PRESENTED BY:

EESHA AHUJA-3
DIPTI KADU-16
AMRUTA MULAY-30
VIBHA WANAGE- 59
AMRITHA SUVARNA-60
TANVI CHHEDA- 61
Business community
across the globe needs
common accounting
language.

Difficult to compare
financial statements of
various enterprises due
to different methods &
principles.

To make these methods
& principles uniform &
comparable, standards
are evolved.

Written documents issued by the expert institutes
or other regulatory bodies covering various aspects
of measurement, treatment, presentation and
disclosure of accounting transactions.
Contain detailed rules to be adopted for accounting
treatment of various items before presentation of
financial statements.
Norms of accounting policies & practices
Furnish useful information to users of financial
statements such as shareholders, creditors,
lenders, management, competitors, researchers,
society at large.
To eradicate variations in the
treatment of accounting
aspects and make the
presentation standardized.
Harmonize diverse
accounting policies to
facilitate intra-firm & inter-
firm comparison
Bring about uniformity,
rationalization ,
comparability, transparency
& adaptability in financial
statements

Efficient functioning of economy
Financial reports should provide true & fair view
Help users for decision making purpose

SIGNIFICANCE OF AS:
Facilitate uniform preparation and reporting of
financial statements
Raise the standard of audit
Government officials find accounting reports useful
if they are concerned with economic planning,
market analysis etc.


Institute Of Chartered Accountants of India
(ICAI) constituted the Accounting Standards
Board (ASB)
While formulating the AS, the ASB gives due
consideration to International Accounting
Standards (IASs) issued by IFRSs
The AS are issued under the authority of the
Council of ICAI
ASB provides interpretations & guidance on
issues arising from AS & review them at
periodical intervals
To conceive of & suggest areas in which AS need to
be developed
To assist the Council of the ICAI in evolving and
establishing AS in India
Examine how far relevant IAS/IFRS can be adapted
To review at regular intervals, the AS as per
changing conditions & if necessary, revise the same
To provide from time to time interpretations &
guidance on AS
To carry out other functions relating to AS
No. of AS TITLE of AS
AS-1 Disclosure of accounting policies
AS-2 Valuation of inventories
AS-3 Cash flow statements
AS-4
Contingencies & events occurring after B/S date
AS-5
Net profit/loss for the period, prior period
items & changes in accounting policies
AS-6 Depreciation accounting
AS-7 Construction contracts
AS-8 Accounting for R&D
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
Accounting for retirement benefits in the
financial statements of employers
AS-16 Borrowing cost
AS-17 Segment reporting
AS-18 Related party disclosures
AS-19 leases
AS-20 Earning 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 INSTRUMENT
AS-31 FINANCIAL INSTRUMENT
PRESENTATION
Indian GAAP IAS US GAAP
Approach all inclusive all inclusive all inclusive
Comprehensive
Income
NA Is applicable Is applicable
Extraordinary
Items
Required to
present separately
from ordinary a/c
in P&L a/c
NA Is applicable same
as in Indian GAAP
Indian GAAP IAS US GAAP
Accounting
Policy
Refers to
specific
accounting
principles &
methodology of
applying them
Is similar to the
Indian GAAP
definition
Uses the term,
accounting
principles to
refer to
accounting
policy
Disclosures An entity is
required to
disclose the
accounting
policy at one
place
An entity is
required to
disclose the
accounting
policy
separately
The practice is
same as in IAS
o Deals with disclosure of significant accounting
policies followed in preparing and presenting financial
statements

o Affects the view of an enterprise statement

o Recommended translation policies in respect of
foreign currency items

o Included in annual reports to shareholders

o Facilitates a more meaningful comparison between
financial statements of different enterprises.


Determination of the value at which
inventories are carried in the financial
statements until the related revenues are
recognized.
(a) the accounting policies adopted in
measuring inventories,
including the cost formula used; and
(b) the total carrying amount of
inventories and its classification
appropriate to the enterprise
This Statement deals with depreciation accounting
and applies to all depreciable assets, except

(i) forests, plantations.
(ii) wasting asset extraction of minerals, oils,
natural gas .
(iii) expenditure on research and development.
(iv) goodwill.
(v) live stock.

Depreciation
Depreciable assets
Useful life
Depreciable amount


Gross amount of each depreciable asset
Revaluation of depreciable assets
Change in method
Revenue is the gross inflow of cash, receivables or
other consideration arising in the course of the
ordinary activities of an enterprise from the sale of
goods, from the rendering of services, and from the
use by others of enterprise resources yielding
interest, royalties and dividends.

It does not deal with revenue arising
from:

construction contracts
hire-purchase
lease agreements
government grants and other similar
subsidies
revenue of insurance companies
arising from insurance contract
Sale of Goods
Rendering of Services
Proportionate completion method
Completed service contract method
The Use by Others of Enterprise
Resources Yielding Interest, Royalties
and Dividends

It mainly deals with accounting of fixed assets like:
1. Land
2. Building
3. Plant and machinery
4. Vehicles
5. Furniture
6. Goodwill
7. Patents
8. Trademarks
9. Design.

1. Forests ,plantations and similar
regenerative natural resources.
2. Wasting fixed assets including mineral
rights, expenditure on exploration for or
the extraction of minerals, oil, natural
gas and similar non-regenerative
resources.
3. Expenditure on real estate development.
4. Livestock.

Gross and the net book values of fixed
assets at the beginning and end of an
accounting period showing additions,
disposals, acquisitions and other
movements.
Expenditure incurred on account of fixed
assets in the course of construction or
aqusition.