The document discusses accounting standards in India. It defines accounting standards and explains that the Institute of Chartered Accountants of India (ICAI) established the Accounting Standards Board to develop such standards. It then lists some key Indian Accounting Standards (AS) such as AS-2 on inventories, AS-3 on cash flow statements, and AS-9 on revenue recognition. The document also outlines the procedure for issuing accounting standards in India and concludes that standards promote transparent financial reporting and investor confidence.

1. Kishichand Chellaram College
Bachelor in Banking and Insurance
Subject: Financial Accounts
Topic : Procedure of listing accounting
standards and list out some standards.

3. Introduction
What is accouting standards?
The term standard denotes a discipline, which provides both
guidelines and yardsticks for evaluation.
Accounting Standards are the statements of code of practice of
the regulatory accounting bodies that are to be observed in the
preparation and presentation of financial statements.
As guidelines, accounting standard provides uniform practices
and common techniques of accounting. As a general rule,
accounting standards are applicable to all corporate enterprises.

4. The Institute of Chartered Accountant of India (ICAI)
constituted the Accounting Standards Board (ASB) in April, 1977
for developing accounting standards
ASB is entrusted with the responsibility of formulating
standards on significant accounting matters keeping in view the
international developments, and legal requirements in India.
The main function of the ASB is to identify areas in which
uniformity in standards is required

5. PROCEDURE FOR ISSUING AN
ACCOUNTING STANDARD

6. 1. Determine the broad areas in which Accounting Standards need to
be formulated and the priority in regard to the selection thereof.
2. . For the preparation of the Accounting Standards, the CASLB
will be assisted by Study Groups constituted to consider specific
subjects.
3. The draft of the proposed standard will normally include thE
following:
a. Objective of the Standard,
b. Scope of the Standard,
c. Definition of the terms used in the Standard,
d. Recognition and measurement principles, wherever applicable,
e. Deviations, if any,

7. The ASB will circulate the draft of the Accounting Standard/Accounting
Standards Interpretation for Local Bodies to the Council members of the
ICAI and the following specified bodies for their comments:
The ASB will hold a meeting with the representatives of the selected
specified bodies to ascertain their views on the draft of the proposed
Accounting Standard/Accounting Standards

8. On the basis of comments received
and discussion with the representatives
of specified bodies, the ASB will finalise
the Exposure Draft of the proposed
Accounting Standard.
The Council of the ICAI will consider
the final draft of the proposed
Standard/Interpretation, and if found
necessary, modify the same in
consultation with the ASb.

9. List Of Accounting Standards
Till date, the IASC has brought out 40 accounting
standards.
Of the 41 IASs issued so far, 29 are at present in force,
the remaining standards have been withdrawn. Apart
from this, 8 IFRSs have also been issued by the IASB.
Corresponding to the IASs/IFRSs, so far, 30 Indian
Accounting Standards on the following subjects have
been issued:.

10. AS-2 :Valuation of
Inventories (June 1981).
This standard deals
with the principles of
valuing inventories for
the financial
statements.

12. AS-3 :(Revised) Cash flow statement (June 1981,
Revised in March 1997). This standard deals
with the financial statement which
summaries for a given period the sources and
applications of an enterprise.

13. AS-4 : Contingencies and events occurring after the
Balance Sheet date (November 1982, Revised
in April, 1995) This standard deals with the
treatment of contingencies and events
occurring after the balance sheet date.

14. AS-5 : Net profit or loss for the period, prior period
(period before the date of balance sheet)
items and changes in accounting policies
(November 1982, Revised in February 1997).
This standard deals with the treatment in
financial statement of prior period and
extraordinary items and changes in accounting
policies.

15.  AS-6 : Depreciation Accounting (November 1982).
This standard applies to all depreciable assets. But this
standard does not apply to assets in the category of
forests, plantations and similar natural resources and
wasting assets.

16.  AS-7 : Accounting for construction contracts
(December 1983, revised in April 2003). This standard
deals with accounting for construction contracts in the
financial statements of contractors.

17.  AS-8 : Accounting for Research and Development
(January 1985). This standard deals with the treatment
of costs of research and development in financial
statements.

18.  AS-9 Revenue Recognition (November 1985). This
standard deals with the bases for recognition of
revenue in the statement of profit and loss of an
enterprise.

19. AS-10: Accounting for fixed assets (November 1991).
This standard deals with recognition of fixed assets
grouped into various categories, such as land,
building, plant and machinery, vehicles, furniture and
gifts, goodwill, patents, trading and designs.

20. AS-11 :Accounting for the effects of
change in foreign exchange Rates.(August
1991 and Revised in 1993). This standard
deals with the issues relating to
accounting for effect of change in foreign
exchange rates.
AS-12 :Accounting for Government grants
(April 1994). This standard deals with the
accounting for government grants.

21. AS-13 :Accounting for investments (September 1994). This
standard deals with accounting aspect concerning
investments in the financial statements. These include
classification, determination of cost for initial
recognition, disposal and re-classification of investment.
AS-14 :Accounting for amalgamation (October 1994). This
standard deals with accounting treatment of any
resultant goodwill or reserves in amalgamation of
companies.
AS-15 :Accounting for retirement Benefits in the financial
statements of employers (January 1995). This standard
deals with accounting for retirement benefits in the
financial statements of employers.

22. AS-16 :Borrowing Costs (April 2000). This standard deals
with the uses involved relating to capitalization of
interest on borrowing for purchase of fixed assets.
AS-17 :Segment reporting (October 2000). This standard
applies to companies which have an annual turnover of
Rs 50 crores or more. These companies have to present
financial statements and consolidated financial
statements.

23. AS-18 :Related party disclosures (October 2000 revised
1st July 2003).This standard requires certain disclosure
which must be made fortransactions between the
enterprise and related parties.
AS-19: Leases (January 2001). This standard deals with
the accounting treatment of transactions related to
lease agreements.
AS-20 :Earning per share (April 2001). This standard
deals with the presentation and computation of
earning per share (EPS).

24. Compliance with Accounting Standards
Accounting Standards
issued by the ICAI have
legal recognition through
the companies Act,1956,
whereby every company is
required to comply with
the accounting standards
and the statutory auditors
of every company are
required to report whether
the accounting standards
have been complied or not.

25. The companies act,1999 has inserted new sub- sections 3A,
3B and 3C to section 211,with a view to ensure that the
financial statements are prepared in accordance with the
accounting standards. The new sub-sections as inserted are
reproduced below:
Section 211 (3A): Every profit and loss account and balance
sheet of the company shall comply with the accounting
standards.
Section 211 (3B): Where the profit and loss account and the
balance sheet of the company do not comply with the
accounting standards.
Section 211 (3C): Here the accounting standards specified by
the institute of Chartered Accountants of India shall be
deemed to be the Accounting Standards until the accounting
standards are prescribed by the central government

26. CONCLUSIONS
The basic purpose of listing out accounting standards is to
facilitate the provision of financial information about entities to
enable investors, analysts, creditors and the entities themselves to
make informed decisions about the allocation of resources.
Clearly, while accounting standards assist preparers of financial
statements by providing a framework within which to construct
the statements, their prime importance is to assist users of the
statements to make meaningful assessments about the financial
position of an entity. Effective financial reporting, which is
essential to investor confidence, can only be achieved if it is
underpinned by relevant and well designed accounting standards.
Accounting standards facilitate both the efficient day-to-day
operations of individual business entities and contribute to the
efficient operation of capital markets.

27. Accounting standards that result in the provision of accurate and
comparable information about the true financial performance and
position of entities promote investor confidence and market
integrity, thereby ultimately reducing the costs of capital
throughout the economy. Public confidence in the integrity of
the financial reporting framework is central to maintaining and
expanding a sophisticated domestic capital market.

28. Project made by:
Isha Doshi 12
Hiral Oza 32
Shalu 62
Krutik 2
Sarosh 52
Ruchita 42
Sonal 22
Priyank 39