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    Accounting Standards Final

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    Accounting Standards Final

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    42 views18 pages

    Accounting Standards Final

    Uploaded by

    kavitavijay

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    PRESTIGE INSTITUTE OF MANAGEMENT DEWAS

    GUIDED BY: PRESENTED BY:

    KAVITA VIJAY MA’AM PRIYAL JAIN

    TOPIC: ACCOUNTING
    STANDARDS
    MEANING
    THE ACCOUNTING STANDARDS ARE A SET OF GUIDELINES, I.E., GENERALLY
    ACCEPTED ACCOUNTING PRINCIPLES, ISSUED BY THE ACCOUNTING BODY
    OF THE COUNTRY SUCH AS THE INSTITUTE OF CHARTERED ACCOUNTANTS
    OF INDIA, THAT ARE FOLLOWED FOR PREPARATION OF FINANCIAL
    STATEMENTS.

    DEFINITION
    Kohler has defined Accounting Standards as “ a code of
    conduct imposed on an accountant by custom, law and a
    professional body.
    OBJECTIVES
    Enhancing reliability of financial statements

    Facilitating meaningful comparison of Financial Statements of two


    or more entities.

    To disclose accounting policies in case of change in accounting


    process or principles.

    NATURE
    Accounting Standards are mandatory in nature

    Accounting standards are prepared keeping in view


    the business environment and laws of the country. It
    may be noted that whenever a conflict arises between
    Law and Accounting Standards, law will prevail.
    Advantages/Merits
    1. It controls the controversy of accounting standards.
    2. Accounting standards create a sense of confidence among the users of accounting
    information.
    3. Attains Uniformity in Accounting.
    4. Helps and assists Auditors in auditing the accounts as they have to follow uniform
    practices and policies.
    5. It removes the effect of diverse accounting practices.
    6. It ensures the consistency, uniformity, relevancy and comparability of Financial
    Statements.

    Demerits/Disadvantages

    1. Restricted scope.
    2. Difficulty between Choosing Alternatives.
    INTRODUCTION
    Accounting Standards (i.e. AS 1~32) have been issued/ amended by the Accounting Standards
    Board of ICAI from time to time, to establish uniform standards for preparation of financial
    statements, in accordance with generally accepted accounting practices (GAAP) in India and for
    better understanding of the users.

    These standards are mandatory on the dates specified either in the respective document or by
    notification issued by the Council of the ICAI.

    These Accounting Standards are nearly 2 decades old and are being reviewed, modified and
    upgraded to match the financial reporting requirements of Ind AS, as far as possible in the case of
    SMEs.

    ICAI has published a compendium of accounting standards as on 1 July 2019, which includes
    various relevant Announcements of ICAI on the subject.

    List of Mandatory Accounting Standards of ICAI (as on 1 July 2017 and onwards), is as under:
    NAMES

    OF

    32
    ACCOUNTING

    STANDARDS
    Disclosure of accounting policies Revenue Recognition

    Accounting for Fixed Assets


    Valuation of inventories

    The effects of changes in


    Cash flow statement
    foreign exchange rates

    Contingencies and Events Accounting for Government


    occurring after balance sheet Grants

    Net profit or loss for the period, Accounting for Investments


    prior period items and changes
    in Accounting Policies
    Accounting for Amalgamations
    Depreciation Accounting
    Employees Benefits( Revised 2005)
    Construction Contracts
    Borrowing Costs
    Accounting for Research
    and Development Segment Reporting
    Related party Disclosures Financial Reporting of
    Interests in Joint Ventures
    Leases
    Impairment Of Assets
    Earnings per Share
    Provisions, Contingent Liabilities
    Consolidated Financial
    and Contingent Assets
    Statements

    Accounting For Taxes On


    Financial Instruments:
    Income
    Recognition and Measurement
    Accounting for Investments
    In Associates Financial Instruments:
    Presentation
    Discontinuing Operations

    Interim Financial Financial Instruments:


    Reporting Disclosures

    Intangible Assets
    LET’s DISCUSS FEW IMPORTANT
    AMONG THEM IN DETAIL
    AS 1: DISCLOSURE OF ACCOUNTING
    STANDARDS
    This Standard deals with the disclosure of significant
    accounting policies which are followed in preparing and
    presenting financial statements.

    . AS 2 : VALUATION OF
    INVENTORIES
    This Standard deals with the determination of value
    at which inventories are carried in the financial
    statements, including the ascertainment of cost of
    inventories and any write-down thereof to net
    realizable value.
    AS 3 CASH FLOW STATEMENT
    This Standard deals with the provision of information about the
    historical changes in cash and cash equivalents of an enterprise by
    means of a Cash Flow Statement which classifies cash flows during
    the period from operating, investing and financing activities.

    AS 4 CONTINGENCIES AND EVENTS OCCURING


    AFTER BALANCE SHEET DATE :

    This Standard deals with the treatment of contingencies and


    events occurring after the balance sheet date.
    . AS 9 REVENUE RECOGNITION
    This Standard deals with the bases for recognition of revenue in the Statement
    of Profit and Loss of an enterprise. The Standard is concerned with the
    recognition of revenue arising in the course of the ordinary activities of the
    enterprise from: a) Sale of goods; b) Rendering of services; and c) Interest,
    royalties and dividends.
    AS 10: PROPERTY,PLANT AND
    EQUIPMENT

    The objective of this Standard is to prescribe the


    accounting treatment for property, plant and equipment
    (PPE).

    AS 11: THE EFFECTS OF CHANGE IN FOREIGN


    EXCHANGE RATE

    AS 11 lays down principles of accounting for foreign currency transactions


    and foreign operations, i.e., which exchange rate to use and how to
    recognize in the financial statements the financial effect of changes in
    exchange rates.
    AS 12 GOVERNMENT GRANTS
    This Standard deals with accounting for government grants.
    Government grants are sometimes called by other names
    such as subsidies, cash incentives, duty drawbacks, etc.

    AS 13 ACCOUNTING FOR INVESTMENTS


    This Standard deals with accounting for investments in the
    financial statements of enterprises and related disclosure
    requirements.
    AS 14: ACCOUNTING FOR
    AMALGAMATIONS
    This Standard deals with accounting for amalgamations
    and the treatment of any resultant goodwill or reserves.

    AS 15 Employee Benefits
    The objective of this Standard is to prescribe the accounting
    treatment and disclosure for employee benefits in the books of
    employer except employee share-based payments. It does not
    deal with accounting and reporting by employee benefit plans.
    AS 16 : BORROWING COSTS
    This Standard should be applied in accounting for
    borrowing costs. This Standard does not deal with the
    actual or imputed cost of owners’ equity, including
    preference share capital not classified as a liability.

    AS 17: SEGMENT REPORTING:


    The objective of this Standard is to establish principles
    for reporting financial information, about the different
    types of segments/ products and services an enterprise
    produces and the different geographical areas in which
    it operates
    AS 25: INTERIM FINANCIAL REPORTING

    This Standard applies if an entity is required or elects to publish an


    interim financial report. The objective of AS 25 is to prescribe the
    minimum content of an interim financial report and to prescribe the
    principles for recognition and measurement in complete or condensed
    financial statements for an interim period.

    AS 26 : INTANGIBLE ASSETS
    AS 26 prescribes the accounting treatment for intangible
    assets (i.e. identifiable non-monetary asset, without
    physical substance, held for use in the production or
    supply of goods or services, for rental to others, or for
    administrative purposes).
    THANK YOU

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