The document discusses various accounting standards issued by the Institute of Chartered Accountants of India (ICAI). It summarizes key standards such as AS-2 for inventory valuation, AS-6 for depreciation accounting, AS-9 for revenue recognition, AS-12 for government grants, and AS-22 for taxable income accounting. The standards specify how to recognize, measure, present, and disclose transactions and events in financial statements. There are currently 32 standards issued by ICAI for regulating the accounting profession in India.

1. AS-Issued by ICAI By Ketan Goel

2. The Institute of chartered accountants of
India (ICAI)
• The institute of chartered accountants of India is India’s largest
professional accounting body under the administrative control of
ministry of corporate affairs,Government of India.
• The ICAI was established in the year 1949 for regulating the
profession of chartered accountancy in the country.

3. Accounting standards
• Accounting standards are the authoritative standards for financial
reporting and other primary source of generally accepted
accounting principles(GAAP).
• Accounting standards specify how transactions and other events
are to be recognised measured presented and disclosed in
financial statements.
• There are a total of 32 standards issued by the ICAI

4. Accounting Treatment for Inventory (AS-2)
AS-2 is the Accounting Standard for the valuation of inventories and
their accounting treatment this accounting standard covers method
to value the inventory of a business and its disclosure in the
financial statements.
This standard prescribes the accounting treatment for the
inventories and sets the guidelines to determine the value at which
the inventories are carried in the financial statements.

5. Depreciation Accounting (AS-6)
• This accounting standard deals with depreciation accounting and
applies to all depreciation assets expect some items like:-
forests,livestock,goodwill etc.
• Depreciation accounting means allocation of depreciable amount
of a depreciable asset over it’s useful life in a systematic manner.

6. REVENUE RECOGNITION (AS-9)
• In simple terms,Revenue Recognition is an accounting principle
that assets that revenue must be recognised as it is earned.
• This principle is a cornerstone of accrual accounting together with
the match making principle they both determine the accounting
period in which revenue and expenses are recognised.
• Example:-if a company a releases a new version in January and
the new version cost 10000 rupees. If customer purchases the
software in January and receive the software in February then the
company should book the sales in the month of February.

7. Goverment Grants(AS-12)
• This accounting standard standard deals with the accounting for
government grants.Such Grants are offered by the government,
government agencies and similar bodies including local,national or
international.These government Grants are sometimes referred to
as subsidies caution centres or duty drawbacks.
• According to the AS-12 These government these government grants
are treated as capital reserves and shown as capital reserve in the
balance sheet.

8. Taxable Income Accounting (AS-22)
• The objective of the standard is to prescribe accounting treatment
of taxes on income. Taxable income may be significately different
from the accounting income.
• In simple words years 22 is applied when there is a difference
between taxable income and accounting income.If the taxable
income is greater than the accounting then it will result in a
deferred tax asset and if accounting income is greater than the
taxable income then it will result in a deferred tax liability.