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There are currently 27 mandatory Accounting Standards, numbered AS 1 to AS 29 (AS 6 was merged into AS 10, and AS 8 was withdrawn and subsumed into AS 26; the never-operative AS 30, 31 and 32 were withdrawn).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.