Comprehensive Ind AS Annual report card: Critical analysis & takeaways
India Inc. has finally implemented internationally recognised accounting norms i.e. accounting standards converged with IFRS (Ind AS) after almost a decade of efforts by several authorities. The transition was a long path encompassing and sorting challenges on various fronts, accounting and regulatory.
As the Phase I companies reported their first Ind AS financial statements for FY 2016-17 with restated comparatives under Ind AS for FY 2015-16, the path to transition was seen as a mix of – (a) challenges to deal with changed accounting norms and (b) opportunities to reflect accounting positions basis their substance rather than legal form.
Key takeaways from this report are:
- Profitability dwindled by a whopping Rs. 13,680 crore or an average 6.2 per cent.
- Net worth of these companies increased by 1.7 per cent as a result of the transition.
- Telecom, Infrastructure, Logistics, Real Estate and Services have witnessed 5-10 per cent decline in their net worth.
- Manufacturing, Media, Automotive and Retail have reported a 5-10 per cent increase in their net worth.
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