Income Computation and Disclosure Standards require specified accounting rules for taxpayers using the mercantile system for computing business and other income. Notification under section 145(2) prescribes Income Computation and Disclosure Standards (ICDS) for computing income under 'Profits and gains of business or profession' and 'Income from other sources'. The ICDS apply to assessees following the mercantile system of accounting, excluding individuals and HUFs not required to have accounts audited under section 44AB, and are effective for assessment year 2017-18 onwards. The Annexure lists ten ICDS topics including accounting policies, inventory valuation, construction contracts, revenue recognition, tangible fixed assets, foreign exchange effects, government grants, securities, borrowing costs, and provisions and contingent liabilities.