Indian Accounting Standards Short Overview

Content Author
15 May, 2023

Indian Accounting Standards

Indian Accounting Standards (Ind AS) are a set of accounting standards notified by the Ministry of Corporate Affairs (MCA) in India. These standards are largely converged with International Financial Reporting Standards (IFRS) and are based on the principles and concepts of IFRS.

Ind AS are mandatory for certain companies in India, such as listed companies, companies with a net worth of Rs. 500 crore or more, and companies with a turnover of Rs. 1000 crore or more. The adoption of Ind AS aims to provide transparency, comparability, and consistency in financial reporting by companies in India.

The Ind AS cover various aspects of financial reporting, such as the recognition, measurement, and disclosure of assets, liabilities, revenues, expenses, and equity. The standards also address issues related to the preparation of financial statements, including their format, content, and disclosures.

Some of the significant Ind AS include Ind AS 116 on Leases, Ind AS 109 on Financial Instruments, Ind AS 115 on Revenue from Contracts with Customers, and Ind AS 103 on Business Combinations. These standards provide detailed guidance on the accounting treatment for transactions related to leases, financial instruments, revenue recognition, and business combinations.

Here is a list of some important Accounting Standards (AS) in India:

  1. AS 1 - Disclosure of Accounting Policies
  2. AS 2 - Valuation of Inventories
  3. AS 3 - Cash Flow Statements
  4. AS 4 - Contingencies and Events Occurring After the Balance Sheet Date
  5. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  6. AS 6 - Depreciation Accounting
  7. AS 7 - Construction Contracts
  8. AS 9 - Revenue Recognition
  9. AS 10 - Accounting for Fixed Assets
  10. AS 11 - The Effects of Changes in Foreign Exchange Rates
  11. AS 12 - Accounting for Government Grants
  12. AS 13 - Accounting for Investments
  13. AS 14 - Accounting for Amalgamations
  14. AS 16 - Borrowing Costs
  15. AS 17 - Segment Reporting
  16. AS 18 - Related Party Disclosures
  17. AS 19 - Leases
  18. AS 20 - Earnings Per Share
  19. AS 22 - Accounting for Taxes on Income
  20. AS 26 - Intangible Assets
  21. AS 29 - Provisions, Contingent Liabilities, and Contingent Assets

These Accounting Standards are important for companies in India to comply with to ensure consistency and comparability in financial reporting and to provide transparency to stakeholders.

Content Author

Content Author

I'm Raja Kumar R, writer and explorer. I explore the world through writing.

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