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Accounting
Standards Summary
Objectives
- To
standardize accounting methods and procedures.
- To
lay down principles for preparation and presentation.
- To establish
benchmark for evaluating the quality of financial
statements prepared by the enterprise.
- To ensure
the users of financial statements get creditable financial
information.
- To attain
international levels in the related areas
Accounting
Standards and The Companies Act, 1956
Section
211 sub sections (3 A), (3 B) and (3 C) inserted by
the Companies Amendment Act, 1999 w.e.f. 31.10.1998:
(3A)
every P & L Account and Balance Sheet shall comply
with accounting standards,
(3
B) deviations, if any, to be disclosed with reasons
and financial effect of deviation,
(3
C) "accounting standards" means standards
of accounting recommended by ICAI or as may be prescribed
by Central Govt. in consultation with National Advisory
Committee on Accounting Standards.
Section
217 sub section (2AA) inserted by the Companies
Amendment Act, 2000 w.e.f. 13.12.2000:
(2AA)
The Board's report shall also include a Directors'
Responsibility Statement indicating therein (1) that
in preparation of annual accounts, the applicable
accounting standards had been followed along with
proper explanation relating to material departure.
Section
227 sub section (3)(d) inserted by the Finance Act,
1999 w.e.f. 31.10.1998:
(3)(d)
the auditor's report shall also state whether, in
his opinion, the P & L Account and the Balance
Sheet comply with accounting standards referred in
section 211 (3C),
(4)
where answer to (3)(d) is negative or with qualification,
it shall also state the reasons thereof.
ACCOUNTING
STANDARDS ISSUED BY ICAI:
- AS-1
DISCLOSURE OF ACCOUNTING POLICIES
- AS-2
VALUATION OF INVENTORIES
- AS-3
CASH FLOW STATEMENTS
- AS-4
CONTINGECIES AND EVENTS OCCURING AFTER THE BALANCE
SHEET DATE
- AS-5
NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS
AND CHANGES IN ACCOUNTING POLICIES
- AS-6
DEPRECIATION ACCOUNTING
- AS-7
ACCOUNTING FOR CONSTRUCTION CONTRACTS
- AS-8
ACCOUNTING FOR RESEARCH AND DEVELOPMENT
- AS-9
REVENUE RECOGNITION
- AS-10
ACCOUNTING FOR FIXED ASSETS
- AS-11
ACCOUNTING FOR THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE
RATES
- AS-12
ACCOUNTING FOR GOVERNMENT GRANTS
- AS-13
ACCOUNTING FOR INVESTMENTS
- AS-14
ACCOUNTING FOR AMALGAMATIONS
- AS-15
ACCOUNTING FOR RETIREMENT BENEFITS IN THE FINANCIAL
STATEMENTS OF EMPLOYERS
- AS-16
BORROWING COSTS
RECENTLY
ISSUED ACCOUNTING STANDARDS WITH DETAILS
- AS -
17 SEGMENT REPORTING
- AS
- 18 RELATED PARTY DISCLOSURES
- AS -
19 LEASES
- AS -
20 EARNING PER SHARE
- AS -
21 CONSOLIDATED FINANCIAL STATEMENTS
- AS -
22 ACCOUNTING FOR TAXES ON INCOME
- AS -
23 ACCOUNTING FOR INVESTMENTS IN ASSOCIATES IN CONSOLIDATED
FINANCIAL STATEMENTS
- AS -
24 DISCONTINUING OPERATIONS
- AS -
25 INTERIM FINANCIAL REPORTING
- AS -
26 INTANGIBLE ASSETS
- AS -
27 FINANCIAL REPORTING OF INTERESTS IN JOINT VENTURE
Segment
Reporting
Objectives
Provides information about the different types of
business activities in which an enterprise engages (business
segment) and the different economic environments in
which it operates (geographical segment).
This should
help users of financial statements:
- Better
understand the enterprise's performance.
- Better
assess the risks and returns of the enterprise.
- Better
assess its prospects for future net cash flows.
- Make
more informed judgements about the enterprise as a
whole.
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