On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Ind AS implementation road map for NBFCs in a phased manner, from accounting periods beginning on or after 1 April 2018 (with comparatives for the periods ending on or after 31 March 2018)
On 30 March 2016, the Ministry of Corporate Affairs (MCA) notified the Ind AS implementation road map for NBFCs in a phased manner, from accounting periods beginning on or after 1 April 2018 (with comparatives for the periods ending on or after 31 March 2018).
The Ind AS implementation is not just an accounting change, but is expected to have an organisation-wide impact due to the pervasive nature of the new standards.
NBFCs are required to prepare both consolidated and separate financial statements based on Ind AS.
Ind AS implementation issues
The largest impact of Ind AS implementation is expected on accounting for financial instruments, on application of Ind AS 109, Financial Instruments, Ind AS 32, Financial Instruments: Presentation and Ind AS 107, Financial Instruments: Disclosures. The implementation of these financial instruments standards is expected to affect almost all line-items of the financial statements. Ind AS 109 also requires early recognition and significant increase in provisions for loans and off-balance sheet exposures based on an Expected Credit Loss (ECL) model.
In this special session of Voices on Reporting webinar, we discussed key implementation issues that NBFCs are likely to face while implementing Ind AS.
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