7 ASB 21 4 1977

Accounting standards Ted

Accounting
dards Basestandards

Ten
Indian GAAPS 7 Ind AS
Board y

IFRS US GAAPS
29 AS 41

International Fintreporting

standar .e
In chains we have Indian GAA Ps ie As

stGen AS Not in line with IFRS

2ndG en As In line with IFRS 2,4 10 126 29 20

AS arewritten policy
Docs

Docs issued by enperts Govtetc

covering Recognition Measurement

Presentation Disclosure of Accounting transactions

in the
preparation of Finan stats

As covers Gm Question
what
Define

As 9 what are the areas covered by each AS

objective why are we learning the As

Definition of important terms covered in A S

2 Scope covered
Areas not covered

by the As
Recognition criteria

whether the item of

income eupense assets Gals tobe recorded or not

4 Valuation q measurement i e the

values at which items should be recordedfor

in a PFS

g Presentation 9PM How to

present

various items in the Gprs



Disclosures in 9 Pfs i

e
disclosing

the material information for the better

understanding of GPB by the end users

9 PFS PIL Afc Balance sheet

d
General Purpose

CFS statement
of changes in
Inefffening

EWM 9 NOTES

Disclosures

Bls A L BIS A

F fired Assed XX FA XX

es Dep xx x x Prov Caron

for

Depn XX

PIL

To Purchases xx

Goods lost by By Goods dist

fire
as
free samples

Goods given By Goods given

as Donation xx as Donation

By Goods lost by fire

5 marks Question

Advantages of AS
1. Standard reduce to a reasonable extent or eliminate confusions in the
accounting treatment
2. There are certain areas where important information are not required by
law to be disclosed but standard may call for disclosure
3. It facilitates comparison of nancial statements of different companies or
enterprises at different places.
Disadvantages of A
1. It is rigid and does not allow exibility in applying standards
2. Differences in AS are bound because of differences in traditions and legal
system from one country to another
3. Standards cannot override the law
4. The choice between alternate accounting treatment in a particular situation
is eliminated.

Enterprise
Corporate Non corporate
Non
micro
SMC Sme
f f herd I heretI Level
t t
mall Large lo outfn SME SME
medium t SME
ariana
Few Asare
nua.a.su Guise
27 Enterprises
enempt
can s nasia
not mandatory enempted
Same criteria apply to all Non
only to corporates
corporates
 both
Level I i e fo G Non co
Large Enterprises
hovel I small E medium Enterprises
i e both co G Non G
Level II only Non
corporate

Categories of Enterprises to Apply Asi

Level I MonSME level I SME Level II SME
1Any enterprise listed e Turnover other than herd
inprocessof testing creed Non
or
its securities in India
op Income I I
Turnover E 50 Cr only Non Corp
or Inda entities fall here
Eq Pref Debt inRSE G 7
t
I crore
or URSE I T Act 7961
co Banks also
op covered
as per sec 44A B
of
2 Banking Insurance in the 9mm proceeding fu 18
FY 19 2 0
19J
G Finan Institutions F U
3 Turnover Etherton TIO 52A
2 Borrowings E low
i e non
op income G 7 ler
If 170 750 Crores in 3 Holding subsidiary FUL
2
f
the immediately
p ofan enterprise
satisfying any of
4 Borrowings above condition
including public
deposits E all other
Lot borrowings1 54
Borrowings 710 Cr
 rigs
at any time during the A
9 9
immediatelyproceeding LT Born
Financial year Int Acc www
O 8 Cr
AccruedG
G due
due should be
Int Int ACC
not 04 cry
conisiddened as borrowing
due
Int ace but not due to 2 Cr
s
to be ignored

5
Holding1subsidiary
of an enterprise
satisfying any ofabove
conditions I 4
Co Subsidiaries
Level I G I ane SME's
encluded
small q medium Enterprises

Trust encluded from scope of

Asby ICAI if it does not
involve in any commercial trans
even
of insignificant nature

Result in any

Even
profit or Loss
if proceeds from commercial

co op Soc
Same
for
 Pt 55
A Ltd M I C l out of 4 card fulfilled

lt Cbifts
Are L I by virtue 54
see
I bffautsetThey are

i
it becomes co
subs of A Ltd
X can't be L I
IL
y
of
because
pt 1104
fellow subsidiaries
of
A Ltd
s g not even
Can
make
Ias L
X then
L I
5 A Lid Is
L by pt 5
by pt

Changes in Levels
a From LI to L I or C II to LIII
A Ltd L I
F 4 18 19 because 170
LI
of 17 787506
170 48 Cr
even if L I
follow all AS
F 4 19 20 LI i e no to be
given
enemy
To 49 Cr
FU 20 21 LI f il il il
J
To 49 tsar
F U 21 22 LI
now emenyon will be given
in the third year
e
 enterprise LI to LI LI to LET
If an falls from or

enemp will be given if for 2 consecutive years it

remains in the same lower level

b From L E to L I or L iI to L I

A Ltd LII till Fu is 19 Energon

from A 5 3
As 7
in FU 19 Zo A Ltd LI
No
enemy given all AS
will be
to
apply from current year only
Enterprise need make not
any changes
in the statements as
past financial
some AS applicable now were enempted
earlier
Prospective
effect

d 1 List oneteneas for L I Non

enterprise Corp rate

Non SM E
Ans L I 5 cord

List the criteria for

QI non Smc
co
or Large
Ans L I scored
G3 List criteria for L I Non corporate
SME
enterprises
ans L I second

cond
Q1 list
I
the
for being a SMC
Ahs L scored
L I scored ion opposite way
og
1 Not a listed co

Hi

Not holding subsidiary Co

5 a
a
Large co
of