THE BIGGEST CHALLENGE FACED IN THE CLASS

AND HOW IT WAS HANDLED

Biggest Challenge
Biggest Challenge
 FEW STUDENTS belongs to Sanskrit Degree
oriental course

Few Belongs To Non Commerce Degrees

Few From Telugu Medium Colleges

Few Are Unable To Understand English

Biggest Challenge
 When I am dealing with chapter no 2
Accounting Standards, most of the non
commerce students felt confused to
understand the accounting policies
Biggest Challenge
 I insisted every student should bring the
printouts of allotted AS
then make them read at home and encouraged
them to discuss their doubts
for each and every student I made personal
consultation about the necessity of the
accounting standards and its uses
Biggest Challenge
 Explained about diverse accounting policies
followed by different organizations
the efforts of the accounting bodies all over
the world
the harmonization of the accounting concepts
and standards
Biggest Challenge
 Explained about how the accounting firms
manipulating the accounting policies to avoid and
evade the taxes and to increase the share value and
decrease the perceived risk
explained about the difference between LIFO FIFO,
W A M in valuation of the inventory
explained about the difference between different
depreciation methods followed by the org
Biggest Challenge
 explaining the how the provisions are made according to
conservatism concept
how the capital expenditure and revenue expenditure treated
with the help of going concern concept
how the revenues are matched with expenses with the help of
matching concept
how the cost of a asset recorded in the books of accounts with
the help of historical cost account
how are the activities of an org divided into operational
activates and financing activists and investment activities
according to IAS 3 cash flow statements
window dressing of financial statements
Biggest Challenge
 The use of Balance sheet and limitations of the final
accounts prepared under the accrual basis of
accounting
the difference between cash basis and hybrid and
accrual accounting
the difference between Indian accounting standards
and US
Accounting policies
Biggest Challenge
 1. Methods of depreciation, depletion and
amortization
2. Treatment of expenditure during construction
3. Conversion of foreign currency items
4. Valuation of inventories
5. Treatment of good will
6. Treatment of retirement benefits
7. Recognition of profit on long term contracts
8.valuation of fixed assets
9. Treatment of contingent liabilities
Biggest Challenge
 The difference between US GAAP and Indian
accounting standards

1. Reporting versus disclosure

2. Form versus substance
3.Acconting versus analysis
4.Globalization versus localization
Biggest Challenge
 The flexibilities offered by a choice of accounting treatments
distinctly diminish and even distort the comparability of
relevant information in the financial statements. Pressure of
the accounting profession to establish uniform accounting
standards led to evolution of accounting standards (AS) as
used in India and as Generally accepted accounting principles
(GAAP) in the united states of America. The international
accounting standards called international accounting
standards (IAS) to alleviate the problems faced by
multinational companies having to comply with multiple
accounting standards.