The importance of accounting standards and disclosure policies related to notes on accounts thereon constitute one significant aspect of the overall accounting disclosure. Considering the global environment and continuous investment by FIIs in Indian industries and increase in the number of MNCs require to pay the attention to the AS and its disclosure policies from the stakeholders point of view. The prime objective of this study is to assess the level of implementation of AS by the Indian corporate units. For this purpose, the implementation of first AS 15 has been analyzed from reports of 2004-05 by the companies listed as BSE 30 indices companies on Bombay Stock Exchange; of them 15 companies are taken as random sample for the study. The results of the study indicate that there is a need for an improvement in disclosure policies of the Indian corporate.

The term "Accounting Standard" may be defined as written statements issued from time to time by institutions of the accounting profession or institutions in which it has sufficient involvement and which are established expressly for this purpose. Such accounting institutions/bodies are currently found in many countries of the world.

Accounting Standards deal mainly with financial measurements and disclosures used in producing a set of fairly presented financial statement. In this respect Accounting Standards can be thought of as a system of measurement and disclosure.

The accounting standards practice depends on the various policies of the government. The ICAI issues the accounting standards and then it will be made mandatory for organizations. So, fulfillment of such requires corporate disclose accounting standards related information in its annual reports. Disclosures of information depend on a number of factors like regulations, cost related to disclosures and market forces. Srinivasan (2006) has conducted a study on corporate disclosure practices of BSE 100 companies and finds that size of firm, existence of foreign investors and high technology service industry have a positive relation with disclosure index. Joshi's (2006) study was based on disclosure practices in financial institutions. He had taken various parameters for study but he couldn't find any relations. Sehgal, Bhalla and Bhalla (2006) have conducted a study to know the corporate disclosure practices of Indian companies. They selected sample on the basis of age, RONW, Sales and DI and found that disclosure practices of the companies are not significantly influenced by any of selected company characteristics. Singh (2006), Shastri (2006) and Bhatt (2006) have tried to explain the theoretical background of Indian Accounting Standards: Indian GAAP and US GAAP.

The Analyst Magazine, Accounting Standards, Disclosure Policies in India, Foreign Institutional Investors, FIIs, Institute of Chartered Accountant of India, ICAI, International Accounting Standard Committee, IASC, Generally Accepted Accounting Principles, GAAP, Indian GAAP, US GAAP, Indian Corporate, Oil and Natural Gas Corporation Limited, ONGC, Financial Service Provider.