Cost Accounting Standards Board (CASB)

The Institute of Cost Accountants of India, recognizing the need for structured approach to the
measurement of cost in manufacture or service sector and to provide guidance to the user
organizations, government bodies, regulators, research agencies and academic institutions to achieve
uniformity and consistency in classification, measurement and assignment of cost to product and
services, has constituted Cost Accounting Standards Board (CASB) with the objective of formulating
the Cost Accounting Standards.

Keeping in view latest legal and contemporary developments, the Cost Accounting Standards Board
develops Cost Accounting Standards. To explain the requirements of Standards and provide the
guidance with practical examples and illustrations on technical issues relating to Cost Accounting
Standards issued by the Institute, CASB also issues Guidance Notes. Further, there may also be other
technical issues relating to topics of importance for which the Cost Accounting Standards are not
necessary but these technical issues need guidance to members and industry with respect to
measurement, classification, assignment and presentation of cost in cost statements, the CASB issues
Guidance Notes on such topics. The Institute/Board has so far issued 24 Cost Accounting Standards,
Generally Accepted Cost Accounting Principles, 9 Guidance Notes on Cost Accounting Standards and
two Guidance Notes on “Treatment of Costs Relating to Corporate Social Responsibility (CSR)
Activities” and “Maintenance of Cost Accounting Records for Construction Industry Including Real
Estate and Property Development Activity”.

The structure of Cost Accounting Standard consists of Introduction, Objectives of issuing standards,
Scope of standard, Definitions and explanations of the terms used in the standard, Principles of
Measurement, Assignment of Cost, Presentation and Disclosure.

While formulating the Cost Accounting Standards, the CASB takes into consideration the applicable
laws, usage and business environment prevailing in India. CASB also gives due consideration to the
Cost Accounting Standards, principles and practices being followed by the other countries in the
world. If due to subsequent changes in the law, a particular standard or any part thereof becomes
inconsistent with such a law, the provisions of the said law shall prevail.

Starting from 2001-02 CASB has met 84 times as on date. Under the Chairmanship of various
Chairmen, it has covered a lot of distance and some of the major achievements are given below;

Major announcements by the Board:

 Issued 24 Cost Accounting Standards;

 Issued Generally Accepted Cost Accounting Principles (GACAP);
 Issued Guidance Notes on CAS-2 (Revised 2015), CAS-4, CAS-6, CAS-7, CAS-8, CAS-9, CAS-10,
CAS-11 and CAS-12.

CASB issued limited Revision of Guidance Notes on the above CASs in view of changes brought out by
Companies (Cost Records and Audit) Rules 2014 with respect to maintenance of cost records.
Besides above the CASB Secretariat has also organised a number of programmes on Cost Accounting
Standards for members and others throughout India. It also organises meetings with the stakeholders
to discuss the various flagged issue to arrive at consensus on the same.

CASB also issues clarifications and opinions on the queries received from Regulators, Industry and
other Stakeholders. The opinions/ clarifications issued as on date are available for download from this
webpage.

LIST OF COST ACCOUNTING STANDARDS (CAS) AND GUIDANCE NOTES ISSUED AS ON DATE

Effective Date
(For the period
CAS No. Title Guidance Note
commencing
from)

CAS 1
Classification
(Revised 1st April 2015
of Cost
2015)

CAS 2
(Revised Capacity
2015) Determination 1st April 2016
Guidance Note on Capacity Determination CAS-2 (Revised
2015)
CAS 2 Capacity 1st April 2012
(Revised Determination
2012)

CAS 3
(Revised Production
2015) and Operation 1st April 2016
Overheads
CAS 3 1st April 2012
(Revised Overheads
2011)

Cost of
Production for Revised Guidance Note on Cost of Production for Captive
CAS 4 1st April 2010
Captive Consumption (CAS-4)
Consumption

Average
(Equalized)
CAS 5 1st April 2010
Cost of
Transportation

CAS 6 Material Cost 1st April 2010 Guidance Note on Material Cost (CAS-6)

CAS 7 Employee Cost 1st April 2010 Guidance Note on Employee Cost (CAS-7)

CAS 8 Cost of Utilities 1st April 2010 Guidance Note on Cost of Utilities (CAS-8)

Packing
CAS 9 1st April 2010 Guidance Note on Packing Material Cost (CAS-9)
Material Cost

CAS 10 Direct 1st April 2010 Guidance Note on Direct Expenses (CAS-10)
 Expenses

Administrative
CAS 11 1st April 2010 Guidance Note on Administrative Overheads (CAS-11)
Overheads

Repairs and
CAS 12 Maintenance 1st April 2010 Guidance Note on Repairs and Maintenance Cost (CAS-12)
Cost

Cost of Service
CAS 13 1st April 2011
Cost Centre

Pollution
CAS 14 1st April 2012
Control Cost

Selling and
CAS 15 Distribution 1st April 2013
Overheads

Depreciation
CAS 16 and 1st April 2014
Amortisation

Interest and
CAS 17 Financing 1st April 2014
Charges

Research and
CAS 18 Development 1st April 2014
Costs

CAS 19 Joint Costs 1st April 2014

Royalty and
CAS 20 Technical 1st April 2014
Know-How Fee

CAS 21 Quality Control 1st April 2014

Manufacturing
CAS 22 1st April 2015
Cost

Overburden
CAS 23 1st April 2017
Removal Cost

Treatment of
Revenue in
CAS 24 1st April 2017
Cost
Statements

Guidance Note on Treatment of Costs Relating to Corporate

Social Responsibility (CSR) Activities
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What Are Capital Markets?

Capital markets are where savings and investments are channeled between
suppliers and those in need. Suppliers are people or institutions with capital
to lend or invest and typically include banks and investors. Those who seek
capital in this market are businesses, governments, and individuals. Capital
markets are composed of primary and secondary markets. The most common
capital markets are the stock market and the bond market. They seek to
improve transactional efficiencies by bringing suppliers together with those
seeking capital and providing a place where they can exchange securities.

KEY TAKEAWAYS

 Capital markets refer to the venues where funds are exchanged

between suppliers and those who seek capital for their own use.
 Suppliers in capital markets are typically banks and investors while
those who seek capital are businesses, governments, and individuals.
 Capital markets are used to sell different financial instruments,
including equities and debt securities.
 These markets are divided into two categories: primary and secondary
markets.
 The best-known capital markets include the stock market and the bond
markets.