The document discusses accounting standards issued by the Institute of Chartered Accountants of India (ICAI). It provides information on the Accounting Standards Board established by ICAI and its role in preparing accounting standards for proper recognition, measurement, treatment, presentation and disclosure of accounting transactions in financial statements of organizations. The document also covers the scope and objectives of various individual accounting standards.

1. Introduction
Accounting is a language that communicates the
performance and financial position of any
organization.
The institute of chartered accountant of
India(ICAI)issued the accounting standard in
India.
The accounting standard suggest the role of
recognition Measurement, Treatement
presentation and disclosure of accounting
transaction in the financial statement of an
organization.

2. The council of Institute of Chartered
Accountant of India(ICAI) constitute the
Accounting Standard Board (ASB) in April
1977,which performs the function of
preparation of the accounting standard in
India. The ASB comprises representative from
Industries, The Central Board of Direct taxes,
the Company Law board, the Comptroller and
auditor General .

3.  Introduction
 Fundamental of accounting Assumption.
 Nature of accounting policies.
 Areas in Which Differing Accounting Policies are
Encountered.

4.  Scope.
 Objective.
 Measurement of inventories-
 Cost inventories .
 Cost purchase.
 Cost convention.
 Other cost.

5.  Definition.
 Benefit.
 Presentation of cash flow-
 Operating activities.
 Investing activities.
 Financial activities.

6.  The term “contingencies” used in this Statement is restricted
to conditions or situations at the balance sheet date, the
financial effect of which is to be determined by future events
which may or may not occur.
 The accounting treatment of a contingent loss is determined
by the expected outcome of the contingency
 Events which occur between the balance sheet date and the
date on which the financial statements are approved, may
indicate the need for adjustments to assets and liabilities as
at the balance sheet date or may require disclosure..

7.  Definitions
 The following terms are used in this Statement with the
meanings-
 Ordinary activities
 Extraordinary items
 Prior period items
 Accounting policies
 This Statement deals with, among other matters, the
disclosure of certain items of net profit or loss for the period.
These disclosures are made in addition to any other
disclosures required by other Accounting Standards

8.  Depreciation is a measure of the wearing out, consumption or other
loss of value of a depreciable asset arising from use, effluxion of
time through technology and market changes.
 Depreciable amount of a depreciable asset is its historical cost, or
other amount substituted for historical cost in the financial
statements, less the estimated residual value.
 The method of depreciation is applied consistently to provide
comparability of the results of the operations of the enterprise from
period to period.

9.  Accounting Standard (AS) 8, Accounting for
Research and Development, is withdrawn
from the date of AS 26, Intangible Assets,
becoming mandatory for respective
enterprises.

10.  Revenue is the gross inflow of cash, receivables or other
consideration arising in the course of the ordinary activities of
an enterprise from the sale of goods, from the rendering of
services, and from the use by others of enterprise resources
yielding interest, royalties and dividends.
 This Statement deals with the bases for recognition of
revenue in the statement of profit and loss of an enterprise.

11.  Fixed assets often comprise a significant portion of the total
assets of an enterprise, and therefore are important in the
presentation of financial position.
 The cost of a fixed asset should comprise its purchase price and any
attributable cost of bringing the asset to its working condition for its
intended use.
 Fixed asset should be eliminated from the financial statements on
disposal or when no further benefit is expected from its use and
disposal.

12.  An enterprise may carry on activities involving foreign
exchange in two ways.
 This Statement does not deal with the presentation in a cash
flow statement of cash flows arising from transactions in a
foreign currency .
 A foreign currency transaction should be recorded, on initial
recognition in the reporting currency, by applying to the
foreign currency amount the exchange rate between the
reporting currency and the foreign currency at the date of the
transaction.

13.  Introduction;-
 Two broad approaches may be followed for the accounting
treatment of government grants: -
 It is generally considered appropriate that accounting for
government grant should be based on the nature of the relevant
grant. Grants which have the characteristics similar to those of
promoters‟ contribution should be treated as part of shareholders‟
funds.

14.  Enterprises hold investments for diverse reasons. For some
enterprises, investment activity is a significant element of
operations, and assessment of the performance of the
enterprise may largely, or solely, depend on the reported
results of this activity.
 For current investments, any reduction to fair value and any
reversals of such reductions are included in the profit and
loss statement.
 Long-term investments are usually of individual importance
to the investing enterprise. The carrying amount of long-term
investments is therefore determined on an individual
investment basis

15.  This statement deals with accounting for amalgamations and
the treatment of any resultant goodwill or reserves. This
statement is directed principally to companies although some
of its requirements also apply to financial statements of other
enterprises.
 In the case of an „amalgamation in the nature of purchase‟,
the balance of the Profit and Loss Account appearing in the
financial statements of the transferor company, whether debit
or credit, loses its identity.

16.  The objective of this Statement is to prescribe the
accounting treatment for borrowing costs.
 This Statement does not deal with the actual or
imputed cost of owners‟ equity, including
preference share capital not classified as a
liability.
 Borrowing costs are capitalised as part of the
cost of a qualifying asset when it is probable that
they will result in future economic benefits to the
enterprise and the costs can be measured
reliably.

17.  The objective of this Statement is to establish principles for
reporting financial information, about the different types of
products and services an enterprise produces and the
different geographical areas in which it operates.
 The requirements of this Statement are also applicable in case
of consolidated financial statements.
 An enterprise should comply with the requirements of this
Statement fully and not selectively.

18.  This Statement should be applied in reporting related party
relationships and transactions between a reporting enterprise
and its related parties.
 No disclosure is required in consolidated financial statements
in respect of intra-group transactions.
 Disclosure of transactions between members of a group is
unnecessary in consolidated financial statements because
consolidated financial statements present information about
the holding and its subsidiaries as a single reporting
enterprise

19.  This Statement should be applied by enterprises whose equity
shares or potential equity shares are listed on a recognised
stock exchange in India.
 This Statement requires an enterprise to present basic and
diluted earnings per share, even if the amounts disclosed are
negative (a loss per share).
 Basic earnings per share should be calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares
outstanding during the period.

20.  This Statement should be applied in the preparation and
presentation of consolidated financial statements for a group
of enterprises under the control of a parent .
 A parent which presents consolidated financial statements
should present these statements in addition to its separate
financial statements.
 Consolidated financial statements should be prepared using
uniform accounting policies for like transactions and other
events in similar circumstances.

21.  This Statement should be applied in accounting for taxes on
income. This includes the determination of the amount of the
expense or saving related to taxes on income in respect of an
accounting period and the disclosure of such an amount in
the financial statements.
 This Statement does not specify when, or how, an enterprise
should account for taxes that are payable on distribution of
dividends and other distributions made by the enterprise.
 Tax expense for the period, comprising current tax and
deferred tax, should be included in the determination of the
net profit or loss for the period.

22.  This Statement should be applied in accounting for
investments in associates in the preparation and presentation
of consolidated financial statements by an investor.
 This Statement does not deal with accounting for investments
in associates in the preparation and presentation of separate
financial statements by an investor.

23.  This Statement applies to all discontinuing operations of an
enterprise.
 A discontinuing operation may be disposed of in its entirety or
piecemeal, but always pursuant to an overall plan to discontinue
the entire component.
 The objective of this Statement is to establish principles for
reporting information about discontinuing operations.

24.  The objective of this Statement is to prescribe the minimum
content of an interim financial report and to prescribe the
principles for recognition and measurement in a complete or
condensed financial statements for an interim period.
 This Statement does not mandate which enterprises should
be required to present interim financial reports, how
frequently, or how soon after the end of an interim period.

25.  An intangible asset is an identifiable non-monetary asset,
without physical substance, held for use in the production or
supply of goods or services, for rental to others, or for
administrative purposes.
 The definition of an intangible asset requires that an
intangible asset be identifiable.
 This Statement should not be applied to expenditure in
respect of termination benefits also.

26.  The objective of this Statement is to set out principles and
procedures for accounting for interests in joint ventures and
reporting of joint venture assets, liabilities, income and expenses
in the financial statements of ventures and investors.
 A venturer should disclose a list of all joint ventures and
description of interests in significant joint ventures.
◦ This Statement should be applied in accounting for interests in
joint ventures and the reporting of joint venture assets, liabilities,
income and expenses in the financial statements of venturers and
investors, regardless of the structures or forms under which the
joint venture activities take place.

27.  The objective of this Statement is to prescribe the procedures
that an enterprise applies to ensure that its assets are carried at
no more than their recoverable amount .
 This Statement applies to assets that are carried at cost. It also
applies to assets that are carried at revalued amounts in
accordance with other applicable Accounting Standards.
 This Statement does not permit an impairment loss to be
reversed for goodwill because of a change in estimates.

28.  This Statement applies to financial instruments (including
guarantees) that are not carried at fair value.
 This Statement defines provisions as liabilities which can be
measured only by using a substantial degree of estimation.
 This Statement should be applied in accounting for provisions and
contingent liabilities and in dealing with contingent assets.

29.  We understood the way accounting standards are created
importance of adhering to them. We then went through the
key accounting standards.
 One can see of the each accounting standards can be read
and applied on a case to case basis.
 This indeed the need for a right attitude primary stakeholders
a proactive regulator and other institutional mechanisms
intermediary and related systems.

30. THANK
YOU