Ind AS Amendment Rules 2026: Five Standards Updated

Key facts

Why were the Ind AS changed?

The notification’s own wording shows the lineage. It adds or amends paragraphs headed “Annual Improvements to Ind AS (2024)”, “Amendments to the Classification and Measurement of Financial Instruments” and “Contracts Referencing Nature-dependent Electricity”, and its notes keep the paragraph numbers of the matching IFRS standards. our reading The aim is to keep Ind AS aligned with IFRS Accounting Standards on emissions-linked lending, electronic settlement of payables and nature-dependent electricity contracts.

What is the framework behind the Rules?

The Rules are made under section 133 of the Companies Act, 2013, read with section 469, by the Central Government “in consultation with the National Financial Reporting Authority”, as the notification itself recites. NFRA was constituted under section 132 of the Act, and one of its duties is to recommend accounting and auditing policies and standards for companies, for approval by the Central Government.

The Ind AS themselves sit in the Annexure to the Companies (Indian Accounting Standards) Rules, 2015, first published as G.S.R. 111(E) on 16 February 2015. Rule 4 of those Rules says which companies and auditors must follow them, by listing status and net worth; check the current text of Rule 4 on the Ministry of Corporate Affairs website to see whether your company is covered. The 2026 Rules amend text inside the Annexure only.

What exactly changes?

Who is affected, and from when?

Every company that prepares Ind AS financial statements, and its auditor. our reading The electricity paragraphs matter most to buyers and generators under long-term renewable power contracts; the settlement and contingent-feature paragraphs matter to treasury and finance teams with sustainability-linked loans or bonds and with bank payment systems.

• 12 Aug 2026Rules in force on Gazette publication.
• 1 Apr 2026Amended standards apply to annual periods beginning on or after this date.
• Initial applicationStart of the period in which the entity first applies them (7.2.47, 7.2.51).
• Not permittedEarly application of the classification amendments.

For the classification amendments, 7.2.47 and 7.2.48 apply Ind AS 8 retrospectively without a duty to restate; the electricity amendments follow 7.2.51 to 7.2.53: the same no-restatement relief, an irrevocable option at initial application to measure an affected contract at fair value through profit or loss, and prospective use of 6.10.1 and 6.10.2 for new hedging relationships.

What could finance teams do now?

These are our suggestions, not requirements of the Rules.

• List loans, bonds and receivables whose cash flows move on an event such as an emissions target, and re-run the basic-lending test with B4.1.8A and B4.1.10A.
• Check each bank payment channel against the three B3.3.8 conditions before electing early derecognition; the election covers every settlement through that channel (B3.3.10).
• For power contracts, assemble the data for the net-purchaser test over a period of at most 12 months, and the figures for the 30A note.
• Decide, for FY 2026-27, whether prior periods can be restated without hindsight.

What to watch for

The Gazette notes that the Ind AS corresponding to IFRS 18 and IFRS 19 are under formulation, so further Ind AS text on those subjects is still to come.

Frequently asked questions

Sources (official, verified 17 October 2026)

1. Gazette of India, Extraordinary, 12 August 2026: Ministry of Corporate Affairs notification G.S.R. 725(E), Companies (Indian Accounting Standards) Amendment Rules, 2026 https://egazette.gov.in/WriteReadData/2026/275402.pdf
2. National Financial Reporting Authority, About NFRA (constitution and duties under section 132) https://nfra.gov.in/about-department/introduction/

• Ind AS
• MCA
• NFRA
• Financial instruments
• Nature-dependent electricity
• India

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