Indian Accounting Standards

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Indian Accounting Standards (abbreviated as India AS) are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS). These accounting standards are formulated by Accounting Standards Board of Institute of Chartered Accountants of India. Now India will have two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard) Rules, 2006 and IFRS converged Indian Accounting Standards(Ind AS). The Ind AS are named and numbered in the same way as the corresponding IFRS. NACAS recommend these standards to the Ministry of Corporate Affairs. The Ministry of Corporate Affairs has to spell out the accounting standards applicable for companies in India. As on date the Ministry of Corporate Affairs notified 35 Indian Accounting Standards(Ind AS).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 AS Ind for the banks, insurance companies etc. Standards for the computation of Tax would be notified separately.^[1]

OBJECTIVE The basic objective of Accounting Standards is to remove variations in the treatment of several accounting aspects and to bring about standardization in presentation. They intent to harmonize the diverse accounting policies followed in the preparation and presentation of financial statements by different reporting enterprises so as to facilitate intra-firm and inter-firm comparison.

List of Indian Accounting Standards(Currently Applicable)

The following are the mandatory of Accounting Standards (AS) as on July 1, 2012 as listed on the site of The Institute of Chartered Accountants of India (ICAI)

AS 1 Disclosure of Accounting Policies

All significant accounting policies adopted in the preparation and presentation of financial statements should be disclosed.

AS 2 Valuation of Inventories

It is to formulate the method of computation of valuation of stock, determining the closing stock is to be shown in balance sheet till it is not sold and recognized as revenue. it should be show as market value of inventory.

AS 3 Cash Flow Statement

It is an additional information statement exhibiting the flow of incoming and outgoing cash. It assess the ability of the enterprise to generate cash and utilize it. One of the tools for assessing the liquidity or solvency of the enterprise.

AS 4 Contingencies and Events Occurring after the Balance Sheet Date

This concept is for preparing financial statements accounting is done by the following accrual basis of finding profit or loss account(p\l) for the year and recognise assets and liabilities in balance sheet ( B/s).

Liabilites and Asset.

AS 5 Net Profit or Loss for the period,Prior Period Items and Changes in Accounting Policies

profit or loss account is a period statement covers the items of income and expenditure of particular period and also deals with change in accounting policy

*AS 6 Depreciation Accounting

AS 7 Construction Contract

AS 8 Accounting for Research and Development (AS-8 is no longer in force since it was merged with AS-26)

AS 9 Revenue Recognition

AS 10 Accounting for Fixed Assets

AS 11 The Effects of Changes in Foreign Exchange Rates (revised 2003),

AS 12 Accounting for Government Grants

AS 13 Accounting for Investments

AS 14 Accounting for Amalgamations

AS 15 Employee Benefits (revised 2005)

AS 16 Borrowing Costs

AS 17 Segment Reporting

AS 18 Related Party Disclosures

AS 19 Leases

AS 20 Earnings Per Share

AS 21 Consolidated Financial Statements

AS 22 Accounting for Taxes on Income.

AS 23 Accounting for Investments in Associates in Consolidated Financial Statements

AS 24 Discontinuing Operations

AS 25 Interim Financial Reporting

AS 26 Intangible Assets

AS 27 Financial Reporting of Interests in Joint Ventures

AS 28 Impairment of Assets

AS 29 Provisions,Contingent Liabilities and Contingent Assets

'AS 30 Financial Instruments: Recognition and Measurement and Limited

Revisions to AS 2, AS 11 revised 2003, AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29

AS 31 Financial Instruments: Presentation

AS 32 Financial Instruments: Disclosures, and limited revision to Accounting Standard

List of Indian Accounting Standards(IND ASs)

IND ASs are converged with International Financial Reporting Standrands. Following is the list of IND ASs hosted on MCA's website. The date on which these come into force is yet to be notified.

Ind AS 101 First-time Adoption of Indian Accounting Standards *
Ind AS 102 Share based Payment *
Ind AS 103 Business Combinations *
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 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 11 Construction Contracts *
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 Consolidated and Separate Financial Statements *
Ind AS 28 Investments in Associates *
Ind AS 32 Financial Liability and Equity *
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

References

↑ "Indian Accounting Standards Converged with IFRS Notified". Press Information Bureau. Retrieved 25 February 2011.

Additional sources

India Inc has its way, IFRS put off - Indian Express
Jamil Khatri's IFRS Diary: Part 10 – from Moneycontrol.com
Difference in IND AS and Existing AS – from Taxguru.in
Differences between IFRS AND Ind AS – from Taxguru.in

External links

by Dinesh Kumar