ACCOUNTING STANDARDS

DEFINATION

WRITTEN STATEMENTS, ISSUED FROM TIME TO TIME, SPECIFYING UNIFORM RULES OR PRACTISE FOR DRAWING THE FINANCIAL STATEMENT

A CODE OF CONDUCT IMPOSED ON ACCOUNTANTS BY CUSTOM,LAW OR PROFESSIONAL BODY. KOHLER

NEED FOR ACCOUNTING STANDARDS

ACCOUTING IS AN INFORMATION SYSTEM AND ITS MAIN IS TO PROVIDE FINANCIAL INFORMATION TO A NUMBER OF PARTIES. GAAP IN THE FORM OF CONCEPTS AND CONVENTIONS HAVE BEEN DEVELOPED.

GAAP ALLOWS A LARGE NUMBER OF ALTERNATIVE TREATMENT FOR THA SAME ITEM.
TO HARMONISE AND STANDARDISE THESE DIVERSE ACCOUNTING POLICIES, CONCEPT OF ACCOUNTING STANDARDS CAME INTO FORCE.

NATURE OR CHARACTERISTICS OF AS

LAYS DOWN THE NORMS OF ACCOUNTING POLICIES AND PRACTISES REMOVE THE EFFECT OF DIVERSE ACCOUNTING PRACTISES AND POLICIES PREFERRED ACCOUNTING TREATMENT

INFORMATION TO THE USERS OF FS

ADVANTAGES OF AS

IMPROVE THE RELIABILTY AND CREDIBILITY OF FS ENSURE THE CONSISTENCY AND COMPARABILITY OF FS RESOLVING CONFLICT OF FINANCIAL INTEREST AMONG VARIOUS GROUP REDUCE THE CHANCES OF MANIPULATIONS AND FRAUDS HELPFUL TO AUDITORS

AS SPECIFIED BY ICAI

AS-1: DISCLOSURE OF ACCOUNTING POLICIES AS-2 : VALUATION OF INVENTORIES AS-3 : CASH FLOW STATEMENT AS-4 : CONTINGENCIES AND EVENTS OCCURING AFTER THE B/S DATE AS-5 : NET PROFIT OR LOSS FOR THE PERIOD,PRIOR PERIOD ITEMS AND CHANGE IN ACCOUNTING POLICIES AS-6 : DEPRECIATION ACCOUNTING AS-7 : A/C FOR CONSTRUCTIONS CONTRACT

AS-9 : REVENUE RECOGNITION AS-10 : A/C FOR FIXED ASSETS

AS-1 DISCLOSURE OF ACCOUNTING POLICIES

DEALS WITH DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED IN PREPARING AND PRESENTING FS ACCOUNTING POLICIES ARE THE PRINCIPLES USED FOR PREPARATION OF FS ?(EXAMPLE: DEPRECIATION)

SELECTION OF APPROPRIATE ACCOUNTING POLICIES

FACTORS ARE : PRUDENCE SUBSTANCE OVER FORM MATERIAL ITEMS

FUNDAMENTAL ACCOUNTING ASSUMPTIONS

GOING CONCERN ACCRUAL CONSISTENCY

AS-2 VALUATION OF INVENTORIES

INVENTORIED SHOULD BE VALUED AT LOWER OF COST AND NRV. COST OF INVENTORIES INCLUDE

COST OF PURCHASE COST OF CONVERSION OTHER COSTS

AS-3 CASH FLOW STATEMENT

IT REPORTS INFLOWS AND OUTFLOW OF CASH BY CLASSIFYING THEM INTO: CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES

AS-4 CONTINGENCIES AND EVENTS OCCURING AFTER B/S DATE

CONTINGENT LOSS SHOULD BE PROVIDED IN P&L A/C EVENTS THAT OCCUR BETWEEN B/S DATE AND DATE ON WHICH FS ARE APPROVED BY BOARD OF DIRECTORS

AS-5 NET P&L FOR THE PERIOD, PRIOR PERIOD ITEM AND CHANGES IN A/C POLICIES

CLASSIFICATION AND DISCLOSURE OF EXTRAORDINARY AND PRIOR PERIOD ITEMS AND DISCLOSURE OF CERTAIN ITEMS WITHIN P&L FROM ORDINARY ACTIVITIES.

Thank You