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Indian Accounting Standards

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Indian Accounting Standards: Overview

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Accounting is known as the art of recording the transactions in a way to help the readers to arrive at the judgments or come to a financial conclusion about the entity. This becomes essential that it should be incorporated into some standardized guidelines which are generally known to be accounting policies. The devising of these policies allows various companies to alter their accounting principles to mend into their own benefit. 

Standards are introduced to extinguish all confusions, and these are needed to be set by the recognized accounting bodies. This concept mended the way for the formation of Accounting Standards. The Accounting Standards in India are issued by the Institute of Chartered Accountants of India (ICAI).


Indian Accounting Standards List

Indian Accounting Standard Number

Name of Indian Accounting Standard 

Ind AS 101

Adoption of Indian Accounting Standard.

Ind AS 102

Share-Based Payment

Ind AS 103

Business Combinations

Ind AS 104

Insurance Contracts

Ind AS 105

Non- Current Assets are held for sale and are Discontinued Operations.

Ind AS 106

Exploration for and the evaluation of the Mineral Resources.

Ind AS 107

Financial Instruments: Disclosures

Ind AS 108

Operating Segments

Ind AS 109

Financial Instruments

Ind AS 110

Consolidated Financial Statements

Ind AS 111

Joint Arrangements

Ind AS 112

Disclosure of Interest to Other Entities

Ind AS 113

Fair Value Measurement

Ind AS 114

Regulatory Deferral Accounts

Ind AS 115

Revenue from contract with customers

Ind AS 1

Presentation of Financial Statements 

Ind AS 2

Inventories

Ind AS 7

Statement of Cash Flows

Ind AS 8

Accounting Policies, Changes in the Accounting Estimates and Errors

Ind AS 10

Events after Reporting Period

Ind AS 12 

Income Taxes

Ind AS 16

Property, Plant, Equipment.

Ind AS 17

Leases

Ind AS 19

Employee Benefits

Ind AS 20

Accounting for government grants.

Ind AS 21

The result for the changes in Foreign Exchange Rates

Ind AS 23

Borrowing Costs

Ind AS 24

Related Party Disclosures

Ind AS 27

Separate Financial Statements

Ind AS 28

Investments in Associates and in the Joint Ventures

Ind AS 29

Financial Reporting in Hyperinflationary Economies 

Ind AS 32

Financial Instruments Presentation

Ind AS 33

Earnings per share

Ind AS 34

Interim Financial Reporting

Ind AS 36

Impairment of Assets

Ind AS 37

Provisions, Contingent Liabilities, and Assets

Ind AS 38

Intangible Assets

Ind AS 40

Investment Property

Ind AS 41

Agriculture


Indian Accounting Standards Applicability

The Indian Accounting Standards are followed by moreover all the companies. They shall follow Ind AS either Voluntarily or Mandatorily. When a company follows the Indian AS, either mandatory or voluntarily, it cannot return to its old method of Accounting.

Mandatory Applicability 

Companies with a Net worth of not less than 500 crores are required to follow Ind AS.

Mandatory Applicability from Accounting Period beginning on or after 1 April 2017

  • By every Listed Company.

  • Also, by the Unlisted Companies with a Net worth which is greater than or equal to Rs. 250 crores but less than Rs. 500 crores 

Indian Accounting Standards Summary

Every functioning body that operates, needs a defined guideline so as to maintain the procedure and the standards of the operations of its own business. The rules make the policies common for organizations that operate in similar fields. 

FAQ (Frequently Asked Questions)

1. Details About ICAI.

Ans. ICAI is the abbreviation for The Institute of Chartered Accountants of India, ICAI institute harmonizes all the accounting policies and the accounting practices which is followed by different companies. The Institute of Chartered Accountants of India (ICAI) is the professing accounting body of India. This institute was set up on 1 July 1949 as a statutory body under the CA Act, 1949 that was first enacted by the parliament. This is the licensing and regulating body of the financial audit and accountancy profession in India. 

2. What is the Objective of the Accounting Standard?

Ans. The main agenda of the Accounting Standards is to standardize the diverse accounting policies and accounting practices. The Accounting Standards were used and implemented to eliminate the confusion of financial statements and to make them reliable to outsiders. The standards are the general policy files, whose major goal is to make certain transparency, reliability, consistency, and comparability of the monetary statements. They need to achieve this through the standardizing accounting of insurance policies and concepts of a nation or economic system.

3. Who are the Listed Companies?

Ans. Listed is the term which describes a company that is included in a stock exchange and in that stock exchange the listed company’s stock can be traded. Companies are required to meet certain requirements and follow defined rules of any exchange on which they are being listed.

The company's shares which are being on the list or on the board of stock are officially traded on a stock exchange.