Section 4(2) in The Companies (Indian Accounting Standards) Rules, 2015
(2)For the purposes of calculation of net worth of companies under [clause (i), (ii) and (iii) of sub-rule (1)] [Substituted by Notification No. G.S.R. 365(E), dated 30.3.2016 (w.e.f. 16.2.2015).], the following principles shall apply, namely:-(a)the net worth shall be calculated in accordance with the stand-alone financial statements of the company as on 31st March, 2014 or the first audited financial statements for accounting period which ends after that date;(b)for companies which are not in existence on 31st March, 2014 or an existing company falling under any of thresholds specified in sub-rule (1) for the first time after 31st March, 2014, the net worth shall be calculated on the basis of the first audited financial statements ending after that date in respect of which it meets the thresholds specified in sub-rule (1).Explanation. - For the purposes of sub-clause (b), the companies meeting the specified thresholds given in sub-rule (1) for the first time at the end of an accounting year shall apply Indian Accounting Standards (Ind AS) from the immediate next accounting year in the manner specified in sub-rule (1).Illustration . - (i) The companies meeting threshold for the first time as on 31st March, 2017 shall apply Ind AS for the financial year 2017-18 onwards.(ii)The companies meeting threshold for the first time as on 31st March, 2018 shall apply Ind AS for the financial year 2018-19 onwards and so on.
