What Are Indian Accounting Standards?

 Indian Accounting Standards

Indian Accounting Standards (Ind AS) are a set of accounting standards notified by the Ministry of Corporate Affairs (MCA), Government of India, in accordance with the Companies Act, 2013. These standards are largely converged with the International Financial Reporting Standards (IFRS), which are global accounting standards issued by the International Accounting Standards Board (IASB).

The objective of adopting Ind AS is to enhance the transparency, comparability, and quality of financial reporting in India. They provide guidelines on recognition, measurement, presentation, and disclosure of various financial transactions and events in the financial statements of companies.

Objectives of the Indian Accounting Standards

The primary Plan of the Indian Accounting Standards (IND AS) is to ensure that large-scale activities are correctly accounted for through continuous disclosure, treatment, and reformation.

IND AS standardizes accounting policies and principles for the nation's economy. Provides a unified framework for the preparation of books of account and promotes financial transparency. Indian Accounting Standards (IND AS) ensure that all institutions and governmental bodies are recognized overseas.

Benefits of Indian Accounting Standards

Global Recognition: Ind AS aligns Indian accounting practices with International Financial Reporting Standards (IFRS), allowing for easier comparison of financial statements to those of global peers. This increases the credibility and appeal of Indian businesses to international investors and stakeholders.
Improved Transparency: The Indian Accounting Standard requires companies to disclose relevant information, such as off-balance-sheet items, contingent liabilities, and related-party transactions. This allows investors and stakeholders to make better-informed decisions.
Enhanced Comparability: By adopting internationally recognized accounting standards, Ind AS helps the comparison of financial statements across companies, industries, and jurisdictions. This enhances the ability of investors, analysts, and regulators to evaluate entities' financial performance and position.

Better Decision-Making: Ind AS provides more relevant and reliable financial information to management, investors, creditors, and other stakeholders, allowing them to make better decisions. This is especially important when evaluating the financial health and prospects of businesses.
Access to Capital: Compliance with the Ind AS may improve access to capital by increasing investor confidence and lowering the perceived risk of investing in Indian companies. This can result in lower borrowing costs and greater availability of funding for growth and expansion.
Increased Investor Confidence: Ind AS encourages higher-quality financial reporting, lowering the risk of financial misstatements or errors. This increases investor trust and confidence, resulting in improved capital market efficiency.

List of Accounting Standards in India

Sr. NO	IND AS NO:		Name of Indian Accounting Standards (IND AS)
1.	Ind AS 101		Ind AS is being used for the first time.
2.	Ind AS 102		Shared Payment.
3.	Ind AS 103		Business Combination.
4.	Ind AS 104		Insurance Contracts.
5.	Ind AS 105		Non-current assets are for sale, and operations have been discontinued.
6.	Ind AS 106		Exploration and evaluation of minerals.
7.	Ind AS 107		Financial Instruments & Disclosures.
8.	Ind AS 108		Operating Segments.
9.	Ind AS 109		Financial Instruments.
10.	Ind AS 110		Consolidated Financial Statements.
11.	Ind AS 111		Joint Arrangements.
12.	Ind AS 112		Disclosure of Interests in Other object.
13.	Ind AS 113		Fair Value Measurement.
14.	Ind AS 114		Regulatory Deferral Accounts.
15.	Ind AS 115		Revenue from Contracts with Customers (Applicable from April 2018).
16.	Ind AS 116		Leases – Applicable from April 2019.
17.	Ind AS 1		Presentation of Financial Statements.
18.	Ind AS 2		Inventories.
19.	Ind AS 7		Cash Flow Statement
20.	Ind AS 8		Accounting Policies, Changes in Accounting Estimates, and Mistakes.
22.	Ind AS 11		Construction Contracts – Amendment Rules, 2018.
23.	Ind AS 12		Income Taxes.
24.	Ind AS 16		Property, Plant, and Equipment.
25.	Ind AS 19		Employee Benefits.
26.	Ind AS 20		Accounting for and disclosing government grants.
27.	Ind AS 21		The Effects of Foreign Exchange Rate Changes.
28.	Ind AS 21		The Effects of Changes in Foreign Exchange Rates.
29.	Ind AS 23		Borrowing Costs.
30.	Ind AS 24		Related Party Disclosures.
31.	Ind AS 27		Separate Financial Statements.
32.	Ind AS 28		Investments in Associates and Joint Ventures.
33.	Ind AS 29		Financial Reporting in Hyperinflationary Economies.
34.	Ind AS 32		Financial Instruments: Presentation.
35.	Ind AS 33		Earnings per Share.
36.	Ind AS 34		Interim Financial Reporting.
37.	Ind AS 36		Impairment of Assets.
38.	Ind AS 37		Provisions, Contingent Liabilities, and Contingent Assets.
39.	Ind AS 38		Intangible Assets.
40.	Ind AS 40		Investment Property.
41.	Ind AS 41		Agriculture.

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Question & Answer

1. Which governmental body in India is responsible for notifying Indian Accounting Standards (Ind AS)?

A) Securities and Exchange Board of India (SEBI)

B) Ministry of Finance

C) Ministry of Corporate Affairs (MCA)

D) Reserve Bank of India (RBI)

Answer: C) Ministry of Corporate Affairs (MCA)

2. What is the primary objective of adopting Indian Accounting Standards (Ind AS)?

A) Minimize taxation for corporations

B) Enhance transparency, comparability, and quality of financial reporting

C) Reduce government oversight in financial reporting

D) Standardize accounting practices only for multinational corporations

Answer: B) Enhance transparency, comparability, and quality of financial reporting

3. Which international accounting standards are largely converged with Indian Accounting Standards (Ind AS)?

A) Generally Accepted Accounting Principles (GAAP)

B) International Accounting Standards (IAS)

C) International Financial Reporting Standards (IFRS)

D) Generally Accepted Auditing Standards (GAAS)

Answer: C) International Financial Reporting Standards (IFRS)

4. What is the benefit of aligning Indian accounting practices with International Financial Reporting Standards (IFRS)?

A) Decreased credibility of Indian businesses internationally

B) Limited access to global capital markets

C) Increased credibility and appeal to international investors

D) Greater regulatory burden on Indian companies

Answer: C) Increased credibility and appeal to international investors

5. Which Ind AS standard deals with the recognition, measurement, presentation, and disclosure of financial instruments?

A) Ind AS 107

B) Ind AS 103

C) Ind AS 1

D) Ind AS 116

Answer: A) Ind AS 107

6. When did the standard Ind AS 115, which deals with revenue recognition, become applicable?

A) April 2017

B) April 2018

C) April 2019

D) April 2020

Answer: B) April 2018

7. Which Ind AS standard governs the accounting treatment for leases?

A) Ind AS 101

B) Ind AS 102

C) Ind AS 116

D) Ind AS 113

Answer: C) Ind AS 116

8.Which Ind AS standard focuses on the presentation of financial statements?

A) Ind AS 103

B) Ind AS 1

C) Ind AS 112

D) Ind AS 107

Answer: B) Ind AS 1

9. Which Ind AS standard deals with accounting for employee benefits?

A) Ind AS 19

B) Ind AS 20

C) Ind AS 21

D) Ind AS 23

Answer: A) Ind AS 19

10. What does Ind AS 109 focus on?

A) Business combinations

B) Financial instruments

C) Joint arrangements

D) Regulatory deferral accounts

Answer: B) Financial instruments