Accounting Standards

Accounting Standards
AS are nothing but written documents, policy documents issued by the Govt. or expert institutes or other regulatory body covering various aspects of recognition, measurement, treatment, presentation and disclosure of accounting transactions in the financial statements
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Objectives of Accounting Standards

Accounting standards reduce to a considerable extent or eliminate altogether wide variations in the accounting treatments used to prepare and present financial statements. Thus the basic objective of an accounting standard is to harmonize the diverse accounting practices followed in the preparation and presentation of financial statements so as to facilitate intra-firm and inter-firm comparison.

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Procedure for issue of Accounting Standards in India by ICAI

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Determination of Broad areas, by ASB, in which Accounting Standards are required

( ASB is assisted by study Groups that are constitutes to consider specific objectives )

Preparation of preliminary draft by study Groups, containing objectives, Scope, definitions, recognition and measurement principles (if any), presentation and disclosure requirements.
Considerations of preliminary draft by ASB, revision carried out, if required Draft is circulated, for comments, to council members of ICAI & other specified bodies Such as DCA,C&AG,CBDT, ICWAI,ICSI,ASSOCHAM,CII,FICCI,RBI,SEBI, CBEC, SCOPE,IBA, etc.

Meeting with the representative of specified bodies to ascertain their Views, finalization of exposure drafts by ASB
Issue of Exposure drafts, for comments, to members of ICAI, specified bodies, stock exchanges, etc

Preparation of final draft by ASB in the light of comments received

Submission to council of ICAI, consideration of the same by council, modifications carried out (if required)

Issue of accounting Standard by ICAI

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LIST OF ACCOUNTING STANDARDS IN INDIA

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 Date AS 5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies AS 6 Depreciation Accounting AS 7 Construction Contracts (revised 2002) AS 8 Accounting for Research and Development AS 9 Revenue Recognition AS 10 Accounting for Fixed Assets AS 11 The Effects of Changes in Foreign Exchange Rates (revised 2003), AS 12 Accounting for Government Grants AS 13 Accounting for Investments AS 14 Accounting for Amalgamations AS 15 (revised 2005) Employee Benefits Limited Revision to Accounting Standard (AS) 15, Employee Benefits (revised 2005) AS 15 (issued 1995)Accounting for Retirement Benefits in the Financial Statement of Employers AS 16 Borrowing Costs AS 17 Segment Reporting AS 18, Related Party Disclosures AS 19 Leases continued.
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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 and Contingent Assets AS 30 Financial Instruments: Recognition and Measurement and Limited Revisions to AS 2, AS 11 (revised 2003), AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29 AS 31, Financial Instruments: Presentation Accounting Standard (AS) 32, Financial Instruments: Disclosures, and limited revision to Accounting Standard (AS) 19, Leases

Santosh Parashar