Indian Accounting Standards

Indian Accounting Standards (Ind AS) are a set of accounting standards that are converged with International Financial Reporting Standards (IFRS). They are applicable to companies in India, including listed companies, certain classes of unlisted companies, and specific financial institutions and entities. Ind AS was introduced to enhance the transparency and comparability of financial statements and align India’s accounting practices with global standards. Here are some key points about Indian Accounting Standards:


Convergence with IFRS

It is designed to converge with IFRS, making Indian financial reporting standards more consistent with international practices. This convergence aims to facilitate cross-border investments and improve the global competitiveness of Indian companies.


Ind AS is applicable to various categories of companies, including listed and unlisted companies meeting specified criteria based on net worth, turnover, and other factors. It’s mandatory for certain types of financial institutions and entities as well.


It covers various aspects of financial reporting, including the presentation of financial statements, revenue recognition, accounting for financial instruments, leases, and consolidation of financial statements

Financial Statements

It prescribes the format and content of financial statements, which typically include the balance sheet, income statement, statement of cash flows, and statement of changes in equity. It also provides guidelines for the preparation of notes to the financial statements.

Revenue Recognition

Ind AS 115, Revenue from Contracts with Customers, establishes principles for recognizing revenue from contracts with customers. It outlines when revenue should be recognized and how it should be measured.


It or Ind AS 116, Leases, provides guidance on the accounting treatment of leases for lessees and lessors. It requires lessees to recognize most leases on their balance sheets as right-of-use assets and lease liabilities.

Financial Instruments

It or Ind AS 109, Financial Instruments, governs the classification, measurement, and recognition of financial instruments. It replaces the earlier Indian standard, AS 30, Financial Instruments: Recognition and Measurement.


It Consolidated Financial Statements, and Ind AS 111, Joint Arrangements, provide guidelines for the preparation of consolidated financial statements and accounting for joint arrangements.

Disclosure Requirements

It includes extensive disclosure requirements to ensure that financial statements provide a comprehensive and transparent view of a company’s financial position, performance, and risks.

Transition to Ind AS

Companies transitioning to Ind AS from the previous Indian Generally Accepted Accounting Principles (GAAP) are required to make certain adjustments to their financial statements and policies to align with the new standards.

The adoption of Ind AS represents a significant shift in Indian accounting practices, emphasizing principles-based accounting and aligning with global standards. It aims to improve the quality and comparability of financial reporting in India and make it easier for investors, analysts, and other stakeholders to assess the financial health and performance of Indian companies.