<s>[INST] What is ICDS? [/INST] ​ICDS stands for Income Computation and Disclosure Standards. These have been issued by the Central Government in the exercise of the powers conferred by Section 145(2) of the Income-tax Act, 1961 to bring uniformity in the accounting policies and provisions of the Income-tax Act and to reduce litigations. The following are the notified ICDS:

ICDS I: Accounting Policies
ICDS II: Valuation of inventories
ICDS III: Construction contracts
ICDS IV: Revenue Recognition
ICDS V: Tangible fixed assets
ICDS VI: The effects of change in Foreign exchange rates
ICDS VII: Government Grants
ICDS VIII: Securities
ICDS IX: Borrowing costs
ICDS X: Provisions, Contingent Liabilities, and Contingent Assets
ICDS is applicable only for the computation of taxable income and not for the maintenance of books of account.​ </s>