Submitted To:Dr.

Vineet Chouhan

Submitted By:Divya Dhaibhai

The need to know Accounting Standards

Differences in Accounting Practices
Auditor needs to know the accounting progress AS in India is made by ICAI adopted & issued by MCA.

Accounting is undergoing change in India as per global

financial reporting It is standards off accounting provide Guidelines. To record monetary transactions into accounting entries and finally financial statements

Accounting Standards
Principles AS

Concept

Convention

AS

IAS IFRS

Ind. AS

Working of IASB
Monitoring Board
Creates Reports to

IFRS FOUNDATION
Monitors Reviews Effectiveness Funds Appoints

Appoints Informs

IFRS Advisory Committee

IASB
Creates

IFRS Interpretation Committee

IFRS

Components of Financial Statements

Balance sheet(Includes accompanying statement of

changes in Equity) Statement of profit and loss Statement of Cash flows Notes of Accounts IN SOME CASES- Balance Sheet at the beginning of Earliest Reporting period

Timeline for Adoption of IFRS-I

Phase-I:- The following categories of companies will

convert their opening balance sheets as at 1st April, 2011, if the financial year commences on or after 1st April, 2011 in compliance with the notified accounting standards which are convergent with IFRS. These companies are:a. Companies which are part of NSE Nifty 50 b. Companies which are part of BSE - Sensex 30 c. Companies whose shares or other securities are listed on stock exchanges outside India d. Companies, whether listed or not, which have a net worth in excess of Rs.1,000 crores.

Timeline for Adoption of IFRS-II

Phase-II :- The companies, whether listed or not,

having a net worth exceeding Rs. 500 crores but not exceeding Rs. 1,000 crores will convert their opening balance sheet as at 1st April, 2013, if the financial year commences on or after 1st April, 2013 in compliance with the notified accounting standards which are convergent with IFRS.

Timeline for Adoption of IFRS-III

Phase-III :- Listed companies which have a net worth

of Rs. 500 crores or less will convert their opening balance sheet as at 1st April, 2014, if the financial year commences on or after 1st April, 2014, whichever is later, in compliance with the notified accounting standards which are convergent with IFRS.

Benefits of IFRS & Converged AS

Indian International companies will be benefited
Indian accountants scope has increased. Useful in long run.

Only one set of Accounts is to be prepared for various

countries Helpful in managerial decision making.