Ind AS 2025: Guide for CA Students & Finance Professionals
Introduction to IND AS 2025
If you are a CA student, finance professional, or business leader in India, understanding Indian Accounting Standards (IND AS) is no longer optional—it’s a career essential.
This guide explains what IND AS is, how it differs from IFRS (International Financial Reporting Standards), the adoption timeline, and the role of key regulators like NFRA and ICAI.
Understanding the Landscape
What Is Ind AS and Why It Exists
Ind AS are India’s accounting standards designed to bring the country’s financial reporting in line with global best practices, while adapting to Indian laws and business realities.
They are:
Developed by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI).
Notified by the Ministry of Corporate Affairs (MCA) under the Companies (Indian Accounting Standards) Rules, 2015.
Comprising 40 standards currently in force.
Purpose:
Ensure comparability of financial statements across borders.
Increase transparency for investors and regulators.
Strengthen integrity in financial reporting.
NFRA vs ICAI: Who Does What?
Before 2018, ICAI had both standard-setting and oversight powers. Today:
ICAI: Drafts standards, trains professionals, supports academic learning.
NFRA (National Financial Reporting Authority): Enforces compliance, inspects audit quality, and regulates listed and large unlisted companies under the Companies Act 2013.
Adoption Timeline of Ind AS
India’s shift to Ind AS happened in phases to allow businesses to adapt:
Voluntary Phase (2015) – From April 1, 2015, companies could choose to adopt Ind AS early.
Phase I (2016) – From April 1, 2016, mandatory for listed or large companies with net worth ≥ ₹500 crore.
Phase II (2017) – Extended to companies with net worth ≥ ₹250 crore.
2018 onwards – Applied to most large and mid-sized entities.
Carve-Outs and Carve-Ins From IFRS
Ind AS closely mirrors IFRS, but with changes:
Carve-outs: Modify IFRS provisions to comply with Indian law (e.g., certain revenue recognition rules).
Carve-ins: Add guidance specific to Indian needs not covered by IFRS.
Example: ICAI’s guidance notes on financial instruments to address local banking practices.
Why Ind AS Matters in 2025
For students, knowing Ind AS means being ready for real-world case studies, audit assignments, and cross-border advisory work.
For professionals and companies, it means:
Global comparability: Easier to attract overseas investors.
Investor trust: Reliable, transparent financials.
Lower cost of capital: Standardized reporting reduces investor risk perception.
Better governance: Strong compliance frameworks.
Frequently Asked Questions (FAQs)
Q1: What’s the difference between Ind AS and IFRS?
Similarity: Framework and structure are closely aligned.
Difference: Terminology, sector-specific carve-outs, and legal compliance requirements are unique to India.
Q2: Who regulates financial reporting standards in India?
NFRA: Regulates listed and large unlisted companies and their auditors.
ICAI: Sets academic and professional training standards.
Q3: Does Ind AS apply to all sectors equally?
No. Sectors like banking, insurance, and NBFCs have different timelines and adjustments under RBI and IRDAI guidance.
Q4: How should CA students prepare for Ind AS in exams?
Study application-based examples instead of memorizing clauses.
Follow NFRA orders and ICAI updates for recent changes.
Solve mock case studies comparing Ind AS vs IFRS treatments.
Track sector-specific developments for advanced understanding.
Conclusion
In 2025, mastering Ind AS is essential for CA students and finance professionals alike. It bridges academic knowledge with real-world application, builds investor trust, and aligns Indian reporting with global standards. Stay updated on NFRA, ICAI, and sector-specific changes to stay ahead in India’s evolving financial landscape.