What are Indian Accounting Standards? (Ind AS)

11 June, 2019

What are Indian Accounting Standards?

Let’s understand.

What is the meaning of ‘Indian Accounting Standards’?

Ind AS or Indian Accounting Standards and are rules and standards set to match the - IFRS i.e. the International Financial Reporting Standards which are global standards set in the field of accounting. Indian Accounting Standards are documents and policies for principles for recognition, measurement, treatment, presentation and disclosures of accounting transactions in financial statements within an organisation or business.

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.

The following is the list of Accounting Standards in India along with each one’s relevance:


Ind AS


Objective/ Deals with

Relevant Accounting standard or Guidance note


Ind AS 101 –

First-time adoption of Ind AS

Its main objective is to prepare first financial statements as per Ind AS containing high quality information that is transparent, comparable and prepared at economical cost, suitable starting point for accounting in accordance with Ind AS.




Ind AS 102 –

Share Based payments

It deals with accounting of share-based payment transactions and reflect effect of such payment on profit or loss and financial statements of entity.

Guidance note on Employee Share Based Plans

Ind AS 103 –

Business Combination

It applies to transaction or other event that meets the definition of a business combination. This standard helps in improving the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects. 

AS 14

Ind AS 104 –

Insurance Contracts

This standard specifies financial reporting for insurance contracts by insurer entity.


Ind AS 105 –

Non-Current Assets Held for Sale and Discontinued Operations

This standard specifies accounting for assets held for sale, and presentation and disclosure of discontinued operations.

AS 24

Ind AS 106 –

Exploration for and Evaluation of Mineral Resources

This standard specifies financial reporting for exploration and evaluation of mineral resources.


Ind AS 107 –

Financial Instruments: Disclosures

This standard require entities to provide disclosures related to financial instruments that will enable users to evaluate significance of financial instruments for entity's financial position and performance and nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the end of the reporting period, and how the entity manages those risks.

AS 32

Ind AS 108 –

Operating Segments

This standard discloses information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.

AS 17

Ind AS 109 –

Financial Instruments

This Standard establish principles for financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity's future cash flows.

AS 30, AS 31 and Guidance note on derivative contract

Ind AS 110 –

Consolidated Financial Statements

This standard establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

AS 21

Ind AS 111 –

Joint Arrangements

This standard establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (known as joint arrangements).

AS 27

Ind AS 112 –

Disclosure of Interests in Other Entities

This standard requires an entity to disclose information that enable users of its financial statements nature risk and effect of such interest in other entities.

AS 21, AS 23 and AS 27

Ind AS 113 –

Fair Value Measurement

This standard defines fair value, set outs framework for measuring fair value and disclosures about fair value measurements. Such fair measurement principle will apply when another Ind AS requires or permits use of fair value.


Ind AS 114 –

Regulatory Deferral Accounts

This Standard specifies financial reporting requirements for regulatory deferral account balances that arise when an entity provides goods or services to customers at a price or rate that is subject to rate regulation.

Guidance note on accounting for rate regulated activities

Ind AS 115 –

Revenue from Contracts with Customers

This Standard establishes principles that an entity shall apply to report useful information to users of financial statements about nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

AS 7 & AS 9

Ind AS 1 –

Presentation of Financial Statements

This standard sets out overall requirements for presentation of financial statements, guidelines for their structure and minimum requirements for their content to ensure comparability.

AS 1

Ind AS 2 –

Inventories Accounting

Its deals with accounting of inventories such as measurement of inventory, inclusions and exclusions in its cost, disclosure requirements, etc.

AS 2

Ind AS 7 –

Statement of Cash Flows

It deals with cash received or paid during the period from operating, financing and investing activities. It also shows any change in the cash and cash equivalents of any entity.

AS 3

Ind AS 8 –

Accounting Policies, Changes in Accounting Estimates and Errors

It prescribes criteria for selecting and changing accounting policies together with accounting treatments and disclosures.

AS 5

Ind AS 10 –

Events after Reporting Period

It deals with any adjusting or non-adjusting event occurring after reporting date and

AS 4

Ind AS 12 –

Income Taxes

This standard prescribes accounting treatment for income taxes. The principal issue in accounting for income taxes is how to account for the current and future tax

AS 22

Ind AS 16 –

Property, Plant and Equipment

This standard prescribes accounting treatment for Property, Plant And Equipment (PPE) such as recognition of assets, determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them.

AS 10

Ind AS 116 –


This standard prescribes appropriate accounting policies and principle for lessees and lessors.

AS 19

Ind AS 19 –

Employee Benefits

This standard prescribes accounting and disclosure requirements relating to employee benefits.

AS 15

Ind AS 20 –

Accounting for Government Grants and Disclosure of Government Assistance

This Standard shall be applied in accounting for and in disclosure of, government grants and in disclosure of other forms of government assistance.

AS 12

Ind AS 21 –

The Effects of Changes in Foreign Exchange Rates

This Standard prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.

AS 11

Ind AS 23 –

Borrowing Costs

It provides borrowing cost incurred on qualifying asset should form part of that asset, it also guides on which finance cost should be capitalised, conditions for capitalisation, time of commencement and cessation of capitalisation of borrowing cost.

AS 16


Ind AS 24 –

Related Party Disclosures

This standard ensures that an entity's financial statements contains necessary disclosures to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances.

AS 18

Ind AS 27 –

Separate Financial Statements

This Standard prescribes accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

AS 13

Ind AS 28 –

Investments in Associates and Joint Ventures

This standard prescribes accounting for investments in associates and to set out requirements for the application of equity method when accounting for investments in associates and joint ventures.

AS 23, AS 27

Ind AS 29 –

Financial Reporting in Hyperinflationary Economies

This standard will gives inclusive list of characteristics that will categorise an economy as hyper inflationary and reporting of operating results and financial position.


Ind AS 32 –

Financial Instruments: Presentation

This Standard establishes principles for presenting financial instruments as liabilities or equity and for offsetting financial assets and financial liabilities.

AS 32

Ind AS 33 –

Earnings per Share

This Standard prescribe principles for the determination and presentation of earnings per share

AS 20

Ind AS 34 –

Interim Financial Reporting

This Standard prescribes minimum content of an interim financial report and principles for recognition & measurement in complete or condensed financial statements for an interim period.

AS 25

Ind AS 36 –

Impairment of Assets

This Standard prescribe procedures that an entity applies to ensure that an asset’s carrying amount is not more than its recoverable amount.

AS 28

Ind AS 37 –

Provisions, Contingent Liabilities and Contingent Assets

This Standard ensures that appropriate recognition criteria and measurement bases are applied to provisions, contingent liabilities and contingent assets and proper disclosures are made in the notes to enable users to understand their nature, timing and amount.

AS 29

Ind AS 38 –

Intangible Assets

This Standard prescribes accounting treatment for intangible assets. It specifies conditions for recognition of intangible asset and how to measure carrying amount at which intangible asset should be recognised.

AS 26

Ind AS 40 –

Investment Property

This Standard prescribes accounting treatment for investment property and related disclosure requirements.

AS 13

Ind AS 41 –


This Standard prescribes accounting treatment and disclosures related to agricultural activity.



What is the purpose of the Indian Accounting Standards?

Before the introduction of Ind AS, financial statements for companies were prepared on the basis of Accounting Standards (AS) which were not in line with the standards and principles applicable globally. This caused a discrepancy of information and as a result, investors were not able to correctly assess the financial position of Indian companies when compared to other global companies. In order to make the financial statements uniform, Indian Accounting Standards was introduced.

What are the benefits of Indian Accounting Standards?

We’ve taken a look at the list of Indian Accounting Standards. So, how exactly are they helping the country’s economy? Let’s look at some benefits:

Widely Accepted Standards

Indian Accounting Standards are converged form of IFRS - International Financial Reporting Standards which are widely accepted accounting norms and help provide clients and users of financial statements more confidence in the company.

Global Comparability

Financial statements that are prepared using Ind AS are comparable to global standards of accounting and are as good as standards of any other country.

Changes in standards as per economic situations

Principles of Ind AS are dynamic and are revised/modified if required in case there are any major changes in the economic climate. Ind AS 29 is ‘Financial Reporting in hyperinflationary Economies’ which deals with situations related to economic issues such as inflation.

Foreign Investments

Adopting Ind AS is a great way to attract foreign investments in Indian Companies due to its comparability to other companies across the globe.

Cost-saving on preparation of Financial Statements

For large multinational corporations, Indian Accounting Standards are a book as they can use the same accounting standards in all the markets in which they operate. This will save preparation costs of aligning financial statements of Indian company with other operations.

How and where are Indian Accounting Standards Applicable?

Indian Standard Accounting Standards are applicable to the following category of companies and each company must abide their requirements:


Mandatory requirement: Companies are required to follow Ind AS from Financial year 2015-2016. For Financial year 2018-19, following is the limit for companies required to follow Ind AS:


      1. Companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India;

         2.  Unlisted companies having net worth of Rs. 250 crore or more; and

     3. Holding, subsidiary, joint venture or associate companies of companies covered in point (1) and (2) above.


Non-Banking Financial Companies (NBFCs)




1.      NBFCs having net worth of rupees five hundred crore or more;

2.      Holding, subsidiary, joint venture or associate companies of companies covered under point (1) above.




1.      NBFCs whose equity or debt securities are listed or in the process of listing on any stock exchange in India or outside India and having net worth less than Rs. 500 crore;

2.      NBFCs, that are unlisted companies, having net worth of Rs. 250 crore or more but less than Rs. 500 crore; and

3.      Holding, subsidiary, joint venture or associate companies of companies covered under point (1) and (2) above.


In case of a conflict between provisions of any applicable Act and Indian Accounting Standard (Ind AS), the provisions of the Act will be the higher authority.

What are the list of Accounting Standards applicable for the CA Intermediate and CA Final Exams?

For the 2019 exams, for CA Intermediate, the accounting standards that you need to focus on are AS 1, 2, 3, 4, 5, 10, 11, 12, 13, 16, 17 and 22.

For CA Final, all Accounting Standards are applicable.

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This pretty much covers all you need to understand about Indian Accounting Standards and all accounting standards in general. We hope this helps. If you have any additions, doubts or queries, you know where to find us. Until next blog! 



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