Which of the following is/are correct regarding the Indian Accounting Standards (Ind AS), sometimes seen in the news?
- Ind AS is a global accounting practice par with the International Financial Reporting Standard (IFRS) 9 that lenders are mandated to adopt.
- According to RBI, all scheduled commercial banks, including Regional Rural Banks (RRBs), are mandated to adopt it.
- RBI has set the deadline to implement the standard as 31st March, 2019.
- ((a))
1 and 2 only
- ((b))
1, 2 and 3
- ((c))
2 and 3 only
- ((d))
1 only
Show Answer
1 only
The correct answer 1 only.

Key Points Accounting Standards:
- Accounting standards, also known as Generally Accepted Accounting Principles (GAAP), are a set of guidelines, rules, and principles that provide a framework for preparing and presenting financial statements.
- These standards ensure that financial statements are prepared consistently and transparently, allowing for comparability across different entities and facilitating reliable financial reporting.
- The purpose of accounting standards is to enhance the quality and reliability of financial information, making it more useful for investors, creditors, regulators, and other stakeholders.
- They provide guidance on various aspects of financial reporting, including recognition, measurement, presentation, and disclosure of financial transactions and events.

Important Points Statement 1: Ind AS is a global accounting practice on par with the International Financial Reporting Standard (IFRS) 9 that lenders are mandated to adopt.
- This statement is correct.
- Indian Accounting Standards (Ind AS) is a set of accounting principles that are converged with the International Financial Reporting Standards (IFRS).
- Ind AS aims to improve the quality and transparency of financial reporting in India and align it with global accounting practices.
- Lenders, such as banks and financial institutions, are required to adopt Ind AS for their financial statements.
Statement 2: According to RBI, all scheduled commercial banks, including Regional Rural Banks (RRBs), are mandated to adopt it.
- This statement is incorrect.
- While it is true that scheduled commercial banks are required to adopt Ind AS, Regional Rural Banks (RRBs) are currently not included in this requirement.
- RRBs follow a separate set of accounting standards specified by the National Bank for Agriculture and Rural Development (NABARD).
Statement 3: RBI has set the deadline to implement the standard as 31st March, 2019.
- This statement is incorrect.
- The Reserve Bank of India (RBI) initially set a roadmap for the phased implementation of Ind AS for scheduled commercial banks.
- However, the deadline for implementation has been revised multiple times.
- As of now, the deadline for adoption of Ind AS by scheduled commercial banks is yet to be finalized by RBI.
- As per initial plan, MCA was to implement Ind AS for banks, insurance companies and NBFCs from 1 April 2018 onwards but in April 2018, RBI deferred the implementation of Indian Accounting Standards by one year for banks.
- On March 22, 2019, RBI again deferred the implementation of Ind AS by banks till further notice.
- The reason cited is that certain legislative amendments to the Third Schedule to the Banking Regulation Act 1949 are under consideration of the government.
Hence, Only Statement 1 is correct.









































































