List of Accounting Standards in India (AS 1–AS 32)

Introduction

Accounting Standards in India define how businesses record, present, and report financial transactions. Issued by the Institute of Chartered Accountants of India (ICAI), these standards ensure consistency, transparency, and accuracy in financial statements.
For small and medium businesses, understanding these standards helps maintain proper books of accounts, comply with tax regulations, and make informed financial decisions.

Meaning of Accounting Standards

“What do you mean by Accounting Standards?”

Accounting Standards are a set of guidelines that govern how financial transactions should be recognized, measured, and disclosed in financial statements.
They help answer critical questions such as:

• When should revenue be recorded?
• How should inventory be valued?
• What financial information must be disclosed?

Using accounting software helps implement these standards consistently in daily operations.
By following these standards, businesses ensure their financial data is reliable and comparable across periods.

Overview of Accounting Standards in India

India has issued 32 Accounting Standards (AS 1 to AS 32) under Generally Accepted Accounting Principles (GAAP). However, not all are currently active, as some have been merged or withdrawn.
For most small businesses, only a few key standards are used regularly in day-to-day accounting.

Key Accounting Standards for Businesses

The following standards are most relevant for billing, inventory, and financial reporting:

Complete List of Accounting Standards

These guidelines ensure consistency for preparers, auditors, and stakeholders when managing financial statements.

Core Standards

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Operational Standards

Standard	Description
AS 7	Applies to construction contracts and defines how revenue and costs should be recognized over the contract period.
AS 9	Establishes rules for revenue recognition, ensuring income is recorded when it is earned and measurable.
AS 10	Covers accounting for fixed assets, including acquisition, depreciation, and disposal of assets.
AS 11	Deals with accounting for foreign exchange transactions and the impact of currency fluctuations.
AS 12	Provides guidelines for accounting treatment of government grants and subsidies received by businesses.
AS 13	Focuses on accounting for investments, including classification and valuation.

Cost and Disclosure Standards

Standard	Description
AS 15	Covers employee benefits such as salaries, gratuity, and retirement benefits, ensuring proper expense recognition.
AS 16	Deals with borrowing costs like interest and specifies when such costs should be capitalized or expensed.
AS 17	Requires reporting of financial information based on different business segments for better analysis.
AS 18	Ensures disclosure of transactions between related parties to maintain transparency.

Advanced Standards

Standard	Description
AS 19	Covers accounting treatment for leases, distinguishing between operating and finance leases.
AS 20	Defines calculation and reporting of earnings per share (EPS) for performance evaluation.
AS 21	Deals with preparation of consolidated financial statements for group companies.
AS 22	Focuses on accounting for income taxes, including deferred tax assets and liabilities.
AS 23	Covers accounting for investments in associate companies using equity method.
AS 24	Deals with reporting of discontinuing operations separately in financial statements.
AS 25	Provides guidelines for preparing interim financial reports for shorter periods.

Specialized Standards

Standard	Description
AS 26	Covers accounting for intangible assets such as goodwill, patents, and trademarks.
AS 27	Deals with accounting for joint ventures and shared business arrangements.
AS 28	Focuses on impairment of assets, ensuring assets are not carried above recoverable value.
AS 29	Provides guidelines for provisions, contingent liabilities, and contingent assets.

Withdrawn and Merged Standards

Understanding this helps avoid confusion when referring to outdated standards.

Standard	Status
AS 6	Merged into AS 10 (Depreciation now covered under fixed assets standard)
AS 30–32	Withdrawn as they related to financial instruments

AS vs Ind AS

India also follows Ind AS, which is aligned with international IFRS standards. However, applicability differs:

Basis	AS (Indian GAAP)	Ind AS
Applicability	Small and medium businesses with simpler reporting needs	Large and listed companies
Complexity	Relatively simple and rule-based	More complex and principle-based
Usage	Widely used by SMEs	Mandatory for certain companies

For most SMEs, Accounting Standards (AS) are sufficient.

Why Accounting Standards Matter

Even for small businesses, accounting standards play a crucial role in:

• Maintaining accurate financial records
• Ensuring tax and GST compliance
• Preparing for audits
• Improving financial decision-making

Check Out – How to Set Financial Goals for Your Small Business in 2026

Conclusion

Accounting Standards in India ensure consistency, accuracy, and compliance in financial reporting. While only a few standards are commonly used by small businesses, understanding them helps maintain proper records, avoid errors, and make better financial decisions. Using the right accounting tools can further simplify compliance and improve overall efficiency.