Scribd Logo
Upload

Welcome to Scribd!

  • Ind AS Chap 1

    Uploaded by

    naguhrithu
    13 views12 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    13 views12 pages

    Ind AS Chap 1

    Uploaded by

    naguhrithu

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 12
    Moouce of ANTRODUCION TO ACCOUNTING STANDARDS i 2 Monks \. | Meaning Detinitions of Aecounting Standands a.|| Umitations ot Accounting standards 3.||Takanational Hnoncial Repoating Standoads ‘ 4. || Feotuses of TERS 5 Maoks . t| Brocess of tommulation: of Indian Auounting Standands in adio ‘ || Need tom convergence towande tilobal . Stanclande gi Benettts of Convengence with TERS : > Monks { 1. || Meaning and Applicability of Ind AS in Tn Seld = Study i w[tist of Indian Accounting Standonds (Ind As) . am || Meaning of Aecounting Standamds : Accounting standards ome set of documents that lay douin the painciplis Coveming the vamious a pa 9 Aspects Such AS mecognition , Mtasumement , pmisentotion and disclosume of Accounting tmansottion in -the -Hnoncial Statements. Objctivis of Accounting Standands : | ® Accounting standasd aims at standomdization of Accounting policits.and pmocticts with the view to Allow Compamicon of Haancial statement -tnom one | Yeon -to the othe oa tmom one Him to the otha. Ugith the incatose of inuenational iniss and +lous of tomeign -funds Sevemal_complex\tits assed which weme not dealt by accounting Standards. | ch complexitits weme, |* Complex Hnandal insimuments used tom saising_ Capital like optionally tonvembiable / tompulsom' ly _convintible | Shames/ debentumts ete, : if Dexivotive instmuments in tomeign cummency onds/ equity _ instmuments , commodity demivativis, etc. « bnoup mistau uning y businiss acquisitions... merges, demengias) slump sale , ete. i _Businiss models-and: mwenue ammangements io emenging digital economy. - Je Fanovative compensation and memuntmation models. £ as _ond impact -theneot detamination of cumment and dehamed tox. E a modes of shaneholdens investment Devaganisation “the disclosume crequitmemente in AS ome limited and the need sas +e\t_to impmove those disclosums Peciolly About ospects Mke mevenue Amansoctions:, Segment mepomting » businiss combinations, | etc. Go as to impmove ‘the quality of -Hnoncial meponting and enable investons 40 take an Raveess_of tommulation of Tadiaa Accounting Standamds in India! “The pawerse of setting Ind AS the -tollousing Stipa. ) Constitution of standemd setting body: il) Cane tution” ot! Seana seid ReS yt ewe Icar is the authomized bod: | pane oF H 05-09-9033) Susponsible tom setting ercounting standands in Indio | st has sepomate Accounting Standand Boand Ase thot | |_is sesponsibte toa doamutotion and mevision ob ||. accounting standoade. / T Fs |S} Tdentitying issues and developing standonds : | “The 9S6 identities emenging issue and owane that neqiints accounting standands to be set. The 938 blend develops a dmatt of accounting standands considening “the IFRS ond othen intanational accounting Stondands os well os local _meguiatoay. fr Zr Exposume daott and “Pubtic comment! “The ASB issues the droit Accounting | Standands as an exposune dmott tom public comment. Tnkanistid stakeholdinc \ike busintssis ,indusiaial bodits, megulatons and genimal public ame invited ‘to give’ public |_ Auedback on the dmalt standands. + Uy Analysis of public comment: | cThe ASB analysts and meviews , back | mueived trom tht stakehoidtms and makts chonges to the daott standaad ac nictssary. 5s}. Appzoval by “the council of TeAT + ‘the +inal_doott of accounting standands is |__ Submitted Ao -the council of Teal tom approval. |} Nottication by the Ministry pt tompomate Altains: Once appmoved by the TcAT the accounting standands ant Submitud +o Ministry of lompomate Adttains tom notitication. Alum which -the ctandand becames mandatemy ton all relevant enbtis. A}Pratodic meviews and snvisionr The ASB peniodically meviews and \reedd os | aevists the accounting standands to ensume that they Sremain relevant and updak taking into account iq changts tn accounting px |__| © ‘cis, busintss modults ond Need: +o _convengence towards: thlobal_Standands: Modimn economics rely on enoss-bondtn staansactions and -the 4nee How oF xe intnational capital tstorns Seck divimsitication and Invistment oppustunitiis Qeenvss the womld, while companits siaise capital, | Undintake transactions om have International: optmations and Subsidianite in multiple countaits. incotased Complicakd cnoss bomdin activities compliance, costs in maintaining multiple sets ot accounting | books tom “adian companite due to intanational operations. | — | | Applying ‘local_atrounting standands’ ted 40 a Hotally ditknent basic tom Amounts appraming th the | dinanctal statuments. ie z ae | _txample, A-company:! hos mode _non-cumaent_ lnvistments in equity instruments and thine is a trmpomany dteline in the value of invistmentst a As pen AS, ik may be requined 40 mepomt the iavistment ot cost. Whinas,as pn TERS itis mequined to meport -the invistment at tain value of the same.—Henee, chia may: lead to. recognizing losses ae: pe ‘The limitations of 95 +0 deal with sactions, ond stauctume ‘which mi to_mely on nancial intommation of Tadian_ tompany: Considiming:-the above, India made a commitment towonds the convingence of Tad AS with TERS atthe tran Summit in 2009, i ot Tatanational Tinancial “Keporting Gtandands rR)! paepanation and patsentation -of 4inancial | provide a ommon language tom busintss attainc, making ik casita tom onganisations +o prepame and iatapaet | nancial statements. paniney and ing hat _inanctal statements Accumately aetleet an organization's i | FERS ame disigned to promot Ama: Leonsiotincy inthe Sepoating of tinancial infomation , ens sinancial position: +T 1 dorw [Featumts of JERS: LeSet of giobalty accephd accounting standands fon +inancial repeating: «Pacmoks taanspameny and consistency in Hnancial Repoating. 2 Providis a common language tor Hnancial mepoating .making | ik tasien tom compasmison between alitiement omganizations- «Reqpints accrual accounting and sielevant discloscume ob | | Ainancial_intoamation: * Allows ton use of estimane and assumptions in Haancial Mepombing, but equinis “they be mtasonable and Suppoatable. * Mandatoay tom listed) companits in oven MO tountaits, including the Ev and Austnalia. Je Notuntozity adophd by mony countaitc +o enhance global || _competitiventss and invistom contdence- «can be challenging +o implement , but the long- kam benetits | ame signiticant 1 ; Benetts of IFRS * TERS pmovidis a common language toa Haancial ‘aepoatings WW -09- 2093 making it tasitm tom invistors and stakeholdias +o tompane the Hnanctal pertonmance of dit fement organization, ‘They promot imanspamincy and consishaty in Atnancial 4 Hnadetal -traud and mismonagement. |S TERS ome meguionty updakd to keep pace wth “changes fa the global, economy . ensuming -that -Kaanctal Stakments emai melevant and _meaninghl- Meaning of Tnd ast a : _Standonds but act same as’ IFRS: “They ane a i accounting ctmamewonk loased on IFRS OF eacand by the men (Mi istmy cf Componate Attains] and has cntaia cam-outs te accomeday Tndion busintss auancts [he 0 small dittemence ta meaning] re i 7 _ | Applicobliity of Ind As: McA hos notitied the _companits Ona ‘As)aults on 1h Febsieuony 2015. | Te notiked SaTad AS ond how tard down an “Ind rs oad" mop don tompanits and Non- Banting tinance _ |__ Companits excluding Banking: companits and Fesumance | “mondotoay +mansi on to. nd nd ¢ As. ‘Phase I don Notd tompanits + Thase 2 cee dete cemeenie A pir Company Rul 2015 settowing “companits line covined undim phase T tom accounting peniod beginning on om. atttn. 1S Apail QO\b with the compinativts i ee rane Ex ed don “the ptaiod ending si" Monch acl: O)companits whose equity om debt secumitits ame listed om ome Inthe pnocese of being Msted on any stock exchange ia Indio om outside Tndia and having net worth ob ups tive hundred enone om mone; ¥) companits othen-than those covemed by sub-clause ) — — Qbove and hoving net _wosth of mupes -Hve huadaed emome and mone, | 9) holding, substcioay » joint ventune on asscciate componie ot companits coved by Sub-clause (lend oub-clauce (by os Mentioned above. Phase Following companite were covimed undin Phase tom accounting piniods beginning on om oftim 12 Apa! 2017 . with che compamativiis @4 dom -the piniods tnding 315 Monch 9012! 3 ame Vaud on 9) Companiis whose equity om debt stcuni ane in the process of being Wotd on any stock exchonge in Tndio_ om outside India and having net woath of less han Dupis tive hundned enone; B)Companits othin than those Covimed tn sub-clause ta) above Le, untistd companits having net womth oF cups wo hundaed and -HHty come om moe lout Mes than supers dive hundaied emone, holding, Subsidioay , joint ventume om associate componits Ot Acompanits coumed by sub clause (0) and sub clouselb) os mentioned Qbove- Lf Notes lad AS would nok be Opplicable +o componits othe) than lishd companits whose net Worth is less thon 7250 Caomts and -they will Continue to follows AS as pen its Opplicabitity discussed above. -Howeven, “they can_voluntany adopt ind As - i - 18-09- d022 «Te is notable that the companite (Ind 45) Rule, 205, gove 0n option to ~the companits tom on ¢aaly adoption of Ind AS -tom hein -Haancial: statements tom accounting px || begining of om othn It Apzil DIS, with “the compimatives SV ES iF j don the peniode ending en 3IS¢ Monch 2015 On anytime J ctnene otha. = Key Mattias on Transition! aa ri. ____- ||) Companative nancial Inbamation a _____AIN_componits applying | EB _mrequined +40 parsent compamative intonmation os pia Ind AS tom one yeom. To tomply with this ciequinement be applicoble trom the beginning of the previous Ex company adoptid Ind AS nom 1st accounting peniod 70x 20XS Hence, _arequined “te parpone its Hast Ind as tancial statimmt| _ ton the yeom 20x4-20%5 with companativis ton the As will be considined as '* Apail 20%. BS Appltcabinitys = As ptm clauce 4 of -the obmementioned mca ame applicable 05 Specitted in those mules chal statments in accomdance & | a As ethctive aot the end of its timst ~ “Examples A_compony odopt edapes lad AS trom 1st Apa “Htnanctat ycom 2 1 20xH- R0x5 by opoiy. Buty. eteetive as on SI#t Manch 20x85, __ 3) Consistrat Application of Ind aS: | As pen ek |_Stonts following “the In caitisia spreitied, it Shall be requined to tollow “the Indian Mecounting Stondoade (ind_As)tom ali the subsequent tinancial statements even it any ___st the enitisito cpecitied Inthe Rults does aot subsequently apply to 14) lad AS applicability toa Indion gnoup

    You might also like