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With time accounting standards have been devised in India. It is also called Ind As. These standards should be adopted by different corporate form and NBFCs in India under the supervision of the board of Accounting Standards. In this article, we shall have a detailed outlook on Indian Accounting Standards.
This Board was established in 1977 as a regulator and body. It is a professional and autonomous body that is managed by the Institute of Chartered Accountants of India[1].
There are other bodies other than this, such as Confederation of Indian Industry, Associated Chambers of Commerce & Industry of India, Federation of Indian Chambers of Commerce and Industry, which regulate ASB.
The following are its objectives:
A broader scope is acceptable through this Indian accounting standard because, as compared to the past, Indian companies have expanded their global scope.
The Indian government and the Corporate Affairs Department have announced the recognition as well as the adoption of the Indian accounting standards by all companies in India. A notice was filed under the Company Accounting Standards Act (US IND) of 2015.
As per this notification, all companies that receive this notification will have to obtain Ind As in stages during the 2016-17 fiscal years. After its adoption, there have been three notification changes in 2016, 17 and 18.
It has many advantages. Some of them are as follows:
Harmonize
When companies adopt these standards, they can harmonize accounting rules. Global accounting principles can be made through harmonization.
Recognized Internationally
These are internationally recognized accounting standards. Hence, if a company wishes to expand internationally, these principles are adopted.
Effective Compliance
When companies adopt these standards, they can ensure effective compliance.
Accepted Globally
The existence of these standards guarantee international recognition of all government institutions and agencies.
It is in the process of adoption by the companies in India in phases. In the Ist and IInd phases, all listed and unlisted companies adopted these Standards.
In the IIIrd and IVth phases, banks and non-banking financial companies were supposed to adopt such standards.
Although the NBFCs have come under the Ind AS, banks are yet to adopt them. It is due to the fact that the RBI deferred this on account of 2 factors:
The Reserve Bank of India postponed the Ind AS implementation on banks from April 2018 to April 2019. After that, it deferred this implementation again indefinitely in April 2019.
The banking sector always opposed the adoption of Ind AS due to many factors, apart from the already mentioned factors. The implementation of the Ind AS is expected to bring in numerous changes in the accounts of the companies.
The services are as follows:
The list of major applicable Ind AS is provided in the table made below:
IND AS NO. |
NAME |
|
Ind-AS 1 |
Presentation of Financial Statements |
|
Ind-AS 2 |
Inventories Accounting |
|
Ind AS 7 |
Statement of Cash Flows |
|
Ind AS 8 |
Accounting Policies, Changes in Accounting Estimates and Errors |
|
Ind AS 10 |
Events after 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 23 |
Borrowing Costs |
|
Ind AS-24 |
Related Party Disclosures |
|
Ind AS-27 |
Separate Financial Statements |
|
Ind AS-28 |
Investments in Associates and Joint Ventures |
|
Ind AS-29 |
Financial Reporting in Hyperinflationary Economies |
|
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-40 |
Investment Property |
|
Ind AS-41 |
Agriculture |
|
Ind AS-101 |
First-time adoption of Ind AS |
|
Ind AS-102 |
Share-Based payments |
|
Ind AS-103 |
Business Combination |
|
Ind AS-104 |
Insurance Contracts |
|
Ind AS-105 |
Non-Current Assets Held for Sale & 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-109 |
Financial Instruments |
|
Ind AS-110 |
Consolidated Financial Statements |
|
Ind AS-111 |
Joint Arrangements |
|
Ind AS-112 |
Disclosure of Interests in Other Entities |
|
Ind AS-113 |
Fair Value Measurement |
|
Ind AS-114 |
Regulatory Deferral Accounts |
|
Ind AS-115 |
Revenue from Contracts with Customers |
These standards should be adopted by different corporate form and NBFCs in India under the supervision of the board of Accounting Standards. There have been certain amendments also in some of these Ind As recently.
Read our article:Guidelines for Ind AS Implementation by NBFC’s, ARC’s issued by RBI
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