Hello, in this post we will learn all about Indian Accounting Standards.
We will cover the following topics for you:
- What is Accounting?
- Objectives of Indian Accounting Standards
- Compliance with Accounting Standards issued by ICAI
- List of Indian Accounting Standards
What is Accounting?
Accounting is the art of recording transactions in a way to help the reader to arrive at judgments/come to conclusions. So it becomes essential that they should be incorporated into some standardized guidelines. These guidelines are generally known to be as accounting policies.
The intricacies of accounting policies allow various companies to alter their accounting principles to suit their benefit. Therefore, making it almost impossible to make any kind of comparisons.
In order to avoid this and to have a harmonized accounting principle, Standards needed to be set by recognized accounting bodies. This concept paved the way for the formation of Accounting Standards in the world.
Accounting Standards in India are issued by the Institute of Chartered Accountants of India (ICAI).
Objectives of Accounting Standards
The main objective of Accounting Standards is to standardize the diverse accounting policies and practices. These Accounting Standards were implemented to eliminate the non-comparability of financial statements and the reliability to the financial statements.
The Institute of Chartered Accountants of India (ICAI), to harmonize the diverse accounting policies and practices, constituted at Accounting Standard Board (ASB) on 21st April 1977.
Compliance with Accounting Standards issued by ICAI
Sub Section(3A) to section 211 of Companies Act, 1956 requires that every Profit/Loss Account and Balance Sheet shall comply with the Accounting Standards.
Accounting Standards means the standard of accounting recommended by the ICAI and prescribed by the Central Government in consultation with the National Advisory Committee on Accounting Standards (NACAs) constituted under section 210(1) of Companies Act, 1956.
List of Indian Accounting Standards
| Indian Accounting Standard No (IAS No) | Name of Indian Accounting Standard |
|---|---|
| Ind AS 101 | First-time Adoption of Indian Accounting Standards |
| Ind AS 102 | Share-based Payment |
| Ind AS 103 | Business Combinations |
| Ind AS 104 | Insurance Contracts |
| Ind AS 105 | Non-current Assets Held for Sale and Discontinued Operations |
| Ind AS 106 | Exploration for and Evaluation of 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 Interests in Other Entities |
| Ind AS 113 | Fair Value Measurement |
| Ind AS 114 | Regulatory Deferral Accounts |
| Ind AS 115 | Revenue from Contracts 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 Accounting Estimates and Errors |
| Ind AS 10 | Events after the Reporting Period |
| Ind AS 12 | Income Taxes |
| Ind AS 16 | Property, Plant, and Equipment |
| Ind AS 17 | Leases |
| Ind AS 19 | Employee Benefits |
| Ind AS 20 | Accounting for Government Grants and Disclosure of Government Assistance |
| Ind AS 21 | The Effects of 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 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 Contingent Assets |
| Ind AS 38 | Intangible Assets |
| Ind AS 40 | Investment Property |
| Ind AS 41 | Agriculture |
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