- The IASB has issued 18 IFRS standards (IFRS 1 to IFRS 18) as of 2026
- IFRS 17 Insurance Contracts became mandatory in January 2023
- IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024 and is effective from 1 January 2027
- India follows 39 Ind AS standards, largely converged with IFRS.
What Are Accounting Standards?
Accounting standards are written authoritative guidelines that govern how financial transactions are recorded, measured, and disclosed in financial reports. They are issued by international bodies such as the IASB (IFRS) and national bodies (GAAP). Accounting standards ensure consistency, transparency, and comparability of financial statements across different companies and industries globally.
Accounting standards specify how particular types of events and transactions should be recognised, measured, classified, and disclosed in financial statements. They apply to both corporate and non-corporate entities. Corporate entities include listed companies and banks, while non-corporate entities include partnerships, trusts, and societies. India's corporate sector is required to follow accounting standards under Section 129 of the Companies Act 2013.
Accounting Principles: The 5 Key Principles Explained 2026Read →What Are the Current IFRS Standards Issued by the IASB?
The IASB has issued 18 IFRS standards as of 2026. These cover key financial areas including share-based payments (IFRS 2), business combinations (IFRS 3), financial instruments (IFRS 9), leases (IFRS 16), insurance contracts (IFRS 17, effective 2023), and presentation in financial statements (IFRS 18, issued 2024, effective 2027). IFRS is applied in over 140 countries worldwide.
IFRS standards are developed by the International Accounting Standards Board (IASB) and aim to bring global consistency to financial reporting. They are used in over 140 countries, including EU member states, India, Australia, Canada, and many others. The IASB updates standards periodically to reflect changes in the business environment and stakeholder feedback.
- IFRS 1 — First-time Adoption of International Financial Reporting Standards
- IFRS 2 — Share-based Payment
- IFRS 3 — Business Combinations
- IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations
- IFRS 7 — Financial Instruments: Disclosures
- IFRS 8 — Operating Segments
- IFRS 9 — Financial Instruments
- IFRS 10 — Consolidated Financial Statements
- IFRS 11 — Joint Arrangements
- IFRS 12 — Disclosure of Interests in Other Entities
- IFRS 13 — Fair Value Measurement
- IFRS 15 — Revenue from Contracts with Customers
- IFRS 16 — Leases
- IFRS 17 — Insurance Contracts (effective January 2023)
- IFRS 18 — Presentation and Disclosure in Financial Statements (effective 2027)
What Are the International Accounting Standards (IAS)?
The International Accounting Standards (IAS) were issued by the IASC before the IASB took over in 2001. Of the original 41 IAS standards, 28 remain in force as of 2026, with others superseded by IFRS. Key active standards include IAS 1 (Financial Statements Presentation), IAS 16 (Property and Equipment), and IAS 37 (Provisions and Contingent Liabilities).
Some notable IAS standards that were superseded include IAS 11 (Construction Contracts), replaced by IFRS 15; IAS 17 (Leases), replaced by IFRS 16; and IAS 18 (Revenue), replaced by IFRS 15. IAS 39 (Financial Instruments: Recognition and Measurement) was substantially replaced by IFRS 9 from 2018. Students should note that some textbooks still reference these superseded standards.
What Are Indian Accounting Standards (Ind AS)?
Indian Accounting Standards (Ind AS) are the Indian versions of IFRS, issued by the Ministry of Corporate Affairs and largely converged with IFRS. As of 2026, there are 39 Ind AS in India. Large listed companies and banks are required to follow Ind AS, while smaller companies may follow the older AS (Indian GAAP) framework under the Companies Act 2013.
Ind AS were introduced to align India's financial reporting with international standards, improving comparability for global investors. The Institute of Chartered Accountants of India (ICAI) plays a key role in developing and updating these standards. Companies with a net worth of INR 500 crore or more, or listed companies, are mandatorily required to adopt Ind AS.
| Accounting Framework 2026 | Issued By | Applies To |
|---|---|---|
| IFRS (18 standards) | IASB | 140+ countries globally |
| IAS (28 active standards) | IASC (now maintained by IASB) | Alongside IFRS internationally |
| Indian Accounting Standards (39 Ind AS) | MCA / ICAI | Large Indian companies and banks |
| Indian GAAP (older AS) | ICAI | Smaller Indian companies |
What Is the Difference Between IFRS and GAAP?
IFRS (International Financial Reporting Standards) is principles-based and used in over 140 countries. GAAP (Generally Accepted Accounting Principles) is rules-based and primarily used in the USA and UK. IFRS allows more judgment in applying standards, while GAAP provides specific guidance for each situation. Both aim to ensure reliable financial reporting, but their application differs significantly.
The key difference between IFRS and GAAP lies in their approach to financial reporting. IFRS is issued by the IASB and is more flexible, allowing preparers to use professional judgment. US GAAP is issued by the FASB and follows a more prescriptive, rules-based approach. UK GAAP (FRS 100-105) is issued by the Financial Reporting Council (FRC) and applies to UK companies not using IFRS.
What Are the Key Accounting Standard Updates for 2026?
Key accounting standard updates for 2026 include IFRS 17 Insurance Contracts, which became mandatory for annual periods beginning on or after 1 January 2023. IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024 and becomes effective for periods beginning 1 January 2027. The IASB also continues work on sustainability-linked financial reporting standards.
The IASB's work programme for 2026 includes projects on rate-regulated activities, business combinations under common control, and targeted improvements to disclosure requirements. Students and professionals should regularly check the IFRS Foundation website (ifrs.org) and the ICAI website for the latest updates, exposure drafts, and effective dates of new and amended standards.