Where do we

stand ?
 Unit 1
Topic Status
Overview of Accounting, Users of Accounting Covered

Accounting Concepts and Conventions Covered

Book keeping and Accounting Covered

Principles of Accounting, Basic Accounting Terminologies Covered

Accounting Equation Covered

Overview to Depreciation (Straight Line and Diminishing Method) Pending

 Unit 2
Topic Status

International Accounting Principles and Standards Pending

Matching of Indian Accounting Standards with International Pending

Accounting Standards

Human Resource Accounting Covered

Forensic Accounting Pending

 International
Accounting
Principles and
Standards
 Objective
To harmonize the diverse accounting policies

and practices across boundaries

International Accounting Standards
• The International Accounting Standards (IAS) were an older set
of standards stating how particular types of transactions and
other events should be reflected in financial statements.

• Initially issued by the Board of the International Accounting

Standards Committee (IASC)

• Since 2001, the new set of standards, known as the

International Financial Reporting Standards (IFRS) has been
issued by the International Accounting Standards Board (IASB).
Breaking Down of
International
Accounting
Standards
 Why Break Down?

• Post World War II

• Cross-border Capital Flows

• Integration and Convergence

• A unified set of high-quality, international

accounting standards were now needed

 International Accounting Standards
Committee

• The original organization setting international

standards
• Formed in 1973

• The body was reorganized in 2001 and became an

independent international standard setter called
the International Accounting Standards Board
 International Accounting Standards
Committee

• As of 2013, the European Union and over 100

other countries require to follow the use of
International Financial Reporting Standards (IFRS)

• Purpose: Bringing transparency, accountability

and efficiency in the financial markets worldwide.
 Indian Standards

http://www.icai.org
 Matching of Indian
Accounting Standards
with International
Accounting Standards
• Indian accounting standards are fully in line with the
International Financial Reporting Standards (IFRS)
from April 1, 2011. This was decided by the Institute
of Chartered Accountants of India (ICAI) at its 269th
Council meeting.

• Initially, only to public listed companies; later, to all.

 HUMAN
RESOURCE
ACCOUNTING
 Human Resource Accounting

• “HRA is the process of identifying and measuring

data about human resources and communicating this
information to interested parties.”
- The American Accounting Society Committee
on HRA
• “HRA is the term applied by the accounting
profession to quantify the cost and value of
employees to their employing organization.”
- M.N. Baker
 Characteristics of HRA

• Valuation of Human Resources

• Recording the valuation in the books of

accounts
• Disclosure of the information in the financial
statement of the business
 Importance of HRA

• Helps the management in locating and utilization of

human resources.
• Helps in deciding transfers, promotions, training and
retrenchment of human resources
• Provides a basis for planning assets vis-à-vis human
resources
 Importance of HRA

• It assists in evaluating the expenditure incurred for

imparting further education and training the
employees in terms of the benefits derived by the
firm.
• It helps to identify the causes of high labour turnover
and taking preventive measures
 Objectives of HRA

• Improves management by analyzing investment in

HRA
• To consider people as assets
• Attract and retain qualified people
• Profile the organization in financial terms
 Forensic
Accounting