Overview

A warm welcome to the Indian Accounting Standards (Ind AS) course by Uplatz.Indian Accounting Standards (Ind AS) are the accounting standards followed by business entities in India. These standards are supervised by the Accounting Standards Board (ASB) since the year 1977. ASB is a committee that comes under ICAI. It is represented by the government department, academicians, namely ICAI, CII, FICCI, ASSOCHAM, and other professional bodies.Accounting is a comprehensive process of recording transactions. It portrays financial data that help readers draw conclusions and make business decisions. Accounting procedures are incorporated with standardized guidelines for disciplined execution. These guidelines are usually known as accounting policies. Standardized accounting policies allow companies to make alterations according to their substantial needs. However, the freedom to alter makes it impossible to compare in any means. Thus, the government sets specific standards to create an ideal system in place, and this concept is known as the accounting standard. Accounting Standards are written policy documents issued by expert accounting body or by the government or other regulatory body covering the aspects of recognition, measurement, treatment, presentation, and disclosure of accounting transactions in financial statements.The accounting standards in India are formulated by ICAI - Institute of Chartered Accountants of India. Thus Indian Accounting Standards mean the standard of accounting recommended by the ICAI and prescribed by the Central Government in consultation with the National Advisory Committee on Accounting Standards (NACAs) constituted under section 210(1) of Companies Act, 1956.Uplatz provides this comprehensive course on Indian Accounting Standards. The Ind AS training covers an introduction to Ind AS, benefits and applicability of Ind AS, objectives, scope, definitions, reconciliations, measurement, disclosures etc. of Ind AS, list of Ind AS, and then explains each and every Indian Accounting Standard in detail with practical industry examples and context.This Indian Accounting Standards training is useful for students and professionals alike including chartered accountants, financial analysts, company secretaries, tax & audit consultants, and so on.Accounting standards in India strive to combat major financial issues that include:Recognize the financial eventsMeasure the financial transactionsFair presentation of financial statementsCompany disclosure requirement to ensure that stakeholders are not misledInd AS features the naming and numbering of International Financial Reporting Standards (IFRS). Income Computation and Disclosure Standards (ICDS) is the standardized tax computation in India, implemented in 2015. In India, the Ministry of Corporate Affairs (MCA) lays out detailed standards for corporate companies concerning the recommendations of the National Financial Reporting Authority (NFRA).Objectives of Accounting StandardsThe main objective of Accounting Standards is to standardize the diverse accounting policies and practices. These Accounting Standards were implemented to eliminate the non-comparability of financial statements and the reliability to the financial statements. Since accounting is one of the mainstream functions of business operations, the standards help individuals understand the financial position of the company. In the case of accounting, the standardized rules are similar to the literature rules.The framework and regulations of accounting differ from one country to another. Here are some of the vital objectives of Accounting standards in India.1) Enhance the Financial StatementsThe Ind-AS mainly aims to enhance the definitive financial statements. The objective is to ensure that financial statements are formulated as per the accounting standards. It enables easy understanding and helps individuals rely on them. Doing so rids of the dire consequences for businesses.2) ComparabilityThe second main objective is comparability. Adhering to the criteria allows a streamlined comparison between companies. It helps verify the progress and positioning of the company in the market.3) ConsistencyAccounting standard executes a one set of accounting policies. It is a combination of necessary disclosure requirements and valuation methods of numerous financial transactions.Indian Accounting Standards - Course SyllabusIntroduction of Ind ASApplicability of Ind ASList of Ind ASThorough discussion on all the IND AS (Applicability, Objectives, Scope, Definitions, Reconciliations, Measurement, Disclosures, etc.)Ind AS 101 - First-time Adoption of Indian Accounting StandardsInd AS 102 - Share-based PaymentInd AS 103 - Business CombinationsInd AS 104 - Insurance ContractsInd AS 105 - Non-current Assets Held for Sale and Discontinued OperationsInd AS 106 - Exploration for and Evaluation of Mineral ResourcesInd AS 107 - Financial Instruments: DisclosuresInd AS 108 - Operating SegmentsInd AS 109 - Financial InstrumentsInd AS 110 - Consolidated Financial StatementsInd AS 111 - Joint ArrangementsInd AS 112 - Disclosure of Interests in Other EntitiesInd AS 113 - Fair Value MeasurementInd AS 114 - Regulatory Deferral AccountsInd AS 115 - Revenue from Contracts with CustomersInd AS 1 - Presentation of Financial StatementsInd AS 2 - InventoriesInd AS 7 - Statement of Cash FlowsInd AS 8 - Accounting Policies, Changes in Accounting Estimates and ErrorsInd AS 10 - Events after the Reporting PeriodInd AS 12 - Income TaxesInd AS 16 - Property, Plant, and EquipmentInd AS 17 - LeasesInd AS 19 - Employee BenefitsInd AS 20 - Accounting for Government Grants and Disclosure of Government AssistanceInd AS 21 - The Effects of Changes in Foreign Exchange RatesInd AS 23 - Borrowing CostsInd AS 24 - Related Party DisclosuresInd AS 27 - Separate Financial StatementsInd AS 28 - Investments in Associates and Joint VenturesInd AS 29 - Financial Reporting in Hyperinflationary EconomiesInd AS 32 - Financial Instruments: PresentationInd AS 33 - Earnings per ShareInd AS 34 - Interim Financial ReportingInd AS 36 - Impairment of AssetsInd AS 37 - Provisions, Contingent Liabilities and Contingent AssetsInd AS 38 - Intangible AssetsInd AS 40 - Investment PropertyInd AS 41 - AgricultureBenefits of Ind-ASInd-As provides a wide range of benefits to corporate entities. Here are some of the critical benefits of accounting standards in India.1) Uniformed AccountingThe set of rules under the accounting standard ensures standardized treatment of transaction records. It provides standard format produce for financial statements. It helps carry out unified accounting.2) AcceptabilityInd-AS is widely accepted as it intersects with IFRS. It enables the user to access the financial statements confidently. It also helps MNC's save costs as they can use the same set of rules globally.3) ReadabilityMost stakeholders and investors rely on financial statements for information. It is what enables them to make smarter business decisions. Thus, it is crucial to provide a clear and precise financial statement. The set of rules under AS ensure that these statements are accurate and factual.4) ComparabilityThe accounting standard provides comparability. Every business firm functions under the same standardized rules in India. It enables business owners to compare their financial positions before competitors and make comprehensive decisions.5) Changes in AS Concerning the Economic SituationsEconomic situations in a developing country are more likely to fluctuate. Under any inflated economic circumstances, the Ind-AS principles provide room for modifications. As an instance, "Financial Reporting in Hyper-inflammatory Economies" under Ind AS -29 helps deal with any escalated economic situation.6) Foreign InvestmentsAdopting Ind-AS helps attract foreign investors. It provides them the opportunity to compare before investing.7) Eliminate Fraudulent Accounting and ManipulationsThe accounting standard specifies uniformed rules that are mandatory for all corporate companies. Management cannot misrepresent financial data as the methodologies and principles are streamlined. It rids of any fraudulent outcome for businesses.Compliance with Accounting Standards issued by ICAISub Section(3A) to section 211 of Companies Act, 1956 requires that every Profit/Loss Account and Balance Sheet shall comply with the Accounting Standards.Under the Companies Act, 1956, subsection 3(A) to 211 demands each P/L (Profit and Loss) account and balance sheet to be complied as per the accounting standards. The Compliance specified under accounting standards is recommended by ICAI, which is prescribed by the Central Government and consulted with NAC (National advisory committee) under section 210(1) of the companies Act 1956.Applicability of Indian Accounting StandardsIndian standards on auditing apply to specific categories of companies as set out below:1) Mandatory RequirementCompanies must follow the Ind-AS for the 2015-2016 fiscal year. For the financial year 2018-19, below is the maximum limit for companies that must follow the Ind-AS:Companies whose shares or debt securities are listed or under listing on any stock exchange in India or elsewhere.Unlisted companies with a net worth above Rs. 250 croresThey are holding companies, subsidiaries, joint ventures, or associates of companies included in the pointers mentioned above.2) Non-Bank Financial Companies (NBFC)Accounting standards apply to NBFC's with a net worth above Rs 500 million. It can be holding companies, subsidiaries, joint ventures, or associates of companies under NBFC's.Accounting standards apply to shares, or debt securities listed or in the process of listing on any stock exchange in India/outside India. It applies to companies with a net worth of less than Rs. 500 crores.And for NBFC's, that are unlisted companies, with a net worth between Rs. 250 crores - Rs. 500 crores. It can either be the holding companies, subsidiaries, joint ventures, or associates of companies under NBFC's.3) Voluntary ApplicabilityAccording to this applicability rule, the companies can voluntarily apply Indian Accounting Standards (Ind AS).4) The requirement to Follow ASCorporate entities are required to follow the Accounting Standard (Ind-AS as applicable). They can formulate the notified rules while preparing their financial statements under section 129 of the Companies Act 2013.5) In a conflict between the Companies Act and Indian Accounting StandardsThe provision of the act prevails in case of any inconsistency or conflict between Companies Act and Ind-AS.

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