ACCOUNTING STANDARDS

PRESENTED BY-
CHANDRA SEKHAR MOHANTY
PRABHU DUTTA PANDA
 A-29,provisions,contingent liabilities
and contingent assets.
 This standard comes into force in respect of accounting
periods commencing on or after 1-4-2004 and is
mandatory in nature. This objective of this standard is to
ensure that appropriate recognition criteria and
measurement bases are applied to provisions and
contingent liabilities. The objective of this standard is also
lay down appropriate accounting for contingent assets. AS-
29 , a contingent asset is a possible asset that arises from
past events the existence of which will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly with in the control of
the enterprise.
 Cont«««.
 AS-29 defines a provision as a liability which can be
measured only by using a substantial degree of estimation.
As per standard , a contingent liability is a possible
obligation that arises from past events and the existence of
which will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not
wholly with in the control of the enterprise.
 As per AS-29, a provision should be recognised only
when: a)an enterprise has a present obligation as a result of
past events. b) a reliable estimate can be made of the
amount of the obligation.
 Cont«««.
 an enterprise should disclose for each class of provision:
1. The carrying amount at the beginning and end of the
period.
2. Additional provisions made during the accounting
period, including increase to existing provisions.
3. Amount incurred and charged against the provision
during the period.
 A-28, Impairment of asset

 This comes into effect in respect of accounting periods

commencing on or after 1-04-2004 and is mandatory in nature
from the date of the followings:
1. All other commercial, industrial, and business reporting
enterprises, whose turnover for the accounting period exceeds
Rs 50 crore.
 In respect of all other enterprise, this standard comes into
effect in respect of accounting period commencing on or after
1-04-2005 and is mandatory in nature from that day.
 CONT««
 This standard presents the procedure that an enterprise
applies to ensure that its assets are carried at no more than
their recoverable amount. An asset is carried at more than
its recoverable amount if its carrying amount exceeds the
amount to be recovered through sale of the asset. If this is
the case , the asset is described as impaired and this
standard requires the enterprise to recognise an impairment
loss .
 Cont«««..
 For each class of assets ,the financial statement should
disclose:
1. The amount of impairment losses recognised in the
statement of profit and loss during the period and the
line items of the statement of profit and loss in which
those impairment losses are include.
2. The amount of impairment losses recognised directly
against revaluation surplus during the period.
 AS-27, Financial reporting of
interest in joint Ventures
 As -27, financial reporting of interests in joint ventures
comes into effect in respect of accounting periods
commencing on or after 1-04-2004 and this standard is
mandatory in nature. A joint venture is a contractual
arrangement where by two or more parties undertake an
economic activity which is subject to joint control.
 A venture is party to a joint venture and has control over
that joint venture.
 An investor in a joint venture is a party to a joint venture
and does not have joint control over that joint venture
 Cont«««
 According to this standard a venturer should recognised
in its separate financial statements and consequently in
its financial statements :
1. The expenses that is incurs and the shares of the income
that it earns from the joint venture.
 The joint venture should disclose:
1. Its share of contingent liabilities of the joint venture
unless the probabilities of loss is remote in its separate
financial statements.
2. It also discloses a list of all joint ventures and
descriptions of interests in significant joint ventures.
 As-26, Intangible Assets
 This standard is mandatory in nature and comes into effect in respect
of expenditure incurred on intangible asset during accounting periods
commencing on or after 1-04-2003. As-29 defines an intangible asset
as ³an identifiable non-monetary asset, without physical substance
,held for benefit of the organization. According to this standard, an
intangible asset should be recognised only if a) the cost of the asset
can be measured reliably.
 Discloser :
1. Expenditure on an intangible item should be recognised as an expense
when it is incurred.

2. Internally generated goodwill, brands, publishing titles should not be

recognised as an asset.