Ind AS Applicability Roadmap for Unlisted Companies

Reviewed by Ravi Sisodia · Last reviewed 13 August 2026

A practical applicability screen for Indian companies before finance teams begin conversion work.

Finin2min 2-Minute Summary

• Start with the company category and the notified roadmap, not with a software switch or auditor request.
• For the general corporate roadmap, Phase I captured specified listed/in-process companies and unlisted companies with net worth of at least Rs 500 crore; Phase II extended to other listed/in-process companies and unlisted companies with net worth of at least Rs 250 crore but below Rs 500 crore.
• Parents, subsidiaries, associates and joint ventures of covered companies can be pulled into the roadmap. SME-exchange companies are carved out from the general listed-company trigger.
• Once Ind AS becomes applicable under the roadmap, the entity continues with Ind AS in subsequent financial statements.
• Banking, insurance and NBFC situations need their own regulatory/applicability analysis; do not use this corporate screen mechanically.

The applicability decision is an entity-classification exercise

Begin by classifying the entity: ordinary company, NBFC, bank, insurer, or a company linked to another entity already within an Ind AS roadmap. That classification determines which regulatory route must be researched.

For ordinary companies, ICAI's current roadmap summary continues to show the two principal mandatory phases: the 1 April 2016 phase for specified listed or listing-process companies and unlisted companies with net worth of Rs 500 crore or more, and the 1 April 2017 phase for other listed or listing-process companies and unlisted companies with net worth of Rs 250 crore or more but below Rs 500 crore. The relationship trigger for parents, subsidiaries, associates and joint ventures must be tested separately.

Build the threshold file before reaching a conclusion

Document the relevant net-worth computation period and the financial statements from which the threshold is derived. Do not substitute turnover, enterprise value, fund-raise valuation or authorised capital for the notified net-worth test. Where a group relationship may pull the entity into Ind AS, map the legal relationship and the date from which that relationship exists.

A company listed only on an SME exchange should not be treated as automatically covered merely because it is listed. Conversely, a private company can be brought into Ind AS through the unlisted-company threshold or through its relationship with an entity already covered by the roadmap.

• Record company type and whether any sector-specific roadmap applies.
• Compute and retain the relevant net-worth evidence.
• Map parent/subsidiary/associate/joint-venture relationships.
• Record listing or listing-process status and whether the SME-exchange carve-out is relevant.
• Minute the conclusion and identify the first Ind AS reporting period and transition date.

Worked example: private manufacturing company in a group

Assume an unlisted manufacturing company has net worth of Rs 180 crore, but its parent is an unlisted company already required to apply Ind AS under the general corporate roadmap. The subsidiary should not stop the analysis because its own net worth is below Rs 250 crore. The relationship trigger must be tested and documented. If that trigger applies, the finance plan should move to transition accounting rather than continuing previous GAAP solely on the subsidiary's standalone size.

Finance-team close-out

Applicability is not complete until the board/audit committee, finance team and auditor are working from the same conclusion. Create a dated memo that cites the notified framework, identifies the relevant trigger, records contrary evidence considered, and sets the transition workplan. The memo should also state why a sector-specific roadmap is or is not relevant.

Questions finance teams commonly ask

Does an unlisted company automatically apply Ind AS at Rs 250 crore net worth?

Under the general corporate roadmap, the Rs 250 crore threshold is part of Phase II, but entity type, relationship triggers and sector-specific roadmaps still need to be checked.

Can a low-net-worth subsidiary still be required to use Ind AS?

Yes. A parent, subsidiary, associate or joint venture relationship with an entity covered by the roadmap can be relevant.

Are companies on an SME exchange automatically within Ind AS?

The ICAI roadmap summary states that companies listed on an SME exchange are not required to apply Ind AS merely by that listing trigger.

Can a company move back to previous GAAP if its net worth later falls?

The roadmap summary states that once Ind AS is applicable, the entity continues to follow Ind AS in subsequent financial statements.

Official sources

• ICAI - Recent Developments / Ind AS roadmap - General corporate roadmap; Phase I/II thresholds, SME-exchange carve-out and continuing application
• ICAI - Compendium of Indian Accounting Standards 2025-26 - Current compendium gateway
• ICAI - Companies (Indian Accounting Standards) Rules - Notified rules gateway
• Finin2min Ind AS hub - use the standard-level page for broader paragraph-by-paragraph learning.

Disclaimer

Professional-use caution: Applicability caution: confirm the company category, group relationships, net-worth evidence and any sector-specific roadmap before using this screen for a statutory conclusion. Educational and professional reference only; confirm the current notified text and the facts of your case before relying on this page.