Audit under Ind AS / IFRS / International GAAP — What to Get Right Before You Start
When your financial statements must speak to an international audience — a foreign parent company, an overseas investor, a global lender, or a stock exchange listing — the accounting framework you report under is not a formality. It is the language your numbers are read in. PNPC Global has audited financial statements under Ind AS, IFRS, and other international GAAP frameworks for Indian subsidiaries of multinational groups, India-incorporated companies with overseas investors, and UAE entities preparing IFRS-compliant accounts, since 1986.
Understanding the Service
An audit under Ind AS, IFRS, or another international GAAP framework is an independent examination of financial statements that have been prepared applying accounting standards materially different from — and in many areas more complex than — traditional Indian Accounting Standards (AS) under the old framework. Indian Accounting Standards (Ind AS) are India's converged version of IFRS, issued by the Ministry of Corporate Affairs under Section 133 of the Companies Act 2013 and notified through the Companies (Indian Accounting Standards) Rules, 2015.
For the full scope, current process and what PNPC includes, see the dedicated Audit under Ind AS / IFRS / International GAAP service page.
When You'd Need This
- You are an Indian subsidiary or step-down subsidiary of a foreign parent that consolidates under IFRS, US GAAP, or another international framework, and the parent's group auditor requires a local audit or reporting-package audit aligned to that framework
- You are raising capital from foreign private equity, venture capital, or institutional investors who require or strongly prefer IFRS-comparable financial statements for their own reporting and portfolio consolidation
- You are preparing for a cross-border listing, GDR/ADR issuance, or an IPO on an exchange (domestic or foreign) that mandates Ind AS-compliant financial statements
- Your UAE entity is preparing IFRS-compliant financial statements for UAE Corporate Tax filing purposes, free zone authority requirements, banking covenants, or group consolidation into an internationally listed parent
When It Isn't the Right Fit
- Your company is below the Ind AS net-worth threshold, unlisted, and has no foreign parent, foreign investor, or cross-border reporting obligation requiring IFRS comparability — a standard statutory audit under the Companies (Accounting Standards) Rules, 2006 fully satisfies your Companies Act obligations
- You are a small or medium-sized private company with domestic promoters only, no plans for foreign fundraising, cross-border listing, or multinational group consolidation in the foreseeable future
- Your reporting requirement is purely for Indian income-tax and GST compliance, with no external stakeholder (investor, lender, parent company) requiring an internationally comparable framework
Common Questions
What is the difference between Ind AS and IFRS — are they the same thing?
Ind AS is India's own set of accounting standards, issued by the Ministry of Corporate Affairs and closely converged with IFRS, but not identical to it. Most Ind AS standards mirror their IFRS counterpart closely (Ind AS 115 mirrors IFRS 15, Ind AS 116 mirrors IFRS 16, and so on), but there are specific carve-outs and India-specific modifications in areas such as certain financial instrument classifications and some transitional provisions. Financial statements prepared under Ind AS are not automatically identical to IFRS financial statements — a reconciliation is sometimes needed for group reporting into a pure-IFRS parent.
Does my company have to follow Ind AS, or can we choose which framework to report under?
Once a company becomes subject to Ind AS, it must continue to apply Ind AS in subsequent years, even if its net worth later falls below the threshold, under the MCA's continuing-applicability rule. Companies outside this scope may voluntarily adopt Ind AS, but once adopted voluntarily, the same continuing-applicability principle applies.
Our Indian subsidiary has a UK/US/Singapore parent that reports under IFRS or US GAAP. Do we need a separate Ind AS audit and a separate IFRS reporting package?
In most cases, yes — two distinct deliverables. The Indian entity's statutory financial statements, audited and filed with the MCA, must comply with whichever framework applies to it as a matter of Indian company law (Ind AS if it crosses the threshold, or Indian GAAP/AS otherwise). Separately, the parent's group auditor typically requires a reporting package — reconciling the local figures to the group's IFRS or US GAAP basis — for consolidation purposes. PNPC prepares or audits both, coordinated so the local statutory figures and the group reporting package are internally consistent and reconcilable.
Where PNPC Fits In
Speak directly with a PNPC Chartered Accountant who has actually built Ind AS and IFRS technical depth — not a generalist statutory auditor treating a converged framework as a formality. From first-time adoption to group auditor coordination across India and the UAE, we are the CA firm you keep for the life of your international reporting relationship.
PNPC Global has advised Chennai, Bangalore and Hyderabad businesses since 1986. Explore the full Audit & Assurance practice for related services, or go straight to the Audit under Ind AS / IFRS / International GAAP page for specifics.
Specific rates, fees, thresholds and deadlines are set by the relevant authority and change over time — this article deliberately does not quote figures that could go stale. Confirm current numbers directly with PNPC or the official source before you act.