Accounting is known as the art of recording the exchanges in a manner to assist the perusers with showing up at the decisions or reaching a financial decision about the entity. This becomes fundamental that it ought to be joined into some normalized rules which are for the most part known to account for approaches.
Indian Accounting Standard is the Accounting standard taken on by organizations in India and given under the oversight of the Accounting Standards Board which was composed as a body in the year 1977.
The concocting of these strategies permits different organizations to adjust their accounting standards to repair for their own benefit. Standards are acquainted with quenching all disarrays, and these should have been set by the perceived accounting bodies. This idea repaired the way for the development of Accounting Standards. The Accounting Standards in India are given by the Institute of Chartered Accountants of India (ICAI).
Objectives of the Indian Accounting System
There are many objectives of an Indian Accounting system. We will discuss each and every point under IAS and understand its importance.
This way, the global scope of Indian companies is expanded and they have a wider
platform to perform on.
This way the Indian companies can imply their rates and demands according to the global rates.
This way the company accounts and the annual financial statements are transparent.
It is easy and can be understood by companies worldwide.
It lets us have a single framework for a single accounting framework.
Indian Accounting System: Benefits
As we already know that without benefits, nobody will try to pursue an accounting system like this. There are many benefits gained while following the Indian Accounting System, let us discuss all of them in detail.
International Base - This lets the business have an international base and platform for companies to perform.
Harmonization - This lets the companies harmonize their rules.
Compliance - Increase compliance in companies.
Global Acceptance - Globally reaches other companies and benefits them. This also gives global or international recognition.
Indian Accounting Standards List
Indian Accounting Standards Applicability
The Indian Accounting Standards are followed by 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.
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
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.