The Indian Accounting Standards have been developed keeping in mind the Indian economic and legal environment. Notified under Section 133 of the Companies Act 2013, it harmonises with the International Financial Reporting Standards (IFRS). This is to ensure Indian companies’ compliance with global best practices. The article explores the benefits, applications, and the list of Indian Accounting Standards:
What is Indian Accounting?
Also knowns as Ind As, Indian Accounting Standards are formulated by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI). The Ind As is recommended by ICAI to the National Financial Reporting Authority (NFRA) of the Government of India. Its objective is to bring uniformity in financial transactions recording, accounting, and profit and loss account and balance sheet presentation of a company in the country.
Indian Accounting have the following benefits:
Universal adoption of standards by Indian companies, ensuring compliance with global best practices
One mechanism and accounting system for better governance
Enable a better understanding of Indian accounting systems worldwide
Usher in greater transparency for company / corporate accounts and financial statements/reports