Ind AS 118, Presentation and Disclosure in Financial Statements, is proposed to replace Ind AS 1. As of the latest sources we found, the Ministry of Corporate Affairs has not notified it. Until it is notified, Ind AS 1 stays in force. The ICAI exposure draft proposes annual reporting periods beginning on or after 1 April 2027.
Facts checked: 16 October 2026. The exposure draft date and the proposed 1 April 2027 effective date come from ICAI's own notice; the NFRA recommendation comes from a March 2026 EY publication and a summary of NFRA's December 2025 meeting. We did not find a notification. The Companies (Indian Accounting Standards) Amendment Rules, 2026, notified on 12 August 2026 (G.S.R. 725(E)), amend Ind AS 101, 107, 109, 110 and 7, and do not include Ind AS 118. Check the MCA's notifications page before you rely on any date.
Where it stands
| Step | Status |
|---|---|
| ICAI exposure draft issued | 6 January 2025 |
| Proposed effective date | Annual periods beginning on or after 1 April 2027 |
| NFRA | At its 22 December 2025 meeting, resolved to recommend the proposal to the Central Government, with a change only to the effective date |
| MCA notification | Not found as of the sources above |
| Schedule III and SEBI formats | NFRA suggested the MCA and SEBI consider changes; still pending |
NFRA changed the effective date in its recommendation, so the date in the exposure draft may not be the final one. Treat 1 April 2027 as proposed.
What it changes, in plain words
Ind AS 118 is based on IFRS 18, the international standard on the same subject that the IASB issued in April 2024 (IFRS 18 itself starts on 1 January 2027, a quarter earlier than the Indian date proposed). The main changes, as the sources describe them:
- A more structured statement of profit and loss. Income and expenses are grouped into categories, with defined subtotals, so two companies' statements can be compared more easily.
- Rules for management-defined performance measures. Where a company reports its own "adjusted" profit or similar figure outside the statements, it has to explain it and reconcile it to a figure in the financial statements. This puts discipline on the numbers that appear in results announcements.
- Better grouping and labelling of information in the statements and notes.
- Some Ind AS 1 requirements move to Ind AS 8, which is renamed.
- Retrospective application. Comparatives are restated.
What this means for auditors and finance teams
None of this needs action on the numbers yet. It does need preparation on the process:
- Map today's statement to the proposed one. Take the current statement of profit and loss and sort each line into the new categories. Lines that do not fit cleanly are the early questions.
- List the performance measures. Gather every "adjusted" or "underlying" figure used in investor presentations, board packs and press releases. Each one will need a definition and a reconciliation.
- Plan comparatives. Because the standard is retrospective, the prior year's statement will be restated. Make sure the ledger can regroup last year's data.
- Talk to the auditor early. A change of format touches the audit of presentation, so agree timing and evidence before the year starts.
- Wait for Schedule III. The formats in Schedule III and in SEBI's results templates are tied to the standard. Companies should not redesign statements before those are settled.
Frequently Asked Questions
Is Ind AS 118 in force?
No. As of the sources we found, it has not been notified by the MCA, so Ind AS 1 continues to apply.
When is Ind AS 118 effective?
The ICAI exposure draft proposes annual periods beginning on or after 1 April 2027. NFRA's recommendation changed only the effective date, so the final date may differ.
How is Ind AS 118 different from Ind AS 1?
It adds a more structured statement of profit and loss with defined subtotals, rules for management-defined performance measures, and changes to how information is grouped. Some requirements move to Ind AS 8.
Does Ind AS 118 apply to small companies?
Ind AS applies to companies by net-worth and listing thresholds. Whether a company is covered is decided by those thresholds, not by this standard. See our guide on Ind AS applicability.
Is it the same as IFRS 18?
It is described as aligned with IFRS 18, but the final Indian text can differ. Read the notified standard when it appears.
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