Indian Accounting Standards
Encyclopedia
Indian Accounting Standards, abbreviated as Ind AS are a set of accounting standards notified by the Ministry of Corporate Affairs
which are converged with International Financial Reporting Standards
(IFRS). These accounting standards are formulated by Accounting Standards Board of Institute of Chartered Accountants of India
. Now India will have two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard) Rules, 2006 and IFRS converged Indian Accounting Standards(Ind AS). The Ind AS are named and numbered in the same way as the corresponding IFRS. NACAS recommend these standards to the Ministry of Corporate Affairs
. The Ministry of Corporate Affairs has to spell out the accounting standards applicable for companies in India. As on date the Ministry of Corporate Affairs
notified 35 Indian Accounting Standards(Ind AS). But it has not notified the date of implementation of the same.
with IFRS was made by the Prime Minister of India Dr. Manmohan Singh by committing in G20 to align Indian accounting standards with IFRS. Thereafter ICAI has decided to converge its Accounting Standards with IFRS for accounting period
s commencing on or after 1 April 2011 in a phased manner as envisaged the Roadmap to IFRS formulated by the Ministry of Corporate Affairs
. For smooth transition to IFRS, ICAI has taken up the matter of convergence with the National Advisory Committee on Accounting Standards
and various regulators such as the RBI
, SEBI
and IRDA
, CBDT. IASB, the issuer of IFRS, is also supporting the ICAI in its endeavours towards convergence.
It has been decided that there shall be two sets of Accounting Standards under the Companies Act. The new set of standards which have been converged with IFRS are now known as Indian Accounting Standards or Ind AS. The Ministry of Corporate Affairs has notified the 35 Ind AS on 25 February 2011. The text of the 35 Ind AS are now available at the Ministry of Corporate Affairs portal. At the same time The Ministry of Corporate Affairs haven't specified the date of implementation of the same. This reluctance of The Ministry of Corporate Affairs to notify the date even when the proposed date is less than a month away is seen as rooted in the strong lobbying by the Corporates in India to defer the implementation. But the president of ICAI
. CA.G.Ramaswamy expects that it will be notified soon and there wont be any deferment.
Ministry of Corporate Affairs (India)
The Ministry of Company Affairs is an Indian government ministry. It is charged with administering the Companies Act 1956 and other acts related to Indian private sector. It is responsible mainly for regulation of Indian enterprises in Industrial and Services sector. The current minister of...
which are converged with International Financial Reporting Standards
International Financial Reporting Standards
International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....
(IFRS). These accounting standards are formulated by Accounting Standards Board of Institute of Chartered Accountants of India
Institute of Chartered Accountants of India
The Institute of Chartered Accountants of India is a national professional accounting body of India. It was established on 1 July 1949 as a body corporate under the Chartered Accountants Act, 1949 enacted by the Constituent Assembly of India to regulate the profession of Chartered Accountancy in...
. Now India will have two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard) Rules, 2006 and IFRS converged Indian Accounting Standards(Ind AS). The Ind AS are named and numbered in the same way as the corresponding IFRS. NACAS recommend these standards to the Ministry of Corporate Affairs
Ministry of Corporate Affairs (India)
The Ministry of Company Affairs is an Indian government ministry. It is charged with administering the Companies Act 1956 and other acts related to Indian private sector. It is responsible mainly for regulation of Indian enterprises in Industrial and Services sector. The current minister of...
. The Ministry of Corporate Affairs has to spell out the accounting standards applicable for companies in India. As on date the Ministry of Corporate Affairs
Ministry of Corporate Affairs (India)
The Ministry of Company Affairs is an Indian government ministry. It is charged with administering the Companies Act 1956 and other acts related to Indian private sector. It is responsible mainly for regulation of Indian enterprises in Industrial and Services sector. The current minister of...
notified 35 Indian Accounting Standards(Ind AS). But it has not notified the date of implementation of the same.
Convergence with IFRS
The inception of the idea of convergence of Indian GAAPGaap
In demonology, Gaap is a mighty Prince and Great President of Hell, commanding sixty-six legions of demons. He is, according to The Lesser Key of Solomon, the king and prince of the southern region of Hell and Earth, and according to the Pseudomonarchia Daemonum the king of the western region and...
with IFRS was made by the Prime Minister of India Dr. Manmohan Singh by committing in G20 to align Indian accounting standards with IFRS. Thereafter ICAI has decided to converge its Accounting Standards with IFRS for accounting period
Accounting period
An accounting period is a period with reference to which United Kingdom corporation tax is charged. It helps dictate when tax is paid on income and gains...
s commencing on or after 1 April 2011 in a phased manner as envisaged the Roadmap to IFRS formulated by the Ministry of Corporate Affairs
Ministry of Corporate Affairs (India)
The Ministry of Company Affairs is an Indian government ministry. It is charged with administering the Companies Act 1956 and other acts related to Indian private sector. It is responsible mainly for regulation of Indian enterprises in Industrial and Services sector. The current minister of...
. For smooth transition to IFRS, ICAI has taken up the matter of convergence with the National Advisory Committee on Accounting Standards
National Advisory Committee on Accounting Standards
National Advisory Committee on Accounting Standards is a body set up under section 210A of the Companies Act, 1956 by the Government of India. It Advises the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies...
and various regulators such as the RBI
Reserve Bank of India
The Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
, SEBI
Securities and Exchange Board of India
The Securities and Exchange Board of India is the regulator for the securities market in India.-History:It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament...
and IRDA
Insurance Regulatory and Development Authority
The Insurance Regulatory and Development Authority is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements...
, CBDT. IASB, the issuer of IFRS, is also supporting the ICAI in its endeavours towards convergence.
It has been decided that there shall be two sets of Accounting Standards under the Companies Act. The new set of standards which have been converged with IFRS are now known as Indian Accounting Standards or Ind AS. The Ministry of Corporate Affairs has notified the 35 Ind AS on 25 February 2011. The text of the 35 Ind AS are now available at the Ministry of Corporate Affairs portal. At the same time The Ministry of Corporate Affairs haven't specified the date of implementation of the same. This reluctance of The Ministry of Corporate Affairs to notify the date even when the proposed date is less than a month away is seen as rooted in the strong lobbying by the Corporates in India to defer the implementation. But the president of ICAI
ICAI
ICAI may stand for* Institute of Chartered Accountants of India* Institute of Chartered Accountants in Ireland* ICAI, Instituto Católico de Artes e Industrias of the Comillas Pontifical University in Madrid, Spain....
. CA.G.Ramaswamy expects that it will be notified soon and there wont be any deferment.
List of Ind AS
- Ind AS 101 First-time Adoption of Indian Accounting Standards
- Ind AS 102 Share based Payment
- Ind AS 103 Business Combinations
- Ind AS 104 Insurance Contracts
- Ind AS 105 Non current Assets Held for Sale and Discontinued Operations
- Ind AS 106 Exploration for and Evaluation of Mineral Resources
- Ind AS 107 Financial Instruments: Disclosures
- Ind AS 108 Operating Segments
- Ind AS 1 Presentation of Financial Statements
- Ind AS 2 Inventories
- Ind AS 7 Statement of Cash Flows
- Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- Ind AS 10 Events after the Reporting Period
- Ind AS 11 Construction Contracts
- Ind AS 12 Income Taxes
- Ind AS 16 Property, Plant and Equipment
- Ind AS 17 Leases
- Ind AS 18 Revenue
- Ind AS 19 Employee Benefits
- Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance
- Ind AS 21 The Effects of Changes in Foreign Exchange Rates
- Ind AS 23 Borrowing Costs
- Ind AS 24 Related Party Disclosures
- Ind AS 27 Consolidated and Separate Financial Statements
- Ind AS 28 Investments in Associates
- Ind AS 29 Financial Reporting in Hyperinflationary Economies
- Ind AS 31 Interests in Joint Ventures
- Ind AS 32 Financial Instruments: Presentation
- Ind AS 33 Earnings per Share
- Ind AS 34 Interim Financial Reporting
- Ind AS 36 Impairment of Assets
- Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets
- Ind AS 38 Intangible Assets
- Ind AS 39 Financial Instruments: Recognition and Measurement
- Ind AS 40 Investment Property
External links
- http://ifrs.icai.org
- http://www.livemint.com/2011/02/25220752/MCA-notifies-accounting-norms.html
- http://www.indianexpress.com/news/India-Inc-has-its-way--IFRS-put-off/755079/
- http://pib.nic.in/newsite/erelease.aspx?relid=70248
- http://www.moneycontrol.com/news/the-firm/jamil-khatris-ifrs-diary-part-10_526759.html
- http://www.rhapsody-services.com/blog/ifrs/ifrs-in-india-%E2%80%93-the-journey-so-far