IndianAccountingStandards(AS)

Different kinds of organizations are engaged in different kinds of business operations and they dealt with
different kind of transactions. Diverse accounting policies used by diverse entities. In order to unify and
harmonize diverse accounting policies used by diverse entities there are some legal accounting bodies which
formulates accounting standards based on applicable laws, customs, usages and changing business
environment.
In India the Institute of Chartered Accountants of India (ICAI) is a legal body which formulates accounting
standards to harmonize various accounting policies used by diverse entities in India through Accounting
StandardBoard(ASB)whichwasconstitutedbyICAIinyear1977.ASBalsotrytointegrateIndianAccounting
standards with International Accounting standards issued by International Accounting Standard Committee
(IASC)keepinginviewIndiancustomsandpractices.
UnlikeGAAPAccountingStandards(AS)arenotmandatoryinnatureforallkindsofbusinessorganizationsbut
forthosetowhichASBspecificallymentions.NormallyASisbroadlyissuedforJointStockCompaniesandnot
forsingleproprietorshipandpartnershipfirms.
29AccountingStandardshasbeenissuedbyASBsofarinlinewithInternationalAccountingStandards.Theyare
asfollows

AS1DisclosureofAccountingPolicies
AS2ValuationofInventories
AS3CashFlowStatement
AS4ContingenciesandeventsoccurringBalanceSheetdates
AS5NetProfitorLossfortheperiod,priorperiodandextraordinaryitemsandchangesinaccounting
policies.
As6DepreciationAccounting
AS7Accountingforconstructionscontracts
AS8AccountingforResearchandDevelopment
AS9RecognitionofRevenue
As10AccountingforFixedAssets
AS11AccountingforEffectofchangesinForeignExchangeRate
As12AccountingforGovernmentGrants
AS13AccountingforInvestments
AS14AccountingforAmalgamation
AS15AccountingforRetirementbenefitstoemployees
AS16AccountingforBorrowingCosts
AS17AccountingforSegmentReporting
AS18AccountingforRelatedPartyDisclosure
AS19AccountingforLeaseAgreements
AS20AccountingforcalculationofEarningperShare
AS21AccountingforpreparationofConsolidatedStatements
AS22AccountingforTaxesonIncome

AS23AccountingforInvestmentinAssociatescompaniesandconsolidatedfinancialstatements
AS24Accountingfordiscontinuingofoperations
AS25AccountingforInterimFinancialReporting
AS26AccountingforIntangibleAssets
AS27FinancialreportingofinterestsinJointVentures
AS28AccountingforImpairmentsofAssets
AS29AccountingformakingProvisions,ContingentLiabilitiesandContingentAssets.

ApartfromaboveaccountingstandardsICAIhasissuedAccountingStandardInterpretations,General
ClarificationNotes,GuidanceNote,Opinion,ConclusionnotesofSeminarstobringuniformityinpreparation
andpresentationofaccountinginformationbydiversifiedcorporateentity.

InternationalAccountingstandards(IAS)
InternationalAccountingstandards(IAS)areissuedbyInternationalAccountingStandardCommittee(IASC)in
1973.Thiscommitteewasformedbyaccountingbodiesof9countries.
Themainobjectivesofthiscommitteewastoformulateandpromotecommonaccountingstandardstobeused
bydiversifiedorganizationsworldwideinharmonizinginpreparationandpresentationoffinancialstatements.
In2001IASCwasrenamedasIASB(InternationalAccountingStandardsBoard).AndIASwerealsorenamedas
IFRS(InternationalFinancialReportingStandards).
IndiawasalsosupposedtoadoptIFRSbyApril2011onwards.AfteradoptionofIFRSallGAAPsandASwillbe
mergedwithIFRS.
Till2001total41IAShasbeenissuedbyIASB

IAS1PresentationofFinancialStatements
IAS2Inventories
IAS3ConsolidatedFinancialStatements(currentlysuspendedandmergedwithIAS27)
IAS4DepreciationAccounting(currentlysuspendedandmergedwithIAS16,22,and38)
IAS5InformationtoBeDisclosedinFinancialStatements(currentlysuspendedandmergedwithIAS1)
IAS6AccountingResponsestoChangingPrices(currentlysuspendedandmergedwithIAS15)
IAS7StatementofCashFlows
IAS8ChangesinAccountingPolicies,ChangesinAccountingEstimatesandErrors
IAS9AccountingforResearchandDevelopmentActivities(currentlysuspendedandmergedwithIAS
38)
IAS10EventsAftertheBalanceSheetDate
IAS11ConstructionContracts
IAS12IncomeTaxes
IAS13PresentationofCurrentAssetsandCurrentLiabilities(currentlysuspendedandmergedwithIAS
1)
IAS14SegmentReporting

IAS15InformationReflectingtheEffectsofChangingPrices(currentlysuspendedandmergedwithIAS
21)
IAS16Property,PlantandEquipment
IAS17Leases
IAS18Revenue
IAS19EmployeeBenefits
IAS20AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance
IAS21TheEffectsofChangesinForeignExchangeRates
IAS22BusinessCombinations
IAS23BorrowingCosts
IAS24RelatedPartyDisclosures
IAS25AccountingforInvestments(currentlysuspendedandmergedwithIAS39)
IAS26AccountingandReportingbyRetirementBenefitPlans
IAS27ConsolidatedandSeparateFinancialStatements
IAS28InvestmentsinAssociates
IAS29FinancialReportinginHyperinflationaryEconomies
IAS30DisclosuresintheFinancialStatementsofBanksandSimilarFinancialInstitutions
IAS31InterestsInJointVentures
IAS32FinancialInstruments:PresentationandDisclosure
IAS33EarningsPerShare
IAS34InterimFinancialReporting
IAS35DiscontinuingOperations
IAS36ImpairmentofAssets
IAS37Provisions,ContingentLiabilitiesandContingentAssets
IAS38IntangibleAssets
IAS39FinancialInstruments:RecognitionandMeasurement
IAS40InvestmentProperty
IAS41Agriculture

InternationalFinancialReportingStandards(IFRS)
ManyofthestandardsformingpartofIFRSareknownbytheoldernameofInternationalAccountingStandards
(IAS).
ObjectivesofIFRS;

IASwereissuedbetween1973and2001bytheBoardoftheInternationalAccountingStandards
Committee(IASC).

On1April2001,thenewIASBtookoverfromtheIASCtheresponsibilityforsettingInternational
AccountingStandards.

TheIASBhascontinuedtodevelopstandardscallingthenewstandardsIFRS.

Asinglesetofhighquality,understandableandenforceableglobalaccountingstandardsbyavoiding
plethoraofGAAPslikeUSGAAPIFRS/UKGAAP,IndianGAAP,Countryspecificaccountingstandards,

Transparentandcomparableinformationingeneralpurposefinancialstatements,

Cooperationwithnationalstandardsetterstoachieveconvergenceofaccountingstandards,

BenefitsofIFRS
Globalisationopeningofeconomies/tariffbarriers

GLOCALcompanies/MNCs

Accesstointernationalcapitalmarkets

Globallistings/overseasoperations

TheunderlyingassumptionsusedinIFRSare:
Accrualbasistheeffectoftransactionsandothereventsarerecognizedwhentheyoccur,notascash
isgainedorpaid.

Goingconcernanentitywillcontinuefortheforeseeablefuture.

Stablemeasuringunitassumption

ImportantChangesinIFRS;
Balancesheet'willbecome'statementoffinancialposition'

Incomestatement'willbecome'statementofcomprehensiveincome'

Cashflowstatement'willbecome'statementofcashflows'.

Morethan113countriesaroundtheworld,includingallofEurope,currentlyrequireorpermitIFRS
reporting.

Approximately85ofthosecountriesrequireIFRSreportingforalldomestic,listedcompanies.

Thereareover10,000Indiancompanies,includingbanksandfinancialinstitutions,whichwilladopt
IFRSby2011.

Applicability

Companieswhicharelistedorareinprocessoflisting

Banks,financialinstitutionsandinsurancecompanies

Enterpriseshavingturnover>Rs.50cr.

Enterpriseshavingborrowings>Rs.10cr.

Holding/subsidiarycompanyofanyoftheabove

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