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IndAS 1 : Presentation of Financial Statements - Meaning of Financial Statements

 IndAS 1 : Presentation of Financial Statements The objective of general purpose financial statements is to provide information about the financial  position, financial performance, and cash flows of an entity that is useful to a wide range of users in  making economic decisions. A complete set of financial statements comprises: •            a balance sheet as at the end of the period; •            a statement of profit and loss for the period; •            statement of changes in equity for the period; •            a statement of cash flows for the period; •            notes, comprising significant accounting policies and other explanatory information; •            comparative information in respect of the preceding period; •            a balance sheet as at the beginning of the preceding period when an entity applies an  accounting policy retrospectively or makes a retrospective restatements of items in its financial  statements, or when it reclassifies items in its financial st
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Three Division under Schedule III of Companies Act, 2013.

 As per the Companies Act, 2013, Schedule III, there are three divisions namely- 1.      Division I, which is applicable to a company whose financial statements are required to comply  with the accounting standards. 2.     Division II , which is applicable to a company whose financial statements are drawn up in  compliance with Ind AS. 3.     Division III, which is applicable to Non-Banking Finance Companies whose financial statements  are drawn up in compliance with Ind AS.
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APPLICABILITY OF IND AS

 APPLICABILITY OF IND AS IndAS are applicable to following companies:- a) All Companies/NBFCs listed / in process of listing on Stock Exchanges in India or Outside India. b) Unlisted companies/NBFCs having net worth of Rs. 250 crore or more. c) Parent, Subsidiary, Associate and Joint venture of above. Once IndAS are applicable, an entity shall be required to follow the IndAS for all the subsequent financial statements.  Note:-   Companies listed on SME exchange not required to apply Ind AS. Voluntary adoption of Ind AS is not allowed. Note:-  Banks deferred the Ind AS implementation till further notice by RBI through a notification dated 22 March 2019.
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WHAT ARE INDIAN ACCOUNTING STANDARDS (IND AS)?

 WHAT ARE INDIAN ACCOUNTING STANDARDS (IND AS)? Indian Accounting Standards (Ind-AS) are the International Financial Reporting Standards (IFRS)  converged standards issued by the Central Government of India under the supervision and control  of Accounting Standards Board (ASB) of ICAI and in consultation with National Financial Reporting  Authority (NFRA).  ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of  representatives from government department, academicians, other professional bodies viz. ICSI,  ICAI, representatives from ASSOCHAM, CII, FICCI, etc. National Financial Reporting Authority  (NFRA) recommends these standards to the Ministry of Corporate Affairs (MCA).  MCA has to spell  out the accounting standards applicable for companies in India. Ind AS are named and numbered in the same way as the corresponding International Financial  Reporting Standards (IFRS).
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