International accounting standards ias intro


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International accounting standards ias intro

  1. 1. An Introduction
  2. 2. Presentation of Financial Statements This standard deals with the presentation and disclosure of accounts
  3. 3. Inventories This standard deals with the valuation and disclosure of inventories and related matters
  4. 4. This standard is not followed any more. It is replaced by IAS – 27 and IAS – 28 This standard was about consolidated financial statements
  5. 5. This standard is not followed any more. It is replaced by IAS – 16 and IAS – 22 and IAS – 38 The standard was about Depreciation
  6. 6. This standard is replaced by IAS – 1 The standard was about information to be disclosed in financial statements
  7. 7. This standard is superseded by IAS – 15 The standard was about accounting responses to changing prices
  8. 8. Cash flow Statements This standard is related to the making of cash flow statement. It includes the formats and methods allowed and disclosure needed
  9. 9. Net Profit or Loss for the period, Fundamental errors and changes in accounting policies The items related to Income Statement and changes in accounting policies and methods along with the errors which are categorized as fundamental errors are included in this standard
  10. 10. Superseded by IAS – 38 The standard was about research and development cost
  11. 11. Events after the balance sheet date This standard is related to the issues that arise after the completion of balance sheet but the effect reaches to past accounting record
  12. 12. Construction Contracts This is a part of job order costing and several matters which arise because of the extension of the contracts to more than one year are included in this standard
  13. 13. Income Taxes Income tax laws may be different in countries following these standards. This standard discusses that how this matter is to be handled and how the effect of taxes is to be shown in financial statements
  14. 14. Superseded by IAS – 1 Presentation of current assets and current liabilities
  15. 15. Segment Reporting This standard deals with the reporting the company’s performance and position by segments i.e. by products, areas etc.
  16. 16. Information reflecting the effects of changing prices This standard is related to the effect of changing in prices and the impact on the organization
  17. 17. Property, Plant and Equipment It deals with the issues related to the timing of recognition of assets, their carrying amounts and depreciation charges
  18. 18. Leases This standard prescribes for lesser and lessee the appropriate accounting policies and disclosure
  19. 19. Revenue This deals with the recognition of revenue i.e. time, amount and heads which should or should not be included in the head.
  20. 20. Employee Benefits This standard is related to the accounting and disclosure of employees benefits. This contains the liability towards them and the expense related to them
  21. 21. Accounting for government grants and disclosure of government assistance Whenever there are any government grants and assistances those are to be accounted for and disclosed in a specific manner the standards deals with such accounting and disclosure.
  22. 22. The effects of changes in foreign exchange rates The enterprises dealing in foreign currency or having operations in foreign countries both are discussed in this standard.
  23. 23. Business Combinations The accounting and disclosure in case of acquisition and mergers when an acquirer can not be identified are covered in this standard.
  24. 24. Borrowing Costs The standard deals with the treatment of the borrowing cost i.e. whether it should be expensed out in the year of occurrence or conditions in which this cost can be capitalized.
  25. 25. Related Party disclosures Enterprises which are directly or indirectly controlled by reporting enterprises are considered related party and that is what is included in this standard.
  26. 26. Superseded by IAS – 29 and IAS - 30
  27. 27. Accounting and reporting by retirement benefits plans It is applicable to those enterprises where retirement benefit plans are prepared.
  28. 28. Consolidated financial statements and accounting for investments in subsidiaries It is related to the accounting presentation and disclosure of financial statements of group of enterprises working under a parent company.
  29. 29. Accounting for investments in associates This standard is related to the accounting for an investor who has made investment in associated companies
  30. 30. Financial Reporting in hyperinflationary economics This standard is only related to those countries’ economies who have hyperinflationary economies
  31. 31. Disclosure in the financial statements of banks and similar financial institutions The standard is related to the accounting and disclosure needed in the statements of banks and financial institutions
  32. 32. Financial Reporting for interest in Joint Ventures This standard is related to recording the assets, liabilities, income and expenses in the books of venturers and investors regardless of the form of the joint venture
  33. 33. Financial Instruments – Disclosure and Presentation The standard is related to all types of financial assets i.e. recognized or unrecognized. The disclosure and presentation of such financial assets is included in this standard.
  34. 34. Earnings Per Share – EPS This standard is applied to those enterprises whose shares are publicly traded and who are in the process of issuing ordinary shares.
  35. 35. Interim Financial Reporting This standard does not mention that for which companies it is mandatory to issues interim financial reports but those companies are required to publish interim financial reports whose shares are publicly traded.
  36. 36. Discontinuing Operations This standard applies to all discontinuing operations of all enterprises
  37. 37. Impairment of Assets This standard is applied to the impairment of all assets other than those which are exempted the list is provided in the standard.
  38. 38. Provisions, Contingent Liabilities and Contingent Assets All provisions, contingent liabilities and assets are to be created and maintained in the accounts of a company in the light of this standard.
  39. 39. Intangible Assets Except a few exceptions this standard is applicable to all intangible assets.
  40. 40. Financial Instruments – Recognition and Measurement This is related to recognizing the value, gain/losses on financial instruments
  41. 41. Investment Property This standard is related to recognition measurement and disclosure in investment property
  42. 42. Agriculture – Effective January 1 2003 The standard is applied to biological assets agricultural produce and products that are the result of agricultural activity.