About Indian Accounting Standards (Ind AS):
- Indian Accounting Standards (Ind AS) are a set of accounting principles notified by the Ministry of Corporate Affairs (MCA) in 2015.
- These standards are largely converged with International Financial Reporting Standards (IFRS), bringing Indian financial reporting closer to global practices.
- Focus: Ind AS emphasizes a principle-based approach, focusing on fair value measurement, transparency, and enhanced disclosure.
- History:
- Before the introduction of Indian Accounting Standards (Ind AS), India followed the Indian Generally Accepted Accounting Principles (IGAAP). Indian GAAP was primarily developed by:
- The Institute of Chartered Accountants of India (ICAI)
- Provisions under the Companies Act, 1956
- Indian GAAP comprised 18 accounting standards issued by ICAI, focusing largely on historical cost accounting and legal compliance.
Key Facts about Insurance Regulatory and Development Authority of India
- It is a statutory body formed under the Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999), for the overall supervision and development of the insurance sector in India.
- It acts as an autonomous authority under the Ministry of Finance, Government of India.
- The main goals of IRDAI are:
- To safeguard the interest of the policyholders by fair business conduct and settlement of claims within time.
- To regulate the business of insurance with transparency, fairness, and honest practice.
- Facilitating financial prudence of the insurers through solvency and stability checks of insurers.
- It is responsible for registering and/or licensing insurance, reinsurance companies, and intermediaries according to the regulations.
- It sets the eligibility criteria, qualifications, and capital requirements for obtaining licenses in the insurance business.
- Head Office: Hyderabad
- Composition: It consists of a Chairman, five full-time members, and four part-time members, all appointed by the Government of India.
