Indian Government Financial Reporting Standards (IGFRS)

Government accounting in India follows cash basis of accounting. Government Accounting Standards Advisory Board (GASAB) constituted by the Comptroller and Auditor General of India with support of Government of India has been working on migration to accrual basis of accounting in Union and States. Any decision to change the basis of accounting from cash to accrual would essentially be based on a decision of the President of India on the advise of Comptroller and Auditor General of India under Constitutional provisions. However, there is a much felt need for accounting framework and accounting standards on accrual basis to facilitate pilot studies and research efforts on migration to accrual accounting at Union and State level. To facilitate pilot studies and for scale up of activities, GASAB has taken a decision to develop accrual basis accounting standards alongside cash basis standards. The accrual basis standards are issued under the title 'Indian Government Financial Reporting Standards (IGFRSs)'

The accrual basis standards are issued initially as recommendatory for pilot studies on accrual accounting and will be mandatory with effect from the date of notification by Government of India.

IGFRS approved by GASAB and under consideration of Government of India
IGFRS 1 : Presentation of Financial Statements
IGFRS 2: Property, Plant & Equipment
IGFRS 3: Revenue from Government Exchange Transactions
IGFRS 4: Inventories
IGFRS 5: Contingent Liabilities (other than guarantees) and Contingent Assets: Disclosure Requirements