Description
Standard accounting practices require publicly traded companies to follow certain accounting rules when presenting financial statements so that the readers of the statements can easily compare different companies.
ACCOUNTING STANDARD
TOPIC :- INTRODUCTION & BASIC CONCEPT
DEFINITION
?Accounting Standards are the policy document
issued by recognized expert accountancy bodies relating to various aspects of measurement, treatment and disclosure of accounting transactions and events. ?Accounting standards in India are issued by ICAI, constituted an accounting standard board on 21st april,1977.
OBJECTIVE
To eliminate confusing variations in the treatments of several accounting aspect
To bring about to the extent feasible uniformity in presentation
USEFULLNESS
? PRESENT AND POTENTIAL INVESTORS
? EMPLOYEES ? LENDERS
? SUPPLIERS
? TRADE CREDITORS ? GOVERNMENT AND AGENCIES ? PUBLIC
CLASSIFICATION OF ENTITIES
ENTITIES
CORPORATE ENTITIES NON CORPORATE ENTITIES
LEVEL I SME NON SME’S
LEVEL II
LEVEL III
CORPORATE ENTITIES
? ? ? ? ?
CONDITION TO CLASSIFY AS SMC’S SHARE DEBT SECURITIES NOT A BANK,FINANCIAL INSTITUTION OR AN INSURANCE CO. TURNOVER DOES NOT EXCEED 50 CRORE NON SUBSIDIARY COMPANY DOES NOT HAVE BORROWINGS
NON CORPORATE ENTITIES
APPLICABILITY
LEVEL II ENTITIES: ? ACCOUNTING STANDARD FULLY APPLICABLE:: AS-1 TO AS-16,AS-22,AS-26,AS-28 ? ACCOUNTING STANDARD APPLICABLE BUT RELAXATION IN CERTAIN CASE AS-19,AS-20&AS-29 ? ACCOUNTING STANDARD NOT APPLICABLE AS-3,AS-17,AS-18,AS-24,AS-21,AS-23,AS-25&AS-27
CURRENT STATUS OF ACCOUNTING STANDARD
? Company law and Accounting Standards
? Income Tax Act and Accounting Standards ? Other regulations and accounting standards
doc_678621238.pptx
Standard accounting practices require publicly traded companies to follow certain accounting rules when presenting financial statements so that the readers of the statements can easily compare different companies.
ACCOUNTING STANDARD
TOPIC :- INTRODUCTION & BASIC CONCEPT
DEFINITION
?Accounting Standards are the policy document
issued by recognized expert accountancy bodies relating to various aspects of measurement, treatment and disclosure of accounting transactions and events. ?Accounting standards in India are issued by ICAI, constituted an accounting standard board on 21st april,1977.
OBJECTIVE
To eliminate confusing variations in the treatments of several accounting aspect
To bring about to the extent feasible uniformity in presentation
USEFULLNESS
? PRESENT AND POTENTIAL INVESTORS
? EMPLOYEES ? LENDERS
? SUPPLIERS
? TRADE CREDITORS ? GOVERNMENT AND AGENCIES ? PUBLIC
CLASSIFICATION OF ENTITIES
ENTITIES
CORPORATE ENTITIES NON CORPORATE ENTITIES
LEVEL I SME NON SME’S
LEVEL II
LEVEL III
CORPORATE ENTITIES
? ? ? ? ?
CONDITION TO CLASSIFY AS SMC’S SHARE DEBT SECURITIES NOT A BANK,FINANCIAL INSTITUTION OR AN INSURANCE CO. TURNOVER DOES NOT EXCEED 50 CRORE NON SUBSIDIARY COMPANY DOES NOT HAVE BORROWINGS
NON CORPORATE ENTITIES
APPLICABILITY
LEVEL II ENTITIES: ? ACCOUNTING STANDARD FULLY APPLICABLE:: AS-1 TO AS-16,AS-22,AS-26,AS-28 ? ACCOUNTING STANDARD APPLICABLE BUT RELAXATION IN CERTAIN CASE AS-19,AS-20&AS-29 ? ACCOUNTING STANDARD NOT APPLICABLE AS-3,AS-17,AS-18,AS-24,AS-21,AS-23,AS-25&AS-27
CURRENT STATUS OF ACCOUNTING STANDARD
? Company law and Accounting Standards
? Income Tax Act and Accounting Standards ? Other regulations and accounting standards
doc_678621238.pptx