{"id":304,"date":"2015-08-07T07:34:11","date_gmt":"2015-08-07T07:34:11","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=304"},"modified":"2026-02-15T08:28:31","modified_gmt":"2026-02-15T08:28:31","slug":"income-computation-and-disclosure-standards-icds","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/income-computation-and-disclosure-standards-icds\/","title":{"rendered":"Income Computation and Disclosure Standards (ICDS)"},"content":{"rendered":"

\"Income<\/h2>\n

Highlights of Key Income Computation and Disclosure Standards (IC<\/span>DS)<\/span><\/strong><\/h2>\n

CBDT vide its\u00a0Notification No: 32\/2015 dated 31-03-2015<\/a>\u00a0notified 10 Income Computation and Disclosure Standards (ICDS) which is to be followed by all assesses at the time of computation of income chargeable to income tax under the head \u201cProfit and gains of business or profession\u201d or \u201c Income from other sources\u201d. The effective dates of such ICDSs are 01st<\/sup>\u00a0April, 2015 and shall accordingly apply to the Assessment Year 2016-17 and subsequent assessment years.<\/p>\n

Brief About ICDS<\/span>:<\/span><\/strong><\/p>\n

Section-145 (2) of the Income tax Act, 1961 empowers the Central Government (CG) to issue Accounting Standards for computation of Income. Earlier in 1996 CG had notified only two accounting standards i.e. \u2018Disclosure of Accounting Policies\u2019 & \u2018Disclosure of Prior Period Items and Extraordinary Items and Changes in Accounting Policies\u2019. During December 2010 Central Government (CG) constituted a committee to draft Income Computation and Disclosure Standard (ICDS). In August 2012 the committee provided a draft of 14 tax accounting standards which were issued for public comments and after revision now CG notified 10 ICDS which is to be effective from FY:2015-16 & AY:2016-17.<\/p>\n

By virtue of applicability of Indian Accounting Standards (IndAS) by MCA, it will have a greater impact on preparation and\u00a0presentation of financial Statements. The main focus of IndAS is to provide clarity of presentation in financial statements to investors. But In order to harmonize with the provision of the IndAS for computation of income to be chargeable under the head Profit and gains of business or profession\u201d or \u201c Income from other sources\u201d ICDS has been brought into the picture. The List of ICDS & corresponding Ind AS & Accounting Standards (AS) as per Accounting Standards rule,2006 are:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
ICDS NO<\/em><\/strong><\/td>\nNAME\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/em><\/strong><\/td>\nEquivalent New IND AS No<\/em><\/strong><\/td>\nEquivalent AS No<\/em><\/strong><\/td>\n<\/tr>\n
I<\/em><\/strong><\/td>\nAccounting Policies<\/em><\/strong><\/td>\n1 & 8<\/em><\/strong><\/td>\n1<\/em><\/strong><\/td>\n<\/tr>\n
II<\/em><\/strong><\/td>\nValuation of Inventories<\/em><\/strong><\/td>\n2<\/em><\/strong><\/td>\n2<\/em><\/strong><\/td>\n<\/tr>\n
III<\/em><\/strong><\/td>\nConstruction Contract<\/em><\/strong><\/td>\n11<\/em><\/strong><\/td>\n7<\/em><\/strong><\/td>\n<\/tr>\n
IV<\/em><\/strong><\/td>\nRevenue Recognition<\/em><\/strong><\/td>\n18<\/em><\/strong><\/td>\n9<\/em><\/strong><\/td>\n<\/tr>\n
V<\/em><\/strong><\/td>\nTangible Fixed Asset<\/em><\/strong><\/td>\n16<\/em><\/strong><\/td>\n10<\/em><\/strong><\/td>\n<\/tr>\n
VI<\/em><\/strong><\/td>\nEffects of changes in foreign exchange rates<\/em><\/strong><\/td>\n21<\/em><\/strong><\/td>\n11<\/em><\/strong><\/td>\n<\/tr>\n
VII<\/em><\/strong><\/td>\nGovernment Grants<\/em><\/strong><\/td>\n20<\/em><\/strong><\/td>\n12<\/em><\/strong><\/td>\n<\/tr>\n
VIII<\/em><\/strong><\/td>\nSecurities<\/em><\/strong><\/td>\n32<\/em><\/strong><\/td>\n30<\/em><\/strong><\/td>\n<\/tr>\n
IX<\/em><\/strong><\/td>\nBorrowing Costs<\/em><\/strong><\/td>\n23<\/em><\/strong><\/td>\n16<\/em><\/strong><\/td>\n<\/tr>\n
X<\/em><\/strong><\/td>\nprovisions, contingent<\/em><\/strong> liabilities and contingent assets<\/em><\/strong><\/td>\n37<\/em><\/strong><\/td>\n29<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Key<\/span> Features of ICDS:\u00a0<\/span><\/strong><\/span><\/p>\n