Overview: AS 15 vs Ind AS 19: Which One Applies?
A practical guide to determining the applicable employee benefit accounting standard.
EMPLOYEE BENEFITS | ACCOUNTING STANDARDS
The four tests
For most companies outside banking, insurance and NBFCs, the applicability question can be screened through four tests. Any YES generally takes the company into the Ind AS framework; if all four are NO, check whether any other specific Ind AS requirement applies.
| TEST | QUESTION |
|---|---|
| 1 | Is the company listed, or being listed, on a stock exchange other than an SME exchange? |
| 2 | Is the company's net worth ₹250 crore or more? |
| 3 | Is the company a holding company, subsidiary, associate or joint venture covered through an Ind AS company? |
| 4 | Has the company voluntarily adopted Ind AS? |
| Quick outcomeANY YES → IND AS 19ALL NO → Accounting Standards framework → AS 15 |
Special Sectors
Banks: Ind AS not yet applicable. Implementation has been deferred, and banks continue under Indian GAAP and RBI directions. Urban Cooperative Banks (UCBs) and Regional Rural Banks (RRBs) are not required to apply Ind AS.
Insurers: Ind AS mandatory from 1 April 2026 for all insurers, regardless of size or listing, per IRDAI. A one-year forbearance is available.
Common scenarios
| SITUATION | OUTCOME |
|---|---|
| Unlisted company with ₹100 crore net worth | AS 15, provided no other Ind AS trigger applies. |
| Unlisted company with ₹300 crore net worth | Ind AS 19, because the ₹250 crore threshold is crossed. |
| Unlisted subsidiary below ₹250 crore of an Ind AS company | Potentially Ind AS 19 because group-relationship rules may trigger applicability. |
| Company listed on an SME exchange | Listing alone does not make Ind AS mandatory; check the other triggers. |
Frequently Asked Questions
“Does being a private or unlisted company mean AS 15 applies?”
No. A private or unlisted company can still fall under Ind AS because of the net-worth threshold, a specified group relationship or voluntary adoption.
“If our net worth is below ₹250 crore, can Ind AS still apply?”
Yes. The threshold is only one test. Group relationships, voluntary adoption and other applicable requirements can also bring a company into Ind AS. Does an Ind AS company make every group company an Ind AS company?No. Ind AS applicability extends to its holding company, subsidiaries, associates and joint ventures in accordance with the Ind AS roadmap.However, it does not automatically extend to every entity in the wider group -for example, a fellow subsidiary is not mandatorily covered merely because its parent has become subject to Ind AS.
“Can a company choose AS 15 when Ind AS is mandatory?”
No. Once Ind AS applies, employee benefits are accounted for under Ind AS 19. AS 15 is not an alternative accounting policy choice.
“Can a company move back to AS if its net worth later falls below ₹250 crore?”
Generally no. Once Ind AS becomes applicable, it continues to apply to subsequent financial statements; a later fall in net worth does not create an annual option to revert to AS.
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