ACCOUNTING STANDARDS

BY R.K.SHUKLA
(M.COM, FCA, FCMA, CS)
By: CA, CS, CMA R.K.Shukla
 MEANING OF
ACCOUNTING STANDARD
• IT IS A PROCESS OF ACCOUNTING BY
FOLLOWING A SET OF STANDARD.

By: CA, CS, CMA R.K.Shukla

 EFFECTS OF NOT
FOLLOWING ACCOUNTING STANDARDS

TRUE AND FAIR PROFIT WILL NOT BE DISCLOSED

COMPARISON BETWEEN TWO COMPANIES CAN NOT BE MADE

EX, CO A CHARGE DEP AT 20% WHILE CO, B CHARGE DEP AT

10% , THE PROFIT OF CO,B WILL BE GREATER, DUE TO CHANGE
IN ACCOUNTING POLICY.

By: CA, CS, CMA R.K.Shukla

 COMPARISION IS
POSSIBLE WHEN BOTH
THE COMPANIES
FOLLOW SAME
ACCOUNTING POLICY
OR SAME ACCOUNTING
STANDARD.

By: CA, CS, CMA R.K.Shukla

WHAT IS THE PURPOSE
OF ACCOUNTING STANDARD?

WHENEVER WE DO ACCOUNTING,
WE FOLLOW SET STANDARD, THEY
ARE CALLED ACCOUNTING
STANDARD.

By: CA, CS, CMA R.K.Shukla

 CONCLUSION

ACCOUNTING IS PROCESS FOR

PREPARATION OF ACCOUNTS, THE
SET OF STANDARDS FOLLOWED, ARE
CALLED ACCOUNTING STANDARD.

By: CA, CS, CMA R.K.Shukla

APPLICABILITY OF ACCOUNTING
STANDARD
1) CORPORATE SECTOR
COMPULSORY
2) NON CORPORATE SECTOR
VOLUNTARY.

By: CA, CS, CMA R.K.Shukla

INDIAN
ACCOUNTING
STANDARD INTRODUCTION OF
NOTIFIED INDIAN ACCOUNTING
UNDER SEC 133 STANDARD
OF COMPANIES
ACT 2013
By: CA, CS, CMA R.K.Shukla
GAAP (GENERALLY ACCEPTED ACCOUNTING
PRINCIPLE/POLICY)

1) NATIONAL GAAP
2) INTERNATIONAL GAAP
MEANING OF GAAP, THOSE
PRINCIPLES WHICH HAVE BEEN
ACCEPTED BY ALL ,ARE CALLED
GAAP.
By: CA, CS, CMA R.K.Shukla
DIFFERENT NAMES IN DIFFERENT
COUNTRIES
NATIONAL GAAP:
IND AS IN INDIA,IN USA - US
GAAP
INTERNATIONAL GAAP, IAS ,
INTERNATIONAL ACCOUNTING
STANDARD, NOW CONVERTED
IN IFRS , INTERNATIONAL
FINANCIAL REPORTING.
NOTE:IND AS ARE
COMMENSURATE WITH IFRS.

By: CA, CS, CMA R.K.Shukla

SOME COUNTRIES FOLLOW , IFRS.

NEED FOR INDIAN ACCOUNTING

STANDARD:THE INDIAN
ACCOUNTING STANDARD
FOLLOW THE GUIDELINES OF
IFRS.
By: CA, CS, CMA R.K.Shukla
 IF WE INVITE OUTSIDERS TO
INVEST IN INDIA, INDIA WILL
HAVE TO FOLLOW
INTERNATIONAL ACCOUNTING
STANDARD, NOW IND AS ARE
COMMENCESURATE WITH IFRS

By: CA, CS, CMA R.K.Shukla

THIS WAS THE ONLY REASON O F REPLACING
AS, WITH IND AS.
NOTE: EVERY COUNTRY WANTS TO COMPLY
WITH IFRS
THIS CAN BE DONE IN TWO WAYS
ADOPT IFRS AS SUCH LIKE BANGLADESH
CONVERGE IFRS, LIKE IND AS

By: CA, CS, CMA R.K.Shukla

FOR GETTING GOOD MARKS IN
EXAM THERE ARE TWO WAYS :
1) CHEATING (BANGALADESH )
2) HARD STUDY.( INDIA )
IFRS PREPARED BY IASB
(INTERNATIONAL ACCOUNTING
STANDARD BOARD)
By: CA, CS, CMA R.K.Shukla
IFRS , PREPARING OWN STANDARD
BUT IN LINE WITH IFRS FOR
EXAMPLE INDIA (IND AS)
MCA HAS NOTIFIED THE IND AS
COMPANIES ( INDIAN ACCOUNTING
STANDARD RULES 2015

By: CA, CS, CMA R.K.Shukla

 ICAI IS TOP BODY TO
FORMULATE
ACCOUNTING STANDARD.
MCA HAS RIGHT TO
NOTIFY THE ACCOUNTING
STANDARD. BUT IT DOES
NOT PREPARE ANY
STANDARD, IT ASK THE
ICAI TO PREPARE THE
ACCOUNTING STANDARD.
ASB WORKS UNDER
ICAI,IT WAS ESTABLISHED
IN THE YEAR 1977.

By: CA, CS, CMA R.K.Shukla

UNDER ASB , NACAS WORKS
( NATIONAL ADVISORY COMMITTEE ON
ACCOUNTING STANDARD.) IT WAS
ESTABLISHED FOR THE FORMULATION
OF ACCOUNTING STANDARD.

By: CA, CS, CMA R.K.Shukla

NOW NACAS IS KNOWN AS
NFRA
( NATIONAL FINANCIAL
REPORTING AUTHORITY) FOR
PREPARATION OF IND AS.
NFRA WILL PREPARE IND AS
AND WILL SEND TO ASB AND
WILL HANDOVER TO MCA.
MCA WILL NOTIFY THE
ACCOUNTING STANDARD.

By: CA, CS, CMA R.K.Shukla

MCA HAS NOTIFIED THE IND AS, AS PER INDIAN
ACCOUNTING STANDARD RULE 2015
SUBSEQUENTLY THE MCA HAS NOTIFIED , THE IND AS
AMENDMENT RULE 2016-17, WHICH INTRODUCE
TWO ADDITIONAL IND AS.IE IND AS 11,
CONSTRUCTION CONTRACT AND IND AS 18 REVENUE

By: CA, CS, CMA R.K.Shukla

TOTAL IND AS 39 -1
DELETED + 2 = 40
NOTIFIED IND AS 39

By: CA, CS, CMA R.K.Shukla

APPLICABILITY OF IND AS TO VARIOUS
CLASS OF COMPANIES.
DATE OF APPLICABILITY, VOLUNTARY
FROM 1-04-2015
MANDATORY ADOPTION OF IND AS :

By: CA, CS, CMA R.K.Shukla

FROM 1-04-2016:
PHASE 1 FROM 1-04-2016,
ALL COMPANIES WHETHER LISTED
OR UNLISTED , HAVING NET WORTH
OF RS 500 CRORES OR MORE

By: CA, CS, CMA R.K.Shukla

PHASE 2 , 1-04 2017 , ON ALL LISTED
COMPANIES HAVING NET WORTH
BELOW RS 500 CRORES, AND
UNLISTED COMPANIES HAVING NET
WORTH OF RS >= 250 CORES

By: CA, CS, CMA R.K.Shukla

COMPANIES HAVING NET WORTH < RS 250
CRORES, HAVE TO FOLLOW ACCOUNTING
STANDARD.
NET WORTH MEANS ,
1) EQUITY SHARE CAPITAL
2) PREFERENCE SHARE CAPITAL
3) RESERVE AND SURPLUS

By: CA, CS, CMA R.K.Shukla

 IFRS
ADOPT AS SUCH
OR
PREPAIRING OWN STANDARD BUT IN LINE
WITH ,IFRS , LIKE IND AS
MCA HAS NOTIFIED 39-1+2 = 40 IND AS

By: CA, CS, CMA R.K.Shukla

DATE OF APPLICABILITY :
VOLUNTARY, 01-04-2015
MANDATORY :
PHASE 1,
01-04-2016 , NET WORTH, ₹500 CRORES
OR MORE
PHASE 2 , LISTED ALL COMPANIES
UNLISTED NET WORTH RS > = ₹250 CRORES
OR MORE
OTHER THAN ABOVE APPLY AS

By: CA, CS, CMA R.K.Shukla

 HENCE IN INDIA CURRENTLY TWO
SET OF ACCOUNTING STANDARD
CURRENTLY PREVAIL
IND AS ,
1) ALL LISTED COMPANIES
ULISTED NET WORTH >= ₹ 250
CRORES
2) OTHERS AS WILL BE APPLICABLE.

By: CA, CS, CMA R.K.Shukla

CONCLUSION

ICAI TOP BODY FOR FORMULATION OF

INDIAN ACCOUNTING STANDARD
ASB FOR ESTABLISHED IN THE YEAR 1977
EARLIER NACAS , NATIONAL ADVISORY
COMMITTEE ON ACCOUNTING
STANDARD.

By: CA, CS, CMA R.K.Shukla

 NOW NFRA,
NATIONA FINANCIAL
REPORTING
AUTHORITY

By: CA, CS, CMA R.K.Shukla

 Ind AS-1= presentation of financial
statements

Ind AS-2= Inventories

Ind AS Ind AS-7= statement of cash flows

Ind AS-8= accounting policies,

changes in accounting estimates
and errors.

By: CA, CS, CMA R.K.Shukla

 Ind AS-10= Events after the
reporting period
Ind AS-11= deleted

Ind AS-12= income taxes

Ind AS
Ind AS-16= property, plant and
equipment
Ind AS-17= Leases

By: CA, CS, CMA R.K.Shukla

 Ind AS-18= deleted

Ind AS-19 =Employee benefits

Ind AS Ind AS-20= Accounting for

Government grants and disclosure
of Government assistance
Ind AS-21= the effects of changes in
foreign exchange rates

By: CA, CS, CMA R.K.Shukla

 Ind AS-23= borrowing costs

Ind AS-24= related party disclosure

Ind AS-27= separate financial

statements
Ind AS Ind AS-28= investments in associates
and joint ventures
Ind AS-29= financial reporting in hyper
inflationary economies
Ind AS-33= earnings per share

By: CA, CS, CMA R.K.Shukla

 Ind AS-34= interim financial
reporting
Ind AS-36= impairment of assets

Ind AS-37= provisions, contingent

Ind AS liabilities and contingent assets
Ind AS-40= investment property

Ind AS-41= agriculture

By: CA, CS, CMA R.K.Shukla