This will increase comparability of Indian companies with their international counterparts.The new accounting standards recognise substance over form and importance of the fair value to compute financial statements. Companies each with networth of Rs 500 crore or more will adopt the new standards in FY17.The transition will have a considerable impact on the computation of revenue, operating profit, net profit, and networth of the listed companies. Maruti Suzuki UltraTech and Coal India may report 3-12% increase in earnings after to the implement ation of new Indian Accounting Standard (Ind-AS). Sebi has given publicly-listed companies additional one month to declare results for the June and the September quarters to comply with the new norms.Every country stipulates a method for companies to report financial data based on rules called accounting standards. This will increase the revenue of companies, but depress operating margin.

Source: Economic Times July 13, 2016 20:21 UTC