Indian Accounting Standards

(Ind AS)
Semester VI
[Link] (All Streams)
 Meaning of AS
 An accounting standard is a common set of
principles, standards, and procedures that
define the basis of financial accounting
policies and practices.
 History - World
 American Institute of Certified Public
Accountants, and the New York Stock
Exchange attempted to launch the first
accounting standards in the 1930s.
 In 1973, these responsibilities were given to
the newly created Financial Accounting
Standards Board which introduced US GAAP.
 IFRS
 History - India
 ICAI Constituted Accounting Standards Board
in 1977 to frame Accounting Standards for
Indian Business.
 Till 2015 ASB issued 41 Accounting Standards
 From 2015-16 and 2016-17 India adopted
International Standards and Converged AS
with IFRS
 There are 42 Standards as on 2020-2021
 List of Ind AS
 Ind AS 101 - First time adoption of Ind AS
 Ind AS 102 - Share Based Payment
 Ind AS 103 - Business Combination
 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
 List of Ind AS
 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
 List of Ind AS
 Ind AS 113 - Fair Value Measurement
 Ind AS 114 - Regulatory Deferral Accounts
 Ind AS 115 - Revenue from Contracts with
Customers(Applicable from April 2018)
 Ind AS 116 - Leases (Applicable from April
2019)
 Ind AS 1 - Presentation of Financial Statements
 List of Ind AS
 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 occurring after Reporting
Period
 Ind AS 12 - Income Taxes
 Ind AS 16 - Property, Plant and Equipment
 List of Ind AS
 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
 List of Ind AS
 Ind AS 28 - Investments in Associates and
Joint Ventures
 Ind AS 29 - Financial Reporting in Hyper
inflationary Economies
 Ind AS 32 - Financial Instruments:
Presentation
 Ind AS 33 - Earnings per Share
 Ind AS 34 - Interim Financial Reporting
 List of Ind AS
 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
Procedure for issue of AS in India
 First, the ASB will identify areas where the
formulation of accounting standards may be
needed
 Then the ASB will constitute study groups and
panels to discuss and study the topic at hand.
Such panels will prepare a draft of the
standards.
Procedure for issue of AS in India
 The ASB then carries out deliberations of the said draft of
the standard. If necessary changes and revisions are made.
 Then this preliminary draft is circulated to all concerned
authorities. This will generally include the members of
the ICAI, and any other concerned authority like the
Department of Company Affairs (DCA), the SEBI, the
CBDT, Standing Conference of Public Enterprises
(SCPE), Comptroller and Auditor General of India etc.
These members and departments are invited to give their
comments.
Procedure for issue of AS in India
 Then the ASB arranges meetings with these
representatives to discuss their views and
concerns about the draft and its provisions
 The exposure draft is then finalized and presented
to the public for their review and comments
 The comments by the public on the exposure draft
will be reviewed. Then a final draft will be
prepared for the review and consideration of the
ICAI
Procedure for issue of AS in India
 The Council of the ICAI will then review and
consider the final draft of the standard. If
necessary they may suggest a few
modifications.
 Finally, the Accounting Standard is issued. In
the case of standard for non-corporate entities,
the ICAI will issue the standard. And if the
relevant subject relates to a corporate entity the
Central Government will issue the standard.
 IFRS
 International Financial Reporting Standards
(IFRS) set common rules so that financial statements
can be consistent, transparent, and comparable
around the world. IFRS are issued by the
International Accounting Standards Board (IASB).
 IFRS were established to create a common
accounting language so that businesses and their
financial statements can be consistent and reliable
from company to company and country to country.
 Need for Convergence of IFRS and
Ind AS
 To ensure a general understanding of best
accounting practices
 To make the financial statements reliable,
comparable & transparent
 To standardize financial accounting & reporting
across the globe
 To promote foreign Investment & spur Industrial
growth
 To eliminate information barriers for users of
financial statements
 Benefits of Convergence of IFRS and
Ind AS
 Easy access to global financial capital markets
  Cross Border trade & Investments
 Eliminate differential reporting
  Improved quality & comparability of financial
reporting
 Accounting Profession
 Challenges of Convergence of IFRS and
Ind AS
 Training & Awareness
 Changes in Indian regulation
 Fair Value system of measurement
 IT systems
 Small & Medium businesses