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Difference between AS-1 and Indian AS-1

Indian AS-1

Indian AS-1 deals with the presentation of Financial Statements on the basis for which an enterprise furnishes and present their financial statements. This will help the enterprise to compare their financial statements of previous periods and also with the competitor’s financial statements. IND AS-1 also outlines the guideline regarding the structure of the financial statement including the content.

Accounting Standard 1 (AS-1)

AS-1 deals with the disclosure requirement of accounting policy. Where accounting policies means certain accounting principles & method that an enterprise adopts to prepare and present their financial statement.


  • Inventory Valuation
  • Goodwill Treatment
  • Treatment of depreciation, borrowing cost etc.
S. No. IND AS 1 AS 1
1 Presentation of Financial Statements Disclosure of Accounting Policies
Indian standard is related with presentation of financial statements. Accounting Standard -1 is related to the disclosure of accounting policies.
2 The Indian accounting standard is wider when compared with AS-1. Comparatively scope is narrower.
3 An explicit statement of compliance is required. There is no such requirement in AS-1 to provide explicit compliance statement.
4 Indian AS-1 provides criteria for the classification of Current and Non- Current assets along with liabilities. Moreover, such information shall be presented as per IND AS-1. AS-1 does not provide any bifurcation of current asses and non-current assets.
5 The enterprise cannot present any item as extraordinary Item either in the profit and loss statement or in the notes. The enterprise can represent an extraordinary item in both the P&L statement and notes to accounts.
6 As per IND AS-1, the expenses shall be classified based on the nature of expenses. No specific restriction.
7 In case of any retrospective amendment an enterprise is required to prepare a balance sheet at the beginning of the year in addition to the normal balance sheet. There is no such requirement to create an opening balance sheet for retrospective change.
8 In Ind AS-1 there are two parts of the profit and loss statement. There is no such requirement to present profit and loss statement in two in AS-1.
The first part shows the normal profit or loss account for the period.
Whereas, the 2nd part shows “Other comprehensive Income” component for the period. Such as unrealized gains and losses.

Carve-out between IND AS-1 and AS-1

This carve-out between IND AS-1 and AS-1 is due to the difference in the applicability of accounting principles, practices and procedure. In addition to this, this carve-out also happens due to the economic conditions prevailing in India.

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