The Indian Accounting Standards (IND-AS) are a set of accounting standards notified by the Ministry of Corporate Affairs, Government of India.
IND-AS are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The Indian Accounting Standards apply to all companies, including listed companies and unlisted public sector companies.
The Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Rules, 2015 (as amended), which sets out the framework for adopting the Indian Accounting Standards by companies.
These standards are applicable to companies in India. As of date, MCA has notified 41 Ind AS. This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis.
Objectives and Applicability of Indian Accounting Standards
IND-AS is designed to improve the quality of financial reporting in India and to bring about greater convergence with international accounting standards. The standards will also help in making Indian companies more globally competitive.
The objective of the Indian Accounting Standards is to enhance the quality and transparency of financial reporting in India and to promote convergence with international financial reporting standards.
Under the Companies (Indian Accounting Standards) Rules, 2015 (as amended), all companies are required to prepare their financial statements by the Indian Accounting Standards from the financial year commencing on or after 1st April 2016.
The framework for the adoption of the Indian Accounting Standards is as follows:
(i) Companies may prepare their financial statements in compliance with the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) or in compliance with the accounting standards prescribed under the Companies Act, 2013.
(ii) Companies may prepare their financial statements in compliance with the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the accounting standards prescribed under the Companies Act, 2013.
(iii) Companies may prepare their financial statements in compliance with any other accounting standards as may be prescribed by the Central Government in consultation with the National Financial Reporting Authority.
The Indian Accounting Standards are based on the international financial reporting standards issued by the International Accounting Standards Board.
These are the converged Indian Accounting Standards (Ind ASs) hosted by MCA on its website. The date on which these will 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 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 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 18 Revenue|
|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 29 Financial Reporting in Hyperinflationary Economies|
|Ind AS 31 Interests in Joint Ventures|
|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 39 Financial Instruments: Recognition and Measurement|
|Ind AS 40 Investment Property|
Indian Accounting Standards (Ind AS) are a set of accounting standards that converge with International Financial Reporting Standards (IFRS). These standards are applicable to the preparation and presentation of financial statements in India.
The adoption of Ind AS is required for certain companies, including listed companies, banks, and insurance companies, based on their net worth and other criteria. The purpose of adopting Ind AS is to enhance transparency, comparability, and quality of financial reporting and to harmonize Indian accounting practices with global standards.
Ind AS cover various aspects of financial reporting such as recognition, measurement, presentation, and disclosure requirements for different types of transactions and events. Some key areas covered by Ind AS include revenue recognition, lease accounting, financial instruments, employee benefits, consolidation of financial statements, and fair value measurement.