*All Listed Companies (Except Companies Listed on SME Exchange)
The definition of “Net worth" is as per Section 2(57) of the Companies Act, 2013. As per the provisions, net worth means:
Paid-up share capital
(+) All Reserves created out of profits (excluding created out of revaluation of assets, write-back of depreciation, and amalgamation)
(+) Securities Premium Account (-) Accumulated losses
(-) Deferred Expenditure
(-) Miscellaneous expenditure not written off
For companies that were not in existence on 31st March, 2014 or an existing company falling under any of thresholds specified 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.
Thus, the companies meeting the specified thresholds for the first time at the end of an accounting year shall apply Indian Accounting Standards (IND AS) from the immediate next accounting year.
The write-up does not aim to discuss the entire complex accounting rules and implications, which may arise from the implementation of the IND AS. This write-up must not be relied upon as a substitute for reading the text of IND AS standards. If any specific issue is faced, it is recommended to seek appropriate expert professional advice. Before reaching any decision on how your specific organization may be affected by the application of IND AS, you should first take into consideration specific facts and circumstances, and thereafter consult GBCA or your professional advisors, who are familiar with your state of affairs, for advice.