An Overview of Accounting Standards

Accounting Standards (AS) provide unique and uniform accounting principles that improves the transparency and comparability of financial statements of different entities and within the same entity over a period of time by specifying when and how financial transactions or events are to be recognized, measured, and disclosed in the books.

According to the Companies (Accounting Standards) Rules, 2021, every company, other than companies on which Indian Accounting Standards as notified under Companies (Indian Accounting Standards) Rules, 2015 are applicable, and its auditors shall comply with the Accounting Standards in preparation of financial statements and performing statutory audits.

On the basis of nature of items, the above Accounting Standards can be categorized into the following categories: –

A. Income standards

B. Expenditure Standards

C. Assets Standards

D. Liabilities Standard

E. Consolidation Standards

F. Other Standards

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