Beruflich Dokumente
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Project Guide
Principle
(Name)
(Name)
Internal Examiner
Date:-
Acknowledgement
Through this acknowledgment, I take the opportunity to
express my sincere thanks to various teachers, friends and
colleagues for their guidance and assistance through which this
project work is completed.
At first I express my gratitude towards XXX principle of
XXX and vice-principle Shri. XXX for their teaching and
guidance of this subject research Methodology and Project Work
and inspiring all students in our class for this project work.
I also express my sincere thanks to Shri. XXX for providing
guidance for this particular project work.
I also thanks to my friends for making me aware from time to
time and guiding me for completing this project in time.
I am also thankful to administrative staff members in college
office for their co-operation.
Name: - XXX
(M.Com II)
Research Candidate
TABLE OF CONTENT
A Project Report on Comparative Study of Accounting Standard Issued
by ICAI with International Accounting Standard
SR. No.
TOPIC
PAGE NO.
Introduction
1 to 3
India
About ICAI
Standards in India
INDIAN ACCOUNTING STANDARDS
2
Introduction
4 to 12
INTERNATIONAL ACCOUNTING
STANDARDS
3
Introduction
13 to 14
Standard Board
INTERNATIONAL ACCOUNTING
4
STANDARDS
15 to 19
20 to 24
24 to 26
27
A
Project Report on
Submitted To
UNIVERSITY OF PUNE
A Report Submitted in Partial Fulfillment of the Requirement of
M.Com part II
SUBMITTED BY
Mr. XXX
Roll No. XXX
Mo No. XXX
THROUGH
XXX COLLEGE OF COMMERCE, PUNE
(2010-2011)
What are Accounting Standards:Accounting Standards are the statements of code of practice of the
regulatory accounting bodies that are to be observed in the preparation of
financial statements. In layman terms accounting standards are the written
documents issued by the experts institutes or other regulatory bodies
covering various aspects of measurement treatment, presentation and
disclosure of accounting transactions.
Who issues Accounting Standards in India:The institute of chartered Accountants of India (ICAI) reorganizing
the need to harmonies the diverse accounting policies and practices at
present in use in India constituted accounting standard board (ASB) on April
21, 1977. The main role of ASB is to formulate accounting standards from
time to time.
Procedure of formulating Accounting Standards in India:The institute of Chartered Accountant of India (ICAI) recognizing the
need to harmonize the diverse accounting policies and practices, constituted
an accounting standards boards (ASB) on April 21, 1977. The main faction
of ASB so that such standards may be mandated by the council of ICAI.
While formulating the standards in India, ASB will take into consideration
the applicable laws custom usages and business environment. ICAI is one of
the members of International Accounting Standards Committee (IASC) and
has agreed to support the objectives of IASC. ASB will give due
consideration to IAS and try to integrate them to the extent possible in light
of the considerations and practices pre-vailing in India.
The accounting standards issued will apply to General Purpose
Financial Statement this would include balance-sheet, Profit & Loss A/c and
other statement and explanatory notes which form part thereof issued for the
use of shareholders or members, Creditors, Employees and public at large.
The Accounting Standards are intended to apply only to items which are
material. The standards are generally expected to apply prospectively unless
otherwise stated.
Indian Accounting Standards:Introduction:The council of the institute of chartered accountant of India as so far
issue 32 (thirty two) accounting standard. Whoever accounting standards
8th on Accounting for research and development has been withdraw on
consequent to the issuance of accounting standard 26th Intangible
Assets thus effectively there are 31st accounting standard at present the
accounting standard issued by the ABC establish which have to be
complied so that the financial statement are prepared in accordance with
generally accepted accounting principles.
AS 1
Valuation of Inventories
AS 2
AS 3
AS 4
AS 5
AS 6
AS
(Revised)
AS 8
AS 9
AS 10
Construction Contracts
Accounting for Research and Development
Revenue Recognition
Accounting for Fixed Assets
AS
(Revised
2003)
AS 12
AS 13
AS 14
AS
(Revised
2005)
AS 16
AS 17
AS 18
AS 19
AS 20
AS 21
AS 22
11
[click
here
for
related
Borrowing Costs
Segment Reporting
Related Party Disclosures
Leases
Earnings Per Share
Consolidated Financial Statements
Accounting for taxes on income
AS 23
AS 24
Associates
in
AS 25
AS 26
Intangible Assets
AS 27
AS 28
Impairment of Assets
AS 29
AS 30
AS 31
AS 32
10
This statement dose not deals with the following aspects of revenue
recognition to which special consideration apply:
I. Revenue arising from construction contracts;
II. Revenue arising from hire-purchase, lease agreements;
III. Revenue arising from government grants & other similar subsidies;
IV. Revenue of insurance companies arising from insurance contracts.
11
12
13
14
16
International Accounting Standard Board:With a view of achieving this objective, the London based group
mainly the international committee (IASC), responsible for developing
international accounting standard was established in June 1973. it is
presently known as international accounting standard board, the IASC
comprises the professional accounting bodies of over 75 countries(including
the ICAI). Primarily, the IASC was established, in the public interest to
formulate and publish, international standard to be followed in the
presentation of audited financial statement. The member of IASC have
undertaken responsibility to support the standards promulgated by IASC and
to promulgate those standard in there respective countries.
Between 1973 & 2001, the IASC released international accounting
standard. Between 1997 & 1999, the IASC restructured there organization,
which resulted in formation of IASB. These changes came in to effect on 1 st
April 2001 subsequently, IASB issued statement about current and future
standards: IASB publishes standards in a series of pronouncements, called
international financial, reporting standards (IFRS). However, IASB has not
rejected the standards issued by the ISAC those pronouncements continue to
be designated as an international Accounting standard (IAS). The IASB
18
IAS-18: Revenue
IAS 18 on Revenue is applicable for periods beginning on or after 1 st
Jan 1995
IAS 18 prescribes accounting treatment for revenue arising from:
The sale of goods:
The rendering of services; &
The use by others of entity assets yielding interest royalties &
dividend
It excludes the treatment of revenue arising from transaction covered by
other standards or amount collected on behalf of third parties (e.g. Vat).
Summary
Revenue is measured at the fare value of the consideration received or
receivable. The consideration usually in cash. If the inflow of cash is
significant deferred, & there is below-market rate of interest or no interest,
the fare value of consideration is determined by discounting expected future
receipts. If dissimilar goods or services are exchanged (as in barter
19
IAS-16: Property, Plant and Equipment:IAS 16 on property, plant & equipment was issued in December 2003 & is
applicable to annual accounting period beginning on or after 1st Jan 2005.
IAS 16 prescribed the accounting treatment for property, plant & equipment
unless another standard requires or permit a different account treatment. For
e.g. IFRS, 5 on non current assets held for sale & discontinued operations
applies to property, plant & equipment classified as held for sale.
Summary
Property plant & equipment is initially recognized at historical cost.
Subsequent to initial recognition, property, plant & equipment are carried
either at:
Cost less accumulated deprecation & any accumulated impairment
loss, or
Revalued amount less subsequent accumulated deprecation and any
accumulated impairment loss. The revalued amount is the fare value is
at the date of revaluation.
20
21
22
23
Comparative Study:Indian
Accounting
Standards
Presentation There is no separate standard
for
disclosure.
For
And
Disclosures companies, format and
disclosure requirements are
set out under schedule VI of
the companies act.
No such requirement under
Indian GAAP.
International Accounting
Standards
IAS-1 prescribes minimum
structure
of
financial
statements and contains
guidance on disclosures.
IAS-1 requires disclosure
of critical judgments made
by management in applying
accounting policies.
24
Revenue
Recognition
on
For
multiple
element
No specific guidance in the contracts, the standard
standards.
broadly requires that each
element is fair valued and
recognized
when
the
underlying
service
is
25
performed.
mandates
Fixed Assets AS-10 recommends but does IAS-16
not
force
component component accounting.
and
Depreciation accounting.
Depreciation is based
higher of useful life
schedule XIV rates.
practice most companies
schedule XIV rates.
on Depreciation is based on
or useful life.
In
use
Under
IAS-16,
if
subsequent
costs
are
incurred for replacement of
a part of an item of fixed
asset, such costs are
required to be capitalized
and simultaneously the
replaced part has to be decapitalized.
In case of change in
method of depreciation,
IAS-16 requires effect to be
given
prospectively.
Change in method of
depreciation is treated as
change
in
accounting
estimate under IAS-16.
Revaluation is an allowed
No
need
to
update alternative
treatment
revaluation regulatory.
however; revaluation will
have to be done regularly.
Depreciation on revaluation
Depreciation on revaluation portion can be recouped out
portion cannot be recouped of revaluation reserve.
out of revaluation reserve
and will have to be changed
to the P&L account.
Provision
on
siteNo guidance in the standard. restoration and dismantling
However, guidance note on is mandatory.
oil and gas issued by ICAI
requires capitalization of site
restoration cost.
Government AS-12 requires accounting at In case of non-monitory
acquisition cost.
assets acquired at nominal
Grants
rate,
IAS-20
permits
accounting either at fair
value or at acquisition cost.
AS-12 requires enterprises to
compute
depreciation
prospectively as a result of
which the revised book value
is provided over the residual
useful life.
27
Related
Party
Disclosures
IAS-24
requires
compensation to KMPs to
be disclosed category-wise
including
share-based
payments.
party.
Transactions between state No exemption.
controlled enterprises are not
required to be disclosed
under AS-18.
Conclusion:
There are significant difference between Indian Accounting Standard
and International Accounting Standard. However, both the countries are
planning to implement IFRS to cope up with these differences.
29
Bibliography
Indian Accounting Standards and GAAP
-Dolphy DSouza.
Financial Reporting Volume 1.
WWW.ICAI.Org
32