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Ind AS Applicability Calculator.

The ₹250 crore / ₹500 crore net-worth phase test, listed vs unlisted, the separate NBFC roadmap, the holding-subsidiary-JV-associate cascade rule, and once-applicable-always-applicable — answered for one entity at a time.

Inputs

Entity type

Banks and insurers follow their sector regulator’s own roadmap, not the general Companies Act one.

Already adopted Ind AS in an earlier year?

Rule 4(3) — once adopted, always applicable. Answering Yes overrides everything below.

Holding / subsidiary / JV / associate of an entity already covered?

Cascades regardless of this entity’s own net worth or listing status.

Equity or debt securities listed (or being listed), India or abroad?

Net worth (₹ crore) — Sec 2(57), per latest audited balance sheet

Paid-up capital + reserves out of profit + securities premium − accumulated losses/deferred & misc. expenditure not written off. Excludes revaluation reserves.

Result

Ind AS applicable?✓ Yes

Effective fromFY 2017-18 (1 April 2017)

Why

Unlisted company with net worth ₹300 Cr — between ₹250 Cr and ₹500 Cr — Phase II.

Four roadmaps, one rule that overrides all of them.

The Companies (Indian Accounting Standards) Rules 2015 phase companies in by net worth and listing status; NBFCs run one year behind on a parallel schedule; banks and insurers sit outside Rule 4 entirely and follow their own regulator. Underneath all four, Rule 4(3) — once applicable, always applicable — means the test only matters the first time; after that, the group cascade and the adoption history decide it.

IGAAP vs Ind AS — the 10 differences Schedule III Validator

How Ind AS applicability is determined

The Companies (Indian Accounting Standards) Rules 2015, Rule 4, phases companies in over two years by net worth and listing status. Phase I (accounting periods beginning 1 April 2016): listed companies of any net worth, plus unlisted companies with net worth ≥ ₹500 crore. Phase II (1 April 2017): all remaining listed companies (net worth below ₹500 crore) plus unlisted companies with net worth ≥ ₹250 crore but below ₹500 crore. From FY 2017-18 onward, in effect: every listed company plus every unlisted company with net worth ≥ ₹250 crore.

NBFCs run a separate, one-year-delayed roadmap under the same Rules: NBFC Phase I (1 April 2018) covers NBFCs — listed or unlisted — with net worth ≥ ₹500 crore. NBFC Phase II (1 April 2019) covers every listed NBFC regardless of net worth, plus unlisted NBFCs with net worth between ₹250 crore and ₹500 crore.

Two rules sit underneath both roadmaps and override the net-worth test. First, the cascade rule (Rule 4(1)(iii)/(iv)): once a company is covered, its holding, subsidiary, joint venture and associate companies are covered from the same date, regardless of their own net worth or listing status. Second, Rule 4(3) — once applicable, always applicable: a company that adopts Ind AS, voluntarily or otherwise, must keep applying it in every later year even if net worth falls, it delists, or it stops being part of the covered group. Banks and insurers are carved out of Rule 4 entirely and follow their own sectoral regulator — RBI has deferred bank implementation with no notified date as of this review; IRDAI has mandated Ind AS 117 for all insurers from 1 April 2026.

Worked example — an unlisted subsidiary dragged in by its parent

An unlisted manufacturing subsidiary has net worth of ₹90 crore as on 31 March 2026 — well under both the ₹250 Cr and ₹500 Cr thresholds on its own. Its listed holding company crossed ₹500 crore net worth in FY 2015-16 and has reported under Ind AS since FY 2016-17.

Inputs

Subsidiary net worth₹90 Cr

Subsidiary listed?No

Holding company statusInd AS since FY 2016-17 (Phase I, listed)

Cascade testSubsidiary of a covered entity

Output

Ind AS applicable to the subsidiary?Yes — via cascade

Effective fromFY 2016-17 — same date as the parent

Net worth relevanceNone — cascade overrides the ₹250 Cr test entirely

The subsidiary’s own ₹90 crore net worth would fail both the ₹250 crore and ₹500 crore unlisted thresholds standing alone. Rule 4(1)(iv) makes that irrelevant: because the parent is covered, every subsidiary, associate and joint venture of the parent is covered from the same effective date the parent became covered — not from whenever the subsidiary might independently cross a threshold.

Common mistakes

Testing net worth without checking the group first

The most common miss: computing a subsidiary’s own net worth against ₹250 Cr / ₹500 Cr and concluding "not applicable," without first checking whether its parent, holding company, JV partner or any associate is already Ind AS-covered. The cascade rule runs regardless of the subsidiary’s own numbers.

Assuming a fall in net worth exits Ind AS

Rule 4(3) is a one-way door. A company whose net worth later drops below ₹250 crore, or that delists, or that a parent divests — none of that reverses Ind AS applicability once adopted. Continued IGAAP is not an option after the first Ind AS-compliant year.

Treating NBFCs on the company timeline

NBFCs are one full year behind the general company roadmap (2018/2019 vs 2016/2017) and use their own listed-NBFC rule in Phase II — a listed NBFC is covered in Phase II regardless of net worth, which has no equivalent net-worth-only reading on the company side.

Assuming banks and insurers follow the company roadmap

Banks and insurers are excluded from Rule 4 altogether. Banks remain on RBI’s own (repeatedly deferred, currently undated) timeline; insurers moved to Ind AS 117 under IRDAI from 1 April 2026 — a separate notification, not an MCA one. Don’t apply the ₹250/₹500 Cr test to either.

Using book net worth instead of the Sec 2(57) definition

Net worth for this test is paid-up capital + reserves out of profit + securities premium, less accumulated losses and unwritten-off deferred/misc. expenditure — excluding revaluation reserves, depreciation write-back and amalgamation reserves. A company using its plain balance-sheet net-worth figure can misclassify itself either way.

Frequently asked questions

What is the net worth criteria for Ind AS applicability?+

Under the general company roadmap: listed companies are covered regardless of net worth (Phase I from FY 2016-17 if net worth ≥ ₹500 Cr, Phase II from FY 2017-18 otherwise). Unlisted companies are covered once net worth reaches ₹250 crore — ₹500 crore or more puts them in Phase I, ₹250-500 crore in Phase II. NBFCs use the same ₹250/₹500 crore bands one year later (FY 2018-19 / FY 2019-20), with every listed NBFC covered in Phase II regardless of net worth.

Is Ind AS applicable to all companies?+

No — only listed companies, and unlisted companies/NBFCs above the ₹250 crore net-worth threshold, plus any company dragged in via the holding-subsidiary-JV-associate cascade rule or that has already adopted Ind AS in an earlier year. Small and mid-sized unlisted companies below the threshold, with no covered group relationship, continue under regular Accounting Standards (AS).

What does "once applicable, always applicable" mean?+

Rule 4(3) of the Companies (Indian Accounting Standards) Rules 2015: once a company starts applying Ind AS — whether mandatorily or voluntarily — it must continue applying Ind AS for all subsequent financial statements, even if it later stops meeting the criteria that first triggered applicability.

If my subsidiary’s net worth is below ₹250 crore, is it exempt from Ind AS?+

Only if no holding, subsidiary, joint venture or associate company in its group is already covered by Ind AS. If any group entity is covered, the subsidiary is covered from that entity’s effective date regardless of its own net worth (Rule 4(1)(iii)/(iv)).

Do banks and insurance companies follow the same Ind AS roadmap?+

No. Both are excluded from Rule 4 and follow their sector regulator instead. RBI has repeatedly deferred Ind AS for scheduled commercial banks and has not notified a fresh date as of this review. IRDAI has mandated Ind AS — via the Ind AS 117 insurance-contracts standard — for all insurers uniformly from 1 April 2026, with parallel IGAAP reporting in the first transition year.

When did Ind AS become applicable for NBFCs?+

NBFC Phase I: accounting periods beginning 1 April 2018, for NBFCs (listed or unlisted) with net worth ≥ ₹500 crore. NBFC Phase II: 1 April 2019, covering every listed NBFC (any net worth) plus unlisted NBFCs with net worth between ₹250 crore and ₹500 crore.

Authoritative sources

MCA

Companies (Indian Accounting Standards) Rules, 2015 — Rule 4 (as amended) — Phase-wise applicability for companies and NBFCs, net worth definition (Sec 2(57) cross-reference), and the once-applicable-always-applicable rule.

RBI

RBI — Ind AS implementation status for banks — Implementation for scheduled commercial banks remains deferred; no notified effective date as of this review.

IRDAI

IRDAI — Ind AS 117 framework for insurers — Mandatory Ind AS reporting for all insurers effective 1 April 2026, with parallel IGAAP reporting in the transition year.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

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IGAAP vs Ind AS →Schedule II Depreciation →Schedule III Validator →Deferred Tax Calculator →

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Last reviewed: 2026-07-18 · For informational purposes only — not professional advice.