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Accounting Standards are written policies or
documents made by government or any other
institution for standardization of accounting
                   procedure
 Harmonisation of Accounting policies
 Elimination of non-comparability of financial
  statements.
 Reduction of alternative methods for preparation
  of accounts.
 Provide policies for valuation & disclosure of
  accounts.
 Provides policies for Indian business houses.
 Working under the name of ICAI.
 Established on 21 April 1977.
 Issued 28 accounting standards till now.
SOME IMPORTANT A.S.

                    AS:2
        AS:28                      AS:3



AS:22       ACCOUNTING                       AS:5

                STANDARDS

   AS:19                                  AS:6

            AS:14          AS:13
AS:2- VALUATION OF INVENTORIES


According to this standard , the cost of
inventories should comprises of Purchase ,
Costs of Conversions & other costs incurred
in bringing the inventories to their present
location & condition.
According to this standard , every enterprise
has to prepare statements for informing about
Outflow & Inflow of cash for performing
Operating , Investing & Financing activities
According to this standard, A firm has to
disclose Profit or Loss from Ordinary Activities,
Extraordinary     Activities &    Prior – Period
Activities & all changes in Accounting Policies.
According to this standard , Depreciable amount
should be charged on Depreciable asset on a
systematic basis by using a selected method
constantly from one year to another till the
useful life of asset.
According to this standard, An enterprise has to
disclose or show its all Investments either Long-
term or Short-term distinctly in its Final
accounts for the current year.
Understanding accounting standards01

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Understanding accounting standards01

  • 1.
  • 2. Accounting Standards are written policies or documents made by government or any other institution for standardization of accounting procedure
  • 3.  Harmonisation of Accounting policies  Elimination of non-comparability of financial statements.  Reduction of alternative methods for preparation of accounts.  Provide policies for valuation & disclosure of accounts.
  • 4.  Provides policies for Indian business houses.  Working under the name of ICAI.  Established on 21 April 1977.  Issued 28 accounting standards till now.
  • 5. SOME IMPORTANT A.S. AS:2 AS:28 AS:3 AS:22 ACCOUNTING AS:5 STANDARDS AS:19 AS:6 AS:14 AS:13
  • 6. AS:2- VALUATION OF INVENTORIES According to this standard , the cost of inventories should comprises of Purchase , Costs of Conversions & other costs incurred in bringing the inventories to their present location & condition.
  • 7. According to this standard , every enterprise has to prepare statements for informing about Outflow & Inflow of cash for performing Operating , Investing & Financing activities
  • 8. According to this standard, A firm has to disclose Profit or Loss from Ordinary Activities, Extraordinary Activities & Prior – Period Activities & all changes in Accounting Policies.
  • 9. According to this standard , Depreciable amount should be charged on Depreciable asset on a systematic basis by using a selected method constantly from one year to another till the useful life of asset.
  • 10. According to this standard, An enterprise has to disclose or show its all Investments either Long- term or Short-term distinctly in its Final accounts for the current year.