IFRS/ Ind AS Conversion
As companies in India expand internationally or attract foreign investors, aligning their financial reporting with IFRS (International Financial Reporting Standards) or Ind AS (Indian Accounting Standards) becomes essential. But let’s admit it—transitioning from traditional Indian GAAP to Ind AS or IFRS can be complex, time-consuming, and full of technical challenges. At Aarthika, we simplify your IFRS/Ind AS conversion journey—from initial assessment to full implementation—ensuring transparency, compliance, and credibility in your financial reporting. Whether you’re a listed company, SME, or subsidiary of a global entity, we help you seamlessly adapt to these global accounting frameworks without disrupting day-to-day operations.
How It’s Done (Conversion & Implementation Process):
Aarthika follows a systematic 4-stage conversion model tailored for every client:
- Diagnostic Assessment: Evaluate existing financial reporting frameworks, gaps, and Ind AS applicability.
- Design & Planning: Develop a conversion roadmap, identify accounting policy changes, and define data requirements.
- Implementation: Adjust accounting systems, chart of accounts, and prepare dual reporting during transition.
- Post-Implementation Review: Validate results, prepare reconciliations, and ensure sustainability for future reporting.
We ensure that the conversion process aligns with Schedule III of the Companies Act, 2013, and other statutory requirements.
Documents & Data Required:
To ensure a smooth transition, the following documents are typically needed:
- Previous GAAP-based financial statements (3–5 years)
- Accounting policy manuals and depreciation schedules
- Trial balances, ledgers, and supporting vouchers
- Details of fixed assets, investments, and foreign operations
- Contracts and agreements with potential accounting impact (leases, derivatives, etc.)
FAQs
Depending on the company’s size and complexity, it may take 3 to 9 months—including diagnostic review, parallel reporting, system updates, and auditor validation.
While not mandatory for all SMEs, adopting Ind AS voluntarily can improve financial transparency, make fundraising easier, and prepare for future listing or foreign partnerships.
Yes. As per Ind AS 101 (First-time Adoption), companies must prepare reconciliations for equity and profit/loss between previous GAAP and Ind AS for transparency.
Aarthika offers end-to-end Ind AS and IFRS advisory, including diagnostic assessment, system migration, financial restatement, training for in-house teams, and post-implementation support. We ensure your financials are globally compliant and audit-ready.
Conversion enhances global comparability, builds investor confidence, and simplifies cross-border transactions. It’s also crucial for companies seeking foreign investment or international listing.