List of Indian Accounting Standards (Ind AS List)

Indian accounting standards are financial reporting standards that have been evolved by the Ministry of Corporate Affairs (MCA) in India. It is implemented in cooperation with International Financial Reporting Standards (IFRS) to achieve compliance with basic requirements for presenting financial statements. Indian accounting standards are a necessity for all businesses that want to enhance their reporting standards and meet investors’ expectations as well as global standards.

In this blog, I will explain what Indian accounting standards are, give you a list of Indian accounting standards, and explain why they are crucial for businesses and the economy in India.

What is the Indian Accounting Standards?

It is the accounting standard that has been provided as a necessary criterion by the Indian government for preparing and presenting the company’s financial statements wherein they conduct their business. They play a crucial role in maintaining compliance, voluntary relevance, and equivalency of international financial statements. IS withholds assist the companies in preparing and presenting their financial position, operations and cash flows in a format and language understood easily by the investors, the regulators and the stakeholders.

Importance of Indian Accounting Standards

Global Compliance: Indian accounting standards are aligned with Indian GAAP and IFRS, making a cross-sectional comparison between domestic entities and international entities more plausible.
Investor Confidence: It meets internationally accredited standards, which boosts investors’ confidence and attracts foreign investors.
Regulatory Requirements: It is important to note that Indian accounting standards have mandatory requirements for all the companies that are listed on the stock exchange, and hence, such a requirement puts the companies on the best seat of International practices.

Objectives of Indian Accounting Standards

Indian Accounting Standards were issued in order to harmonize the generating accounting practices with international standards in terms of transparency and reliability.

Uniformity and Consistency: Ind AS makes it possible to have one accounting standard followed the same way in different industries and, hence, prepares its financial statements properly. This uniformity helps in enhancing the comparability and readability of financial information to the different users.
International Convergence: One goal is to synchronize Indian GAAP with IFRS. This convergence makes it easier to conduct international business, commerce, and investments and prepare financial statements across the world.
Transparency and Accountability: Ind AS intensifies disclosure requirements to improve the extent of disclosure of financial information by providing clarity to the users of financial statements about a company’s financial health. This creates responsibility and helps in formulation of correct decisions.
Reliability and Credibility: Ind AS further focuses on the proper recognition and measurement of transactions and other economic events so as to provide users with reliable information. This gives investors, creditors, and regulators confidence in the company.
Investor Protection: The framework protects the investor by providing accurate, comparable and standardized financial data on the investments so that investors can make informed decisions.
Facilitation of Cross-Border Transactions: It eliminates inconsistencies that prove difficult when comparing and transforming various accounting standards, hence facilitating cross-border transactions and investment.

Advantages of Indian Accounting Standards

Simplified Financial Reporting: The use of Ind AS eradicates confusion, makes the standard more understandable, and relieves organizations of major differences in practices.
Global Comparability: Adherence to IFRS makes the analysis of the position of Indian companies with competing companies of the world easier, thus making them attractive to investors in the global market.
Enhanced Decision-Making: Standardized financial statements help investors, creditors, and all stakeholders who have an interest in the company to make the right decisions.
Efficient Auditing: It elucidates and defines structures and makes auditing easier and more effective inward compliance on Ind AS.
Increased Credibility: Compliance with Ind AS improves the quality of reports and increases investors’ confidence, hence its significance.
Performance Assessment: It was a common language or standard that produced standard measures for appraisal of management and financial position.
Fraud Prevention: Higher transparency leads to fewer cases of fraud and manipulation and, thus, greater or improved financial credibility.