Accounting Standard Interpretations in India – IPCC Group 1 (Paper 1)

In the process of application of the Accounting Standards while drawing up the Financial Statements and its presentation, some practical questions would rise in the starting stage. To answer these issues Accounting Standard Interpretation(ASI) were issued. Earlier these were issued by the Accounting Standard Board. ASIs are issued after the AS issuance on the relevant standard.

Authority of ASI will be equal to the authority of the AS, to which it belongs, as ASI will become part of the AS.

ICAI will issue the AS, as we already learned and the AS will be notified by the Central Government (Ministry of Corporate Affairs) for the Companies. If the Government merge the ASI as “Explanation” to the relevant portion of the AS, then the Council of ICAIalso decides to do the same in order to harmonize the both the set of ASs issued by the ICAI and notified by the Government.