Accountig Standard (AS),IFRS , (Ind AS)

Accounting Standard,
International Financial Reporting Standards,
Indian Accounting Standards....

1. Accounting standards ( AS ) , International F inancial Reporting S tandards ( IFRS ), I ndian A ccounting S tandards ( I nd AS) Submitted By- Aatur Porwal (01) Aayushee vyas (02) Abhishek Mishra (03) Aditi Randhar (04)

2. Accounting Standards (ASs ) are written policy documents issued by expert accounting body or by Government or regulatory body. Accounting Standards (ASs) are aspects of Recognition , Measurement , Treatment , Presentation & Discloser of accounting transaction in the financial statements. In India , Accounting Standards (ASs) are issued by Accounting Standard Board (ASB) which is formed by Institute of Chartered Accountants of India (ICAI).

3. OBJECTIVES 1. To harmonise different accounting policies & practices use in a country. 2. To standarize accounting methods & procedures. 3. To reduce the accounting alternatives in the preparation of financial statements. 4. To lay down principles for preparation & presentation. 5. To establish benchmark for evaluating the quality of financial statements.

4. CONTD… 6. To ensure the users of financial statements get creditable financial information . 7. To facilitate inter-firm comparison.

5. Levels of AS Accounting standards are divided into three levels. Level I Enterprises : Enterprises which fall in any one or more of the following categories , at any time during the accounting period , are classified as Level I Enterprises. 1). Listed enterprises whether in India or outside India. 2). Enterprises proposing to list their equity or debt securities. 3). Bank including co-operative banks. 4). Financial institutions. 5). Enterprises carrying on insurance business.

6. CONTD…. 6). All commercial , industrial and business reporting enterprises , whose Turnover for the immediately preceding accounting period exceeds Rs. 50 crore . 7). All commercial , industrial and business reporting enterprises having Borrowings , including public deposits , in excess of Rs. 10 crore . 8). Holding and subsidiary of any one of the above.

7. Level II Enterprises : 1). All commercial , industrial & business reporting enterprises , whose Turnover for the immediately preceding accounting period exceeds Rs.40 lakhs but does not exceed Rs.50 crore . 2). All commercial , industrial & business reporting enterprises having Borrowings ,including public deposits , in excess of Rs. 1 crore but not excess of Rs. 10 crore . 3). Holding & subsidiary enterprises of any one of the above at any time during the accounting period.

8. Level III Enterprises : Enterprises which are not covered under Level I and II are considered as Level III enterprises .

9. Recognition of Accounting Standard Accounting Standards(ASs) issued by the ICAI have legal recognition through Companies Act,2013. 1). Section 129(1) : The financial statements of every company shall comply with the accounting standards. 2). Section 129(5) : Where the P&L A/c & the balance sheet do not comply with the accounting standards, such companies shall disclose, the following: (a) The deviation from the AS (b) The reasons for such deviation. (c) The financial effect due to such deviation.

10. CONTD …. 3). Section 134(5) : The Board’s report shall also include a Director’s Responsibility Statement indicating therein that in preparation of annual accounts, the applicable AS had been followed along with proper explanation relating to material departure.

11. List Of AS - The council of ICAI has issued 32 Accounting Standards . However , AS-8 has been withdrawn . Thus , effectively there are 31 Accounting Standards Some of them are namely : AS 1- Disclosure of Accounting policies. AS 2- Valuation of inventories. AS 3- Cash flow Statements. AS 4- Contingencies & Events Occurring after the B/S

12. IFRS is a set of international accounting standards stating how particular types of transactions & other events should be reported in financial statements. IFRS are principle-based standards, interpretations & the framework adopted by the International Accounting Standards Board(IASB). IFRS comprise of: 9-IFRS-standards issued after 2001 by IASB. 29-International Accounting Standards (IAS)-standards issued before 2001 by IASC which are still valid. 16-Interpretations issued by International Financial Reporting Interpretations committee (IFRIC) after 2001. 11-interpretations issued by Standing Interpretations Committee (SIC) before 2001.

13. Advantages I ncreased comparability of financial information . The financial reporting process would become more transparent. The standardization of accounting methodology provides creditors & investors with the ability to analyze businesses around the world using the same financial methods. Permit international capital to flow more freely. Provide better understanding to financial statements . Assess the investment opportunities .

14. List of IFRS The following International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the IASB which are in force: IAS-1 Presentation of Financial Statements IAS-2 Inventories IAS-7 Cash Flow Statements IAS-8 Accounting Policies, Changes in Accounting Estimates & Errors. IAS-10 Events After The Balance Sheet Date.

15. Cont… IFRS-1 First-time Adoption of International Financial Reporting Standards IFRS-2 Share-based Payment IFRS-3 Business Combinations IFRS-4 Insurance Contracts IFRS-5 Non-current Assets held for Sale & Discounted Operations IFRS-6 Exploration for & Evaluation of Mineral Resources IFRS-7 Financial Instrument: Disclosures

16. IND AS - Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Rules , 2015 prescribing the new Indian Accounting Standards ( Ind AS) applicable to companies /classes of companies in contrast with applicability of Accounting standard specified in Companies (Accounting Standards ) Rules , 2006

17. List of IND AS- IND AS-1 Presentation of Financial Statements. IND AS-2 Inventories. IND AS-7 Statement of Cash Flows. IND AS-8 Accounting Policies , Changes in Accounting Estimates & Errors IND AS-10 Events after the Reporting Period. IND AS-11 Construction Contracts. IND AS-12 Income Taxes.