PRESENTED BY:

EESHA AHUJA-3DIPTI KADU-16

AMRUTA MULAY-30VIBHA WANAGE- 59

AMRITHA SUVARNA-60TANVI CHHEDA- 61

Business community across the globe needs common accounting language.

Difficult to compare financial statements of various enterprises due to different methods & principles.

To make these methods & principles uniform & comparable, standards are evolved.

Written documents issued by the expert institutes or other regulatory bodies covering various aspects of measurement, treatment, presentation and disclosure of accounting transactions.

Contain detailed rules to be adopted for accounting treatment of various items before presentation of financial statements.

Norms of accounting policies & practices Furnish useful information to users of financial

statements such as shareholders, creditors, lenders, management, competitors, researchers, society at large.

To eradicate variations in the treatment of accounting aspects and make the presentation standardized.

Harmonize diverse accounting policies to facilitate intra-firm & inter-firm comparison

Bring about uniformity, rationalization , comparability, transparency & adaptability in financial statements

Efficient functioning of economy Financial reports should provide true & fair view Help users for decision making purpose

SIGNIFICANCE OF AS: Facilitate uniform preparation and reporting of

financial statements Raise the standard of audit Government officials find accounting reports useful

if they are concerned with economic planning, market analysis etc.

Institute Of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB)

While formulating the AS, the ASB gives due consideration to International Accounting Standards (IASs) issued by IFRSs

The AS are issued under the authority of the Council of ICAI

ASB provides interpretations & guidance on issues arising from AS & review them at periodical intervals

To conceive of & suggest areas in which AS need to be developed

To assist the Council of the ICAI in evolving and establishing AS in India

Examine how far relevant IAS/IFRS can be adapted To review at regular intervals, the AS as per

changing conditions & if necessary, revise the same

To provide from time to time interpretations & guidance on AS

To carry out other functions relating to AS

No. of ASNo. of AS TITLE of ASTITLE of AS

AS-1AS-1 Disclosure of accounting Disclosure of accounting policiespolicies

AS-2AS-2 Valuation of inventoriesValuation of inventories

AS-3AS-3 Cash flow statementsCash flow statements

AS-4AS-4 Contingencies & events occurring after B/S Contingencies & events occurring after B/S datedate

AS-5AS-5 Net profit/loss for the period, prior Net profit/loss for the period, prior period items & changes in accounting period items & changes in accounting policiespolicies

AS-6AS-6 Depreciation accountingDepreciation accounting

AS-7AS-7 Construction contractsConstruction contracts

AS-8AS-8 Accounting for R&DAccounting for R&D

AS-9AS-9 Revenue recognitionRevenue recognition

AS-10AS-10 Accounting for fixed assetsAccounting for fixed assets

AS-11AS-11 The effects of changes in foreign exchange ratesThe effects of changes in foreign exchange rates

AS-12AS-12 Accounting for government grantsAccounting for government grants

AS-13AS-13 Accounting for investmentsAccounting for investments

AS-14AS-14 Accounting for amalgamationsAccounting for amalgamations

AS-15AS-15 Accounting for retirement benefits in the Accounting for retirement benefits in the financial statements of employersfinancial statements of employers

AS-16AS-16 Borrowing costBorrowing cost

AS-17AS-17 Segment reportingSegment reporting

AS-18AS-18 Related party disclosuresRelated party disclosures

AS-19AS-19 leasesleases

AS-20AS-20 Earning per shareEarning per share

AS-21AS-21 Consolidated financial statementsConsolidated financial statements

AS-22AS-22 Accounting for taxes on incomeAccounting for taxes on income

AS-23AS-23 Accounting for investments in Accounting for investments in associates in consolidated financial associates in consolidated financial statementsstatements

AS-24AS-24 Discontinuing operationsDiscontinuing operations

AS-25AS-25 Interim financial reportingInterim financial reporting

AS-26AS-26 Intangible assetsIntangible assets

AS-27AS-27 Financial reporting of interests in Financial reporting of interests in joint venturesjoint ventures

AS-28AS-28 Impairment of assetsImpairment of assets

AS-29AS-29 PROVISIONS, CONTINGENT PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT LIABILITIES AND CONTINGENT ASSETSASSETS

AS-30AS-30 FINANCIAL INSTRUMENTFINANCIAL INSTRUMENT

AS-31AS-31 FINANCIAL INSTRUMENT FINANCIAL INSTRUMENT PRESENTATIONPRESENTATION

Indian GAAP IAS US GAAP

Approach “all inclusive” “all inclusive” “all inclusive”

Comprehensive Income

NA Is applicable Is applicable

Extraordinary Items

Required to present separately from ordinary a/c in P&L a/c

NA Is applicable same as in Indian GAAP

Indian GAAP IAS US GAAP

Accounting Policy

Refers to specific accounting principles & methodology of applying them

Is similar to the Indian GAAP definition

Uses the term,

“accounting principles” to refer to accounting policy

Disclosures An entity is required to disclose the accounting policy at one place

An entity is required to disclose the accounting policy separately

The practice is same as in IAS

o Deals with disclosure of significant accounting policies followed in preparing and presenting financial statements

o Affects the view of an enterprise statement

o Recommended translation policies in respect of foreign currency items

o Included in annual reports to shareholders

o Facilitates a more meaningful comparison between financial statements of different enterprises.

Determination of the value at which inventories are carried in the financial statements until the related revenues are recognized.

(a) the accounting policies adopted in measuring inventories,including the cost formula used; and(b) the total carrying amount of inventories and its classificationappropriate to the enterprise

This Statement deals with depreciation accounting and applies to all depreciable assets, except

(i) forests, plantations.(ii) wasting asset extraction of minerals, oils, natural gas .(iii) expenditure on research and development.(iv) goodwill.(v) live stock.

DepreciationDepreciable assetsUseful lifeDepreciable amount

• Gross amount of each depreciable asset • Revaluation of depreciable assets• Change in method

Revenue is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of an enterprise from the sale of goods, from the rendering of services, and from the use by others of enterprise resources yielding interest, royalties and dividends.

It does not deal with revenue arising from:

• construction contracts• hire-purchase• lease agreements• government grants and other similar subsidies• revenue of insurance companies arising from insurance contract

Sale of GoodsRendering of Services Proportionate completion method Completed service contract methodThe Use by Others of Enterprise Resources Yielding Interest, Royalties and Dividends

It mainly deals with accounting of fixed assets like:1. Land2. Building3. Plant and machinery4. Vehicles5. Furniture 6. Goodwill7. Patents8. Trademarks9. Design.

1. Forests ,plantations and similar regenerative natural resources.

2. Wasting fixed assets including mineral rights, expenditure on exploration for or the extraction of minerals, oil, natural gas and similar non-regenerative resources.

3. Expenditure on real estate development.4. Livestock.

Gross and the net book values of fixed assets at the beginning and end of an accounting period showing additions, disposals, acquisitions and other movements. Expenditure incurred on account of fixed assets in the course of construction or aqusition.