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

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