PRESENTED BY:

EESHA AHUJA-3
DIPTI KADU-16
AMRUTA MULAY-30
VIBHA WANAGE- 59
AMRITHA SUVARNA-60
TANVI 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 AS TITLE of AS
AS-1 Disclosure of accounting
policies
AS-2 Valuation of inventories
AS-3 Cash flow statements
Contingencies & events occurring after B/S
AS-4 date

AS-5 Net profit/loss for the period, prior period

items & changes in accounting policies

AS-6 Depreciation accounting

AS-7 Construction contracts
AS-8 Accounting for R&D
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 Accounting for retirement benefits in the
financial statements of employers
AS-16 Borrowing cost
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 ventures
AS-29 PROVISIONS, CONTINGENT
LIABILITIES AND CONTINGENT
ASSETS
AS-30 FINANCIAL INSTRUMENT

AS-31 FINANCIAL INSTRUMENT

PRESENTATION
 Indian GAAP IAS US GAAP

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

Comprehensive NA Is applicable Is applicable

Income

Extraordinary Required to present NA Is applicable same

Items separately from as in Indian GAAP
ordinary a/c in P&L
a/c
 Indian GAAP IAS US GAAP

Accounting Refers to specific Is similar to the Uses the term,

Policy accounting Indian GAAP “accounting
principles & definition principles” to refer
methodology of to accounting
applying them policy

Disclosures An entity is An entity is The practice is

required to required to same as in IAS
disclose the disclose the
accounting policy accounting policy
at one place separately
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 classification
appropriate 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.
Depreciation
Depreciable assets
Useful life
Depreciable 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 Goods
Rendering of Services
 Proportionate completion method

 Completed service contract method

The Use by Others of Enterprise

Resources Yielding Interest, Royalties
and Dividends
It mainly deals with accounting of fixed assets like:
1. Land
2. Building
3. Plant and machinery
4. Vehicles
5. Furniture
6. Goodwill
7. Patents
8. Trademarks
9. 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.