[Commerce Class Notes] on Indian Accounting Standards Pdf for Exam [2024]

Accounting is known as the art of recording the exchanges in a manner to assist the perusers with showing up at the decisions or reaching a financial decision about the entity. This becomes fundamental that it ought to be joined into some normalized rules which are for the most part known to account for approaches.

Indian Accounting Standard is the Accounting standard taken on by organizations in India and given under the oversight of the Accounting Standards Board which was composed as a body in the year 1977.

The concocting of these strategies permits different organizations to adjust their accounting standards to repair for their own benefit. Standards are acquainted with quenching all disarrays, and these should have been set by the perceived accounting bodies. This idea repaired the way for the development of Accounting Standards. The Accounting Standards in India are given by the Institute of Chartered Accountants of India (ICAI).

Objectives of the Indian Accounting System

There are many objectives of an Indian Accounting system. We will discuss each and every point under IAS and understand its importance.

This way, the global scope of Indian companies is expanded and they have a wider
platform to perform on.
This way the Indian companies can imply their rates and demands according to the global rates.
This way the company accounts and the annual financial statements are transparent.
It is easy and can be understood by companies worldwide.
It lets us have a single framework for a single accounting framework.

Indian Accounting System: Benefits

As we already know that without benefits, nobody will try to pursue an accounting system like this. There are many benefits gained while following the Indian Accounting System, let us discuss all of them in detail.

International Base – This lets the business have an international base and platform for companies to perform.
Harmonization – This lets the companies harmonize their rules.
Compliance – Increase compliance in companies.
Global Acceptance – Globally reaches other companies and benefits them. This also gives global or international recognition.

Indian Accounting Standards List

Indian Accounting Standard Number	Name of Indian Accounting Standard
Ind AS 101	Adoption of Indian Accounting Standard.
Ind AS 102	Share-Based Payment
Ind AS 103	Business Combinations
Ind AS 104	Insurance Contracts
Ind AS 105	Non- Current Assets are held for sale and are Discontinued Operations.
Ind AS 106	Exploration for and the evaluation of the 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 Interest to Other Entities
Ind AS 113	Fair Value Measurement
Ind AS 114	Regulatory Deferral Accounts
Ind AS 115	Revenue from contract 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 the Accounting Estimates and Errors
Ind AS 10	Events after Reporting Period
Ind AS 12	Income Taxes
Ind AS 16	Property, Plant, Equipment.
Ind AS 17	Leases
Ind AS 19	Employee Benefits
Ind AS 20	Accounting for government grants.
Ind AS 21	The result for the 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 in the 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 Assets
Ind AS 38	Intangible Assets
Ind AS 40	Investment Property
Ind AS 41	Agriculture

Indian Accounting Standards Applicability

The Indian Accounting Standards are followed by all the companies. They shall follow Ind AS either Voluntarily or Mandatorily. When a company follows the Indian AS, either mandatory or voluntarily, it cannot return to its old method of Accounting.

Mandatory Applicability

Companies with a Net worth of not less than 500 crores are required to follow Ind AS.

Mandatory Applicability from Accounting Period beginning on or after 1 April 2017

Indian Accounting Standards Summary

Every functioning body that operates, needs a defined guideline so as to maintain the procedure and the standards of the operations of its own business. The rules make the policies common for organizations that operate in similar fields.