Indian Accounting Standards (Ind AS) are issued by the Accounting Standard Board to converge Indian GAAP with International Financial Accounting Standards (IFRS). Their objective is to remove variations in the treatment of several accounting aspects and to bring about standardization in the presentation.

On 2 January 2015, the Press Information Bureau, Government of India, Ministry of Corporate Affairs (MCA) issued a note outlining the various phases in which Indian Accounting Standards converged with IFRS (Ind AS) is proposed to be implemented in India, for Companies other than Banking Companies, Insurance Companies, and NBFCs. Consequently, the companies will need to convert their accounts from Indian GAAP to IFRS.

Roadmap to Implementation:

Financial yearApplicable to
2016-2017Companies  (listed and unlisted) whose net worth is equal to or greater than 500 crore INR
2017-2018Unlisted companies whose net worth is equal to or greater than 250 crore INR and all listed companies
2018-2019 and onwardsWhen a company’s net worth becomes greater than 250 crore INR
2015-2016 and laterEntities, not under the mandatory roadmap, may later voluntarily adopt Ind AS

Whenever a company gets covered under the roadmap, Ind AS becomes mandatory, its holding, subsidiary, associate and joint venture companies will also have to adopt Ind AS (irrespective of their net worth). Moreover, Ind AS will apply to both consolidated as well as standalone financial statements of a company.

While overseas subsidiary, associate or joint venture companies are not required to prepare standalone financial statements under Ind AS, they will need to prepare Ind AS adjusted financial information to enable consolidation by the Indian parent.


Presently, insurance companies, banking companies, and nonbanking finance companies (NBFCs) are not required to apply Ind AS. Ind AS rules are silent when these companies are subsidiaries, associates or joint ventures of a parent covered under the roadmap.

It appears that these companies will need to report Ind AS adjusted financial information to enable consolidation by the parent.
In case of conflict between Ind AS and the law, the provisions of the law will prevail and financial statements are to be prepared in compliance with the law.

Principles of Ind AS


The entities’ general purpose financial statements give information about performance, position, and cash flow that is useful to a range of users in making financial decisions. These users include shareholders, creditors, employees, and the general public.

A complete set of financial statements under Ind AS includes the following:

  1. The balance sheet at the end of the period
  2. Statement of profit and loss for the period
  3. Statement of changes in equity for the period
  4. Statement of cash flows for the period; notes, comprising a summary of significant accounting policies and other explanatory information
  5. Comparative financial information in respect of the preceding period as specified
  6. A balance sheet as at the beginning of the preceding period

When an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements having an impact on the balance sheet as at the beginning of the preceding period.

Difference between IFRS and Ind AS

India has chosen a path of International Financial Reporting Standards (IFRS) convergence rather than adoption. Hence, Ind AS is primarily based on the IFRS issued by the International Accounting Standards Board (IASB). However, there are certain carve-outs from the IFRS. There are also certain general differences between Ind AS and IFRS:

  1. The transitional provisions given in each of the standards under IFRS have not been given in Ind AS, since all transitional provisions related to Ind AS, wherever considered appropriate, have been included in Ind AS 101, First-Time Adoption of Indian Accounting Standards, corresponding to IFRS 1, First-Time Adoption of International Financial Reporting Standards.
  2. Different terminology is used in Ind AS when compared to IFRS, e.g. the term ‘balance sheet’ is used instead of ‘statement of financial position’ and ‘statement of profit and loss’ is used instead of ‘statement of comprehensive income’.

The Indian Accounting Standard and making a first-time financial report using the same requires high-quality data that can be processed into valuable information. The Interim Financial Reports for the same must also have the same features that are present in the overall report. The following features are warranted:  

  • The overall periods of the report must be easy to read. It should also be comparable to other statements that provide more or less the same information.
  • The reports must have enough provisions for a strong starting point for accounting in compliance with the pointers and directions set by the Indian Accounting Standards.
  • The system can be produced in such a way so that its costs do not go above the benefits. 

There are several kinds of accounting standards set by the Indian Accounting Standards, and a brief overview of some of them can lead us to a conclusive and comprehensive idea of Indian Accounting Standards: 

Business Standards: 

This Indian Accounting Standard improves the readability and reliability of accounting standards across users. To accomplish that, Indian Accounting Standards try to recognize the identifiable assets and liabilities. This Standard also includes non-controlling interest for the one who acquires the liabilities.

Exploration of Mineral Resources: 

This Indian Accounting Standard needs the following criterion to be met:

  • The standard calls for improvement in the existing systems so that the practice of accounting for evaluating expenditures in the mineral resources industry can be valid.  
  • This system requires the agents to recognize the evaluation of mineral assets following Ind AS 36, Impairment of Assets. It ensures that the impairment occurs following the standards set by the generally accepted body. It removes discrepancies across several users.

Financial Instruments and their Disclosures: 

The Indian Accounting Standards have provided measures for the same

The Standard sets some rules and regulations based on which the establishment for the presentation of financial tools as liabilities or loans can take place. The uncertainty of cash flows from a particular asset can be assessed using these rules and principles. It also helps in providing a foolproof idea of the amounts and timings of expected cash flows. 

These are some of the methods in which the Indian Accounting Standard tries to improve reliability and connectivity across users. The ultimate objective of the Indian Accounting Standards is to provide constant treatment, disclosure, and reformation of the existing standards so that the process of accounting for such large scale activities becomes straightforward and lucid. 


List of Ind AS

Following is the list of Ind AS issued by Accounting Standard Board
1.         Ind AS 101- Deals with First-time Adoption of Indian Accounting Standards
2.         Ind AS 102- Deals with Share-based Payment
3.         Ind AS 103- Deals with Business Combinations
4.         Ind AS 104- Deals with Insurance Contracts
5.         Ind AS 105- Deals with Non-current Assets Held for Sale and Discontinued Operations
6.         Ind AS 106- Deals with Exploration for and Evaluation of Mineral Resources
7.         Ind AS 107- Deals with Financial Instruments: Disclosures
8.         Ind AS 108- Deals with Operating Segments
9.         Ind AS 1- Deals with Presentation of Financial Statements
10.       Ind AS 2- Deals with Inventories
11.       Ind AS 7- Deals with Statement of Cash Flows
12.       Ind AS 8- Deals with Accounting Policies, Changes in Accounting Estimates and Errors
13.       Ind AS 10- Deals with Events after the Reporting Period
14.       Ind AS 11- Deals with Construction Contracts
15.       Ind AS 12- Deals with Income Taxes
16.       Ind AS 16- Deals with Property, Plant, and Equipment
17.       Ind AS 17- Deals with Leases
18.       Ind AS 18- Deals with Revenue
19.       Ind AS 19- Deals with Employee Benefits
20.       Ind AS 20- Deals with Accounting for Government Grants and Disclosure of Government Assistance
21.       Ind AS 21- Deals with The Effects of Changes in Foreign Exchange Rates
22.       Ind AS 23- Deals with Borrowing Costs
23.       Ind AS 24- Deals with Related Party Disclosures
24.       Ind AS 27- Deals with Consolidated and Separate Financial Statements
25.       Ind AS 28- Deals with Investments in Associates
26.       Ind AS 29- Deals with Financial Reporting in Hyperinflationary Economies
27.       Ind AS 31- Deals with Interests in Joint Ventures
28.       Ind AS 32- Deals with Financial Instruments: Presentation
29.       Ind AS 33- Deals with Earnings per Share
30.       Ind AS 34- Deals with Interim Financial Reporting
31.       Ind AS 36- Deals with Impairment of Assets
32.       Ind AS 37- Deals with Provisions, Contingent Liabilities, and Contingent Assets
33.       Ind AS 38- Deals with Intangible Assets
34.       Ind AS 39- Deals with Financial Instruments: Recognition and Measurement
35.       Ind AS 40- Deals with Investment Property

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