ABSTRACT
This chapter provides an analysis of accounting for governments and organizations in the public sector in India. A brief history of India, since its cultural and political heritage has influenced not only the governance structure but also the accounting and financial reporting of governmental entities. The chapter describes public-sector undertakings in India and introduces the government accounting standards-setting bodies and the role of auditors in India. It elaborates the accounting policies and procedures in the public sector and discusses the accounting standards that must be followed in the preparation of the financial statements of governments and governmental entities. The Indian Government Accounting Standards (IGAS) were formulated by the Government Accounting Standards Advisory Board (GASAB) for cash-based accounting and are mandatory for all government entities. The accrual-based standards are issued under the title of 'Indian Government Financial Reporting Standards' (IGFRSs).
