Accounting Standards of ICAI

Accounting Standards for non-corporate entities, such as Small and Medium-sized Enterprises (SMEs), are set by the Accounting Standards Board (ASB) of ICAI in India. These standards are based on Indian GAAP (Generally Accepted Accounting Practices) and are meant to make it easier for users to understand financial statements. But for corporate entities, the Accounting Standards that the MCA has announced apply.

The Accounting Standards put an end to the confusion by setting out a uniform set of best practises and investor-focused, uniform, and internationally known accounting policies that must be followed when financial statements are made and shown. Accounting standards have the same goals and basic ideas everywhere in the world.

These standards are mandatory on the dates specified either in the respective document or as notified by the ICAI/ MCA.

We might notice that the MCA gives companies the Accounting Standards based on what the ICAI says they should do. MCA notifies these Accounting Standards through the Companies (Accounting Standards) Rules and any changes to them. They apply to companies, including Small and Medium-sized Companies, for which Indian Accounting Standards (Ind AS) do not apply.

The ICAI Accounting Standards for non-corporate entities have been around for 20 years, and they are now being reviewed, changed, and improved to meet the financial reporting requirements of Ind AS as much as possible for SMEs.

List of Accounting Standards of ICAI: AS-1 to AS-32 (updated as on 01/02/2022)

Compendium of ICAI’s Accounting Standards (as on 01/07/2019)

ICAI has published a compendium of accounting standards as on 01/07/2019, which includes various relevant Announcements of ICAI on the subject.

ICAI’s Compendium of Accounting Standards dt. 01/07/2019

ICAI’s Quick Referencer on Accounting Standards (as on 01/04/2019)

The Accounting Standards Board of ICAI has put out a booklet called “Accounting Standards: Quick Referencer” so that everyone can quickly look up the most important parts of the Accounting Standards. This booklet has a summary of the Accounting Standards put out by the ICAI and the Companies (Accounting Standards) Rules, 2006, which were put out by the Ministry of Corporate Affairs, Government of India, to protect the interests of the people who make or audit financial statements as well as the interests of other stakeholders.

ICAI’s Quick Referencer on Accounting Standards (as on 01/04/2019)

List of Mandatory Accounting Standards of ICAI (AS-1 to AS-29): Updated as on 01/02/2022

The first question for students and learners is, “How many accounting standards are there?” For their information, the ICAI has put out a total of 32 Accounting Standards (AS-1 to AS-32), of which AS-1 to AS-29 are mandatory. AS-6, AS-8, AS-30, AS-31, and AS-32 have been taken away by the ICAI through different Announcements. So, as of February 1, 2022, there are really only 27 Accounting Standards of ICAI. All these accounting standards are mandatory in nature, as of 01/07/2017:

ICAI’s AS-1: Disclosure of Accounting Policies

AS-1 of ICAI deals with disclosing significant accounting policies applied in preparing and presenting financial statements in a supplementary statement/notes to permit meaningful comparison of financial statements of different enterprises/periods.

ICAI’s AS-2: Valuation of Inventories

AS-2 of ICAI deals with determining the value at which inventories are carried in financial statements, including cost and net realisable value.

ICAI’s AS-3: Cash Flow Statements

AS-3 of ICAI provides information on an enterprise’s historical changes in cash and cash equivalents through a Cash Flow Statement, which distinguishes cash flows from operating, investing, and financing activities.

ICAI’s AS-4: Contingencies and Events Occurring After Balance Sheet Date 

AS-4 of ICAI covers post-balance-sheet events and contingencies.

ICAI’s AS-5: Net profit or Loss for the period, Prior Period Items and Changes in Accounting Policies

AS-5 of ICAI should be applied when presenting profit or loss from ordinary activities, extraordinary items, and prior period items in the Statement of Profit and Loss, accounting for changes in accounting estimates, and disclosing accounting policy changes.

ICAI’s AS-7: Construction Contracts 

AS-7 of ICAI prescribes the accounting for construction contracts in the financial statements of contractors.

ICAI’s AS-9: Revenue Recognition 

AS-9 of ICAI covers revenue recognition in an enterprise’s P&L. The Standard addresses the recognition of revenue from the sale of goods, the provision of services, and interest, royalties, and dividends.

ICAI’s AS-10: Property, Plant and Equipment 

The objective of AS-10 of ICAI is to prescribe the accounting treatment for property, plant and equipment (PPE).

ICAI’s AS-11: The Effects of Changes in Foreign Exchange Rates 

AS-11 of ICAI provides accounting standards for foreign currency transactions and foreign operations, such as which exchange rate to employ and how to recognise the financial effect of exchange rate changes.

ICAI’s AS-12: Government Grants 

AS-12 of ICAI covers accounting for government grants (subsidies, monetary incentives, duty drawbacks, etc.).

ICAI’s AS-13: Accounting for Investments

AS-13 of ICAI deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.

ICAI’s AS-14: Accounting for Amalgamations

AS-14 of ICAI deals with accounting for amalgamations and the treatment of any resultant goodwill or reserves.

ICAI’s AS-15: Employee Benefits

AS-15 of ICAI prescribes accounting treatment and disclosure for employee perks except employee share-based payments. It doesn’t cover employee benefit plan accounting and reporting.

ICAI’s AS-16: Borrowing Costs

AS-16 of ICAI applies to borrowing costs. This Standard doesn’t include the actual or imputed cost of owners’ equity, including preference share capital that’s not a liability.

ICAI’s AS-17: Segment Reporting

AS-17 of ICAI establishes rules for reporting financial information concerning a company’s segments/products/services and geographic locations.

ICAI’s AS-18: Related Party Disclosures

AS-18 of ICAI should be used to report related party transactions and relationships. This Standard applies to each reporting enterprise’s financial statements and a holding company’s consolidated financial statements.

ICAI’s AS-19: Leases

AS-19 of ICAI prescribes accounting standards and disclosures for financing and operating leases for lessees and lessors.

ICAI’s AS-20: Earnings Per Share

AS-20 of ICAI establishes criteria for determining and presenting earnings per share, which improves performance comparisons between enterprises and accounting periods.

ICAI’s AS-21: Consolidated Financial Statements

AS-21 establishes methods and principles for consolidated financial statements. These statements show the economic resources controlled by a parent and its subsidiary(ies) as a single economic entity, its liabilities, and the results it produces with its resources.

ICAI’s AS-22: Accounting for Taxes on Income

The purpose of AS-22 of the ICAI is to regulate the accounting treatment of taxes on income, as the taxable income may differ significantly from the accounting income for a variety of reasons, creating difficulties in matching taxes against revenue for a period.

ICAI’s AS-23: Accounting for Investments in Associates

AS-23 of the ICAI to be applied in the production and presentation of consolidated Financial Statements (CFS) by an investor when accounting for investments in associates.

ICAI’s AS-24: Discontinuing Operations

AS-24 of the ICAI establishes guidelines for reporting information on discontinuing operations, allowing readers of financial statements to predict an enterprise’s cash flows, earnings-generating potential, and financial position by distinguishing discontinuing and continuing operations information. AS 24 applies to all enterprises discontinuing operations.

ICAI’s AS-25: Interim Financial Reporting

AS-25 of the ICAI is applicable if a business is required or elects to issue an interim financial report. This standard’s aim is to regulate the minimum content of an interim financial report and the rules for recognition and measurement in complete or condensed financial statements for an interim period.

ICAI’s AS-26: Intangible Assets

ICAI AS-26 specifies the accounting treatment for intangible assets (i.e. identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes).

ICAI’s AS-27: Financial Reporting of Interests in Joint Ventures

AS-27 of the ICAI is intended to create accounting rules and reporting systems for joint venture interests, assets, liabilities, income, and expenses in venturers’ and investors’ financial statements.

ICAI’s AS-28: Impairment of Assets

AS-28 of the ICAI outlines the measures a business must take to ensure its assets are carried at their recoverable value. AS 28 mandates an entity to recognise an impairment loss if an asset’s carrying amount exceeds what may be recovered through use or sale. AS 28 addresses the impairment of all assets unless specifically excluded.

ICAI’s AS-29: Provisions, Contingent Liabilities and Contingent Assets

AS-29 of the ICAI ensures that proper recognition criteria and measurement bases are applied to provisions and contingent liabilities, and that sufficient information is published in the financial statements’ notes to help users understand their nature, timing, and amount. This Standard defines contingent asset accounting.

1. ICAI has withdrawn the AS 8 on Accounting for Research and Development.
2. ICAI Amends AS 2, AS 4, AS 10, AS 13, AS 14, AS 21, AS 29 and withdraws AS 6.
3. ICAI withdraws its Announcement on Treatment of exchange differences under AS 11
4. Companies (Accounting Standards) Amendment Rules, 2018 notified by MCA: AS 11 amended

List of ICAI’s Non-Mandatory Accounting Standards (AS 30~32)

ICAI has announced on 15/11/2016 that following Accounting Standards stands withdrawn:

i) AS 30: Financial Instruments – Recognition and Measurement;

ii) AS 31: Financial Instruments – Presentation; and

iii) AS 32: Financial Instruments – Disclosures.

Revised Accounting Standards of ICAI

ICAI is revising all Accounting Standards for non-Ind AS entities. When implemented, 32 standards in various levels of revision/formulation will replace the existing standards. ICAI will maintain consistency/synchronization in the numbering of AS with numbering of Ind AS, i.e. existing Accounting Standards shall be amended and renumbered suitably.

Exposure Drafts of Revised Accounting Standards of ICAI

Related Posts:

MCA’s amended Accounting Standards Rules, 2016 & their Applicability 

Checklist on Disclosure Requirements of ICAI’s Accounting Standards

ICAI Guidance Note on ‘Financial Statements of LLPs’ 

ICAI Guidance Note on ‘Financial Statements of Non Corporate Entities (NCEs)’


  1. Rudra
    • KV Narayanan Namboodiri
  2. Aniketsagar
    • Vidhyadhar Kulkarni
  3. L c purohit
  4. Ganesh Sujay Desai
  5. Yin
  6. Ramya
  7. Dharumaraj
  8. Saran
  9. Preeti
  10. Ramesh
  11. Qurrathulain.s
  12. Samrudhi Vitthalrao Bote
  13. Jay Deepakbhai Chhatbar
    • Preeti
  14. Dipali Suresh Suryawanshi
  15. Muhammad Ali Riaz

Leave a Reply