The Reserve Bank Of India Vide Circular No.109/22.10.106/2019-20 Dated 13.03.2020 Has Notified For The Implementation Of Indian Accounting Standards For NBFCs

• 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 2019-20 onwards.
• 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).

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