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Hi there!

This write-up is for people who have heard about the term IndAS but are yet to get into the scheme of things. This is the second in a series of articles that will walk you through the basics of the standards.

Click here to refer to the 1st part of the article

CAVEAT: The objective is to get the concepts and in the process the reader may not find the technical jargons and linguistic mumbo-jumbo.

This article will throw light on how the IndAS are actually numbered, what's the story behind their making.

Let's get going then...

How are the IndAS numbered? Why are they not in simple sequence?

The answer to the question needs a brief look into the history of IFRS.

Initially, the IASB, the International standard setting body, has been naming the standards as IAS 1, IAS 2 etc.

All of a sudden, the international body has a dawn of realization and has started revising its conceptual framework. Simply saying, IASB started thinking differently, thanks to the big brother, the US, among others.

It is then that the body started issuing a whole new set of standards, all over again. These are being named IFRS 1, IFRS 2 etc.

Once an IFRS is issued, the corresponding IAS is removed and the IFRS takes its place.

If this is giving you the creeps, just take an example:

Earlier there used to be IAS 22 on Business Combinations. After the "dawn of realization", IASB issued a new standard on the topic and it is numbered as IFRS 3. The moment IFRS 3 is born, IAS 22 is killed.

While India is busy getting it aligned with IFRS, IASB itself is busy still issuing new standards after new standards.

So if you come across a standard that is numbered IAS xx, it means that it is an old standard issued by IASB and is not yet killed by a new IFRS. It's like a survivor!! And if there is a standard that's an IFRS xx, it means a new standard by IASB.

That finishes our foreign trip. Let's come back home:

In India, ASB of ICAI has been writing down its own desi version of International Standards. They were numbered simply like IndAS 1, IndAS 2 etc.

All of a sudden came, the dawn of realization by IASB and the IFRS started coming.

Indians got a different idea.

We didn't change the prefix like the other guys did. The prefix IndAS is too "peppy" to give away!! So we changed the numbers!! We started numbering them as IndAS 101, IndAS 102 etc.

Take the above example of IFRS 3- Business Combinations, for us it is IndAS 103!! As simple as that!! We have started numbering the new set from 101... (Sounds like MI6!!)

So let us see what we have learnt. Following are the prefixes and the corresponding history attached:

IAS -- A standard by IASB issued before the "dawn" and is not yet replaced by an IFRS.
IFRS-- A standard by IASB after the "dawn".
IndAS - 1-40 -- Standards that correspond to IAS above
IndAS - 10x -- Standards that correspond to IFRS above.

Except the history behind the standard there is no reasonable logic behind the numbering. 

Unlike the Standards on Auditing which have a very good structure of numbering, the accounting standards are numbered vaguely.

Anyway that is how the standards are numbered. 

The next article in the series will bring you the essence of the "Framework for Preparation and presentation of Financial Statements in accordance with the Indian Accounting Standards", the mother of all the standards.

One thing we should all remember is that the subject is not an age-old one like the Holy Scriptures. The world is still learning it. As we discussed, even IASB is still evolving. So are you and I. Kindly let me know if the ride is bumpy?

Thank You.


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Category Accounts   Report

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