The Centre and the RBI, for now, have virtually turned down NBFCs’ request to defer Ind AS implementation by one year as has been done for banks.
“The sense we have got out of the meeting is that the MCA is not inclined to defer Ind AS for NBFCs. Both the MCA and RBI at this point are not in favour of deferring Ind AS for NBFCs,” said a source who attended the meeting convened by MCA. The Ministry of Corporate Affairs (MCA) had on Friday convened a meeting of financial sector regulators and stakeholders to discuss, among other things, the NBFCs’ request for deferment of Ind AS by one year.
Raman Aggarwal, Chairman, Finance Industry Development Council (FIDC), said the MCA Secretary assured in the meeting that he will meet RBI Governor and discuss this matter. “FIDC would, therefore, knock the doors of the RBI once again to seek deferment by one year,” Aggarwal told.
Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS), EY India, said: “The reasons due to which Ind AS has been deferred for banks cannot be attributed to NBFCs as the two are different from both legal structuring and risk framework perspective,” he said.
Moreover, many NBFCs that are group companies of companies under the corporate Ind AS roadmap have been reporting under Ind AS for group reporting purposes from 2016-17, he said.
The National Advisory Committee on Accounting Standards Chairman Amarjit Chopra said the committee had at the meeting conveyed to the MCA that it is not in favour of deferring Ind AS for NBFCs.
Charanjit Attra, Partner,Financial Accounting Advisory Services, EY India, said: “NBFCs will have to produce Ind AS numbers for its interim reporting (quarterly or six monthly). This would be a welcome step for NBFCs which are a subsidiary or controlled by an entity to which Ind AS is applicable and the core investment companies”. Other NBFCs would have to publish disclosures at the end of the financial year ending March 31, 2019, he said.