Assurance Gazette – April 2026 Edition

Welcome to the Assurance Gazette for April 2026 Edition. This edition present IRDAI’s mandate to adopt Ind AS reporting, including Ind AS 117, from 1 April 2026 represents a significant transformation in financial reporting for Indian insurers. With revised regulations and the clarificatory circular issued on the same date, the sector transitions from transaction-based accounting to a more transparent, forward-looking framework aligned with global standards. After years of preparation through trial financials, system upgrades, and cross-functional collaboration, Ind AS statements in Schedule IIA format will become the primary statutory accounts from FY 2026–27, supported by two years of parallel reporting and an optional one-year forbearance for eligible insurers.

This edition also shares an article that provides practical insights for finance professionals and auditors dealing with complex, phased infrastructure projects, ensuring alignment between accounting treatment and underlying commercial reality. Determining the timing of capitalisation in large infrastructure projects often requires careful judgment, particularly where assets are constructed in phases but become operational only upon full completion. This also explores such a scenario under Ind AS 16 and Ind AS 23, in the context of the North-East Gas Grid (NEGG) project.

IRDAI Mandates Ind AS Financial Reporting and Ind AS 117 for Insurers w.e.f. 1 April 2026

Regulatory update for Insurance sector:

Over the past few years, IRDAI has gradually intended to move the insurance industry towards global accounting standards to improve transparency and comparability, without disrupting regulatory stability.

This transition was formally completed in April 2026, when IRDAI amended its regulations to require insurers to prepare financial statements under Indian Accounting Standards (Ind AS) from 1 April 2026 and IRDAI has also issued a clarificatory circular dated 1 April 2026 on the implementation of Ind AS (referred to as the “Circular”).

The change was well planned. From FY 2023 24, insurers prepared Ind AS financials on a trial basis to understand the impact, fix data and system gaps, and improve coordination across teams. These trial numbers were not used for statutory reporting.

Until FY 2025–26, insurers continued to publish statutory accounts using existing IRDAI formats. From FY 2026–27, Ind AS financial statements becomes the main statutory accounts, prepared in the prescribed Schedule IIA formats and parallel reporting of financial information prepared under the old framework is required for two years from the date of implementation and this financial information shall be subject to limited review.