Indian Accounting Standard (abbreviated as Ind-AS) is the

Accounting standard Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on th ...

adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. ASB is a committee under

Institute of Chartered Accountants of India The Institute of Chartered Accountants of India (ICAI) is India's largest professional accounting body under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory b ...

(ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from

ASSOCHAM The Associated Chambers of Commerce and Industry of India () is a Non-governmental organization, non-governmental trade association and advocacy group based in New Delhi, India. The organisation represents the interests of trade and commerce ...

, CII, FICCI, etc. ICAI is an independent body formed under an act of parliament. The Ind AS are named and numbered in the same way as the

International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company's f ...

(IFRS).

National Financial Reporting Authority National Financial Reporting Authority (NFRA) is an independent regulator set up to oversee the auditing profession and the Indian Accounting Standards under the Companies Act 2013. It came into existence in October 2018. The chairperson sinc ...

(NFRA) recommend these standards to the

Ministry of Corporate Affairs The Ministry of Corporate Affairs is an Indian government ministry primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008, and the Insolvency and Bankruptcy Code, 20 ...

(MCA). MCA has to spell out the accounting standards applicable for companies in India. As on date MCA has notified 40 Ind AS (Ind AS 11 is omitted by companies). S. This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis. Based on the international consensus, the regulators will separately notify the date of implementation of Ind-AS for the banks, insurance companies etc. Standards for the computation of Tax has been notified as ICDS in February 2015.

History

India followed accounting standards from Indian Generally Acceptable Accounting Principle (IGAAP) prior to adoption of the Ind-AS.

Applicability

Companies shall follow Ind AS either Voluntarily or Mandatorily. Once a company follows Indian AS, either mandatorily or voluntarily, it can't revert to old method of Accounting.

Mandatory Applicability (1 April 16)

* Every Company with Net worth of not less than 500 crores (5 billion).

Mandatory Applicability from Accounting Period beginning on or after 1 April 2018

* Every Listed Company. * Unlisted Companies with Net worth greater than or equal to Rs. 250crore but less than Rs. 500crore(for any of the below mentioned periods). Net worth shall be checked for the previous four Financial Years (2013–14, 2014–15, 2015–16, and 2016–17)

List of Indian Accounting Standards

Provisions

Ind-AS is in line with the

(IFRS). Ind-AS 107 deals with disclosures related to financial instruments and related risks and the policies for managing such risks.

References

Accounting standards Accounting in India Accounting principles by country Acc
8. http://www.mca.gov.in/MinistryV2/accountingstandards1.html
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