Business Standard

Accounting practices at start-ups in India come under the scanner

Where valuation has overpowered value and revenue recognition is a grey area, new accounting metrics is seeing new-age ventures jump through hoops

Axis-Bank-Current-Account
Premium

New accounting metrics are also getting introduced by some of these companies

Ruchika Chitravanshi New Delhi
Valuation obsession, investor pressure, and unethical practices by founders may be blamed for some of the recent misadventures of certain start-ups. They have, however, also taken the lid off the complex accounting practices and challenges these new-age ventures are just getting to grips with.

With so much money sloshing around the system, funding rounds got bigger and bigger. Critics say that left start-ups with money to burn and no need to show how they would ever turn in a profit.

“In the new-age economy, new business models are coming up. There is a lot of complexity around many areas, requiring

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 26 2023 | 7:55 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com