accounts (financial unit -1) MBA.ppt semester 1x

ACCOUNTING: Analyzing, communicating, interpret the business transaction and events.

1. Course & Branch Subject Name and Code NOIDA INSTITUTE OF ENGINEERING & TECHNOLOGY GREATER NOIDA By Name of Faculty Designation Department NIET, GREATER NOIDA Lecture – 1 Topic

2. S No Content 1 Name of Subject with code, Course and Subject Teacher 2 Brief Introduction of Faculty member with Photograph 3 Evaluation Scheme 4 Syllabus 5 Branch wise Application 6 Course Objective(s) 7 Course Outcome(s) 8 Program Outcomes (POs) 9 COs and POs Mapping 10 Program Educational Objectives (PEOs) 11 Result Analysis 12 End Semester Question paper Templates 13 Prequisite/Recap Index

3. S No Content 14 Brief Indtroduction about the Subject with Videos 15 Unit Content 16 Unit Objectives 17 Topic Objectives & Topic Outcome 18 Lecture related to topic 19 Daily Quiz 20 Weekly Assignment 21 Topic Links 22 MCQs 23 Glossary Questions 24 Old question papers 25 Expected Questions 26 Recap of unit Index

4. Financial Accounting II Unit : I Vikash Barnwal Assistant Professor MBA Financial Accounting I B BA First Year – Semester 1

5. Name of Faculty : Mr . Vikash Barnwal Designation : Assistant professor Department : School of Management Email-Id : [email protected] Qualification : MBA (Finance and Marketing) B.Com (H) Specialization : Finance & Accounts Total Experience : 13 Years Education : 10 Years Industry : 03 Years Teaching Area : Accounting & Finance

6. Evaluation Scheme (Semester-I)   Sl. No.   Subject Codes   Subject Periods Evaluation Schemes End Semester   Total   Credit L T P CT TA TOTAL PS TE PE   3 WEEKS COMPULSORY INDUCTION PROGRAM 1 BBBA0105 Principles of Management 3 20 20 40 60 100 3 2 BBBA0104 Managerial Economics 3 20 20 40 60 100 3 3 BBBA0102 Financial Accounting 2 1 20 20 40 60 100 3 4 BBBA0101 Business Statistics 2 1 20 20 40 60 100 3 5 BBBA0103 Legal Aspects of Business 3 20 20 40 60 100 3 6 BBBA0106 English Language 3 20 20 40 60 100 3       TOTAL                   600 17

7. syllabus     1 Theoretical Framework Financial Accounting: Introduction, Definition, Evolution, Functions, Advantages and Limitations Users of Accounting Information, Branches of Accounting, Accounting Principles: Concepts and Conventions . Discussion, PPT 4 Hours   Present a Comparative analysis of Ind -AS and IFRS     CO1   1 Accounting Standards Accounting Standards: Meaning, Importance, List of Accounting Standards issued by ASB, Indian AS & International Financial Reporting Standards (IFRS). Discussion, PPT, 4 Hours     CO1

8. Branchwise application of financial accounting involves the systematic and detailed recording and reporting of financial transactions for different branches or segments of a company. This approach helps in understanding the performance and financial position of each branch separately, which is crucial for decision-making, resource allocation, and strategic planning. Here are the key aspects of branchwise application of financial accounting: Separate Records : Each branch maintains its own set of financial records. This includes income statements, balance sheets, cash flow statements, and other relevant financial documents. Inter-Branch Transactions : Transactions between branches need to be recorded accurately. This includes the transfer of goods, services, and funds. Proper accounting ensures that these transactions do not result in double counting or misrepresentation of financial data. Centralized Reporting : While branches maintain their own records, consolidated financial statements are prepared at the corporate level. This involves aggregating financial data from all branches to present a comprehensive view of the company's overall financial position. Performance Analysis : By maintaining separate records, companies can analyze the performance of each branch individually. This helps in identifying profitable branches, underperforming branches, and areas that require improvement . Branch Wise Application

9. Budgeting and Forecasting : Branchwise accounting facilitates more accurate budgeting and forecasting. Companies can allocate resources more effectively based on the financial performance and needs of each branch. Compliance and Auditing : Ensuring compliance with accounting standards and regulations is easier when each branch maintains its own records. Audits can be conducted at both branch and corporate levels to ensure accuracy and compliance. Internal Controls : Establishing internal controls at the branch level helps in preventing fraud, errors, and mismanagement of resources. Regular monitoring and reconciliation of branch accounts are essential for maintaining financial integrity. Cost Allocation : Costs incurred by the central office or other branches can be allocated to the respective branches based on usage or other relevant criteria. This ensures that each branch's financial statements reflect a true and fair view of its financial performance. Managerial Decision Making : Branchwise financial information supports managerial decision-making by providing insights into branch-specific issues, opportunities, and risks. Managers can make informed decisions to improve branch performance and overall profitability. Taxation : Different branches may be subject to different tax jurisdictions. Accurate branchwise accounting helps in complying with local tax regulations and optimizing the company's tax liabilities. By implementing branchwise financial accounting, companies can achieve greater transparency, accountability, and efficiency in managing their financial operations across multiple locations. Branch Wise Application

10. The objective of this course is to make students understand financial accounting theory, concepts, and practice, including final accounts, ratios, cash flow, cost of capital, capital budgeting, working capital, and operating cycle flow Course Objectives

11. Course Outcomes Bloom’s Taxonomy CO 1 Understand the concepts, principles and rules of accounting to record routine monetary transactions. routine monetary transaction Understanding (K2) CO 2 Prepare the final accounts in accordance with Generally Accepted Accounting Principles. Creating (K6) CO 3 Analyse the financial statement of companies. Analysing (K4) CO 4 Understand and Analyse the intra firm and inter firm comparison. Analysing (K4) CO 5 Analysing various sources of working capital finance to meet working capital requirement. Analysing (K4) Course Outcomes

12. Program Outcomes: PO1. Apply knowledge of management theories and practices to solve business problems. PO2. Foster analytical and critical thinking abilities for data-based decision making. PO3. Ability to develop value-based leadership ability. PO4. Ability to understand, analyze and communicate global, economic, legal, and ethical aspects of business. PO5. Ability to lead themselves and others in the achievement of organizational goals, contributing effectively to a team environment. Program Outcomes

13. S No CO/PO PO1 PO2 PO3 PO4 PO5 1 CO1 3 2 - 2 2 2 CO2 3 2 - 2 2 3 CO3 3 2 - 2 2 4 CO4 3 2 - 2 2 5 CO 5 3 2 - 2 2 Average 3 2 - 2 2 COs & POs Mapping *1=Low, *2=Medium, *3=High

14. Not Applicable Program Specific Outcome

15. NA COs & PSOs Mapping

16. Result Analysis S.NO. Subject & Code Batch Result 1 Financial Accounting-II & AMIBA0302 2022-23 100%

17. Content Meaning and Scope of Accounting: Overview of Accounting Users of Accounting Accounting Concepts and Conventions Book Keeping and Accounting Principles of Accounting Basic Accounting Terminologies Accounting Equation Overview to Depreciation(straight line and diminishing method)

18. To understand the basic theory, concepts and practice of financial accounting. To understand the preparation of accounting statements and their limitations. Objective of Unit

19. BOOK-KEEPING It is a science and art of correctly recording in books of accounts all those business transactions that result in transfer of money or moneys worth. It also focuses on classifying financial data related to business operation in order of its occurrence. Book-keeping is a mechanical task which involves: Collection of basic financial information. Identification of events and transaction with financial character Measurement of economic transactions in terms of money Recording financial effects of economic transactions in order of its occurrence. Classifying effects of economic transactions. Preparing organised statement known as trial balance Book keeping

20. In India, there are several rules which need to be followed while walking or driving on the road as it enables the smooth flow of traffic.  Similarly, there are accounting rules that an accountant should follow while recording business transactions or recording accounts. They may be termed as accounting concepts. Hence, it can be said that:  Basic of Accounting “The term accounting concepts refer to basic rules, assumptions, and principles which act as a primary  standard for recording business transactions and maintaining books of accounts”.   

21. Accounting is a systematic process of identifying recording measuring classify verifying some rising interpreter and communicating financial information. It reveals profit or loss for a given period and the value and the nature of a firm’s assets and liabilities and owners’ equity. In other words, accounting is a practice and body of knowledge concerned  primarily with Accounting definition

22. According to Bierman and Drebin : ” Accounting may be defined as identifying, measuring, recording and communicating of financial information.” According to the Committee of Terminology of American Institute of Certified Public Account: ” Accounting is the art of recording, classifying summarizing in a significant manner and in terms of money, transaction, and events which are, in part at least of a financial character and interpreting the results thereof.” Authors Difinition

23. Components of Basic Accounting Components of Basic Accounting Recording Summarising Reporting Analyzing

24. The primary function of accounting is to make records of all transactions that the firm enters into. For the purpose of recording, the accountant maintains a set of books . Their procedures are very systematic. Nowadays , the computer has been deployed to automatically account for transactions as they happen. 1. Recording :

25. Recording of transactions creates raw data. Sentences of road 8000 of little used to in organization for decision making. Pages and pages of raw data are of little use to an organization for decision making. For this reason, the accountant classifies data into categories. 3. Reporting: Management is answerable to the investor about the company’s state of affairs. The operations that are being financed with the money of owners, it needs to be periodically updated to them. For this reason, there are periodic reports annually summarising the performance of all four quarters which are sent to them. 2. Summarizing

26. 1.Identifying economic information Financing Investing operating 2.Measurement 3.Recording 4.Classifying 5.Summarising 6.Analysing 7.Intrepreting 8.Communicating FUNCTIONS OF ACCOUNTING

27. 1. To maintain a systematic record of business transactions Accounting is used to maintain a systematic record of all the financial transactions in a book of accounts. For this, all the transactions are recorded in chronological order in Journal and then posted to principle book i.e. Ledger. 2. To ascertain profit and loss Every businessman is keen to know the net results of business operations periodically. To check whether the business has earned profits or incurred losses, we prepare a “Profit & Loss Account ”. OBJECTIVES OF ACCOUNTING

28. 3. To determine the financial position Another important objective is to determine the financial position of the business to check the value of assets and liabilities. For this purpose, we prepare a “Balance Sheet”. 4. To provide information to various users Providing information to the various interested parties or stakeholders is one of the most important objectives of accounting. It helps them in making good financial decisions. 5. To assist the management By analyzing financial data and providing interpretations in the form of reports, accounting assists management in handling business operations effectively.

29. SCOPE OF ACCOUNTING

30. The scope of Accounting in personal life The financial transactions which occur in the individual life of a person are recorded properly in the books of accounts with a view to ascertaining receipts- payments and assets-liabilities. The scope of Accounting in business organizations The account is rightly called ‘Language of Business’ . The prime objective of business is to earn a profit. Financial transactions of a business concern are recorded in the books of accounts to ascertain operating results and financial position. Besides accounts of financial transactions’ of a business concern are kept properly to fulfill other objects also. The scope of Accounting in non-trading concerns Keeping accounts for non-trading concerns like, school,-college, hospital, Madarsa , Mosque, temple, church, club, association etc. is essential because financial transactions occur in these institutions also. SCOPE OF ACCOUNTING

31. The scope of Accounting in Government Offices The system of accounts is prevalent in govt. offices, courts and state-owned organizations for determining income-expenditure and proper running of administration. In preparing national planning and budget, accounting information is needed and reasons for national progress or regress can be known through interpretation and evaluation of accounting data. The scope of Accounting in professionals Professionals like doctors, engineers, advocates, actors, actresses earn by their professions. They also maintain their accounts of income and expenditure. It is mandatory for them to maintain accurate accounts of income and expenditure as they are to pay income tax. SCOPE OF ACCOUNTING

32. Accounting is a Science: Accounting has its own principles holes and techniques. On the basis of these principles of injections recorded systematically in order to know the results of a business. That’s why it is regarded as a science. Accounting is an Art : Every businessman records a business transaction in the books of accounts as per rules, according to the nature of the business and determine the results after analyzing, so it’s an art. Thus it is clear from the above discussion that accounting has the elements of both science and art. Basic Accounting: Science or Art?

33. Q: The first step in the accounting process is_______. Summarizing Interpreting Recording None of the above

34. Users of Accounting Users of Accounting Internal External User

35. Owners Owners need to assess how well their business is performing. Financial statements provide information to owners about the  profitability  of the overall business as well as individual products and geographic segments. Owners are also interested in knowing how risky their business is. Accounting information helps owners in assessing the level of stability in business over the years and to what extent have changes in economic factors affected the bottom line of the business. Such information helps owners to decide if they should invest any further in the business or if they should use their financial resources elsewhere in more promising business ventures. Internal User

36. Managers Managers need accounting information to plan, monitor and make business decisions. Managers need to allocate the financial, human and capital resources towards competing needs of the business through the budgeting process. Preparing and monitoring budgets effectively requires reliable accounting data relating to the various activities, processes, products, services, segments and departments of the business. Management requires accounting information to monitor the performance of business by comparison against past performance, competitor analysis, key performance indicators and industry benchmarks. Managers rely on accounting data to form their business decisions such as investment, financing and pricing decisions. Internal User

37. Employees For the employees operating in the finance department, using accounting information is usually part of their job description. This includes for example preparing and reviewing various financial reports such as financial statement. Employees are interested in knowing how well a company is performing as it could have implications for their job security and income. Many employees review accounting information in the annual report just to get a better understanding of the company’s business. In recent years, the increase in number of shares and share options schemes for employees particularly in startups has fostered a greater level of interest in accounting information by employees. Internal User

38. Investors Investors need to know how well their investment is performing. Investors primarily rely on the financial statements published by companies to assess the profitability, valuation and risk of their investment. Investors use accounting information to determine whether an investment is a good fit for their portfolio and whether they should hold, increase or decrease their investment. External Users of Accounting

39. Lenders Lenders use accounting information of borrowers to assess their credit worthiness, i.e. their ability to pay back any loan. Lenders offer loans and other credit facilities on terms that are based on the assessment of financial health of borrowers. Good financial health is indicated by the borrower’s ability to pay its liabilities on time, high profitability, substantial securable assets and liquidity. Poor liquidity, low profitability, lack of assets that can be secured and an inability to pay liabilities on time demonstrate poor financial health of borrower External Users of Accounting

40. Suppliers Just like lenders, suppliers need accounting information to assess the credit-worthiness of its customers before offering goods and services on credit. Some suppliers only have a handful of customers. These customers could be very large businesses themselves. Suppliers need accounting information of its key customers to assess whether their business is in good health which is necessary for sustainable business growth. External Users of Accounting

41. Auditors External auditors examine the financial statements and the underlying accounting record of businesses in order to form an audit opinion. Investors and other stakeholders rely on the independent opinion of external auditors on the accuracy of financial statements. Public General public may also be interested in accounting information of a company. These could include journalists, analysts, academics, activists and individuals with an interest in economic developments. External Users of Accounting

42. Accounting concepts define the assumptions on the basis of which financial statements of a business entity are prepared. Concepts are those basic assumptions and condition which form the basis upon which the accountancy has been laid. Business entity concept Money measurement concept Going concern concept Accounting period concept Accounting cost concept Dual aspect concept Matching concept Realisation concept Accrual concept ACCOUNTING CONCEPTS

43. Business entity concept :Business entity concept is one of the accounting concepts that states that  business and the owner are two separate entities and therefore, should be considered separate from each other . Example: Suppose Mr. Birla started a business. He invested Rs 1, 00, 000. He purchased goods for Rs 50,000, furniture for Rs . 40,000, and plant and machinery for Rs . 10,000 and Rs 2000 remained in hand. These are the assets of the business and not of the business owner. According to the business entity concept, Rs.1,00,000 will be assumed by a business as capital i.e. a liability of the business towards the owner of the business.  Now suppose, he takes away Rs . 5000 cash or goods for the same worth for his domestic purposes. This withdrawal of cash/goods by the owner from the business is his private expense and not the business expense. It is termed as Drawings. 

44. Money measurement concept: It states that a business should only record an accounting transaction if it can be expressed in terms of money . This means that the focus of accounting transactions is on quantitative information, rather than on qualitative information. For example, the sale of goods worth Rs . 10000, purchase of raw material Rs . 5000, rent paid Rs.2000 are expressed in terms of money, hence these transactions can be recorded in the books of accounts. Going concern concept: This concept assumes that the business will continue to operate and will not stop the business activities in the foreseeable future. Due to this reason, the financial statements for a particular financial period are created as a part of a series and carry the balances to the next financial period. This assumes that the non-current assets of the organization will not be sold any time soon and it will meet its obligations.

45. Accounting period concept : It states that all assets are recorded in the books of accounts at their purchase price, which includes cost of acquisition, transportation and installation and not at its market price. It means that fixed assets like building, plant and machinery, furniture, etc are recorded in the books of accounts at a price paid for them. Accounting cost concept :The cost principle is an accounting principle that  records assets at their respective cash amounts at the time the asset was purchased or acquired . The amount of the asset that is recorded may not be increased for improvements in market value or inflation, nor can it be updated to reflect any depreciation. Dual aspect concept : The dual aspect concept states that  since every transaction has a dual effect, the accounting records must reflect the same to show the accurate movement of funds . For instance, a buyer pays cash in return for a purchased item while the seller gains cash for the sold item.

46. Realisation concept : The realization principle is a concept in accounting that states that  revenue should be recognized once it is earned . This is the point at which a business can reasonably expect that the customer will pay for the goods or services. Accrual concept: A financial accounting method in which revenues and expenses are recorded when a transaction occurs rather then when money is exchange .

47. Accounting conventions are certain guidelines for complicated and unclear business transactions. While standardizing the financial reporting process, these conventions consider comparison, relevance, full disclosure of transactions, and application in financial statements. Types of Convention Consistency: Conservatism: Materiality: Full Disclosure: Accounting conventions

48. Conservatism: It tells the accountants to err on the side of caution when providing the estimates for the assets and liabilities, which means that when there are two values of a transaction available, then the always lower one should be  referred to. Consistency: A company is forced to apply the similar accounting principles across the different accounting cycles. Once this chooses a method it is urged to stick with it in the future also, unless it finds a good reason to perform it in another way. In the absence of these accounting conventions, the ability of investors to compare and assess how the company performs becomes more challenging.  Full Disclosure: Information that is considered potentially significant  and relevant is to be completely disclosed, regardless of whether it is detrimental to the company. Materiality: Similar to full disclosure, this convention also bound organizations to put down their cards on the table, meaning they need to totally disclose all the material facts about the company.  The aim behind this materiality convention is that any information that could influence the person’s decision by considering the financial statement must be included. Accounting conventions

49. Accounting principles are a set of guidelines and rules issued by accounting standards like GAAP and IFRS for the companies to follow while presenting or recording financial transactions in the books of account. This enables companies to present a true and fair view of the financial statements.  Here is the list of the top 6 accounting principles that companies follow quite often: Accrual Principle Consistency Principle Conservatism Principle Going Concern Principle Matching Principle Full Disclosure Principle Accounting Principles

50. Business Transaction: A business transaction is a financial event between two or more parties. It involves an exchange of goods, services or money and gets recorded in the books of accounts for the organizations involved. Basic Accounting Terminology

51. Capital: Capital is a critical component of any business to run its daily operations and help its future growth. The capital for a business comes either from its owners or from outsiders (shares, debentures or bonds ). Amount invested at the time of commencement Initial investment in business . Capital:

52.   Drawings refer to the withdrawals made by the owners of a business for personal use. It gets deducted from the Owner’s Capital in the Liabilities side of a Balance Sheet. Drawings – - A business car using for holiday tour Business cash using for personal use Stock : Personal use

53. Purchase is the activity of buying an item to either use it in the production of goods and services or resell it to another entity. Goods purchase Assets Purchase ( Purchase ) ( Mention Assets name ) Purchase

54. Sales is an economic activity where a business exchanges goods or services with another entity for money. It is the primary source of revenue for any organization . When Goods sold ( Mention Sale) When Assets Sold ( Mention Assets Name) Sales

55. Liability is a term in accounting that is used to describe any kind of financial obligation that a business has to pay at the end of an accounting period to a person or a business. Liabilities are settled by transferring economic benefits such as money, goods or services. Current Liabilities are the amount due to the creditors of a business that has to be paid back within twelve months. Non-Current Liabilities are the long-term obligations of a company that are not due for payment before a year. Liabilities

56. An asset is typically any useful thing or something that holds value. Most people have personal assets, like cash, savings accounts, bonds, life insurance policies, jewelry, and collectibles . Assets (Non-Current and Current) –  Current Assets are the assets that a firm can liquidate within twelve months . Non-Current Assets – Current Assets are the long-term investments of a business that they cannot liquidate within a year.

57. Fixed assets (Tangible and Intangible) –  Tangible Fixed Assets are the long-term investments of a business that have a physical existence. Intangible Fixed Assets are the long-term investments made by a company that doesn’t have a physical existence. Tangible assets : which we can touch Intangible Assets: Which we can not touch

58. Goods are the items that a company manufactures to sell to another entity in exchange for money. When an organization buys goods, it is known as purchases, and when it sells goods, it is known as sales. Goods –

59. Services are essentially intangible activities which are separately identifiable and provide satisfaction of wants. Their purchase does not result in the ownership of anything physical. Services involve an interaction to be realized between the service provider and the consumer.

60. Stock –  A stock is a financial instrument that represents the part ownership of a company. Organizations use this instrument to raise capital for their business.

61. Expense –  Expenses in accounting refer to the cost incurred or money the business owners spend to generate revenue. A business must keep its expenses under control to generate profits both in the short and long run. Income –  Income is the revenue that a business earns from the sale of its goods or services. It is essential for the survival and growth of any enterprise, and the failure to generate revenue can lead to a shutdown of the business.

62. Profit –  Profit is the positive difference between the income generated from selling goods or services and the Expenses incurred to perform that business activity. Profit is the excess of revenues over the expenses. Gain –  A Gain is an increase in the total value of an asset of a business. It takes place when the current price of the asset exceeds its original purchase price. It can occur at any time during the useful life of an asset. Loss –  Loss is the excess of the Expenses incurred from selling goods or services over the income generated to perform that business activity. Sustained losses over time can lead to the shutdown of a business organization.

63. A Voucher is an internal document that a company uses as supporting evidence for accounting entries. Businesses treat it as a redeemable transaction bond as it has a monetary value and is helpful in specific cases. An accounting voucher is any  written documentation supporting entries recorded in the accounting books . A voucher is considered a document that shows the goods purchased or the services are delivered are paid. The payments are recorded in the respective ledger accounts Voucher

64. Cash is money in the form of currency, which includes all bills, coins, and currency notes. Cash

65. The total amount of money held at the bank by a person or company, either in current or deposit accounts. Bank

66. Debtors are individuals or businesses that owe money, whether to banks or other individuals. Debtors are often called borrowers if the money owed is to a bank or financial institution, however, they are called issuers if the debt is in the form of securities. Debtors

67. Creditors are individuals or entities that have lent money to another individual or entity. They typically charge interest and the money is owed back to them. For example, a bank lending money to a person to purchase a house is a creditor.

68. Difference between Debtors and creditors

69. Prepaid income, also known as deferred income or unearned revenue It refers to money received by a company for goods or services that it has not yet delivered or performed . Prepaid Income

70. A prepaid expense is an expense that is paid for in advance. Recurring expenses such as insurance and rent can be paid for with one payment that covers the cost of the expense for several months or even a year.

71. Accrued income is revenue that's been earned, but has yet to be received. Both individuals and companies can receive accrued income Accrued Income Work done But Cash not received

72. Advance Payment

73. An accounting standard is  a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices . Accounting standards are a must to follow reporting and measurement procedures in the capital markets. This is done by establishing a single set of accounting best practices and policies that are investor-oriented, homogenous and internationally recognised. 

74. An accounting standard is  a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices . Accounting standards are a must to follow reporting and measurement procedures in the capital markets. This is done by establishing a single set of accounting best practices and policies that are investor-oriented, homogenous and internationally recognised.  Accounts Standard

75. AS 1- Accounting disclosure policies : Simply put, this standards list contains all significant accounting policies disclosures to be followed whenever a financial statement is presented or prepared. AS 2- Inventories Valuation: This standard provides accounting standards in brief and the guidelines for determining the value of the inventories reported in financial statements. They also include the process of deciding the inventory cost, the Written Down Value (WDV) and more.  AS 3- Cash Flow Statements : In these accounting standards with explanation, an enterprise's changes in the cash values or historical value changes are covered. The process of preparing the Cash Flow Statement or its changes from financing, investing, and operations are detailed here. Types of Accounting standard

76. AS 4- Balance Sheet Date, events and contingencies thereafter : This standard cover the treatment of events and contingencies that occur post the date of drawing up the  balance sheet . AS 5- Prior Period Items, Net profit & Loss in the period, and Accounting Policy changes : This standard applies to organisations when preparing the profit or loss statement occurring in the firm’s normal activities. It also includes recording prior changes or extraordinary items and the changes in accounting policies and estimates. AS 6- Depreciation Accounting : This standard is withdrawn, and matters related to depreciation are included in AS 10. AS 7- Accounting of Construction Contracts : Construction contracts are covered in these accounting standards. AS 8- Error corrections and changes in accounting policies : The changes in accounting policies and how to correct errors due to these changes are covered here. AS 9- Revenue Recognition : This standard lists how to recognise revenue in the entity’s Profit & Loss Statement . For example, the rendering of services, the sale of goods, the interest charged or paid for, dividends, royalties etc.  AS10- Plant, Property and Equipment : The accounting standard lists the accounting treatment for equipment, plant, and property, also called PPE standards. Types of Accounting standard

77. AS 11- Changes in rates of Foreign Exchange Rates : The standard deals with   accounting principles of transactions in foreign currency and the financial impact of rate changes in foreign exchange on operations and transactions. AS 12- Government Grants : Government grants are covered by this accounting standard, also called the standards for duty drawbacks, subsidies, cash incentives etc. AS 13- Investments Accounting : This accounting standard list is for investment accounting in the enterprise’s financial statements and mandatory disclosures. AS 14- Amalgamations Accounting : The standard deals with the accounting of reserves, goodwill etc., occurring in the amalgamation of firms.

78. AS 15- Employee Benefits : The standard prescribes the accounting disclosures and treatment of employee share-based payments/ benefits, not employee benefit plans. AS  16- Borrowing Costs : The borrowing costs applied are dealt with here, and it does not cover the owner’s equity costs like preference share capital which is not a liability. AS 17- Financial segments reporting :This  list of accounting standards establishes reporting principles for different financial information types, products, segments, services, enterprise produce etc. AS 18- Related party transactions disclosures: The disclosure standard is used in reporting related parties and applies to financial statements of both reporting enterprises. AS 19- Lease transactions disclosures and accounting policies This standard prescribes financial and operating leases' disclosures and accounting policies. AS 20- Earnings per share This standard deals with principles used in preparing and presenting the EPS or earnings per share on a uniform scale between enterprises for the same accounting period or for a single firm during different accounting periods.  AS 21- Consolidated Statements principles These accounting standards are about the procedures and regulations used in presenting and preparing consolidated financial statements. Consolidated accounting statements are prepared wherein the subsidiary and parent companies financial information is presented as a single economic entity. 

79. AS 22- Taxable Income Accounting : This standard is about accounting for the treatment of income taxes which may differ from the income in the financial statements. AS 23- Investments in Associates Accounting : The standard for the presentation and preparation of an investor's  Consolidated Financial Statements  (CFS) covers the investments in associates accounting principles. AS 24- Discontinuing Operations : This standard deals with the accounting principles when reporting the discontinuation of operations. This helps estimate the earnings-generating capacity, financial position, cash flows etc., by differentiating between continuing and discontinuing operations of an enterprise. AS 25- Interim Financial Reporting : The standard is applicable when a firm elects to or is required to publish its interim financial report. It helps with prescribing the principles for the measurement and recognition of interim financial statements. AS 26- Intangible Assets Accounting : AS 26 list of accounting standards deals with the intangible assets accounting treatment and refer to an organisation’s identifiable assets that are non-monetary and used or held in the supply or production of services, goods, for administrative purposes and more. 

80. AS 27- Reporting of interest in joint ventures :The AS 27 sets out the procedures and principles when accounting for a firm’s interest in joint ventures and reports liabilities, venture assets, expenses and income in the investor’s or venture’s financial statements. AS 28- Assets Impairment :The AS 28 deals with procedures that a firm applies to ensure its reported assets are not more significant than the recoverable amount. If the carrying amount is greater than the amount to be recovered by sale or use of the asset, it is considered an impaired loss/asset.  AS 29- Contingent Assets and Liabilities Provision : This standard lays out the measurement and recognition criteria/ bases for provisions applicable to contingent assets or liabilities.  AS 30 – Measurement and Recognition of Financial Instruments AS 31- Presentation of Financial Instruments AS 32- Disclosures required for reporting of Financial Instruments.

81. International Financial Reporting Standards  (IFRS) are a set of accounting standards that govern how particular types of transactions and events should be reported in financial statements. They were developed and are maintained by the International Accounting Standards Board (IASB). International Financial Reporting Standards