Indian & International

Accounting Standards

Sarthak Agrawal
BBA (1ST YEAR) | SECTION - B
INDIAN ACCOUNTINGS STANDARDS

Indian Accounting Standard (abbreviated as Ind-AS) is

the Accounting standard adopted by companies in India and
issued under the supervision of Accounting Standards Board
(ASB) which was constituted as a body in the year 1977. ASB
is a committee under Institute of Chartered Accountants of
India (ICAI) which consists of representatives from
government department, academicians, other professional
bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI,
etc. ICAI is an independent body formed under an act of
parliament.

The Ind AS are named and numbered in the same way as

the International Financial Reporting
Standards (IFRS). National Financial Reporting
Authority (NFRA) recommend these standards to the Ministry
of Corporate Affairs (MCA). MCA has to spell out the
accounting standards applicable for companies in India. As on
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.
(INDIAN ACCOUNTING STANDARDS) IAS – 1

Overview :- IAS 1 Presentation of Financial Statements sets

out the overall requirements for financial statements,
including how they should be structured, the minimum
requirements for their content and overriding concepts such
as going concern, the accrual basis of accounting and the
current/non-current distinction. The standard requires a
complete set of financial statements to comprise a statement
of financial position, a statement of profit or loss and other
comprehensive income, a statement of changes in equity and
a statement of cash flows.

IAS 1 was reissued in September 2007 and applies to annual

periods beginning on or after 1 January 2009.

History of IAS 1

Date Development Comments

March 1974 Exposure Draft E1 Disclosure of Accounting

Policies

January 1975 IAS 1 Disclosure of Accounting Policies issued Operative for periods

beginning on or after 1
January 1975
June 1975 Exposure Draft E5 Information to Be Disclosed
in Financial Statements published

October 1976 IAS 5 Information to Be Disclosed in Financial Operative for periods

Statements issued beginning on or after 1
January 1975

July 1978 Exposure Draft E14 Current Assets and

Current Liabilities published

November 1979 IAS 13 Presentation of Current Assets and Operative for periods

Current Liabilities issued beginning on or after 1
January 1981

1994 IAS 1, IAS 5, and IAS 13 reformatted

July 1996 Exposure Draft E53 Presentation of Financial

Statements published

August 1997 IAS 1 Presentation of Financial Operative for periods

Statements (1997) issued beginning on or after 1 July
1998
(Supersedes IAS 1 (1975), IAS 5, and IAS 13
(1979))

18 December 200 IAS 1 Presentation of Financial Effective for annual periods

3 Statements (2003) issued beginning on or after 1
January 2005

18 August 2005 Amended by Amendment to IAS 1 — Capital Effective for annual periods

Disclosures beginning on or after 1
January 2007

16 March 2006 Exposure Draft Proposed Amendments to IAS Comment deadline 17 July

1 – A Revised Presentation published 2006

22 June 2006 Exposure Draft Financial Instruments Puttable Comment deadline 23

at Fair Value and Obligations Arising on October 2006
Liquidation published

6 September 2007 IAS 1 Presentation of Financial Effective for annual periods

 Statements (2007) issued beginning on or after 1
January 2009

14 February 2008 Amended by Puttable Financial Instruments Effective for annual

and Obligations Arising on Liquidation reporting periods beginning
on or after 1 January 2009

22 May 2008 Amended by Annual Improvements to IFRSs Effective for annual

2007 (classification of derivatives as current reporting periods beginning
or non-current) on or after 1 January 2009

16 April 2009 Amended by Improvements to IFRSs Effective for annual periods

2009 (classification of liabilities as current) beginning on or after 1
January 2010

6 May 2010 Amended by Improvements to IFRSs Effective for annual periods

2010 (clarification of statement of changes in beginning on or after 1
equity) January 2011

27 May 2010 Exposure Draft ED/2010/5 Presentation of Comment deadline 30

Items of Other Comprehensive September 2010
Income published

16 June 2011 Amended by Presentation of Items of Other Effective for annual periods

Comprehensive Income beginning on or after 1 July
2012

17 May 2012 Amended by Annual Improvements 2009- Effective for annual periods

2011 Cycle (comparative information) beginning on or after 1
January 2013

18 December 2014 Amended by Disclosure Initiative Effective for annual periods

(Amendments to IAS 1) (project history) beginning on or after 1
January 2016

31 October 2018 Amended by Definition of Material Effective for annual periods

(Amendments to IAS 1 and IAS 8) beginning on or after 1
January 2020

23 January 2020 Amended by Classification of Liabilities as Effective for annual periods

 Current or Non-current (Amendments to IAS beginning on or after 1
1) January 2022

15 July 2020 IASB defers effective date of Classification of The new effective ate of
Liabilities as Current or Non-current the January 2020
(Amendments to IAS 1) to 1 January 2022 amendments is now 1
January 2023

Scope :- AS 1 applies to all general purpose financial statements

that are prepared and presented in accordance with International
Financial Reporting Standards (IFRSs).

General purpose financial statements are those intended to serve

users who are not in a position to require financial reports tailored to
their particular information needs.
Objective:- The objective of general purpose financial statements is
to provide information about the financial position, financial
performance, and cash flows of an entity that is useful to a wide
range of users in making economic decisions. To meet that objective,
financial statements provide information about an entity's.

INDIAN ACCOUNTING STANDARDS - 2

Overview :- IAS 2 Inventories contains the requirements on how to

account for most types of inventory. The standard requires
inventories to be measured at the lower of cost and net realisable
value (NRV) and outlines acceptable methods of determining cost,
including specific identification (in some cases), first-in first-out
(FIFO) and weighted average cost.

Objective of IAS 2 :- The objective of IAS 2 is to prescribe the

accounting treatment for inventories. It provides guidance for
determining the cost of inventories and for subsequently recognising
an expense, including any write-down to net realisable value. It also
provides guidance on the cost formulas that are used to assign costs
to inventories.

Scope :- Inventories include assets held for sale in the ordinary

course of business (finished goods), assets in the production process
for sale in the ordinary course of business (work in process), and
materials and supplies that are consumed in production (raw
materials).

INDIAN ACCOUNTING STANDARDS - 3

Overview :- AS 3 Cash Flow Statements states that cash flows

should exclude the movements between items which forms part of
cash or cash equivalents as these are part of an enterprise's cash
management rather than its operating, financing and investing
activities.