ICAI - The Institute of Chartered Accountants of India (2024)

(i) To conceive of and suggest areas in which Accounting Standards need to be developed.

(ii) To formulate Accounting Standards with a view to assisting the Council of the ICAI in evolving and establishing Accounting Standards in India.

(iii) To examine how far the relevant International Accounting Standard/International Financial Reporting Standard (see paragraph 3 below) can be adapted while formulating the Accounting Standard and to adapt the same.

(iv) To review, at regular intervals, the Accounting Standards from the point of view of acceptance or changed conditions, and, if necessary, revise the same.

(v) To provide, from time to time, interpretations and guidance on Accounting Standards.

(vi) To carry out such other functions relating to Accounting Standards.

• Release of Compendium of Accounting Standards (ASs) as on July 1, 2006, covering ASs 1-29 and Accounting Standards Interpretations (ASIs) and Announcements on accounting aspects issued up to that date along with CD.
• Revision of Accounting Standards Interpretation (ASI) 14, Disclosure of Revenue from Sales Transactions (Re.: AS 9, Revenue Recognition).
• Issuance of Guidance Note on Recognition of Revenue by Real Estate Developers

• Applicability Date of Announcement on ‘Accounting for exchange differences arising on a forward exchange contract entered into to hedge the foreign currency risk of a firm commitment or a highly probable forecast transaction’ .
• Deferment of Applicability of Announcement on ‘Accounting for exchange differences arising on a forward exchange contract entered into to hedge the foreign currency risk of a firm commitment or a highly probable forecast transaction’.

• Revised Accounting Standard (AS) 10, Tangible Fixed Assets.
• Proposed Accounting Standard (AS) 30, Financial Instruments: Recognition and Measurement.
• Proposed Accounting Standard (AS) 31, Financial Instruments: Presentation.
  Consequent to above proposed Accounting Standards, Exposure Drafts of the Limited Revisions to the following Accounting Standards have been issued.
• Accounting Standard (AS) 2 (revised 1999), Valuation of Inventories.
• Accounting Standard (AS) 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates.
• Accounting Standard (AS) 21 (issued 2001), Consolidated Financial Statements and Accounting for Investments in Subsidiaries in Separate Financial Statements.
• Accounting Standard (AS) 23 (issued 2001), Accounting for Investments in Associates.
• Accounting Standard (AS) 26 (issued 2002), Intangible Assets.
• Accounting Standard (AS) 27 (issued 2002), Financial Reporting of Interests in Joint Ventures.
• Accounting Standard (AS) 28 (issued 2002), Impairment of Assets.
• Accounting Standard (AS) 29 (issued 2003), Provisions, Contingent Liabilities and Contingent Assets.

• Exposure Draft of proposed IFRS on Operating Segments.
• Discussion paper on Management Commentary
• Exposure Draft of proposed amendments to IAS 32, Financial Instruments; Presentation
• Exposure Draft of proposed amendments to IAS 1, Presentation of Financial Statements
• Proposed amendments to IAS 16, Borrowing Costs.

• Draft revised Guidelines regarding ‘Classification and Valuation of Investments’.

• Revised Accounting Standard (AS) 1, Presentation of Financial Statements.
• Revised Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.
  Consequent to above revised Accounting Standards, Limited Revisions to the following Accounting Standards are being proposed:
  • Accounting Standard (AS) 3 (revised 1997), Cash Flow Statements.
  • Accounting Standard (AS) 17 (Issued 2000), Segment Reporting.
  • Accounting Standard (AS) 20 (Issued 2001), Earnings Per Share.
  • Accounting Standard (AS) 23 (Issued 2001), Accounting for Investments in Associates.
  • Accounting Standard (AS) 25 (Issued 2002), Interim Financial Reporting.

• Revised accounting Standard (AS) 12, Accounting for Government Grants and Disclosure of Government Assistance
• Proposed Accounting Standard on Non-Current Assets Held for Sale and Discontinued Operations (corresponding to IFRS 5)

• Financial Instruments: Disclosures (corresponding to IFRS 7)
• Share-based Payment (corresponding to IFRS 2)
• Insurance Contracts (corresponding to IFRS 4)
• Agriculture (corresponding to IAS 41)
• Accounting and Reporting by Retirement Benefit Plans (corresponding to IAS 26)
• Investment Property (corresponding to IAS 40)

• Accounting Standard (AS) 4, Events After the Balance Sheet Date
• Accounting Standard (AS) 9, Revenue Recognition
• Accounting Standard (AS) 14, Accounting for Amalgamations

• Revision of ‘Guidance Note on Terms Used in the Financial Statements’
• Constitution of Task Force for preparation of a paper on accounting for entities subject to tariff fixation such as electricity companies, to be considered by the National Standards-Setters.
• Constitution of Task Force for preparation of a Concept Paper on the issue of convergence with the International Accounting Standards (IASs)/ International Financial Reporting Standards (IFRSs).

Formulation of New Accounting Standards

1. Financial Instruments: Disclosures (corresponding to IFRS 7)
2. Share-based Payment (corresponding to IFRS 2)
3. Insurance Contracts (corresponding to IFRS 4)
4. Agriculture (corresponding to IAS 41)
5. Accounting and Reporting by Retirement Benefit Plans (corresponding to IAS 26)
6. Investment Property (corresponding to IAS 40)
7. Non-Current Assets Held for Sale and Discontinued Operations (corresponding to IFRS 5)

Accounting Standards under revision

1. Accounting Standard (AS) 1, Disclosure of Accounting Policies (revised Standard to be titled as Presentation of Financial Statements)
2. Accounting Standard (AS) 4, Contingencies and Events Occurring After the Balance Sheet Date (revised Standard to be titled as Events Occurring After the Balance Sheet Date)
3. Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies (revised Standard to be titled as Accounting Policies, Changes in Accounting Estimates and Errors)
4. Accounting Standard (AS) 9, Revenue Recognition
5. Accounting Standard (AS) 14, Accounting for Amalgamations
6. Accounting Standard (AS) 12, Accounting for Government Grants (revised Standard to be titled as Accounting for Government Grants and Disclosure of Government Assistance)
7. Accounting Standard (AS) 10, Accounting for Fixed Assets (revised Standard to be titled as Property, Plant and Equipment)

Other Projects

1. Revision of Guidance Note on Terms used in Financial Statements
2. Constitution of Task Force for preparation of an approach paper on Accounting for Tariff Regulated Entities such as electricity companies, to be considered by the National Standards-Setters, further to be considered by IASB.
3. Constitution of Task Force for preparation of a Concept Paper on the issue of convergence with the International Accounting Standards (IASs)/ International Financial Reporting Standards (IFRSs).