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- RBI vide circular
No.109/22.10.106/2019-20 dated 13.03.2020 has notified the
implementation of Indian Accounting Standards for NBFCs.
- Non-Banking Financial Companies
(NBFCs) covered by Rule 4 of the Companies (Indian Accounting
Standards0 Rules, 2015 are required to comply with Indian
Accounting Standards (Ind AS) for the preparation of their
financial statements. In order to pro promote a high quality and
consistent implementation as well as facilitate comparison and
better supervision, the Reserve Bank has framed regulatory guidance
on Ind AS given in the Annex which will be applicable on Ind AS
implementing NBFCs and Asset Reconstruction Companies (ARCs) for
preparation of their financial statements from financial year
- The annexed instructions and
guidelines relate to specific prudential aspects of Ind AS
implementation by NBFCs/ARCs and are not meant to provide a
comprehensive commentary on the accounting standards or
comprehensive technical interpretation of the standards, nor
intended to cover all possible situations. Accordingly, with
respect to matters not dealt with in the Annex, NBFCs/ARCs are
required to refer to the notified accounting standards, application
guidance, educational material and other clarifications issued by
the Institute of Chartered Accountants of India (ICAI).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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