Introduction:
Are you Commerce or CA student or finance professional and want to know ,How many AS, Ind AS and IFRS are there ? then this is right post for you. We will cover basic understanding of these standards and list along with comparison .
Why do we need Accounting Standard (AS)?
Now before getting into such jargons , let us understand why we need Accounting standards. If you are a CA student or CA or associated with any other professional bodies , these may not be new terms. Let us go to basics. Once you start business or already carry on business, basic requirement is to keep record of transactions ie. purchase, expenditure , sales, Investment, Banking etc. Accounting may not be easy as it looks as it requires lots of understanding of business and technical guidance. Such guidance can be provided from the Accounting standard .
Say you want to recognise revenue means book sales in books . You may think it is so easy as I have raised invoice and prepared e-way bill and e-invoices , I should recognise it as revenue but we have to understand it from Accounting standard and our contract with customers . This standards help us to prepare our financial statement i.e. Profit & Loss Account, Balance Sheet, Cash Flow Statement, Statement of Change in Equity . Financial not only helps business to understand their financial position but also helps for audit and other statutory requirement .
Why is there a need for IFRS ?
IFRS and Ind AS help to compare financials of Indian companies with various companies in the world who are following IFRS or converged standard from IFRS . IFRS is used by 140+ countries in the world. For example , If you read Sales income in Indian Ind AS financial and read the same item in company with IFRS compliant countries , you can compare both with only change in amount and currency .
Full Form and number of AS , Ind AS and IFRS:
AS stands for Accounting Standard as issued by ICAI which is also known as Indian GAAP (Generally Accepted Accounting Principles) . IFRS stands for International Financial Reporting Standard issued by IFRS Foundation and International Accounting Standard Board. Earlier IASB had issued International Accounting Standard (IAS) and any new standards are issued as IFRS . Currently there are IAS from 1 to 41 and IFRS from 1 to 16 . IndAs stands for Indian Accounting Standards which Converged with IFRS and prescribed under section 133 of the Companies Act, 2013. IndAs is issued by ICAI (Institute of Chartered Accountants of India). There are Ind AS from 101 to 116 with the same numbering as IFRS with addition of 100 so if there is IFRS 1 , there will be IndAs 101. Further there are Ind AS 1 to 41 in line with IAS numbering.
Ind AS is converged with IFRS. It means India has not adopted IFRS as it is but has made some changes though not huge from IFRS.
List and comparison of AS, Ind AS and IFRS :
| AS No. | Name of AS (IGAAP) | Ind AS No. | Name of Ind AS | IFRS /IAS No. |
| 1 | Disclosure of Accounting Policies | 1 | Presentation of Financial Statements | IAS 1 |
| 2 | Valuation of Inventories | 2 | Inventories | IAS 2 |
| 3 | Cash Flow Statements | 7 | Statement of Cash Flows | IAS 7 |
| 4 | Contingencies and Event Occurring After the Balance Sheet Date | 10 | Events after the reporting period | IAS 10 |
| 5 | Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies | 8 | Accounting Policies, Changes in Accounting Estimates and Errors | IAS 8 |
| 7 | Consturction Contracts | |||
| 9 | Revenue Recognition | 115 | Revenue from Contracts with Customers | IFRS 15 |
| 10 | Property, Plant and Equipment | 16 | Property, Plant and Equipment | IAS 16 |
| 11 | The Effect of Changes in Foreign Exchange | 21 | The Effects of Changes in Foreign Exchange rates | IAS 21 |
| 12 | Accounting for Government Grants | 20 | Accounting for Government Grants and Disclosure of Government Assistance | IAS 20 |
| 13 | Accounting of Investments | 40 | Investment Property | IAS 40 |
| 14 | Accounting for Amalgamations | 103 | Business combinations | IFRS 3 |
| 15 | Employee Benefits | 19 | Employee Benefits | IAS 19 |
| 16 | Borrowing Costs | 23 | Borrowing Costs | IAS 23 |
| 17 | Segment Reporting | 108 | Operating Segments | IFRS 8 |
| 18 | Related Party Disclosures | 24 | Related Party Disclosures | IAS 24 |
| 19 | Leases | 17 | Leases (Applicable till FY 2018-19) | IAS 17 |
| 19 | Leases | 116 | Leases | IFRS 16 |
| 20 | Earnings Per Share | 33 | Earnings Per Share | IAS 33 |
| 21 | Consolidated Financial Statements | 110 | Consolidated Financial Statements | IFRS 10 |
| 22 | Accounting for Taxes on Income | 12 | Income Taxes | IAS 12 |
| 23 | Accounting for Investments in Associates in Consolidated Financial Statements | 28 | Investments in Associates and Joint Ventures | IAS 28 |
| 24 | Discontinuing Operations | 105 | Non Current Assets held for sale and Discontinued Operations | IFRS 5 |
| 25 | Interim Financial Reporting | 34 | Interim Financial Reporting | IAS 34 |
| 26 | Intangible Assets | 38 | Intangible Assets | IAS 38 |
| 27 | Financial Reporting of Interests in Joint Ventures | 111 | Joint Arrangements | IFRS 11 |
| 28 | Impairment of Assets | 36 | Impairment of Assets | IAS 36 |
| 29 | Provisions, Contingent Liabilities and Contingent Assets | 37 | Provisions, Contingent Liabilities and Contingent Assets | IAS 37 |
| 27 | Separate Financial Statements | IAS 27 | ||
| 29 | Financial Reporting in Hyperinflationary economies | IAS 29 | ||
| 32 | Financial Instruments: Presentation | IAS 32 | ||
| 41 | Agriculture | IAS 41 | ||
| 101 | First-Time Adoption of Indian Accounting Standards | IFRS 1 | ||
| 102 | Share based payments | IFRS 2 | ||
| 104 | Insurance contracts | IFRS 4 | ||
| 106 | Exploration for and Evaluation of Mineral Resources | IFRS 6 | ||
| 107 | Financial Instruments – Disclosure | IFRS 7 | ||
| 109 | Financial Instruments | IFRS 9 | ||
| 112 | Disclosure of Interests in other entities | IFRS 12 | ||
| 113 | Fair Value Measurement | IFRS 13 | ||
| 114 | Regulatory Deferral Accounts | IFRS 14 |
Since we used to follow Accounting standard , it is very easy to co-relate it with Ind AS and IFRS. Above table will provide absolute clarity for corresponding Ind AS and IFRS. You can see the blank in AS column against Ind AS and IFRS at bottom, it means there are no corresponding Ind AS and IFRS. Total 39 Ind AS are notified by the Ministry of Corporate Affairs (MCA) . You can the check latest update related to IFRS on IFRS website.
Hope you got clarity regarding ,How many AS, Ind AS and IFRS are there ? Do give your valuable feedback in the comment section.
Like business there is a requirement to do proper budgeting and accounting in personal finance too. Do read our post How to do Money Management? in this regard .
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