SRI KRISHNA COLLEGE OF ARTS & SCIENCE

PRINCIPLES OF ACCOUNTANCY

ASSIGNMENT 1

TOPIC: Accounting standards of different companies listed in BSE and present a summarized report on share value.

SUBMITTED BY LOHITH P.M I B.Com A 10BCO055

ACCOUNTING STANDARDS OF RELIANCE INDUSTRIES

The following are the accounting standards issued by Institute of Chartered Accountants of India. The below are some accounting standards that are followed by Reliance Industries Limited:AS 21

This accounting standard is used for the preparation and presentation of consolidated financial statements for a group of enterprises under the control of a parent.

This accounting standard is also used for applying in accounting for investments in subsidiaries in the separate financial statements of a parent.

AS 23 This accounting standard used for applying in accounting for investments in Associates in the preparation and presentation of consolidated financial Statements by an investor. This accounting standard does not deal with accounting for investments in associates in the preparation and presentation of separate financial statements by an investor AS 18

 This accounting standard is used in reporting related party relationships and transactions between a reporting enterprise and its related parties. The requirements of this Statement apply to the financial statements of each reporting enterprise as also to consolidated financial statements presented by a holding company.

Accounting standard of Tata steel

The following are the accounting standards issued by Institute of by TATA steel Industries Limited:-

Chartered

Accountants of India. The below are some accounting standards that are followed

AS 17 This Accounting standard is applied in presenting general purpose financial statements. The requirements of this Statement are also applicable in case of consolidated financial statements.

An enterprise should comply with the requirements of this Accounting standard fully and not selectively.

If a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment

information need be presented only on the basis of the consolidated financial statements. In the context of reporting of segment information in consolidated financial statements, the references in this Statement to any financial statement items should construed to be the relevant item as appearing in the consolidated financial statements. AS 21 This accounting standard is used for the preparation and presentation of consolidated financial statements for a group of enterprises under the control of a parent.

This accounting standard is also used for applying in accounting for investments in subsidiaries in the separate financial statements of a parent.

AS 11 This accounting standard should be applied: (a) In accounting for transactions in foreign currencies; and (b) In translating the financial statements of foreign operations. This accounting standard also deals with accounting for foreign currency transactions in the nature of forward exchange contracts.

REPORT ON SHARE VALUE OF RELIANCE INDUSTRIES

Reliance Industries is a cyclic share in the stock market. It means that the share would go to the bottom and then rise to the brims. Below is the graph showing the share prices of Reliance industries which are listed on BSE.

From the above graph we can know that the current share price of the Reliance Industries is Rs. 1,072.95. The graph shows the prices of Reliance shares for the past one week from 9th July 2010 to 16th July 2010. The opening price on 9th was quoted Rs 1,060 and the closing price for the week was Rs 1,062.95. During the week, the highest price of the share was quoted at Rs 1,085 on 14th July 2010 which can be seen from the graph. The lowest price of the share came down up to Rs1, 052.40 which was on 9th July 2010. The highest volume of shares was traded on 13th July 2010 which was 6, 78,782 in number. The lowest volume of shares was traded on 15th July which was 3, 87,190 in number as received from the data in the above graph. If a person has invested Rs.1, 00,000 in the Reliance shares it would become Rs 1, 10, 939.36. within a year.

REPORT ON SHARE VALUE OF TATA STEEL INDUSTRIES

The below is the graph showing the prices of TATA steel industries which is listed in BSE.

From the above graph we can know that the current share price of the TATA Steel limited is Rs. 509.20. The graph shows the prices of TATA Steel limited shares for the past one week from 9th July 2010 to 16th July 2010. The opening price on 9th was quoted Rs 486.50 and the closing price for the week was Rs 509.20. During the week, the highest price of the share was quoted at Rs 514.90 on 14th July 2010 which can be seen from the graph. The lowest price of the share came down up to Rs 486.90 which was on 9th July 2010. The highest volume of shares was traded on 15th July 2010 which was 19, 70,819 in number. The lowest volume of shares was traded on 16th July which was 10, 67,217 in number as received from the data in the above graph. If a person has invested Rs.1, 00,000 in the TATA Steel limited shares it would become Rs 1, 32,770.71. within a year.