What is IND-Advisory?
Ind Advisory helps the companies in providing advisory on accounting standards and also in preparing documents and policies that provide principles for the recognition, dimension, treatment, presentation, and disclosures of accounting transactionsinInd AS financial statements. IND Advisory considerable reviews, distinction, and advisory services help the company to ensure that the requirements under IND Advisory are met and effectively implemented. The IND AS advisory provides services that are carefully tailored as per the need of the individual clients by taking into consideration the following difficulties faced by the companies i.e. specific operational, regulatory, and financial risks. IND Advisory helps in navigating the process from start to finish, ensuring efficient change and minimum interruption to the business.
Services provided by the IND-Advisory
- IND-Advisory provides business advisory services related to specific Ind AS & IFRS applicability i.e.Business merger, Consolidation, Financial Instruments, Hedge Accounting, Leases, and Revenue Recognition
- Planning, implementation, and conversion of IND Accounting standard.
- Facilitating in conversion to the new IND AS standards.
- Provides proper assistance in analyzing the difference between Indian GAAP and Ind Accounting standard
- Assistance in recognizing the policies, deciding new policies and procedures required to be implemented under the Ind Accounting standard.
- Assistance in executing the identified changes for meeting Ind Accounting standards
- Imparts training to the staff on key Ind AS concepts and requirements
- Assistance in the compilation of financial statements under the IND Accounting Standards.
IND-advisory helps the companies in the adoption of different phases of IND AS
Ministry of corporate affairs has notified a chapter-wise crossway to IND AS from current accounting standards. Ind advisory helps the specific class of companies in adopting IND AS based on their Net worth and listing status. Below-mentioned are the phases based on which the companies follow the Ind AS-
Companies can opt for voluntary adoption of IND AS in their reports for accounting periods beginning on or after April 01, 2015. While reporting, the companies must include IND ASin the comparative report for the periods ending 31 March 2015 or thereafter. However, once a company has started reporting according to the IND AS, it cannot change its reporting as per previous laws.
Mandatory applicability of IND AS from the accounting period beginning on or after 1st April 2016-IND AS is applicable on all companies for the accounting period beginning on or after 1st April 2016, provided:
- The company having a net worth of 500 crores or more.
- The company can be listed or unlisted company.
The holding, subsidiary, joint venture, or associate companies of the class of companies are also covered under this applicability.
Note-The Net worth of the previous three Financial Years shall be into consideration.
Mandatory applicability of IND AS from the accounting period beginning on or after 1st April 2017-IND AS is applicable on all companies for the accounting period beginning on or after 1st April 2017-
- The companies whose shares, debenture or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India having net-worth less than 500 crores.
- The companies which are not listed on the stock exchange having a net worth of 250 crores or more but less than 500 crores.
- The holding, subsidiary, joint venture, or associate companies of the above class of companies, irrespective of individual qualification of such companies.
Note- Net worth shall be checked for the previous four Financial Years (2013-14, 2014-15, 2015-16, and 2016-17)
Mandatory applicability of IND AS to all Banks, Non -banking financial companies, and Insurance companies from 1st April 2018, whose:
- Net worth is over or equal to 500 crores with effect from 1st April 2018.
The Insurance Regulatory and Development Authority of India shall notify the separate set of Ind- AS for Banks & Insurance Companies with effect from 1st April 2018,
Mandatory applicability of IND AS on all Non-banking financial companies with effect from 1st April 2019, provided-
- The net worth is more than or equal to INR 250 crore but less than INR 500 crore.
Key factors are taken into consideration by the Ind-advisory for developing the roadmap to Ind AS Conversion
Below-mentioned are the key factors that are taken into consideration by the Ind-advisory for developing the roadmap for Ind AS Conversion-
- Creating the project management and planning the activities
- Determining the tax implication of Ind AS standards
- Redrafting the financial statement in adapting the Ind AS.
- Identifying and resolving the issues
- Contract management.
- Legal and Regulatory Aspects
- Major acquisition
- Major ERP or finance transformation projects of the company
- Competitor’s action
- Access to capital and impact of the financial system
- Effect of Ind AS Conversion on Existing and future business
- Presentation of Ind AS financial statement.
Potential risks associated with Ind AS Conversion
The Ind-advisory while offering services to its client, takes into consideration the potential risks that can associate with Ind AS Conversion. Once the company started AS conversion it shall understand the business reporting decisions taken by similar companies after Ind AS adoption.
Below mentioned are the potential risks associated with Ind AS Conversion which is required to be tackled by the management. The potential risk involves:
- Absence of communication of effects and output of Ind AS conversion with the stakeholders, Board of directors, audit committee, investors, and analysts.
- Non-maintenance of accounts and various reports under multiple accounting structure during the conversion period.
- Lack of consistency in adopting various Ind AS principles.
- Retention of Key personnel.
- Inappropriate planning, project management results in high cost.
- Obstructiveworkload due to inappropriate planning
- Delay in meeting the timelines on the Conversion process
Ind Advisory helps in overcoming this risk by paying close attention to the approach of management for Ind AS conversion and satisfy themselves that it covers all appropriate areas based on appropriate management strategies.
How Enterslice helps in providing IND AS advisory?
- Assists in Ind AS adoption services.
- Provides proper assistance in analyzing the difference between Indian GAAP (Generally accepted accounting principles) and Ind Accounting standards
- Assists its client in identifying the AS, deciding new policies and approaches required to be implemented under Ind AS.
- Assistance in the execution of identified changes for harmonizing to Ind AS.
- Helps the company in imparting the training to the staff on key Ind AS concepts and prerequisites.
- Assistance in the collection of financial statements under Ind Accounting standards.