Indian Accounting Standards (Ind AS) are a set of accounting standards developed by the Institute of Chartered Accountants of India (ICAI) to improve the comparability, consistency, and transparency of financial reporting in India. These standards are mandatory for certain companies and are based on the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
Key points about Ind AS:
- Ind AS are designed to provide a single set of high-quality, globally accepted accounting standards for companies in India.
- Ind AS are intended to align India’s accounting practices with those of other major economies.
- Ind AS are mandatory for certain companies in India, such as listed companies, companies whose equity or debt securities are listed or are in the process of listing on any stock exchange in India or outside India, and companies whose net worth is INR 500 crore or more.
- Ind AS is effective from April 1, 2016, for companies falling under the criteria mentioned above.
- Ind AS are intended to improve the comparability and consistency of financial reporting across different companies and industries in India, and to increase the transparency of financial information provided to investors and other stakeholders.
- Ind AS are expected to lead to higher quality financial reporting, and to make it easier for companies to raise capital both in India and internationally.
