COMPARISON OF OLD IAS AND IND AS WITH RESPECT TO PRESENTATION OF FINANCIAL STATEMENTS

1. Old Indian Accounting Standards was named as ‘Disclosures of Accounting Principles and Policies’ where as in the Ind AS, the name has been changed to ‘Presentation of Financial Statements’.

2. Normally, the entities prepare their financial statements for a period of one year. But, in certain circumstances the entities are allowed to prepare their financial statements for a period of 52 weeks. As per Old IAS, the entities are allowed to do such practice but as per Ind AS such practice of preparing financial statements for a period of 52 weeks is not allowed. Now, according to Ind AS all the entities have to make their financial statements for one year only.

3. As per old IAS the complete set of financial statements includes:

                    I.            A statement of financial position (balance sheet) at the end of an accounting period.

                  II.            A statement of profit and loss and other comprehensive income for the period.

               III.            A statement of changes in equity for the period

               IV.            A  statement of cash flows for the period

                  V.            Notes, comprising of significant accounting policies and other explanatory notes.

               VI.            Comparative information prescribed by the standard.

But as per Ind AS, the complete set of financial statements comprise of :

                    I.            Balance Sheet ( changes in Equity)

                  II.            Statement of Profit or Loss

               III.            Statement of Changes in Cash Flows

               IV.            Notes comprising of significant accounting policies and other information

                  V.            Balance Sheet at the end of the earliest comparative period

4. Old Indian Accounting Standards was followed by all the companies. But, as per Ind AS, it not compulsory for all the companies to follow. The details are mentioned below:

1.                       Voluntary adaption: The companies can voluntary adopt Ind AS from the accounting year starting from 1st April 2015. The companies can also do comparison with the financial statement ending on 31st March 2015. But, once the company start following Ind AS, it becomes mandatory for them to follow the same for the subsequent financial years.
2.                          Mandatory adaption: The following companies will follow Ind AS

a.       From the financial year starting from 1st April 2016.

1.      The companies who are listed (or going to be listed) in any stock exchange in India or outside India having the net worth of Rs 500 crores or more.

2.      The companies who not listed in any stock exchange in India or outside India but are having the net worth of Rs 500 crores or more.

3.      The subsidiary, holding or joint venture companies of the above mentioned companies whether listed or not having net worth of Rs 500 crores.

b.      From the financial year starting from 1st April 2017.

1.      The companies who are listed ( or going to be listed) in any stock exchange in India or outside India having the net worth less than Rs 500 crores or more.

2.      The companies who not listed in any stock exchange in India or outside India but are having the net worth between Rs 250 crores and  Rs 500 crores or more.

3.      The subsidiary , holding or joint venture companies of the above mentioned companies whether listed or not having net worth of Rs 500 crores

III. Insurance companies, banking companies and non banking finance companies are not covered under mandatory adaption. Such companies are not allowed to opt for the voluntary adaption.

Dr. Himani Gupta

AssociateProfessor

Dept. of Management Studies