Dear Madam/Sir
We are registered under Sec25 of companies act 1956. Kindly let us know whether sec25 company (NGO’s) have to follow internal financial reporting system (IFRS)?
If yes, then can you share some format relating to IFRS reporting.
Thanks & Regards
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Trupti Nahar
Dear Trupti
International Financial Reporting Standards (or IFRS for short) are applicable to companies with turnover of Rs 500 crores or more effective accounting period beginning 1st April 2016, with IFRS compliant comparable for period as on 31-3-2016.
It is also applicable to a holding, subsidiary or a joint venture or an associate company of a company on which IFRS is appicable as above. Thus by definition these will be applicable to S. 25 (now S. 8) companies, as there is no exception, if S.8 is a subsidiary, holding or associate company of an IFRS compliant company.
Please note effective 1-4-2017, the requirement is applicable to all companies with more than Rs 250 crores turnover.
This limit of Rs 500 crs of Net worth is standalone basis or on the basis of consolidated financial position?
Friends, on re-reading my response I realised, I have said ‘turnover’ for applicability, please read it as ‘net worth’, rest remaining same.
Mihir, yes net worth has to be considered for a standalone financial statements of a company. Please note Companies Act 2013 specifies exactly what is to be included while arriving at net worth position.