In January 2016, the Ministry of Corporate Affairs (MCA) announced the Ind AS roadmap for scheduled commercial banks (excluding regional rural banks [RRBs]), insurers/insurance companies and NBFCs, thus initiating an era of implementation of Ind AS from 1st April, 2016 onwards for certain class of companies. The MCA further clarified that notwithstanding the IndAS roadmap for companies, the holding, subsidiary, joint venture or associate companies of banks would also prepare Ind AS financial statements for accounting periods beginning 1 April 2018, with comparatives for the periods ending March 31, 2018 or thereafter. We believe, implementing Ind AS is likely to impact key financial reporting systems and processes and performance metrics. The Audit Committee of the Board has to oversee the progress of the Ind AS implementation process and report to the Board.The key areas of impact on Banks under Ind AS would include inter alia impairment of loans to customers, relevant date for recognition of gains/ losses on dealing with securities, accounting for customer loyalty programs, sale of NPAs, classification of financial assets, accounting for derivatives etc. Critical issues also include accounting policy decisions impacting financials, systems and processes, business impact assessment (profit, budgeting, taxation, capital adequacy planning) and training human resources to approach execution holistically. The Banking, Financial Services and Insurance Committee of The Institute of Chartered Accountants of India (ICAI) is our knowledge partner for the workshop.
CA Professionals as Independent members on the Boards of banks
1. Central Statutory Auditor of banks
2. CFOs, CEOs and Strategy Leaders of banks
3. Legal and Compliance Professionals of financial institutions
4. Senior executives of banks implementing Ind AS in banks (risk
management, finance, corporate credit, audit and inspection, credit
monitoring, treasury)
5. CA Professionals engaged with banking and NBFC