"IND as applicable" refers to Indian Accounting Standards (Ind AS) and their mandatory or voluntary application to various entities in India.

Here's a breakdown:

What are Ind AS?

• Indian Accounting Standards (Ind AS) are a set of financial reporting standards in India.
• They are substantially converged with International Financial Reporting Standards (IFRS). This means they are largely similar to IFRS, with some "carve-outs" (modifications) to suit the Indian economic and legal environment.
• They are issued by the Central Government of India under the supervision of the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) and in consultation with the National Financial Reporting Authority (NFRA).¹
• The primary goal of Ind AS is to enhance the transparency, comparability, and reliability of financial statements of Indian companies, making them more aligned with global practices.

To whom are Ind AS applicable?

The applicability of Ind AS has been implemented in a phased manner by the Ministry of Corporate Affairs (MCA) and depends primarily on a company's:

1. Listing Status:
• Listed companies: All companies listed or in the process of being listed on stock exchanges in India or outside India are generally required to adopt Ind AS.
2. Net Worth:
• Unlisted companies: Ind AS applicability for unlisted companies is based on net worth thresholds. Generally, companies with a certain net worth (e.g., Rs. 250 crore or Rs. 500 crore, depending on the phase of implementation) are required to adopt Ind AS.
3. Industry/Sector:
• Certain sectors like Non-Banking Financial Companies (NBFCs) have specific applicability phases for Ind AS.
• While initial plans included banks and insurance companies, their implementation has been deferred by their respective regulators (RBI and IRDAI) until further notice.
4. Holding, Subsidiary, Joint Venture, and Associate Companies:
• Once Ind AS becomes applicable to a company, it automatically extends to its holding, subsidiary, joint venture, and associate companies, irrespective of their individual qualification criteria.

Key Points:

• Phased Implementation: Ind AS was implemented in different phases to ensure a smooth transition for businesses.
• Mandatory vs. Voluntary: While mandatory for certain entities, companies not covered by the mandatory roadmap may voluntarily adopt Ind AS.
• No Reversion: Once a company adopts Ind AS (either mandatorily or voluntarily), it must continue to follow them for all subsequent financial years.
• Standalone and Consolidated Financial Statements: Ind AS applies to both standalone and consolidated financial statements.
• Exemptions: Sole proprietorships, partnerships, HUFs, and some SMEs that are not part of the mandatory sectors are generally exempted from Ind AS applicability.

In essence, "IND as applicable" means that the Indian Accounting Standards must be followed by those entities that meet the specific criteria outlined by the Ministry of Corporate Affairs in India.