Masters in Business Administration

Course Code:4409
Course name: Managerial Accounting

Assignment on Accounting schedules –

Significance of Accounting standards

Submitted to: Prof. KIRAN

Submitted by: S.A.KALEEM (1st MBA)

An Accounting Schedule Defined
While a schedule is often thought of as a
predetermined time to perform a certain task,
in accounting, a schedule usually refers to a
report or a supporting document that provides
detailed information which explains the
contents of another simplified document. The
schedule provides proof or documentation of
where the numbers come from. For example,
the balance sheet schedule will not only list the
assets, liabilities and equities of a company, but
it will break down each of those categories into
further sub-categories and provide a detailed
listing within each one. Some accounting
schedules that are typically run are accounts
payable, accounts receivable, fixed assets and
depreciation and inventory.
Schedule of Accounts Payable
The schedule of accounts payable is a detailed
listing of all the vendors that your company
owes money. If your company purchases raw
materials and services from a variety of other
companies, it is likely that you have been
offered terms and are not paying for everything
outright in cash. The outstanding debts are a
liability that must be paid, and they are
important to track closely. The schedule of
accounts payable tells you who must be paid
and how much money is owed.
Schedule of Accounts Receivable
Similarly, the schedule of accounts
receivable shows you how much income you
can expect to receive from outstanding
invoices. Invoices are grouped by customer,
so it is easy to tell if particular customers
have several outstanding invoices. This
report may signal the need for collection
calls or for the reduction of extended credit,
if a customer is falling behind in payments
to you.
Schedule of Inventory
Inventory is the amount of product that a
company has available to sell its customers,
as well as the raw materials they have
waiting to be used in the manufacturing
process or that are already in process. The
cost for all of these materials and the
finished product is accounted for as
inventory, and is a company asset. If a
company sells a service, there may be costs
incurred while providing that service. Any
revenues associated with that cost that have
not been received yet are also considered
inventory. An inventory schedule will
provide details as to the distribution of all
these inventoried assets.
Schedule of Fixed Assets
A fixed asset schedule is a detailed listing of
all the fixed assets listed in the general
ledger. The schedule will include the
number of a particular asset, a description,
its gross cost and its accumulated
depreciation. Often, fixed assets will be
divided into subcategories, so as to make
account reconciliation easier to manage.
Examples of fixed assets include buildings,
machinery, computer equipment, vehicles
and furniture.

Accounting standards
Introduction of Accounting
Standards
Preparation and presentation of corporate
financial statement are governed by the
companies act, 1956 and accounting standards.
In India the institute of chartered accountants
of India had established in 1977 an Accounting
Standard Board (ASB).
Meaning of Accounting Standards
In this respect main purpose of standards is to
provide information to the users as to the basis
on which the accounts have been prepared.
The objective of setting standards is to bring
about uniformity in financial reporting and to
ensure consistency in the data published by
enterprises. For accounting standards, to be
useful tool to enhance the corporate
governance and responsibility, two criteria
must be satisfied, i.e.
(i) A standard must provide a generally
understood and accepted measure of the
phenomena of concern.
(ii) A standard should significantly reduce the
amount of manipulation of the reported
numbers and is likely to occur in the absence of
the standards.
Significance of Accounting
Standards
Accounting standards facilities uniform
preparation and reporting of general purpose
financial statements published annually for the
benefit of shareholders, creditors, employee
and public at large. They are very useful to the
investors and other external groups in assessing
the progress and prospects of alternative
investments in different companies in different
countries.