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    Accounting Standard 27 deals with financial reporting of interests in joint ventures. It applies to accounting for joint ventures regardless of structure, and requires venturers to report joint venture assets, liabilities, income and expenses in their financial statements. A joint venture involves two or more parties undertaking an economic activity subject to joint control, which is contractually defined as shared control over operating and financial policies. Accounting Standard 28 concerns impairment of assets. It requires enterprises to assess assets for impairment at each reporting date, and recognize an impairment loss if the carrying amount exceeds the recoverable amount, defined as the higher of an asset's net selling price or value in use. After impairment, the reduced carrying amount becomes the new cost basis.

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    Abhishek

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    Accounting Standard 27 deals with financial reporting of interests in joint ventures. It applies to accounting for joint ventures regardless of structure, and requires venturers to report joint venture assets, liabilities, income and expenses in their financial statements. A joint venture involves two or more parties undertaking an economic activity subject to joint control, which is contractually defined as shared control over operating and financial policies. Accounting Standard 28 concerns impairment of assets. It requires enterprises to assess assets for impairment at each reporting date, and recognize an impairment loss if the carrying amount exceeds the recoverable amount, defined as the higher of an asset's net selling price or value in use. After impairment, the reduced carrying amount becomes the new cost basis.

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    Accounting Standard 27 deals with financial reporting of interests in joint ventures. It applies to accounting for joint ventures regardless of structure, and requires venturers to report joint venture assets, liabilities, income and expenses in their financial statements. A joint venture involves two or more parties undertaking an economic activity subject to joint control, which is contractually defined as shared control over operating and financial policies. Accounting Standard 28 concerns impairment of assets. It requires enterprises to assess assets for impairment at each reporting date, and recognize an impairment loss if the carrying amount exceeds the recoverable amount, defined as the higher of an asset's net selling price or value in use. After impairment, the reduced carrying amount becomes the new cost basis.

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    23 views13 pages

    Abhishek

    Uploaded by

    Abhishek Mishra
    Accounting Standard 27 deals with financial reporting of interests in joint ventures. It applies to accounting for joint ventures regardless of structure, and requires venturers to report joint venture assets, liabilities, income and expenses in their financial statements. A joint venture involves two or more parties undertaking an economic activity subject to joint control, which is contractually defined as shared control over operating and financial policies. Accounting Standard 28 concerns impairment of assets. It requires enterprises to assess assets for impairment at each reporting date, and recognize an impairment loss if the carrying amount exceeds the recoverable amount, defined as the higher of an asset's net selling price or value in use. After impairment, the reduced carrying amount becomes the new cost basis.

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    of 13

    TOPIC:-ACCOUNTING STANDARDS 27,28

    BY:KAPIL KATUKE
    ABHISHEK KUMAR
    Accounting standard - 27
    FINANCIAL REPORTING OF Interests in Joint
    Ventures
     Applicable in accounting for interests in joint
    ventures and the reporting of joint venture
    assets, liabilities, income and expenses in FS
    of ventures and investors, regardless of the
    structures or forms under which the joint
    venture activities take place.
     Applicable whether independent or
    consolidated FS presented by the venturer.
     A joint venture is a contractual arrangement
    whereby two or more parties undertake an
    economic activity, which is subject to joint
    control.
     Joint control is the contractually agreed
    sharing of control over an economic activity.
     Control is the power to govern the financial
    and operating policies of an economic activity
    so as to obtain benefits from it.
     A venture is a party to a joint venture and has
    joint control over that joint venture.
     M/s BHEL and M/S NTPC, both Public Sector
    Undertakings (PSU) have joined together and
    promoted a Joint Venture Company, “NTPC BHEL
    Power Projects Private Ltd (NBPPL)”

     Magnetic Merely, Suzuki Motor Corporation and


    Maruti Suzuki India Limited have signed an
    agreement for the creation of a joint venture in
    India, aimed at the production of electronic
    control units (ECU) for diesel engines.
     – Jointly controlled operations
     – Jointly controlled assets
     – Jointly controlled entities
    ACCOUNTING STANDARD-28
    IMPAIRMENT OF ASSETS
     Impairment denotes loss in value.

     An enterprise should assess, at each


    balance sheet date, existence of any
    indication of impairment. If any such
    indication exists, the enterprise should
    estimate the recoverable amount of the
    asset.
    - To ensure that the assets are carried at no
    more than recoverable amount
    - Recoverable amount not to exceed the amount
    to be recovered through use or sale of the asset
    - Impaired loss to be recognised in the financial
    statement
    - Impaired loss may be reversed in certain
    circumstances
    - To make certain disclosures for impaired assets .
    Impairment loss - is the amount by which the carrying
    amount of an asset exceeds its
    recoverable amount

    Carrying amount- is the amount at which an asset is


    recognised in the balance sheet
    (W.D.V.)

    Recoverable - is the higher of an asset’s net selling


    amount price and its value in use
     Recoverable amount is the higher of an asset’s
    net selling price and value in use.

     Value in use is the amount obtainable from the


    sale of an asset in an arm’s length transaction,
    less the cost of disposal.

     After an impairment is recognised, the reduced


    carrying amount of the asset shall be accounted
    for as its new cost and depreciation would be
    charged on the new cost for the remaining life.
     Does not apply to:
     inventories

     Assets arising from construction

    contracts
     Financial instruments

     Deferred tax asset

     goodwill
    THANK YOU

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