GLIMS Journal of Management Review
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Debjyoti Dey1 
and Sunil Kumar Gandhi2
1 School of Business Management, Narsee Monjee Institute of Management Studies (NMIMS), Mumbai, Maharashtra, India
2 Department of Commerce, University of Kalyani, West Bengal, India
Converged form of global accounting standards (IAS and IFRS) Ind AS has been implemented in India in a phase-wise manner. The first two phases of Ind AS implementation (2016–2017 and 2017–2018) were applicable for the non-financial companies, while the next two phases (2018–2019 and 2019–2020) were meant for non-banking financial companies (NBFCs). However, banks and insurance companies have not yet received regulatory approval for the adoption of Ind AS for preparing Ind AS–based financial statements from their respective regulators. In the present research, we examined the impact of adopting Ind AS on the net worth of NBFCs. This study involved a sample of 100 listed NBFCs, focusing on the transition and comparative years for first-time adopters after reclassifying and restating their asset and liability figures. Our findings indicated that over 60% of the sampled NBFCs experienced a positive change in net worth during the transition and comparative periods for both groups of adopters. Additionally, more than 65% reported a change (both positive and negative) in net worth of 10% or less. We conducted a paired sample t-test, which showed no significant difference in net worth between ‘AS’ and ‘Ind AS’ for the adopters in the year 2018–2019, on both the transition and comparative dates. Conversely, for those who adopted Ind AS in 2019–2020, the same test revealed a significant difference in net worth between ‘AS’ and ‘Ind AS’ on both the transition and comparative dates. Therefore, we conclude that the impact of Ind AS on net worth was more pronounced for NBFCs that implemented Ind AS in 2019–2020, that is, for those with a net worth of less than 500 crore.
Ind AS, NBFCs, Net Worth, IFRS, Financial Position, Global Accounting Standards
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