Definition
Ind AS (Indian Accounting Standards)
Ind AS are the Indian Accounting Standards, converged with global IFRS, that listed and large Indian companies must follow in preparing financial statements.
Phased in from 2016, Ind AS replaced the older Indian GAAP for listed companies and large unlisted ones, aligning Indian reporting with IFRS. Key changes include fair-value measurement of financial instruments, the expected credit loss model, lease capitalisation and other comprehensive income.
Ind AS improved comparability with global peers but made some metrics, like provisioning and revenue, more judgement-driven. Banks still follow RBI norms blended with Ind AS, and the planned shift of banks to a full ECL framework is the next major step in this convergence.
Related terms
- Expected Credit Loss (ECL)Expected Credit Loss is a forward-looking provisioning model under Ind AS 109 that estimates likely loan losses based on probability of default, not just incurred defaults.
- Deferred Tax Asset (DTA)A Deferred Tax Asset is a balance-sheet item representing taxes a company has effectively prepaid or can recover in future, often from carried-forward losses.
- Revenue RecognitionRevenue recognition is the accounting principle determining when and how much revenue a company records, based on the transfer of goods or services to customers.
- Notes to AccountsNotes to accounts are the detailed disclosures accompanying financial statements that explain accounting policies, breakdowns and items not visible on the face of the statements.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.