The Insurance Regulatory and Development Authority of India (IRDAI) on April 01, 2026, issued the clarifications on the implementation of Indian Accounting Standards (Ind AS).
The following has been stated:
• The circular clarifies that the implementation of Indian Accounting Standards (Ind AS) by insurers is effective from April 01, 2026. Insurers are required to prepare financial statements under Ind AS (Schedule IIA) as the primary basis of reporting, along with parallel reporting under the existing framework for a period of two years, with quarterly submission, review, and website disclosure requirements.
• For FY 2026–27, timelines for the first three quarters are extended to three months, while listed insurers shall continue to comply with Securities and Exchange Board of India norms. Insurers may apply for a one-year forbearance by April 30, 2026, with a detailed implementation roadmap, and will be subject to monthly monitoring; during this period, financial reporting will follow the existing Schedule II framework, with Ind AS statements prepared on a pro forma basis.
• The circular also clarifies that core principles such as segregation of policyholder and shareholder funds, actuarial valuation, surplus distribution, and solvency requirements under the Insurance Act, 1938, will remain unchanged despite Ind AS adoption. Further, discounting of insurance liabilities shall follow Ind AS 117 using government securities yield curves, and independent validation of implementation processes will be introduced.
[Notification no. - IRDAI/IFRS/CIR/MISC/45/4/2026]
