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


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

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

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