Documenti di Didattica
Documenti di Professioni
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WRITTEN and/POLICY DOCUMENTS ISSUED BY THE GOVERNMENT, PROFESSIONAL BODIES or OTHER REGULATORY BODIES COVERING VARIOUS ASPECTS OF RECOGNITION MEASUREMENT TREATMENT PRESENTATION and DISCLOSURE OF ACCOUNTING TRANSACTIONS IN THE FIN. STATEMENT
ACCOUNTING STANDARD BOARD (ASB) of ICAI DETERMINE THE BROAD AREAS IN WHICH A.S. NEED TO BE FORMULATED & THE PRIORITY IN REGARD TO THE SELECTION THEREOF (ASB) SHALL BE ASSISTED BY STUDY GROUPS DRAFT STANDARD INCLUDE OBJECTIVE OF THE STANDARD SCOPE OF THE STANDARD DEFINITIONS OF THE TERMS RECOGNITION & MEASUREMENT PRESENTATION & DISCLOSURE REQ. (ASB) CIRCULATE THE DRAFT A.S. TO THE COUNCIL MEMBERS OF ICAI, MCA, C&AG, CBDT, ICWAI, ICSI, ASSOCHAM, CII, FICCI, RBI, SEBI, SCOPE, IBA etc. FOR COMMENTS COUNCIL FINALISE THE A.S.
HELPS IN PREPARING UNIFORM & GENERAL PURPOSE FIN. STATEMENTS EASY TO COMPARE DIFF. UNITS IN DIFF. COUNTRIES
A.S. FORMLATED IN CONFORMITY WITH THE STATUTE, CUSTOMS, USAGES AND BUSINESS ENVIRONMENT OF A COUNTRY IF LAW IS AMENDED, and THE A.S. IS NOT IN CONFORMITY , THE LAW WILL PREVAIL FIN. STATEMENTS w.r.t. LAW ICAI SHALL DETERMINE THE DISCLOSURE REQUIREMENT MADE IN FIN. ST. & AUDITORS REPORT SUCH DISCLOSURE APPROPRIATE NOTES EXPLAINING THE TREATEMENT OF THE ITEM SUCH EXPLANATORY NOTES CLARIFICATION and NOT ADVERSE COMMENTS A.S. WILL APPLY ONLY TO MATERIAL ITEMS LIMITATION AS TO APPLICABILITY OF A.S. DECIDED BY ICAI.
I.A.S.B.
FORMLATES I.A.S. ON MATTERS RELATING TO ACCOUNTING POLICIES PREPARATION and DISCLOSURE OF FIN. STATEMENTS
UNIFORMITY & ENHANCE INTER-FIRM COMPARABILITY wrt RECOGNITION OF TRANSACTION IN FIN. STATEMENT MEASUREMENT OF THESE TRANSACTION & EVENTS ITS PRESENTATION IN FIN. STATEMENTS MEANINGFUL AND UNDERSTANDABLE TO USERS IASB 41 IAS and 8 IRFS DIFFERENCES AMONG COUNTRIES IN FIN. ACCOUNTING and REPORTING PRACTICES IMPEDIMENT TO FREE FLOW OF CAPITAL ICAI CONVERGENCE OF IAS- IFRS
MAIN OBJECTIVES
CONVENTIONS, RULES and PROCEDURES NECESSARY TO DEFINE ACCEPTED ACCOUNTING PRACTICES AT A PARTICULAR TIME. BROAD GUIDELINES OF GENERAL APPLICATIONS, DETAILED PRACTICES & PROCEDURES PROVIDE A STANDARD TO MEASURE FINANCIAL PRESENTATIONS COMMON SET OF ACCOUNTING PRINCIPLES, STANDARDS & PROCEDURES USED IN PREPARING FINANCIAL STATEMENTS AUTHORITATIVE STDS+COMMONLY ACCEPTED WAY OF RECORDING & REPORTINGACCOUNTING INFORMATION HELPS IN PREPARING UNIFORM & GENERAL PURPOSE FIN. STATEMENTS EASY TO COMPARE DIFF. UNITS IN DIFF. COUNTRIES
DEALS WITH
SIGNIFICANT A/Cg. POLICIES IN PREPARING & PRESENTATION OF FIN. STATEMENTS. PROMOTE BETTER UNDERSTANDING and COMPARISON OF FIN. STATEMENTS
PURPOSE
CHANGE IF ANY HAVING MATERIAL EFFECT AT PRESENT or IN FUTURE THE AFFECTED AMOUNT TO THE EXTENT ASCERTAINABLE. IF NOT, THE FACT TO BE INDICATED. FUNDAMENTAL A/Cg. ASSUMPTIONS PRIME CONSIDERATION DISCLOSURE NOT REQUIRED IF FOLLOWED. IF NOT, THEN DISCLOSURE IS REQUIRED FIN. STATEMENTS SHOULD GIVE A TRUE AND FAIR VIEW OF INCOME & FINANCIAL POSITION
9/14/2012
VALUATION OF INVENTORIES - AS-2 VALUED AT LOWER OF COST MEANS COST or NET REALIZABLE VALUE COST OF PURCHASE, COST OF CONVERSION, COST TO BRING THE INVENTORIES TO THE PRESENT CONDITION & LOCATION ABNORMAL WASTE, STORAGE COST, ADMINISTRATIVE OVERHEADS, SELLING & DISTRIBUTION COST SPECIFIC IDENTIFICATION COST FIFO WEIGHTED AVERAGE COST FOR INVENTORIES DAMAGED or OBSOLETE ( WHOLLY/PARTLY ) or IF SELLING PRICE DECLINED BELOW COST
CASH FLOW STATEMENT - AS-3 APPLICABLE TO LISTED COMPANIES and OTHER INDUSTRIAL COMMERCIAL and BUSINESS ENTERPRISE DEALS WITH CHANGES IN NET ASSETS, FINANCIAL STRUCTURE and ITS ABILITY TO AFFECT THE AMOUNTS AND TIMING OF CASH FLOWS SO AS TO ADOPT FOR CHANGES IN CIRCUMSTANCES & OPPORTUNITIES CASH FLOW IN RESPECT OF OPERATING, INVESTING and FINANCIAL ACTIVITIES. DIRECT METHOD INDIRECT METHOD EXCHANGE RATE TO BE APPLIED AS ON THE DATE OF CASH FLOW
CONTINGENCIES and EVENTS OCCURING AFTER THE DATE OF BALANCE SHEET - AS-4 EVENTS: UPTO THE DATE OF FIN. STATEMENTS a) FURTHER EVIDENCE ADJUSTMENT OF ASSETS & LIABILITIES AS TO THE CONDITIONS b) INDICATIVE ONLY DISCLOSURE OF THE CONDITIONS
NET PROFIT/LOSS, PRIOR PERIOD ITMES & CHANGES IN ACCOUNTING POLICIES - AS -5 FACILITATES NET PROFIT/LOSS FOR THE PERIOD INCOME and EXPENSE CHANGES IN A/Cg. POLICIES PRIOR PERIOD ITEMS INTER-PERIOD and INTER-FIRM COMPARISONS SHOULD INCLUDE ALL EXPENSE/INCOME RECOGNISED; IMPACT OF EXTRA-ORDINARY ITEMS & EFFECTS ON CHANGES IN A/Cg. ESTIMATES SIZE, NATURE or THE INCIDENCE OF THEIR DISCLOSURE, IF MATERIAL FOR THE STATUTE, COMPLIANCE OF AS or APPROPRIATE PRESENTATION NATURE, AMOUNT and THEIR IMPACT ON CURRENT PROFIT/LOSS SHOULD BE DISCLOSED
DEPRECIATION ACCOUNTING - AS 6
DEPRECIATION AMOUNT METHOD OF DEPRECIATION CHANGE IN METHOD ALLOCATED ON A SYSTEMATIC BASIS TO EACH ACCOUNTING PERIOD DURING USEFUL LIFE OF THE ASSET APPLIED CONSISTENTLY FROM PERIOD TO PERIOD. ONLY IF STATUTE/AS/APP. FIN. ST. DEPN RECALCULATED FROM THE DATE OF ACQ. OF SUCH ASSET ADJ. IN CHANGED YEAR. CHANGE IN A/Cg. POLICY ITS EFFECT QUANTIFIED & DISCLOSED NET SURPLUS or DEFICIENCY HISTORICAL or OTHER COST TOTAL DEPRECIATION FOR THE PERIOD ACCUMULATED DEPN
METHODS USED, DEPN. RATE, USEFUL LIFE
CONSTRUCTION CONTRACTS - AS - 7 CONTRACT REVENUE PRICE AGREED, REVENUE AS PER ESCALATION CLAUSE, CLAIMS, REVENUE DUE TO INCREASE IN UNITS, INCENTIVE PAYMENTS ALL DIRECT COST, ATTRIBUTABLE/ALLOCATED and SPECIFIC COST AS PER CONTRACT (MINUS INCIDENTAL INCOME) IMMEDIATELY
CONTRACT COST
DISCLOSURE : ON DISPOSAL
FIN. STATEMENTS
AMOUNT OF CONTRACT REVENUE RECOGNISED, METHODS USED TO DETERMINE THE REVENUE & STAGES OF COMPLETION OF CONTRACT
9/14/2012
GOODWILL, PATENTS TRADE MARKS, DESIGNS etc. COST OF BRINGING THE ASSET TO ITS WORKING CONDITION
SELF-GENERATED ONLY DIRECT COST INCLUDED ASSET ELIMINATED PROFIT/ LOSS ON SALE OF ASSET REVALUATION ON DISPOSAL or WHEN NO FURTHER BENEFIT IS EXPECTED FROM ITS USE TO BE RECOGNISED IN P&L A/C ON RETIREMENT or ON DISPOSAL , WHICH IS CARRIED AT COST ENTIRE CLASS OF ASSETS: SELECTION SYSTEMATIC NO CREDIT OF ACC. DEPN TO P&L NET INCREASE IN B.V. REVAL. RES.
ASSETS BOUGHT CONSIDERATION APPORTIONED TO @CONSOLIDATED ASSETS ON FAIR BASIS AS DETERMINED BY VALUERS PRICE GOODWILL RECORDED ONLY WHEN SOME CONSIDERATION IN MONEY HAS BEEN PAID GROSS, NET AT BEGINNING & AT THE END OF A/C YEAR SHOWING ADDITION, DISPOSAL, ACQUISITION IN THE COURSE OF CONSTRUCTION or ACQUISITION
INFORMATION ON HISTORICAL COST REVALUED COST REVALUATION METHODS ADOPTED, INDICES USED, YEAR OF APPRAISAL, EXTL. VALUER etc
EX. DIFF. ON M -NET ACCUMULATED IN A FOREIGN CUR. TRANSLATION RESERVE TILL INV. IN NON-INTEG. DISPOSAL OF THE NET INVESTMENT FOREIGN OPERN.
B) TOTAL COST
C) NON-DEPRECIABLE ASSET CR. TO CAPITAL RESERVE ALTERNATIVELY GRANT MAY BE TREATED AS DEFERRED INNCOME & ALLOCATED IN P&L A/C OVER THE USEFUL LIFE OF THE ASSETS