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Adoption of Ind-AS - Postponement
April 11 , 2018
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- The Reserve Bank of India (RBI) has deferred adoption of Indian Accounting Standards (Ind-AS) by commercial banks for year (till April 2019) due to unpreparedness of banks to migrate to the new accounting system.
- RBI has requested Government to amend Banking Regulation Act, 1949 as format of financial statements as prescribed under Schedule 3 of Act is not amenable to reporting financial statements under Ind-AS.
- Ind-AS is global accounting practice that lender is mandated to adopt. The practice is on par with International Financial Reporting Standard (IFRS) 9.
- Banks and non-banking financial companies currently follow generally accepted accounting principles (GAAP) standards.
- Corporate entities started complying with Ind-AS with effect from 1 April 2016.
- In February 2016, RBI had issued circular mandating commercial banks, barring regional rural banks to implement Ind-AS from April 1, 2018.
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