Accounting standards make financial statements consistent, reliable and comparable across companies. India uses Accounting Standards (AS) and, for larger companies, Indian Accounting Standards (Ind AS) converged with IFRS.
This guide explains the standards and which entities follow Ind AS.
What is accounting standards?
AS are issued by the ICAI and notified under the Companies Act. Ind AS are a set of standards converged with global IFRS, applicable in phases to listed companies and larger unlisted companies above net-worth thresholds.
Smaller companies continue to follow the older AS.
Frequently asked questions
Who must follow Ind AS?
Listed companies and unlisted companies above prescribed net-worth thresholds must follow Ind AS; smaller entities follow AS.
Who issues accounting standards in India?
The Institute of Chartered Accountants of India (ICAI), with notification under the Companies Act.