SUBMITTED BY:NAME 1)AFREEN SAIKH.

ROLL NO 32

2)MRITESH SONI.
3)AMIT SUTAR. 4)BHUSHAN TAWDE.

34
35 36

CONTENTS:INTRODUCTION TO ACCOUNTING STANDARS. ACCOUNTING CONCEPTS AND CONVENTIONS. DIFFERENCE B/W CONCEPTS AND CONVENTIONS

INTRODUCTION TO ACCOUNTING STANDARS

WHAT ARE ACCOUNTING STANDARDS ?

Accounting standards are written policy documents issued by expert accounting body or by Government or other regulatory body.

What these covers : Recognition Measurements Treatment Presentation Disclosure of accounting transaction in the financial statements

Objective : Is to standardized the diverse accounting polices and practices. With a view to eliminate to the extent possible the non-comparability of financial statements. Add the reliability to the financial statements.

ACCOUNTING CONCEPTS AND CONVENTIONS

ACCOUNTING CONCEPTS :In order to make the accounting language convey the same meaning to all people & to make it more meaningful, most of the accountants have agreed on a number of concepts which are usually followed for preparing the financial statements. These concepts provide a foundation for accounting process. No enterprise can prepare its financial statements without considering these concepts.

MONEY MEASUREMENT CONCEPT

Transactions of monetary nature are recorded. Transactions of qualitative nature, even though of great importance to business are not considered.

ACCOUNTING CONVENTIONS An accounting convention may be defined as a custom or generally accepted practice which is adopted either by general agreement or common consent among accountants.

DIFFERENCE B/W CONCEPTS & CONVENTIONS

BASIS ACCOUNTING CONCEPTS Established By law ACCOUNTING CONVENTIONS Guidelines based upon customs or usage Biasness in adoption

Biasness

Uniformity

No space for personal biasness in the adoption Uniform adoption

No uniform adoption

CONVENTION OF CONSISTENCY
Accounting method should remain consistent year by year. This facilitates comparison in both directions i.e. intra firm & inter firm. This does not mean that a firm cannot change the accounting methods according to the changed circumstances of the business.

MONEY MEASUREMENT CONCEPT

Money is the medium of exchange and the standard of economic value.

This concept requires that those transactions alone that are capable of being measured in terms of money are only to be recorded in the books of accounts.

ACCOUNTING EQUIVALENCE

Assets = Owners Equity + Outside Liabilities

A = OE + OL

ANY DOUBT??