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 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.
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.