For most Indian companies with a 31 March year-end, Ind AS 118 is expected to first apply for FY 2027-28 (periods beginning on or after 1 April 2027), subject to MCA notification. That means the comparative year is FY 2026-27 — already running. Waiting for the Gazette before tagging ledgers is the most expensive path.
Milestone map
| Milestone | Position (as publicly reported) |
|---|---|
| ICAI Exposure Draft | January 2025 (comment process through mid-2025) |
| NFRA recommendation to Government | Recommended notification; proposed effective date 1 April 2027 |
| Early adoption for calendar-year entities | Discussed to align with IFRS 18 from 1 January 2027 for subsidiaries of IFRS parents |
| MCA notification | Awaited as of October 2026 |
| First annual reporting year (March year-end) | FY 2027-28 |
| Comparative year | FY 2026-27 |
Why the comparative year binds you now
- Application is expected to be retrospective, with restated comparatives and a reconciliation from the Ind AS 1 presentation.
- Listed entities will need restated comparatives for early quarterly results in FY 2027-28 (often mid-August 2027 for Q1), including MPM content once formats allow.
- A subsidiary of an IFRS 18 parent may need to report to the group on an IFRS 18 basis from 1 January 2027, even if Indian standalone Ind AS 118 notification timing differs.
- Early adoption in India remains dependent on the wording of the MCA notification.
What the ledger does not capture in FY 2026-27 usually has to be reconstructed later — under audit pressure and with weaker evidence.
90-day readiness checklist
- Diagnostic: Category-map every material P and L and cash-flow line.
- Policy: Write the main business activity conclusion and unusual-item criteria.
- MPM note: Inventory measures used in public communications; draft reconciliations to the nearest Ind AS / IFRS subtotal.
- Comparatives: Turn on ledger tags / parallel reporting so FY 2026-27 is not rebuilt from scratch.
- Stakeholders: Preview impacts with lenders, remuneration committees and investor-relations teams where covenants or KPIs reference “operating profit”.
Timelines summarise ICAI / NFRA public positions and may change when MCA notifies Ind AS 118. Confirm the Gazette text before adopting or early adopting.