Three questions before you move to Ind AS
Moving from the Accounting Standards (AS) to Ind AS is a one-time project that affects the numbers, the systems and the people who prepare them. Three questions, answered early, decide whether it runs smoothly.
1. Does it apply to us, and from when?
Ind AS applies to listed companies, unlisted companies with a net worth of ₹250 crore or more, and their holding, subsidiary, associate and joint-venture companies. See does Ind AS apply to your company?.
The important date is the date of transition: the beginning of the earliest period presented. If the first Ind AS financial statements are for the year ending 31 March 2028, the comparative year is 2026-27, and the opening Ind AS balance sheet is drawn up as on 1 April 2026. So a company that crosses the threshold now may already be inside its transition period.
2. What will change in our numbers?
The effect differs from business to business. The areas that most often move are:
- Revenue (Ind AS 115): timing of recognition for bundled contracts, discounts, warranties and long-term projects.
- Leases (Ind AS 116): most leases come on the balance sheet as a right-of-use asset and a lease liability. Try the lease calculator.
- Financial instruments (Ind AS 109): expected credit loss on receivables (see the ECL guide), fair value of investments, and the effective interest method for loans.
- Employee benefits, deferred tax and business combinations.
Ind AS 101 allows some exemptions on first-time adoption. Choosing them well can make the transition much simpler.
3. Who will do the work?
Someone has to restate the opening balance sheet and the comparative year, prepare reconciliations from AS to Ind AS, and draft the new disclosures. The auditor will also need to audit the opening balances. Assign an owner, agree a timetable with the auditor, and check that the accounting system can capture the data that Ind AS needs, such as lease schedules and ageing for credit loss.
See our Ind AS reporting page and the complete Ind AS guide.