Difference between AS and Indian AS

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Difference  between AS and Indian AS

Accounting standards are guidelines set by authorities to ensure uniformity and transparency in financial reporting. They dictate how financial statements should be prepared and presented, helping stakeholders make informed decisions by providing reliable and comparable information. These standards promote consistency in accounting practices and enhance confidence in financial markets.

AS:

- Traditional accounting standards in India.
- Followed for decades.
- Serve the purpose of reporting for small and medium entities.
- Not aligned with global reporting standards.
- Formulated by the Accounting Standards Board of the Institute of Chartered Accountants of India.

Indian AS:

- Converged with International Financial Reporting Standards (IFRS).
- Introduced as an alternative to AS, applicable to large enterprises.
- Reporting standards for large enterprises, aligning with global standards.
- Named and numbered in the same way as corresponding IFRS.
- Formulated by the Accounting Standards Board of the Institute of Chartered Accountants of India.
- Recommended by the National Financial Reporting Authority (NFRA).
- Notified by the Ministry of Corporate Affairs.

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