accountig standard (as),ifrs , (ind as)
TRANSCRIPT
![Page 1: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/1.jpg)
Accounting standards (AS) , International Financial
Reporting Standards (IFRS),Indian Accounting Standards (Ind AS)
Submitted By- Aatur Porwal (01) Aayushee vyas (02) Abhishek Mishra(03) Aditi Randhar (04)
![Page 2: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/2.jpg)
Accounting Standards (ASs) are written policy documents issued by expert accounting body or by Government or regulatory body.
Accounting Standards (ASs) are aspects of Recognition , Measurement , Treatment , Presentation & Discloser of accounting transaction in the financial statements.
In India , Accounting Standards (ASs) are issued by Accounting Standard Board (ASB) which is formed by Institute of Chartered Accountants of India (ICAI).
![Page 3: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/3.jpg)
OBJECTIVES
1. To harmonise different accounting policies & practices use in a country.
2. To standarize accounting methods & procedures.
3. To reduce the accounting alternatives in the preparation of financial statements.
4. To lay down principles for preparation & presentation.
5. To establish benchmark for evaluating the quality of financial statements.
![Page 4: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/4.jpg)
CONTD…
6. To ensure the users of financial statements get creditable financial information .
7. To facilitate inter-firm comparison.
![Page 5: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/5.jpg)
Levels of AS Accounting standards are divided into three levels.
Level I Enterprises : Enterprises which fall in any one or more of the following categories , at any time during the accounting period , are classified as Level I Enterprises.
1). Listed enterprises whether in India or outside India.
2). Enterprises proposing to list their equity or debt securities.
3). Bank including co-operative banks.
4). Financial institutions.
5). Enterprises carrying on insurance business.
![Page 6: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/6.jpg)
CONTD….
6). All commercial , industrial and business reporting enterprises , whose Turnover for the immediately preceding accounting period exceeds Rs. 50 crore.
7). All commercial , industrial and business reporting enterprises having Borrowings , including public deposits , in excess of Rs. 10 crore.
8). Holding and subsidiary of any one of the above.
![Page 7: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/7.jpg)
Level II Enterprises :
1). All commercial , industrial & business reporting enterprises , whose Turnover for the immediately preceding accounting period exceeds Rs.40 lakhs but does not exceed Rs.50 crore .
2). All commercial , industrial & business reporting enterprises having Borrowings ,including public deposits , in excess of Rs. 1 crore but not excess of Rs. 10 crore .
3). Holding & subsidiary enterprises of any one of the above at any time during the accounting period.
![Page 8: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/8.jpg)
Level III Enterprises :
Enterprises which are not covered under Level I and II are considered as Level III enterprises .
![Page 9: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/9.jpg)
Recognition of Accounting StandardAccounting Standards(ASs) issued by the ICAI have legal recognition through Companies Act,2013.
1). Section 129(1) : The financial statements of every company shall comply with the accounting standards.
2). Section 129(5) : Where the P&L A/c & the balance sheet do not comply with the accounting standards, such companies shall disclose, the following: (a) The deviation from the AS (b) The reasons for such deviation. (c) The financial effect due to such deviation.
![Page 10: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/10.jpg)
CONTD ….
3). Section 134(5) : The Board’s report shall also include a Director’s Responsibility Statement
indicating therein that in preparation of annual accounts, the applicable AS had been followed along
with proper explanation relating to material departure.
![Page 11: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/11.jpg)
List Of AS -
The council of ICAI has issued 32 Accounting Standards . However , AS-8 has been withdrawn . Thus , effectively there are 31 Accounting Standards Some of them are namely :
AS 1- Disclosure of Accounting policies.
AS 2- Valuation of inventories.
AS 3- Cash flow Statements.
AS 4- Contingencies & Events Occurring after the B/S
![Page 12: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/12.jpg)
IFRS is a set of international accounting standards stating how particular types of transactions & other events should be reported in financial statements.IFRS are principle-based standards, interpretations & the framework adopted by the International Accounting Standards Board(IASB).
IFRS comprise of: 9-IFRS-standards issued after 2001 by IASB.
29-International Accounting Standards (IAS)-standards issued before 2001 by IASC which are still valid.
16-Interpretations issued by International Financial Reporting Interpretations committee (IFRIC) after 2001.
11-interpretations issued by Standing Interpretations Committee (SIC) before 2001.
![Page 13: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/13.jpg)
Advantages
Increased comparability of financial information .
The financial reporting process would become more transparent.
The standardization of accounting methodology provides creditors & investors with the ability to analyze businesses around the world using the same financial methods.
Permit international capital to flow more freely.
Provide better understanding to financial statements .
Assess the investment opportunities .
![Page 14: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/14.jpg)
List of IFRS The following International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) issued by the IASB which are in force:
IAS-1 Presentation of Financial Statements
IAS-2 Inventories
IAS-7 Cash Flow Statements
IAS-8 Accounting Policies, Changes in Accounting Estimates & Errors.
IAS-10 Events After The Balance Sheet Date.
![Page 15: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/15.jpg)
Cont… IFRS-1 First-time Adoption of International Financial Reporting Standards
IFRS-2 Share-based Payment
IFRS-3 Business Combinations
IFRS-4 Insurance Contracts
IFRS-5 Non-current Assets held for Sale & Discounted Operations
IFRS-6 Exploration for & Evaluation of Mineral Resources
IFRS-7 Financial Instrument: Disclosures
![Page 16: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/16.jpg)
IND AS -
Ministry of Corporate Affairs (MCA) has notified Companies (Indian
Accounting Standards) Rules , 2015 prescribing the new Indian Accounting
Standards (Ind AS) applicable to companies /classes of companies in
contrast with applicability of Accounting standard specified in
Companies (Accounting Standards ) Rules , 2006
![Page 17: Accountig Standard (AS),IFRS , (Ind AS)](https://reader036.vdocuments.us/reader036/viewer/2022062316/58e73d3b1a28ab49038b54d5/html5/thumbnails/17.jpg)
List of IND AS- IND AS-1 Presentation of Financial Statements.
IND AS-2 Inventories.
IND AS-7 Statement of Cash Flows.
IND AS-8 Accounting Policies , Changes in Accounting Estimates & Errors
IND AS-10 Events after the Reporting Period.
IND AS-11 Construction Contracts.
IND AS-12 Income Taxes.