MCA clarifies Ind AS applicability norms | KPMG | IN

MCA clarifies Ind AS applicability norms for ‘payments banks and small banks’

MCA clarifies Ind AS applicability norms

The Ministry of Corporate Affairs (MCA) through its notification dated 16 February 2015 laid down the road map for implementation of Indian Accounting Standards (Ind AS) by companies other than banking companies, insurance companies and Non-Banking Financial Companies (corporate road map).

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Background

The Ministry of Corporate Affairs (MCA) through its notification dated 16 February 2015 laid down the road map for implementation of Indian Accounting Standards (Ind AS) by companies other than banking companies, insurance companies and Non-Banking Financial Companies (corporate road map).

On 11 February 2016, the Reserve Bank of India (RBI) issued a circular (RBI/2015-16/315) which requires holding, subsidiary, joint venture or associate companies of scheduled commercial banks (excluding regional rural banks) to comply with Ind AS for accounting periods beginning from 1 April 2018 onwards, with comparatives for periods ending on or after 31 March 2018.

New development

The MCA through a circular (no. 10/2017) dated 13 September 2017 clarified that in case a holding company covered under the corporate road map of Ind AS has payments bank or small finance bank as its subsidiary, then the holding company should continue to follow the corporate road map. However, the payments bank or the small finance bank should follow the banking sector road map as prescribed by RBI.

This issue of IFRS Notes provide an overview of the clarification issued by the MCA.

To access the text of the MCA circular, please click here.

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