The Reserve Bank of India has again deferred the implementation of the Indian Accounting Standards (Ind AS) by banks as the requisite legislative amendments are still under consideration.
The implementation of the new accounting rules require certain legislative changes in the format of financial statements to comply with disclosures under Ind AS.The change in format needs an amendment to the third schedule of the Banking Regulation Act,1949 to make it compatible with accounts under Ind AS.
Indian Accounting Standards(Ind AS) are a set of accounting standards that govern the accounting and recording of financial transactions as well as the presentation of statements such as profit and loss account and balance sheet of a company.The Ind AS are named and numbered in the same way as the International Financial Reporting Standards (IFRS).
The standards were formulated by the Accounting Standards Board (ASB),which was constituted as a body in the year 1977.ASB is a committee under ICAI which consists of representatives from government departments, academicians,other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI.
The International Financial Reporting Standards (IFRS) are accounting standards that have been issued by the International Accounting Standards Board (IASB).It seeks to provide a common accounting language to increase transparency in the presentation of financial information.