Accounting Standards - PowerPoint PPT Presentation

Loading...

PPT – Accounting Standards PowerPoint presentation | free to download - id: 81990e-YWYxO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Accounting Standards

Description:

The laws/framework behind the Accounting that explains the Procedure of Accounting in different scenarios, that brings the Uniformity in Accounting i.e Accounting Standards have been discussed. The objectives, benefits & limitations of Accounting standards have also been discussed – PowerPoint PPT presentation

Number of Views:99
Updated: 3 June 2016
Slides: 29
Provided by: sandratakshila

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Accounting Standards


1
Accounting Standards
  • The laws/framework behind
  • Financial Accounting
  • Mandatory for Companies
  • Visit- http//www.takshilalearning.com
  • Youtube- https//www.youtube.com/c/takshilalearnin
    g

2
Definition
  • Written policy documents- issued by
  • Institute of chartered Accountants of India
  • Cover aspects of
  • Treatment Presentation
  • Recognition Measurement Disclosure

3
Objectives (True Fair View)
4
Benefits
  • Reduction in Confusion Easy comparison
  • Disclosure of all informations
  • ( including not required by statute)

5
Limitations
  • Alternative solutions ( difficult choice between
    standards)
  • Trend towards rigidity
  • Accounting standards cannot
    override the statute

6
Overview
  • Accounting Standards
  • Issued by ICAI Issued standards-32
  • formulated by ASB set up on
    21st April,1977
  • In force standards-31
  • Notified Standards 29 ( by
    MCA)

7
Overview
  • A draft is prepared of accounting standards after
    comments from experts of various fields.
  • Advisory committee NACAS

8
List of Accounting Standards
  • 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
  • AS-5 Net Profit or Loss for the Period, Prior
    Period Items and Changes in Accounting Policies
  • AS-6 Depreciation Accounting
  • AS-7 Accounting for Construction Contracts
  • 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

9
List of Accounting Standards
  • AS-17 Segment Reporting
  • AS-18 Related Party Disclosures
  • AS-19 Leases
  • AS-20 Earnings 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-28 Impairment of Assets
  • AS-29 Provisions, Contingent Liabilities
    Contingent Assets
  • AS-30 Financial Instruments Recognition
    Measurement
  • AS-31 Financial Instruments Presentation
  • AS-32 Financial Instruments Disclosures

10
Notes
  • AS-8 Accounting for research development
    withdrawn merged with
  • AS-26 Intangible assets
  • AS-30,31 32 Not notified by Ministry of
    corporate Affairs

11
Notes
  • Applicability of Accounting Standards depends on
    Level of Companies
  • Note Level 1 2 Small Medium Sized
    Companies

12
Notes
  • Level 1
  • Turnover(excl other income) of 50 Crores or above
  • Borrowings (incl deposits) 10 cr or more
  • Listed companies or are in process of listing.
  • Level 2
  • Turnover(excl other income) of 40 lakhs-50Cr
  • Borrowings (incl deposits) 1Cr 10 Cr.
  • Level 3
  • Companies other than in Level 1 2
  • Notes All Accounting standards are compulsory
    for Level 1 Companies.
  • AS-3,17,18,24 (only for Level 1 cos.)

13
Accounting Standard-1
  • Disclosure of Accounting Policies
  • accounting policies to be fully disclosed in the
  • notes to accounts
  • Selection of policies through -
  • Prudence, Substance over Form Materiality
  • No disclosure of Fundamental Accounting
    assumptions
  • (if followed)

14
Accounting Standard-2
  • Valuation of Inventories
  • Valuation Cost/NRV whichever is lower
  • (based on Conservatism Concept)

15
Accounting Standard-2
  • Valuation to be applied on item by item basis.
  • Cost of inventory
  • Purchase cost
  • Cost of conversion
  • Cost of bringing the goods to the present
    location of the factory
  • Net Realizable Value Realizable Value Selling
    Expenses

16
Accounting Standard-3
  • Cash Flow Statements
  • Statement showing movement of Cash in out of
    the business
  • through three activities
  • Operating Activity Financing Activity
  • Investing Activity

17
Accounting Standard-9
  • Revenue Recognition- when work completed
  • Recognition of revenue arising in the course of
    ordinary activities.
  • Sale (recognized as revenue)
  • Complete Sale Risks Rewards transferred
    Consideration fixed
  • (Delivery done) to buyer
    (guarantee of receipt)

18
Amendments
  • To bring uniformity in Accounts round the world,
  • International Financial Reporting Standards
    are being applied worldwide.
  • India not applied IFRS till now, so have issued
  • Converged AS- IND AS
  • Applicable from 1st April,2016
  • Listed Cos. and unlisted companies having
  • net worth in excess of Rupees 500 crore

19
MCQs
  • Q.1. AS-2 is on

20
MCQs
  • Q.2. Accounting Standards

21
MCQs
  • Q.3. As per AS-3, which of the following, should
    be classified as an investing activity?

22
MCQs
  • Q.4. Select the correct equation

23
MCQs
  • Q.5. Revenue is generally considered as realized.

24
MCQs
  • Q.6. The accounting standards are mandatory for

25
MCQs
  • Q.7. Provision for bad debts is the application
    of which of the following concept convention

26
MCQs
  • Q.8. As per AS-1, the fact need not be disclosed
    in the financial statements if the following
    concept is followed.

27
MCQs
  • Q.9. Economic life of an enterprise is split into
    the periodic interval as per

28
MCQs
  • Q.10. Selection of Accounting policies
    appropriation is not based on
About PowerShow.com