Value Proposition canvas- Customer needs and pains
Accounting statement
1. Accounting Statement-2 (Revised)
This accounting standard is mandatory. It was made effective from 01.04.1991. The
students are required to have the knowledge of this accounting standard. The AS-2(R)
is being explained stepwise have as under:
Scope
Items such as expenses, revenues or book debts, can be recorded in the books of
accounts with a fair degree of accuracy. However, an element of subjectivity is involved
in the measurement of items such as depreciation or inventory value. Methods of valuing
inventory may vary between different businesses and even between different
undertakings within the same trade or industry. Taking all these significant aspects into
account, this Standard deals with:
(a) the determination of value at which inventories are carried until related revenues
are recognised
(b) ascertainment of cost thereof, and the
(c) circumstances in which carrying amount of inventory is written down below cost.
Inventories - defined
Inventories are assets
(a) held for sale in the ordinary course of business,
(b) in the process of production for such sale : or
(c) in the form of materials or supplies to be consumed in production process or in
the rendering of services.
The definition implies that .intangible. items of inventory, such as software held
for sale, are also included.
