If you’ve ever wondered why Indian Accounting Standards (IndAS) are numbered inconsistently—some starting from 1, others from 100—you’re not alone. The numbering may seem puzzling, but there’s a logical system behind it, and it’s not random. Let’s break it down.
The Origin of IAS and IFR:
The story of accounting standards begins in 1973 when the International Accounting Standards Committee (IASC) was formed by nine countries. Their goal was to develop a set of International Accounting Standards (IAS) that could be adopted globally.
They started with IAS 1 (Presentation of Financial Statements) and continued up to IAS 41 (Agriculture). However, not all numbers in the series were used—some numbers, like IAS 3, 4, and 5, were skipped.
In 2000, the IASC was replaced by the International Accounting Standards Board (IASB), which introduced the International Financial Reporting Standards (IFRS). The IASB started issuing these standards, beginning with IFRS 1 (First-time Adoption of IFRS) and continuing through to IFRS 17 (Insurance Contracts).
How IndAS Numbers Were Determined in India
In India, the Institute of Chartered Accountants of India (ICAI) chose to converge the country’s accounting standards with the international IAS/IFRS framework, resulting in the creation of IndAS. This raised a key question: How should the IndAS standards be numbered, given that both IAS and IFRS start from 1?
The solution to this was straightforward:
IndASs Converged from IAS: These are numbered starting from 1, the same as their IAS counterparts. For example, IAS 1 (Presentation of Financial Statements) is adopted as IndAS 1.
IndASs Converged from IFRS: These are numbered starting from 101. For instance, IFRS 1 (First-time Adoption of IFRS) becomes IndAS 101.
This numbering system explains why we might not have IndAS numbered immediately after IndAS 41 or IndAS 117—because the IndAS standards converged from IFRS start at 101.
So, while the numbering system may seem random at first glance, it actually follows a deliberate structure. IndAS converged from IAS use numbers starting from 1, and those converged from IFRS start from 101. This ensures clarity and avoids overlap with the existing IAS and IFRS numbering conventions.
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