The Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) are the financial reporting standards followed by entities in India that are not required to apply Ind AS — primarily small and medium-sized companies and non-corporate entities. They establish a consistent set of principles for how transactions and events are recognised, measured, presented, and disclosed in financial statements, so that accounts are comparable across enterprises and over time.
There are currently 27 mandatory Accounting Standards, numbered AS 1 to AS 29 (AS 6 was merged into AS 10, and AS 8 was withdrawn and subsumed into AS 26; the never-operative AS 30, 31 and 32 were withdrawn). Below is each standard, explained in plain language — its objective, the key principles, how recognition and measurement work, the main disclosures, and how it compares with the corresponding Ind AS. Select any standard to read the detailed guide.
For the IFRS-converged framework applied by larger companies, see our companion index to the Indian Accounting Standards (Ind AS).
- 1AS 1 — Disclosure of Accounting PoliciesThe three fundamental accounting assumptions, the considerations governing policy selection, and what must be disclosed about the accounting policies a business follows.
- 2AS 2 — Valuation of InventoriesThe lower of cost and net realisable value rule, what costs go into inventory, the permitted FIFO and weighted-average formulas, and why LIFO is not allowed.
- 3AS 3 — Cash Flow StatementsClassifying cash flows into operating, investing and financing activities, the direct and indirect methods, and how the statement ties back to the balance sheet.
- 4AS 4 — Contingencies and Events After the Balance Sheet DateAdjusting versus non-adjusting events after year-end, the treatment of proposed dividends, going concern, and how this reads together with AS 29.
- 5AS 5 — Net Profit or Loss, Prior Period Items and Changes in PoliciesOrdinary versus extraordinary items, prior period items, the difference between a change in estimate and a change in policy, and how each is treated.
- 7AS 7 — Construction ContractsThe percentage of completion method, what makes up contract revenue and costs, why an expected loss is recognised immediately, and the link to Ind AS 115.
- 9AS 9 — Revenue RecognitionWhen to recognise revenue from the sale of goods, the rendering of services, and interest, royalties and dividends — and how this differs from the Ind AS 115 five-step model.
- 10AS 10 — Property, Plant and EquipmentRecognising and measuring PPE at cost, component accounting, depreciation over useful life, the cost and revaluation models, and derecognition.
- 11AS 11 — The Effects of Changes in Foreign Exchange RatesRecording foreign currency transactions, the monetary versus non-monetary distinction, where exchange differences go, and how foreign operations are translated.
- 12AS 12 — Accounting for Government GrantsThe capital and income approaches, grants related to assets versus revenue, grants as promoters' contribution, and how refunds of grants are handled.
- 13AS 13 — Accounting for InvestmentsCurrent versus long-term investments, cost, the lower-of-cost-and-fair-value rule for current investments, and writing down long-term investments for non-temporary declines.
- 14AS 14 — Accounting for AmalgamationsAmalgamation in the nature of merger versus purchase, the pooling of interests and purchase methods, goodwill, and reserves.
- 15AS 15 — Employee BenefitsShort-term benefits, defined contribution versus defined benefit plans, actuarial valuation of gratuity, and immediate recognition of actuarial gains and losses.
- 16AS 16 — Borrowing CostsCapitalising borrowing costs for qualifying assets, the capitalisation rate for general borrowings, and when capitalisation starts, pauses and stops.
- 17AS 17 — Segment ReportingBusiness and geographical segments, primary and secondary reporting formats, reportable-segment thresholds, and segment disclosures.
- 18AS 18 — Related Party DisclosuresWho is a related party, control and significant influence, and what must be disclosed about related party relationships and transactions.
- 19AS 19 — LeasesFinance versus operating leases, lessee and lessor accounting, and the major contrast with the single lessee model of Ind AS 116.
- 20AS 20 — Earnings Per ShareBasic and diluted EPS, weighted average shares, dilutive versus anti-dilutive potential equity shares, and presentation on the face of the P&L.
- 21AS 21 — Consolidated Financial StatementsThe definition of control, line-by-line consolidation, elimination of intra-group items, goodwill, and minority interest.
- 22AS 22 — Accounting for Taxes on IncomeThe timing-difference approach, permanent versus timing differences, deferred tax assets and liabilities, and the virtual-certainty test for losses.
- 23AS 23 — Investments in Associates (in Consolidated Statements)The equity method for associates in consolidated financial statements, significant influence, and the 20% presumption.
- 24AS 24 — Discontinuing OperationsWhat qualifies as a discontinuing operation, the initial disclosure event, and the disclosures that separate it from continuing operations.
- 25AS 25 — Interim Financial ReportingMinimum components of an interim report, comparative periods, same-policies-as-annual measurement, and interim materiality.
- 26AS 26 — Intangible AssetsRecognition criteria, research versus development, amortisation, and the rebuttable ten-year useful-life presumption.
- 27AS 27 — Financial Reporting of Interests in Joint VenturesJoint control, the three forms of joint venture, and proportionate consolidation of jointly controlled entities.
- 28AS 28 — Impairment of AssetsRecoverable amount as the higher of net selling price and value in use, cash-generating units, and reversal of impairment losses.
- 29AS 29 — Provisions, Contingent Liabilities and Contingent AssetsThe three recognition conditions for a provision, measurement at best estimate, and the treatment of contingent liabilities and assets.