Accounting · Standards

Ind AS Implementation for a smooth transition that lasts.

End-to-end implementation of Indian Accounting Standards — impact assessment, opening balance sheet preparation, policy documentation, and first-year Ind AS financial statements — for companies transitioning from Indian GAAP.

Indian Accounting Standards (Ind AS) are the Indian version of International Financial Reporting Standards, converged with IFRS and mandated by the Ministry of Corporate Affairs for certain classes of companies. The transition from Indian GAAP to Ind AS is not merely a technical accounting exercise — it changes how assets, liabilities, income, and expenses are measured and recognised, and it significantly impacts reported financial performance and position.

The Ind AS transition involves preparing an opening balance sheet as at the transition date, applying mandatory exceptions and optional exemptions under Ind AS 101 (First-time Adoption), computing the transition adjustments for each impacted area, restating comparatives, and preparing the first set of Ind AS financial statements in the prescribed format — all while continuing to maintain Indian GAAP books for tax purposes.

NDS Advisors has assisted companies across manufacturing, real estate, financial services, and infrastructure in implementing Ind AS — from the initial impact assessment through to the first published Ind AS annual report. Our approach combines technical accounting knowledge with practical project management to keep the transition on track and on time.

Our Ind AS Implementation Services

Ind AS Applicability Assessment

Determining whether and when Ind AS applies to your company — based on net worth, listing status, and MCA phase-in schedule.

Impact Assessment

Identification and quantification of the key differences between your current Indian GAAP policies and the required Ind AS treatment — across revenue, financial instruments, leases, business combinations, and other areas.

Opening Balance Sheet Preparation

Preparation of the Ind AS opening balance sheet as at the transition date — applying mandatory exceptions and optional exemptions under Ind AS 101.

Accounting Policy Documentation

Drafting of Ind AS-compliant accounting policies covering all material areas — revenue recognition (Ind AS 115), financial instruments (Ind AS 109), leases (Ind AS 116), and more.

Financial Statement Restatement

Restatement of prior period financial statements under Ind AS for comparative presentation in the first Ind AS annual report.

First-Year Ind AS Financial Statements

Preparation of the first complete Ind AS financial statements — balance sheet, statement of profit and loss, statement of changes in equity, cash flow statement, and notes.

Ind AS 116 Lease Accounting

Implementation of Ind AS 116 (Leases) — identifying lease arrangements, computing right-of-use assets and lease liabilities, and setting up the ongoing lease schedule.

Deferred Tax Computation

Computation of deferred tax under Ind AS 12 using the balance sheet approach — including identification of temporary differences arising from Ind AS transition adjustments.

Our Process

Applicability & Timeline Confirmation

Confirming the applicable Ind AS transition date and the first reporting period under Ind AS based on MCA phase-in rules.

Gap & Impact Assessment

Identifying all areas where Ind AS treatment differs from current Indian GAAP policies — with quantification of the financial impact of each difference.

Transition Adjustments & Opening Balance Sheet

Computing transition adjustments, applying Ind AS 101 exemptions and exceptions, and preparing the restated opening balance sheet.

Policy Documentation & System Changes

Drafting new accounting policies, updating the chart of accounts, and advising on ERP or system changes required to capture Ind AS data.

First Ind AS Financial Statements

Preparing the complete first-year Ind AS financial statements with comparatives, transition reconciliation disclosures, and full Ind AS note disclosures.

Why It Matters

✓Ensures full compliance with MCA-mandated Ind AS applicability

✓Minimises transition disruption through structured project management

✓Accurate opening balance sheet reduces audit risk at first reporting

✓Policy documentation provides a sustainable accounting framework

✓Identifies and manages financial impact on key ratios and covenants

✓Supports lender and investor communication on transition impacts

✓Reduces cost and effort of the statutory audit in the transition year

✓Positions the company for IFRS convergence and cross-border reporting

Frequently Asked Questions

Ind AS applies to listed companies and their subsidiaries, associates, and JVs, and to unlisted companies with a net worth of ₹250 crore or more (Phase I) or ₹500 crore or more with voluntary adoption or as part of a group. Banks, NBFCs, and insurance companies have separate phase-in schedules. The MCA has not yet mandated Ind AS for all companies — smaller unlisted companies continue to follow Accounting Standards (AS).

Ind AS 101 (First-time Adoption of Indian Accounting Standards) governs how a company prepares its first Ind AS financial statements. It requires preparation of an opening balance sheet at the transition date, provides mandatory exceptions (areas where full retrospective application is not permitted) and optional exemptions (areas where the company can choose to apply prospectively rather than retrospectively). The elections made under Ind AS 101 have significant and lasting financial impact.

Ind AS impacts nearly every major line item in the financial statements. Common impacts include: recognition of employee benefit obligations under Ind AS 19, fair valuation of financial instruments under Ind AS 109, right-of-use assets and lease liabilities under Ind AS 116, revenue timing under Ind AS 115, and elimination of deferred revenue expenditure. The net impact on retained earnings and net worth can be significant and should be assessed before transition.

Yes, for tax purposes. While your statutory financial statements must be prepared under Ind AS, the Income Tax Act continues to be based on the taxable income as computed under tax provisions — which often differs from Ind AS accounting income. Companies typically maintain their ERP under Ind AS accounting and make tax adjustments at year end. We advise on the most efficient approach for your ERP and accounting team.

The transition date is the beginning of the earliest period for which comparative information is presented. If your first Ind AS financial statements cover FY 2024-25, your transition date is 1 April 2023 (for one year of comparatives). The opening Ind AS balance sheet is prepared as at this transition date.

A focused Ind AS implementation for a single entity typically takes 3 to 6 months from impact assessment to first-year financial statements. Groups with multiple entities, complex financial instruments, or large lease portfolios may take longer. We provide a project plan at engagement start with clear milestones and deliverable timelines.

Transition to Ind AS — accurately and on schedule.

Talk to our Ind AS team about impact assessment, opening balance sheet preparation, and first-year financial statement support.