4. ICDS 1
(Disclosure Of Accounting Policies)
Deals with Accounting policies which contain information about
fundamental Accounting Policies
Going
Concern
Intends to
continue the
Business or
vocation
foreseeable
future
Consistency
Accounting
Policies are
consistent
from one
period to
another
period
Accrual
The
transaction,
event are
recognized
when they
occur
5. Disclosure Of Accounting Policies
• Which has material effect shall be
disclosed
Any change in AS
• Disclosed to extent Ascertainable
• If is not ascertainable wholly or
part, the fact shall be disclosed
Amount by which any
item is affected
8. Not Applicable for
1) Work-in-progress arising under “construction
contract” including directly related service
contract which is dealt with by ICDS
2) Work-in-progress which is dealt with by
other ICDS
3) Shares, debentures and other financial
instruments held as stock-in-trade which are
dealt with by ICDS
9. Contd…
4) Producer’s inventories of livestock,
agriculture and forest products, mineral oils,
ores and gases to the extent that they are
measured at net realizable value
5) Machinery spares, which can be used only in
connection with a tangible fixed asset and their
use is expected to be irregular, shall be dealt
with in accordance with ICDS
10. How the Inventory should be valued ?
Inventories shall be valued at
Cost, or NRV
whichever is lower.
NRV – Estimated selling price or expense of
particular product
12. The costs of services in case of service provider shall consist
of labour and other costs of personnel directly engaged in
providing the service including supervisory personnel and
attributable overheads