net worth of companies under sub-rule (1), the following principles shall apply, namely:-
(a) the net worth shall be calculated in accordance with the stand-alone financial statements of the company as on 31st March, 2014 or the first audited financial statements for accounting period which ends after that date;
(b) for companies which are not in existence on 31st March, 2014 or an existing company falling under any of thresholds specified in sub-rule (1) for the first time after 31st March, 2014, the net worth shall be calculated on the basis of the first audited financial statements ending after that date in respect of which it meets the thresholds specified in sub-rule (1).
Explanation.- For the purposes of sub-clause (b), the companies meeting the specified thresholds given in sub-rule (1) for the first time at the end of an accounting year shall apply Indian Accounting Standards (Ind AS) from the
immediate next accounting year in the manner specified in sub-rule (1).
Illustration.-
(i) The companies meeting threshold for the first time as on 31st March, 2017 shall apply Ind AS for the financial year 2017-18 onwards.
(ii) The companies meeting threshold for the first time as on 31st March, 2018 shall apply Ind AS for the financial year 2018-19 onwards and so on.
(3) Standards in Annexure to these rules once required to be complied with in accordance with these rules, shall apply to both stand-alone financial statements and consolidated financial statements.
(4) Companies to which Indian Accounting Standards (Ind AS) are applicable as specified in these rules shall prepare their first set of financial statements in accordance with the Indian Accounting Standards (Ind AS) effective at the end of its first Indian Accounting Standards (Ind AS) reporting period.
Explanation.- For the removal of doubts, it is here by clarified that the companies preparing financial statements applying the Indian Accounting Standards (Ind AS) for the accounting period beginning on 1st April, 2016 shall apply the Indian Accounting Standards (Ind AS) effective for the financial year ending on 31st March, 2017.
(5) Overseas subsidiary, associate, joint venture and other similar entities of an Indian company may prepare its standalone financial statements in accordance with the requirements of the specific jurisdiction:
Provided that such Indian company shall prepare its consolidated financial statements in accordance with the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily if it meets the criteria as specified in sub-rule (1).
(6) Indian company which is a subsidiary, associate, joint venture and other similar entities of a foreign company shall prepare its financial statements in accordance with the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily if it meets the criteria as specified in sub-rule (1).
(7) Any company opting to apply the Indian Accounting Standards (Ind AS) voluntarily as specified in sub rule (1) for its financial statements shall prepare its financial statements as per the Indian Accounting Standards (Ind AS) consistently.
(8) Once the Indian Accounting Standards (Ind AS) are applied voluntarily, it shall be irrevocable and such companies shall not be required to prepare another set of financial statements in accordance with Accounting Standards specified in Annexure to Companies (Accounting Standards) Rules, 2006.
(9) Once a company starts following the Indian Accounting Standards (Ind AS) either voluntarily or mandatorily on the basis of criteria specified in sub-rule (1), it shall be required to follow the Indian Accounting Standards (Ind AS) for all the subsequent financial statements even if any of the criteria specified in this rule does not subsequently apply to it.
R. 5 Exemptions
Exemptions.-
The insurance companies, banking companies and non-banking finance companies shall not be required to apply Indian Accounting Standards (Ind AS) for preparation of their financial statements either voluntarily or mandatorily as specified in sub-rule (1) of rule 4.
Provided that an insurer or insurance company may provide its financial statement as per Ind AS 104 for the purposes of consolidated financial statements by its parent or investor or venturer till the Insurance Regulatory and Development Authority notifies the Ind AS 117 and for this purpose, Ind AS 104 shall, as specified in the Schedule to these rules, continue to apply.
Chapter II
1 rules
Annexure
Annexure Indian Accounting Standards in the Annexure
Annexure
The Annexure to these rules sets out the Indian Accounting Standards themselves. The standards run to several hundred pages and are reproduced in full in the Annexure to the notification; they are listed here by number so that the scope of the Annexure is on the record.
Ind AS 101 | Ind AS 102 | Ind AS 103 | Ind AS 104 | Ind AS 105 | Ind AS 106 | Ind AS 107 | Ind AS 108 Ind AS 109 | Ind AS 110 | Ind AS 112 | Ind AS 113 | Ind AS 114 | Ind AS 115 | Ind AS 115 | Ind AS 116 Ind AS 117 | Ind AS 1 | Ind AS 2 | Ind AS 7 | Ind AS 8 | Ind AS 10 | Ind AS 11 | Ind AS 12 Ind AS 16 | Ind AS 17 | Ind AS 18 | Ind AS 19 | Ind AS 20 | Ind AS 21 | Ind AS 23 | Ind AS 27 Ind AS 28 | Ind AS 32 | Ind AS 34 | Ind AS 36 | Ind AS 37 | Ind AS 38 | Ind AS 40 | Ind AS 41
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