I nternationa

I
n
t

l
F inancia A
or

R eportin
l d
n
u

S tandard
c
g
o
t
n
 international Accounting Standards (IAS)
international Accounting Standards (IAS) were the first
international accounting standards that were issued
by the International Accounting Standards Committee
(IASC), formed in 1973. The goal then, as it remains
today, was to make it easier to compare businesses
around the world, increase transparency and trust in
financial reporting, and foster global trade and
investment. International Accounting Standards (IAS)
are older accounting standards that were replaced in
2001 by International Financial Reporting Standards
(IFRS), issued by the International Accounting
Standards Board (IASB), an independent international
standard-setting body based in London.
List of international accounting standard
Name Issued
IAS 1Presentation of Financial Statements
2007*
IAS 2Inventories 2005*
IAS 3Consolidated Financial Statements
Superseded in 1989 by IAS 27 and IAS 28 1976
IAS 4Depreciation Accounting
Withdrawn in 1999
IAS 5Information to Be Disclosed in Financial
Statements
Superseded by IAS 1 effective 1 July 1998 1976
IAS 6 Accounting Responses to Changing Prices
Superseded by IAS 15, which was withdrawn December 2003

IAS 7 Statement of Cash Flows 1992

IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors 2003
IAS 9 Accounting for Research and Development Activities
Superseded by IAS 38 effective 1 July 1999
IAS 10Events After the Reporting Period 2003
IAS 11Construction Contracts
Will be superseded by IFRS 15 as of 1 January 2017 1993
IAS 12Income Taxes 1996*
IAS 13Presentation of Current Assets and Current Liabilities
Superseded by IAS 1 effective 1 July 1998
IAS 14Segment Reporting
Superseded by IFRS 8 effective 1 January 2009 1997
IAS 15Information Reflecting the Effects of Changing Prices
Withdrawn December 2003 2003
IAS 16Property, Plant and Equipment 2003*
IAS 17Leases 2003*
IAS 18Revenue
Will be superseded by IFRS 15 as of 1 January 2017
1993*
IAS 19Employee Benefits (1998)
Superseded by IAS 19 (2011) effective 1 January 2013 1998
IAS 19Employee Benefits (2011) 2011*
IAS 20Accounting for Government Grants and Disclosure of
Government Assistance 1983
IAS 21The Effects of Changes in Foreign Exchange Rates
IAS 22 Business Combinations
Superseded by IFRS 3 effective 31 March 2004 1998*
IAS 23 Borrowing Costs 2007*
IAS 24 Related Party Disclosures 2009*
IAS 25 Accounting for Investments
Superseded by IAS 39 and IAS 40 effective 2001
IAS 26 Accounting and Reporting by Retirement Benefit Plans 1987
IAS 27 Separate Financial Statements (2011) 2011
IAS 27 Consolidated and Separate Financial Statements
Superseded by IFRS 10, IFRS 12 and IAS 27 (2011) effective 1
January 2013 2003
IAS 28 Investments in Associates and Joint Ventures (2011) 2011
IAS 28 Investments in Associates
Superseded by IAS 28 (2011) and IFRS 12 effective 1 January 2013
2003
IAS 29 Financial Reporting in Hyperinflationary Economies 1989
IAS 30 Disclosures in the Financial Statements of Banks and Similar
Financial Institutions
Superseded by IFRS 7 effective 1 January 2007 1990
IAS 31 Interests In Joint Ventures
Superseded by IFRS 11 and IFRS 12 effective 1 January 2013
2003*
IAS 32 Financial Instruments: Presentation 2003*
IAS 33 Earnings Per Share 2003*
IAS 34 Interim Financial Reporting 1998
IAS 35 Discontinuing Operations
Superseded by IFRS 5 effective 1 January 2005 1998
IAS 36 Impairment of Assets 2004*
IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1998
IAS 38 Intangible Assets 2004*
IAS 39 Financial Instruments: Recognition and Measurement
Superseded by IFRS 9 where IFRS 9 is applied 2003*
IAS 40 Investment Property 2003*
IAS 41 Agriculture 2001
Accounting Standards in Different Nations

 In India, 32 Accounting Standards

as IAS under NACAS
 As per International, there are 41
Accounting Standards called as
IFRS
 Adopted by 120countries in the
world
 100 to 150 countries planning to
adhere IFRS
 Clause 50 added to the listing
agreement mandatory
 Basic
 “InternationalInformation
Financial Reporting Standards (IFRS) are
a set of international accounting standards stating how
particular types of transactions and other events should
be reported in financial statements.” – Investopedia
 IFRS are issued by the International Accounting
Standards Board (IASB), previously known as
International Accounting Standards Committee (IASC).
 Almost 120 countries has accepted IFRS as their
Accounting Standards, either by way of Adoption or by
way of Convergence.
Structure of
IASB
 Mission_
"Bring Transparency,
Accountability And
Efficiency To Financial
Markets Around The World."
 TRANSPARENC
Y

ACCOUNTABILITY EFFICIENCY
 IAS
(International Accounting Standards)

SIC
IFRS

(Standard Interpretations Committee)

IFRS
(International Financial Reporting
Standards)

IFRIC
(IFRS Interpretations Committee)
Adoption IFRS Convergence
IFRS is short for International Financial Reporting Standards. IFRS is
the international accounting framework within which to properly
organize and report financial information. It is derived from the
pronouncements of the London-based
International Accounting Standards Board (IASB). It is currently the
required accounting framework in more than 120 countries.
 LIST OF IFRS
IFRS 1 First-time Adoption of International
Financial Reporting Standards
IFRS 2 Share-based Payment
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations
IFRS 6 Exploration for and Evaluation of Mineral
Resources
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other
Entities
IFRS 13 Fair Value Measurement
IFRS 14 Regulatory Deferral Accounts
IFRS 15 Revenue from Contracts with
Customers
IFRS 16 Leases
IFRS 17 Insurance Contracts
 Accounting Standards
Accounting is considered as the language
of business. Each language has certain set
of rules. similarly accounting has certain
rules to be observed by the accountants so
that it is understood by all in the same
sense these set of rules become
accounting standards. Thus accounting
standards are certain set of rules and
guidance based on the principles and
methods of accounting to be followed to
have uniformity in terminology approach
and presentation of results.
 ACCOUNTING STANDARDS
Existing accounting standards under Companies (Accounting
Standard) Rules, 2006 .
Indian Accounting Standards
Indian Accounting Standards, (abbreviated as Ind AS) are a set of
accounting standards notified by the Ministry of Corporate Affairs
which are converged with International Financial Reporting
Standards (IFRS). These accounting standards are formulated by
Accounting Standards Board of Institute of Chartered Accountants
of India.
The Ind AS are named and numbered in the same way as the
corresponding IFRS. NACAS recommend these standards to the
Ministry of Corporate Affairs
EXTRACT OF THE NOTIFICATION REGARDING
INDIAN ACCOUNTING STANDARDS (IND-AS)
PUBLISHED IN THE GAZETTE OF INDIA
ON 16TH FEBRUARY, 2015
 Implementation on Ind
AS1)s – 1 April, 2015
Phase I (Part st

• Voluntary

Phase I (Part 2) – 1ST April, 2016

• Mandatory for
• listed on Stock Exchange having net worth > Rs. 500
Crore
• Unlisted Companies having net worth > Rs. 500 Crore
Phase II – 1st April, 2017
• Mandatory for
• All Listed Companies
• Unlisted Companies having net worth Rs. 500 Cr > Rs. 250 cr
Phase III – 1st April,2018
• Mandatory for
• Scheduled Commercial Banks, NBFC (excluding RRBs)
These are the converged Indian Accounting Standards (Ind ASs) hosted
by MCA on its website. The date on which these will come into force is
yet to be notified. Any changes in the Ind AS vis. a vis. corresponding
IAS/IFRS are given in Appendix 1 appearing at the end of each Ind AS.
1. Framework for the Preparation and Presentation of Financial
Statements in accordance with Indian Accounting Standards
2. Ind AS 101 First-time Adoption of Indian Accounting Standards
3. Ind AS 102 Share based Payment
4. Ind AS 103 Business Combinations
5. Ind AS 104 Insurance Contracts
6. Ind AS 105 Non current Assets Held for Sale and Discontinued
Operations
7. Ind AS 106 Exploration for and Evaluation of Mineral Resources
8. Ind AS 107 Financial Instruments: Disclosures
9. Ind AS 108 Operating Segments
10. Ind AS 1 Presentation of Financial Statements
11. Ind AS 2 Inventories
12. Ind AS 7 Statement of Cash Flows
13. Ind AS 8 Accounting Policies, Changes in Accounting Estimates
and Errors
14. Ind AS 10 Events after the Reporting Period
15. Ind AS 11 Construction Contracts
16. Ind AS 12 Income Taxes
17. Ind AS 16 Property, Plant and Equipment
18. Ind AS 17 Leases
19. Ind AS 18 Revenue
20. Ind AS 19 Employee Benefits
21. Ind AS 20 Accounting for Government Grants and Disclosure of
Government Assistance
22. Ind AS 21 The Effects of Changes in Foreign Exchange Rates
23. Ind AS 23 Borrowing Costs
24. Ind AS 24 Related Party Disclosures
25. Ind AS 27 Consolidated and Separate Financial Statements
26. Ind AS 28 Investments in Associates
27. Ind AS 29 Financial Reporting in Hyperinflationary Economies
28. Ind AS 31 Interests in Joint Ventures
29. Ind AS 32 Financial Instruments: Presentation
30. Ind AS 33 Earnings per Share
31. Ind AS 34 Interim Financial Reporting
32. Ind AS 36 Impairment of Assets
33. Ind AS 37 Provisions, Contingent Liabilities and Contingent
Assets
34. Ind AS 38 Intangible Assets
 Comparative Summary of Indian 12

Accounting Standards & IFRS

AS No. Existing Indian IFRS Ind AS Converged IFRS
Standard No. No.
AS 1 Disclosure of IAS 1 Ind AS 1 Presentation of
Accounting Financial
Policies Statements
AS 2 Valuation of IAS 2 Ind AS 2 Inventories
Inventories
AS 3 Cash Flow IAS 7 Ind AS 7 Statements of
Statement Cash Flows
s
AS 4 Events Occurring IAS 10 Ind AS 10 Events after the
after the Reporting Period
Balance Sheet
Date
 Comparative Summary of Indian
Accounting Standards & IFRS
AS IFRS Ind-AS
No. Indian Standard No. No. IFRS

AS 5 Net Profit or Loss for IAS 8 Ind AS 8 Accounting Policies,

the Period, Prior Changes in
Period Items and Accounting
Changes in Estimates and
Accounting Policies Errors

AS 6 Depreciation - - -
Accounting
(withdrawn)
AS 7 Construction IAS 11 Ind AS Revenue
Contracts 115
 Comparative Summary of Indian
Accounting Standards & IFRS

IFRS Ind-AS
AS No. Indian Standard No. No. IFRS

AS 9 Revenue IAS 18 Ind AS Revenue

Recognition 115
AS 10 Accounting for IAS 16 Ind AS Property, Plant and
Fixed Assets 16 Equipment
AS 11 The Effects of IAS 21 Ind AS The Effects of
Changes in Foreign 21 Changes in Foreign
Exchange Rates Exchange Rates
 Comparative Summary of Indian
Accounting Standards & IFRS
IFRS Ind-AS
AS No. Indian Standard No. No. IFRS

AS 12 Accounting for IAS 20 Ind AS Accounting for

Government 20 Government Grants
Grants and Disclosure of
Government
Assistance
AS 13 Accounting for IAS 40 Ind AS Investment Property
Investments 40
IAS 27 Ind AS Separate Financial
27 Statements
 Comparative Summary of Indian
Accounting Standards & IFRS
IFRS Ind-AS
AS No. Indian Standard No. No. IFRS

AS 14 Accounting for IFRS 3 Ind AS Business

amalgamations 103 combinations
AS 15 Employee Benefits IAS 19 Ind AS Employee
19 Benefits
AS 16 Borrowing costs IAS 23 Ind AS Borrowing costs
23
AS 17 Segment Reporting IFRS 8 Ind AS Operating
108 Segments
 Comparative Summary of Indian
Accounting Standards & IFRS

AS IFRS Ind-AS
No. Indian Standard No. No. IFRS

AS 18 Related Party IFRS Ind AS Disclosure of Interests

Disclosures 12 24 in other Entities
AS 19 Leases IAS 17 Ind AS Leases
17
AS 20 Earnings Per Share IAS 33 Ind AS Earnings Per Share
33
 Comparative Summary of Indian
Accounting Standards & IFRS
AS IFRS Ind-AS
No. Indian Standard No. No. IFRS

AS 21 Consolidated IFRS Ind AS Consolidated

Financial 10 110 Financial Statements
Statements
IAS 27 Ind AS Separate Financial
27 Statements

IFRS Ind AS Disclosure of Interest

12 112 in other entities
AS 22 Accounting for IAS 12 Ind AS Income taxes
Taxes on Income 12
 Comparative Summary of Indian
Accounting Standards & IFRS
AS No. Indian Standard IFRS Ind-AS IFRS
No. No.
AS 23 Accounting for IAS Ind AS Investments in
Investments in 28 Associates
Associates in 28 and Joint
Consolidated Financial Ventures
Statements
AS 24 Discontinuing IFRS Ind AS Non Current Assets
operations 5 105 Held for Sale and
Discontinued
operations

AS 25 Interim financial IAS Ind AS Interim Financial

reporting 34 Reporting
34
 Comparative Summary of Indian
Accounting Standards & IFRS
AS Indian Standard IFRS Ind-AS IFRS
No. No. No.
AS 26 Intangible assets IAS 38 Ind AS Intangible
38 Assets
 Comparative Summary of Indian
Accounting Standards & IFRS
AS Indian Standard IFRS Ind-AS IFRS
No. No. No.
AS 27 Financial Reporting of IAS 28 Ind AS Investments in
Interests in Joint 28 Associates
Ventures and Joint
Ventures
IAS 27 Ind AS
27 Separate
Financial
Statements
IFRS 11 Ind AS
111 Joint
Arrangement
IFRS 12 Ind AS s
112
Disclosure of
Interest in
other entities
 Comparative Summary of Indian
Accounting Standards & IFRS
AS Indian Standard IFRS Ind-AS IFRS
No. No. No.
AS 28 Impairment of assets IAS 36 Ind AS Impairment of
36 assets
AS 29 Provisions, Contingent IAS 37 Ind AS Provisions,
Liabilities and 37 Contingent
Contingent Assets Liabilities and
Contingent Assets

AS 30 Financial Instruments IAS 39 Ind AS Financial

Accounting 109 Instruments
AS 31 Financial Instruments IAS 32 Ind AS Financial
Presentation 32 Instruments –
Presentation
 Comparative Summary of Indian
Accounting Standards & IFRS
AS No. Indian Standard IFRS Ind-AS IFRS
No. No.
AS 32 Financial IFRS 7 Ind AS Financial Instruments:
Instruments- 107 Disclosures
Disclosures
- - IFRS 2 Ind AS Share based payment
102
- - IAS 29 Ind AS Financial Reporting in
29 hyperinflationary
Economies
- - IFRS 6 Ind AS Exploration for and
106 Evaluation of Mineral
Resources
 Comparative Summary of Indian
Accounting Standards & IFRS
AS IFRS Ind-AS
No. Indian Standard No. No. IFRS

- - IAS 26 Ind AS Accounting and Reporting

26 of Retirement Benefit
Plans*

- - IAS 41 Ind AS Agriculture

41
- - IFR S4 Ind AS Insurance Contracts
104
- - IFRS 1 Ind AS First Time Adoption
101 of Indian Accounting
Standards

* Exposure drafts issued

 Comparative Summary of Indian
Accounting Standards & IFRS
AS IFRS Ind-AS
No. Indian Standard No. No. IFRS

- - IFRS 12 Ind AS Regulatory Deferral

114 Accounts
- - IFRS 13 Ind AS Fair Value
113 Measuremen
t
 FINANCIAL REPORTING

The framework presents the main ideas, concepts and principles upon which all
International Financial Reporting Standards, and therefore financial statements,
are based
The main objective is to provide financial information about the reporting entity
to users of the financial statements that is useful in making decisions about
providing resources to the entity, as well as other financial decisions.
• Accounting Standard (AS) 1
• Disclosure of Accounting Policies
(This Accounting Standard includes paragraphs set in bold italic type and
plain type, which have equal authority. Paragraphs in bold italic type
indicate the main principles. This Accounting Standard should be read in
the context of the General Instructions contained in part A of the Annexure
to the Notification.)
• Introduction
1. This Standard deals with the disclosure of significant accounting policies
followed in preparing and presenting financial statements.

2. The view presented in the financial statements of an enterprise of its state

of affairs and of the profit or loss can be significantly affected by the
accounting policies followed in the preparation and presentation of the
financial statements. The accounting policies followed vary from enterprise
to enterprise. Disclosure of significant accounting policies followed is
necessary if the view presented is to be properly appreciated.

3. The disclosure of some of the accounting policies followed in the

preparation and presentation of the financial statements is required by
law in some cases.
L.J IMS ( SECOND SHIFT)
 Explanation
• Fundamental Accounting Assumptions
9. Certain fundamental accounting assumptions underlie the preparation
and presentation of financial statements. They are usually not specifically
stated because their acceptance and use are assumed. Disclosure is necessary
if they are not followed.

10. The following have been generally accepted as fundamental

accounting assumptions:—
a. Going Concern
The enterprise is normally viewed as a going concern, that is, as continuing in
operation for the foreseeable future. It is assumed that the enterprise has
neither the intention nor the necessity of liquidation or of curtailing materially
the scale of the operations.
b. Consistency
It is assumed that accounting policies are consistent from one period to
another.
c. Accrual
Revenues and costs are accrued, that is, recognized as they are earned or
L.J IMS ( SECOND SHIFT)
 Nature of Accounting Policies
11. The accounting policies refer to the specific accounting principles and
the methods of applying those principles adopted by the enterprise in the
preparation and presentation of financial statements.

12. There is no single list of accounting policies which are applicable to all
circumstances. The differing circumstances in which enterprises operate in
a situation of diverse and complex economic activity make alternative
accounting principles and methods of applying those principles acceptable.
The choice of the appropriate accounting principles and the methods of
applying those principles in the specific circumstances of each enterprise
calls for considerable judgment by the management of the enterprise.

13.The various Standards of the Institute of Chartered Accountants of India

combined with the efforts of government and other regulatory agencies and
progressive managements have reduced in recent years the number of
acceptable alternatives particularly in the case of corporate enterprises.
L.J IMS ( SECOND SHIFT)
 Areas in Which Differing Accounting
Policies are Encountered
14.The following are examples of the areas in which different accounting
policies may be adopted by different enterprises.
(a) Methods of depreciation, depletion and amortisation
(b) Treatment of expenditure during construction
(c) Conversion or translation of foreign currency items
(d) Valuation of inventories
(e) Treatment of goodwill
(f) Valuation of investments
(g) Treatment of retirement benefits
(h) Recognition of profit on long-term contracts
(i) Valuation of fixed assets
(j) Treatment of contingent liabilities.

15. The above list of examples is not intended to be exhaustive.

L.J IMS ( SECOND SHIFT)
 Disclosure of Accounting Policies
18. To ensure proper understanding of financial statements, it is necessary that all
significant accounting policies adopted in the preparation and presentation of
financial statements should be disclosed.

19. Such disclosure should form part of the financial statements.

20. It would be helpful to the reader of financial statements if they are all
disclosed as such in one place instead of being scattered over several
statements, schedules and notes.

21. Examples of matters in respect of which disclosure of accounting policies

adopted will be required are contained in paragraph 14. This list of examples
is not, however, intended to be exhaustive.

22. Any change in an accounting policy which has immaterial effect should be
disclosed. The amount by which any item in the financial statements is affected
by such change should also be disclosed to the extent ascertainable.
L.J IMS ( SECOND SHIFT)
 Main Principles
24.All significant accounting policies adopted in the preparation and
presentation of financial statements should be disclosed.

25.The disclosure of the significant accounting policies as such should

form part of the financial statements and the significant accounting
policies should normally be disclosed in one place.

26.Any change in the accounting policies which has a material effect in

the current period or which is reasonably expected to have a
material effect in later periods should be disclosed. In the case of a
change in accounting policies which has a material effect in the
current period, the amount by which any item in the financial
statements is affected by such change should also be disclosed to the
extent ascertainable. Where such amount is not ascertainable,
wholly or in part, the fact should be indicated.
L.J IMS ( SECOND SHIFT)
27. If the fundamental accounting assumptions, viz. Going
Concern,
Consistency and Accrual are followed in financial statements, specific
disclosure is not required. If a fundamental accounting assumption is not
followed, the fact should be disclosed

L.J IMS ( SECOND SHIFT)

 Qualitative characteristics
The Framework splits qualitative characteristics into
two categories:
(i) Fundamental qualitative characteristics
– Relevance(it has the ability to influence the economic
decisions of users and is provided in time to influence those
decisions)
– Faithful representation
(ii) Enhancing qualitative characteristics
– Comparability
– Verifiability
– Timeliness
– Understandability
 The components of a set of
financial statements
1. The statement of financial Position(balance
Sheet).
2. The statement of profit or loss and other
comprehensive Income(income
Statement ).
3. The statement of changes in equity.
4. The statement of cash flows.
5. The notes to the financial statements.
Balance Sheet (Assets & Liabilities)
Income Statement
Cash
Flows
Notes
Notes
Notes