AS 1 Disclosure of Accounting Policies

AS 2 Valuation of Inventories
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occurring 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 Construction Contracts
AS 8 Accounting for Research and Development (Withdrawn pursuant to
AS 26 becoming mandatory)
AS 9 Revenue Recognition
AS 10 Accounting for Fixed Assets
AS 11 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 Employee Benefits
AS 16 Borrowing Costs
AS 17 Segment Reporting
AS 18 Related Party Disclosures
AS 19 Leases
AS 20 Earnings Per Share
4
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 Ventures
AS 28 Impairment of Assets
AS 29 Provisions, Contingent Liabilities and Contingent Assets
AS 30 Financial Instruments: Recognition and Measurement
AS 31 Financial Instruments: Presentation
1….
1. This statement dealswith the disclosure of significant accounting policies
followed in preparing and presenting financial statements.
2. The view presented in the financial statements of an enterprise of its
state of affairs and of the profit or loss can be significantly affected by the
accounting policies followed in the preparation and presentation of the
financial
statements. The accounting policies followed vary from enterprise to
enterprise.Disclosure of significant accounting policies followed is
necessary
if the view presented is to be properly appreciated.

2. A primary issue in accounting for inventories is the determination of the

value at which inventories are carried in the financial statements until the
related revenues are recognised.This Statement dealswith the determination
of such value, including the ascertainment of cost of inventories and any
write-down thereof to net realisable value.

3. Information about the cash flows of an enterprise is useful in providing

users of financial statements with a basis to assess the ability of the
enterprise to generate cash and cash equivalents and the needs of the
enterprise to utilise those cash flows. The economic decisions that are taken
by users require an evaluation of the ability of an enterprise to generate cash
and cash equivalents and the timing and certainty of their generation.
The Statement deals with the provision of information about the historical
changes in cash and cash equivalents of an enterprise by means of a cash
flowstatementwhich classifies cash flows during the period fromoperating,
investing and financing activities.

4. The following terms are used in this Statement with the meanings
specified:
3.1 A contingency is a condition or situation, the ultimate outcome of
which, gain or loss, will be known or determined only on the occurrence, or
non-occurrence, of one or more uncertain future events.
3.2 Events occurring after the balance sheet date are those significant
events, both favourable and unfavourable, that occur between the balance
sheet date and the date on which the financial statements are approved by
the Board of Directors in the case of a company, and, by the corresponding
approving authority in the case of any other entity.

5. The objective of this Statement is to prescribe the classification and

disclosure
of certain items in the statement of profit and loss so that all enterprises
prepare and present such a statement on a uniform basis. This enhances the
comparability of the financial statements of an enterprise over time and with
the financial statements of other enterprises. Accordingly, this Statement
requires the classification and disclosure of extraordinary and prior period
items, and the disclosure of certain items within profit or loss from ordinary
activities. It also specifies the accounting treatment for changes in
accounting
estimates and the disclosures to bemade in the financial statements regarding
changes in accounting policies.

6. This Statement deals with depreciation accounting and applies to all

depreciable assets, except the following items to which special
considerations
apply:—
(i) forests, plantations and similar regenerative natural resources;
(ii) wasting assets including expenditure on the exploration for and
extraction ofminerals, oils, natural gas and similar non-regenerative
resources;
(iii) expenditure on research and development;
(iv) goodwill;
(v) live stock.
This statement also does not apply to land unless it has a limited useful life
for the enterprise.
2. Different accounting policies for depreciation are adopted by different
enterprises. Disclosure of accounting policies for depreciation followed by
an enterprise is necessary to appreciate the view presented in the financial
statements of the enterprise.

7.. The objective of this Statement is to prescribe the accounting treatment of

revenue and costs associated with construction contracts. Because of the
nature of the activity undertaken in construction contracts, the date at which
the contract activity is entered into and the datewhen the activity is
completed
usually fall into different accounting periods. Therefore, the primary issue in
accounting for construction contracts is the allocation of contract revenue
and contract costs to the accounting periods in which construction work is
performed. This Statement uses the recognition criteria established in the
Framework for the Preparation and Presentation of Financial Statements to
determine when contract revenue and contract costs should be recognised
as revenue and expenses in the statement of profit and loss. It also provides
practical guidance on the application of these criteria.

8.

9... Revenue recognition is mainly concerned with the timing of recognition

of revenue in the statement of profit and loss of an enterprise. The amount
of revenue arising on a transaction is usually determined by agreement
between the parties involved in the transaction. When uncertainties exist
regarding the determination of the amount, or its associated costs,
these uncertainties may influence the timing of revenue recognition.

10.Financial statements disclose certain information relating to fixed assets.

In many enterprises these assets are grouped into various categories, such
as land, buildings, plant andmachinery,vehicles, furniture and
fittings,goodwill,
patents, trade marks and designs.

11. The principal issues in accounting for foreign currency transactions and
foreign operations are to decide which exchange rate to use and how to
recognise in the financial statements the financial effect of changes in
exchange rates.

12. The receipt of government grants by an enterprise is significant for

preparation of the financial statements for two reasons. Firstly, if a
government
grant has been received, an appropriate method of accounting therefor is
necessary. Secondly, it is desirable to give an indication of the extent to
which the enterprise has benefited from such grant during the reporting
period. This facilitates comparison of an enterprise’s financial statements
with those
of prior periods and with those of other enterprises.

13. This Statement deals with accounting for investments in the financial
statements of enterprises and related disclosure requirements.

14. This statement deals with accounting for amalgamations and the
treatment of any resultant goodwill or reserves. This statement is directed
principally to companies although some of its requirements also apply to
financial statements of other enterprises.

15. The objective of this Statement is to prescribe the accounting and

disclosure
for employee benefits. The Statement requires an enterprise to recognise:
(a) a liability when an employee has provided service in exchange for
employee benefits to be paid in the future; and
(b) an expense when the enterprise consumes the economic benefit
arising from service provided by an employee in exchange for
employee benefits.

16. The objective of this Statement is to prescribe the accounting treatment

for
borrowing costs. The following terms are used in this Statement with the
meanings
specified:
Borrowing costs are interest and other costs incurred by an enterprise
in connection with the borrowing of funds.
A qualifying asset is an asset that necessarily takes a substantial period
of time3 to get ready for its intended use or sale.

17. The objective of this Statement is to establish principles for reporting

financial information, about the different types of products and services an
enterprise
produces and the different geographical areas in which it operates.

18. The objective of this Statement is to establish requirements for

disclosure of:
(a) related party relationships; and
(b) transactions between a reporting enterprise and its related parties.

19. The objective of this Statement is to prescribe, for lessees and lessors,
the
appropriate accounting policies and disclosures in relation to finance leases
and operating leases.
20. The objective of this Statement is to prescribe principles for the
determination
and presentation of earnings per share which will improve comparison of
performance among different enterprises for the same period and among
different accounting periods for the same enterprise. The focus of this
Statement is on the denominator of the earnings per share calculation. Even
though earnings per share data has limitations because of different
accounting
policies used for determining ‘earnings’, a consistently determined
denominator
enhances the quality of financial reporting.

21. The objective of this Statement is to lay down principles and procedures
for
preparation and presentation of consolidated financial statements.
Consolidated financial statements are presented by a parent (also known as
holding enterprise) to provide financial information about the economic
activities of its group. These statements are intended to present financial
information about a parent and its subsidiary(ies) as a single economic entity
to show the economic resources controlled by the group, the obligations of
the group and results the group achieves with its resources.

22. The objective of this Statement is to prescribe accounting treatment for

taxes
on income. Taxes on income is one of the significant items in the statement
of profit and loss of an enterprise.

23. The objective of this Statement is to set out principles and procedures for
recognising, in the consolidated financial statements, the effects of the
investments in associates on the financial position and operating results of a
group.

24. The objective of this Statement is to establish principles for reporting

information about discontinuing operations, thereby enhancing the ability of
users of financial statements to make projections of an enterprise's cash
flows, earnings-generating capacity, and financial position by segregating
information about discontinuingoperations frominformation aboutcontinuing
operations.
25. The objective of this Statement is to prescribe the minimum content of
an
interim financial report and to prescribe the principles for recognition and
measurement in a complete or condensed financial statements for an interim
period. Timely and reliable interimfinancial reporting improves the ability of
investors, creditors, and others to understand an enterprise's capacity to
generate earnings and cash flows, its financial condition and liquidity.

26. The objective of this Statement is to prescribe the accounting treatment

for
intangible assets that are not dealt with specifically in another Accounting
Standard. This Statement requires an enterprise to recognise an intangible
asset if, and only if, certain criteria are met.

27. The objective of this Statement is to set out principles and procedures for
accounting
for interests in joint ventures and reporting of joint venture assets,
liabilities, income and expenses in the financial statements of venturers and
investors.

28. The objective of this Statement is to prescribe the procedures that an

enterprise applies to ensure that its assets are carried at no more than their
recoverable amount. An asset is carried atmore than its recoverable amount
if its carrying amount exceeds the amount to be recovered through use or
sale of the asset. If this is the case, the asset is described as impaired and
this Statement requires the enterprise to recognise an impairment loss. This
Statement also specifies when an enterprise should reverse an impairment
loss and it prescribes certain disclosures for impaired assets.

29. The objective of this Statement is to ensure that appropriate recognition

criteria and measurement bases are applied to provisions and contingent
liabilities and that sufficient information is disclosed in the notes to the
financial
statements to enable users to understand their nature, timing and amount.
The objective of this Statement is also to lay down appropriate accounting
for contingent assets.

30. The objective of this Standard is to establish principles for recognising

and measuring
financial assets, financial liabilities and some contracts to buy or sell non-
financial items.

31. The objective of this Standard is to establish principles for presenting

financial
instruments as liabilities or equity and for offsetting financial assets and
financial liabilities. It
applies to the classification of financial instruments, from the perspective of
the issuer, into
financial assets, financial liabilities and equity instruments; the classification
of related interest,
dividends, losses and gains; and the circumstances in which financial assets
and financial
liabilities should be offset.

32. The objective of this Standard is to require entities to

provide disclosures in their
financial statements that enable users to evaluate:
(a) the significance of financial instruments for the entity’s
financial position
and performance; and
(b) the nature and extent of risks arising from financial
instruments to which
the entity is exposed during the period and at the reporting
date, and how
the entity manages those risks.