In February 2015, the Ministry of Corporate Affairs (MCA) notified the roadmap for implementation of IFRS transition to Indian Accounting Standards (Ind AS). Few industries are likely to have significant impact in their financial accounting and reporting. Amongst these, real estate companies are expected to see significant changes in the financial reporting. Consequently, companies with a net of worth of more than INR 500 crore need to report under Ind AS for financial year beginning from 1 April 2016 with comparative information for financial year 2015-16.
At Grant Thornton, we understand that knowledge and experience of the complex real estate sector is important to facilitate and manage the transition to Ind AS. This is also important to set up sustainable and auditable processes and documentation for continuing reporting under Ind AS.
The handbook discusses few key elements that are potentially expected to have a significant impact on the financial statements of real estate companies.