CORPORATE ACCOUNTING NOTES

1. DR J .KUMAR
Assistant Professor
Department of Commerce
CORPORATE ACCOUNTING

2. Accounting Standards
Harvey and Keer: Accounting standards are a method or an
approach to preparing accounts which has been chosen and
established by the bodiesoverseeing the profession.
T.P.G bosh: Accounting standards are the policy documents
issued by the recognised expert accountancy body relating to
various aspects of measurement, treatment and disclosure of
accounting transactions and events.

3. Farlex: Accounting standard
is a principle that governs
current accounting practices
and that is used as reference to
determine the appropriate
treatment of complex
transaction.

4. Objectives of the Indian Accounting
Standards
There is always a reason for any mission. Similarly, there are
certain objectives for having accounting standards. Let us take a
look at the objectives of accounting standards so that we
understand in depth the deeper aim of it.
The main objective of Indian accounting standards is to bring in
more transparency of annual financial statements in company
accounts.
Ensure companies in India adopt these standards to implement
internationally recognized best practices.

5. One systematic, single accounting system common for all the
companies. Cutting out confusions and frauds.
The Indian accounting standards are so simplified that they can
be understood worldwide, globally.
There are several global requirements and the Indian
accounting standards are designed to match the global
requirements.
To increase the reliability of the financial statements.

6. List of Accounting Standards in India
Ind AS 1 Presentation of Financial Statements
Objective: This standard sets out generally speaking
necessities for show of financial statements, rules for their
construction and least prerequisites for their substance to
guarantee likeness.
Ind AS 2 Inventories Accounting
Objective: Its arrangements with accounting of inventories like
estimation of stock, incorporations and avoidances in its
expense, divulgence necessities, and so forth.

7. Ind AS 7 Statement of Cash Flows
Objective: It manages cash got or paid during the period
from working, financing and contributing exercises. It
additionally shows any adjustment of the money and money
counterparts of any element.
Ind AS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
Objective: It prescribes choosing and changing accounting
strategies along with accounting medicines and exposures.
Ind AS 10 Events after Reporting Period
Objective: It manages any changing or unchanging
occasion happening subsequent to reporting.

8. Ind AS 11 Construction Contracts
Objective: It manages any changing or unchanging occasion
happening subsequent to reports.
Ind AS 12 Income Taxes
Objective: This standard recommends accounting for income tax.
The chief issue in representing annual duties is the means by which
to represent the current and future assessment.
Ind AS 16 Property, Plant and Equipment
Objective: This recommends accounting treatment for Property, Plant
And Equipment (PPE) like acknowledgment of resources, assurance
of their conveying sums and the devaluation charges and impedance
misfortunes to be perceived comparable to them.

9. Ind AS 17 Leases
Objective: This standard recommends fitting accounting
arrangements and guidelines for tenants and lessors.
Ind AS 19 Employee Benefits
Objective: This standard recommends bookkeeping and divulgence
prerequisites identifying with representative advantages.
Ind AS 20 Accounting for Government Grants and Disclosure of
Government Assistance
Objective: This Standard will be applied in representing and in
exposure of, government awards and in revelation of different types
of government help.
Ind AS 21 The Effects of Changes in Foreign Exchange Rates
Objective: This standard helps to understand how to incorporate
unfamiliar cash exchanges and unfamiliar activities in the financial
reports of a company and how to make an interpretation of budget
reports into a presentation currency.

10. Ind AS 23 Borrowing Costs
Objective: It gives acquiring cost caused on qualifying asset should
frame part of that asset, it additionally directs on which money cost
ought to be promoted, conditions for capitalization, season of initiation
and discontinuance of capitalization of getting cost.
Ind AS 24 Related Party Disclosures
Objective: This guarantees that any organization’s fiscal reports
contain fundamental revelations to cause us to notice the likelihood
that its monetary position and benefit or misfortune might have been
influenced by the presence of related gatherings and by exchanges
and exceptional equilibriums.
Ind AS 27 Separate Financial Statements
Objective: This recommends bookkeeping and revelation necessities
for interests in auxiliaries, joint endeavors and partners when a
company plans separate budget reports.

11. Ind AS 28 Investments in Associates and Joint Ventures
Objective: This standard endorses representing interests in partners
and to set out necessities for the utilization of value technique when
representing interests in partners and joint endeavors.
Ind AS 29 Financial Reporting in Hyperinflationary Economies
Objective: This standard will give a comprehensive rundown of
qualities that will order an economy as hyper inflationary and detailing
of working outcomes and monetary position.
Ind AS 32 Financial Instruments: Presentation
Objective: This Standard sets up standards for introducing monetary
instruments as liabilities or value and for balancing monetary
resources and monetary liabilities.

12. Ind AS 33 Earnings per Share
Objective: This Standard recommends standards for the
assurance and presentation of per share.
Ind AS 34 Interim Financial Reporting
Objective: This helps with least minimum content of an
interval financial report and standards for
acknowledgment and estimation in complete or dense
financial statements for a period.
Ind AS 36 Impairment of Assets
Objective: This Standard recommends techniques that a
company applies to guarantee that a company's
conveying sum isn't more than its recoverable sum.

13. Social Accounting Definitions
Kohler defined Social Accounting as ”the application of double-entry book-
keeping to socio-economic analysis”.
Ralph Estes defined it as the “measurement reporting, internal or external, of
information concerning the impact of an entity and its activities on society”.
Sybil Mobley defined it as“it refers to the ordering, measuring and analyses of
the social and economic consequences of governmental and entrepreneurial
behaviour”.
The Institute of Chartered Accountants of India or the ICAI defined it as
“Social accounting is a way of measuring, understanding, reporting and
ultimately improving an organization's social and ethical performance”.

14. Benefits of Social Accounting
It goes beyond quantitative measures and also takes into account
qualitative measures.
It builds a sense of trust in society through its transparency.
It helps in enhancing the goodwill of the company in eyes of society.
It helps companies to build relationships with society.
It assists companies to identify their social responsibilities and also
aids in future decision-making.

15. Approaches in Social Accounting
There are different approaches to social accounting. Let’s look into them to understand the different
approaches to social accounting and its uses.
Classical Approach
This is the approach of accounting in which businesses show how they have maximised their profits within
the constraints of legal and ethical framework, acting in the best interest of society at large.
Descriptive Approach
This is the traditional method of reporting social information. In this social activities are disclosed in narrative
form along with financial statements.

16. Integral Welfare Theoretical Approach:
This approach accounts for both social benefits and social costs in the financial statements themselves. This is a
type of accounting format that highlights the creation of social reports that involves the social benefits and social
costs.
Programme Management Approach:
In this approach, the organisation has to disclose its Social Objectives, how it is going to achieve them and how
the feedback and control have been exercised.
Pictorial Approach:
In this approach, photographs of various welfare activities conducted by the organization are presented in annual
reports.
Footnote Disclosures:
In this approach, the social activities of an organisation are quantified and disclosed as an additional footnote in
the financial statements.