Requirement to follow Accounting Standards / Ind-As

[Brainstorming Queries]

Whether all the persons, business entities or companies are required to follow the Accounting Standards prescribed by the ICAI or MCA? There are various kinds of standards as prescribed. Which one is to be followed for an entity.

AI Summary

Accounting Standards applicability: mercantile-basis entities follow Indian GAAP; net worth thresholds trigger Ind AS adoption.
Two recognised frameworks apply: Accounting Standards (Indian GAAP) and Indian Accounting Standards (Ind AS). Entities maintaining books on a mercantile basis must follow Accounting Standards (Indian GAAP) regardless of net worth. Entities whose net worth exceeds prescribed phase-based thresholds must follow Ind AS. Determination requires assessing mercantile accounting practice and applicable net worth thresholds; consult Indian Accounting Standards guidance for details.