Ministry of Human Resource Development (MHRD) recently passed an order that all the higher educational institutions getting grants from University Grants Commission (UGC) or comes under the regulatory ambit of UGC have to follow Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI) and these institutes have to prepare their accounts on the basis of accrual basis of accounting from the financial year 2013-14. In this study the researcher has tried to check the compliance of accounting standard “1” in the four financial years i.e. 2013-14 to 2016-17, in five Indian Institute of Technology (IITs) and five National Institutes of Technology (NITs) and to check whether there is significant difference in the compliance of accounting standards “1” in the selected Educational Institutes or not. This study concludes that the compliance of Accounting Standard “1” by educational institutions still leaves a room for improvement.