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    Accounting Standard 1: By: Manju Asht Lfbaa LPU Phagwara

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    anmoldeepsingh
    - Accounting standards provide guidelines for proper accounting practices and financial reporting to achieve uniformity. They deal with financial measurement and disclosures. - The Accounting Standards Board formulates accounting standards in India considering applicable laws and environment, and integrates relevant international standards. It consults various stakeholders and finalizes standards which are then issued under ICAI council authority. - Compliance with accounting standards improves reliability and comparability of financial statements and helps accounting professionals in their work.

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    Accounting Standard 1: By: Manju Asht Lfbaa LPU Phagwara

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    anmoldeepsingh
    45 views19 pages
    - Accounting standards provide guidelines for proper accounting practices and financial reporting to achieve uniformity. They deal with financial measurement and disclosures. - The Accounting Standards Board formulates accounting standards in India considering applicable laws and environment, and integrates relevant international standards. It consults various stakeholders and finalizes standards which are then issued under ICAI council authority. - Compliance with accounting standards improves reliability and comparability of financial statements and helps accounting professionals in their work.

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    16132_AS & Depreciation

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    - Accounting standards provide guidelines for proper accounting practices and financial reporting to achieve uniformity. They deal with financial measurement and disclosures. - The Accounting Standards Board formulates accounting standards in India considering applicable laws and environment, and integrates relevant international standards. It consults various stakeholders and finalizes standards which are then issued under ICAI council authority. - Compliance with accounting standards improves reliability and comparability of financial statements and helps accounting professionals in their work.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    45 views19 pages

    Accounting Standard 1: By: Manju Asht Lfbaa LPU Phagwara

    Uploaded by

    anmoldeepsingh
    - Accounting standards provide guidelines for proper accounting practices and financial reporting to achieve uniformity. They deal with financial measurement and disclosures. - The Accounting Standards Board formulates accounting standards in India considering applicable laws and environment, and integrates relevant international standards. It consults various stakeholders and finalizes standards which are then issued under ICAI council authority. - Compliance with accounting standards improves reliability and comparability of financial statements and helps accounting professionals in their work.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 19

    ACCOUNTING STANDARD 1

    By: Manju Asht LFBAA LPU Phagwara

    Introduction
    Standards were known as principles till 1969 Standard is an agreed upon criteria of what is proper practice in a given situation They are a basis for comparison & judgment They are a point of departure when variation is justifiable by the circumstances and reported as such They are intentional and not accidental in origin

    Accounting Standards
    Accounting standards are the accounting policies or broad guidelines regarding the principles and methods to be chosen out of alternatives available They direct a high but attainable level of performance, without precluding justifiable departures and variations in the procedures employed.
    3

    Accounting standards mainly deal with


    Financial measurements Disclosures

    AS are basically used for better financial accounting and reporting. AS helps in achieving Uniformity in accounting practices.

    Nature of Accounting Standards


    AS act as guidelines and handy tools for Accountants and their work With passage of time AS are being modified, added or deleted as per needs AS consists of 3 parts
    A description of the problem Discussion of ways of solving them In the light of discussion of the prescribed solution

    Advantages of AS
    Reduction in variation: in preparing financial statements Facilitates comparison of FS of companies Improve reliability of financial statements Help accounting professionals and auditors while performing their duties. Accounting reforms Determining accounting and corporate accountability
    6

    Standard setting in India


    ASB -constituted on 21st April 1977 by ICAI to harmonize accounting policies and practices. It formulates AS considering applicable law, customs, usage and business environment ASB gives due consideration to IAS issued by IASC and try to integrate them in India. Consists of 16 members including Company Law Board, CBDT, Industry and SEBI etc
    7

    Functions of ASB
    Main function formation of AS While formulation of AS, it has to consider the law, customs, social and business environment Give due consideration to IAS and IFRS To persuade the accounting professionals to adopt them Issue guidance notes on AS Review AS from time to time

    Enforcement of Accounting Standards


    It is the duties of the appointed members of ICAI, ICWAI & ICSI to ensure that company has followed AS in FSs In case of variations, disclose such issues in their reports Earlier the AS were recommendatory but later made as mandatory with amended Cos Act.

    Enforcement is important for improving quality of presentation of FSs. AS are also applicable to non corporate entities, but still there is a controversy about applicability of AS to non corporate in India Central govt may constitute National Advisory Committee (NAC) to advice CG on AS & policies ICAI will not be the final authority for AS

    Slow progress in standard setting in India as compared to UK and USA


    Indifferent attitude of ICAI since they remain focused on conducting exam for CAs and basic activities of Audit. Standards setting programmes lacks confidence of general public for accounting issues Rigidity of accounting professionals and auditors

    Accounting professions lacks leaders who could lead the discipline in an effective way Accounting research plays an important role in the development of standards, which is extensively done in USA and UK In India not much accounting research has been done.

    Procedure for issuing AS

    Determine the broad areas in which AS needs to be formulated and its priority Get assistance from the Govt, PSU, industry, study groups, institutes and other org To prepare and issue the draft of the proposed standard which include:
    Objective of standard Scope of standard Definitions of terms used in standard Recognition and measurement principles, if applicable Presentation and disclosure requirements
    13

    The concerned groups comment on draft of proposed accounting standard. ASB considers preliminary draft prepared by the study group and if revision is required, the same is done. ASB circulates the draft for comments to council members of ICAI and other bodies like
    Deptt of Co Affairs (DCA) Comptroller and Auditor General of India (C&AG) Central Board of Direct Taxes (CBDT) ICWAI, ICSI, ASSOCAHM, CII, FICCI, RBI, SEBI, SCOPE, IBA and any other body considered relevant for the purpose

    Meeting is held by ASB to ascertain the views of draft AS. ASB finalizes the draft after taking into consideration the comments received ASB submits final draft of the proposed standard to the council of the ICAI. The council will consider the final draft, and if found necessary modify the same in consultation with ASB. The AS on the relevant subject is issued under the authority of the council
    15

    Accounting Policies
    These are specific accounting principles and methods of applying the same by the entity in the preparation and presentation of FS. For Ex: Method of depreciation, depletion Treatment of goodwill, stock Treatment of contingent liabilities Valuation of investments etc
    16

    Interpretation of AS and comparison of AS with IAS

    Refer to book pg 3.4 3.6

    AS 1 & AS 17
    Refer to Text Book pg. 3.11-3.13 Refer to Text Book Chapter Segment Reporting

    Depreciation Accounting
    Meaning Causes Methods AS 6 (Refer to Book Pg 3.31 3.34) Factors influencing selection of depreciation method

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