Indian Accounting Standard (Ind AS) 1:- Presentation of Financial Statements

Introduction
This Standard requires particular disclosures in the balance sheet (including statement of
changes in equity which is a part of the balance sheet) or in the statement of profit and loss and
requires disclosure of other line items either in those statements or in the notes.
Definitions
General purpose financial statements (referred to as financial statements) are those intended
to meet the needs of users who are not in a position to require an entity to prepare reports
tailored to their particular information needs.
Objective
This Standard prescribes the basis for presentation of general purpose financial statements to
ensure comparability both with the entitys financial statements of previous periods and with
the financial statements of other entities.
Purpose of Financial statements
Financial statements are a structured representation of the financial position and financial
performance of an entity. The objective of financial statements is to provide information about
the financial position, financial performance and cash flows of an entity that is useful to a wide
range of users in making economic decisions. Financial statements also show the results of the
managements stewardship of the resources entrusted to it.
To meet this objective, financial statements provide information about an entitys:
(a) assets (b) liabilities (c) equity (d) income and expenses, including gains and losses
(e) contributions by and distributions to owners in their capacity as owners and (f) cash flows.
A Complete Set of Financial Statements Comprises
A balance sheet as at the end of the period (including statement of changes in equity
which is presented as a part of the balance sheet)
A statement of profit and loss for the period
A statement of cash flows for the period
Notes, comprising a summary of significant accounting policies and other explanatory
information

Indian Accounting Standard (Ind AS) 2:- Inventories
Objective
The objective of this Standard is to prescribe the accounting treatment for inventories. A
primary issue in accounting for inventories is the amount of cost to be recognized as an asset
and carried forward until the related revenues are recognized.
Definitions
Inventories are assets:
Held for sale in the ordinary course of business.
In the process of production for such sale or
In the form of materials or supplies to be consumed in the production process or
in the rendering of services.
Scope
This Standard applies to all inventories, except:
Work in progress arising under construction contracts, including directly related service
contracts.
financial instruments and
biological assets (i.e., living animals or plants) related to agricultural activity and
agricultural produce at the point of harvest
This Standard does not apply to the measurement of inventories held by:
Producers of agricultural and forest products, agricultural produce after harvest,
and minerals and mineral products, to the extent that they are measured at net
realizable value in accordance with well-established practices in those industries. When
such inventories are measured at net realizable value, changes in that value are
recognized in profit or loss in the period of the change.
Commodity broker-traders who measure their inventories at fair value less costs to sell.
When such inventories are measured at fair value less costs to sell, changes in fair value
less costs to sell are recognized in profit or loss in the period of the change.
The cost of inventories shall be assigned by using the first-in, first-out (FIFO) or
weighted average cost formula.