Accounting Standard, International Financial Reporting Standards, Indian Accounting Standards....

1. Accounting standards (AS) ,
International Financial
Reporting Standards (IFRS),
Indian Accounting Standards (Ind AS)
Submitted By-
Aatur Porwal (01)
Aayushee vyas (02)
Abhishek Mishra(03)
Aditi Randhar (04)

2.  Accounting Standards (ASs) are written policy
documents issued by expert accounting body or by
Government or regulatory body.
 Accounting Standards (ASs) are aspects of
Recognition , Measurement , Treatment , Presentation &
Discloser of accounting transaction in the financial
statements.
 In India , Accounting Standards (ASs) are issued by
Accounting Standard Board (ASB) which is formed by
Institute of Chartered Accountants of India (ICAI).

3. OBJECTIVES
1. To harmonise different accounting policies & practices
use in a country.
2. To standarize accounting methods & procedures.
3. To reduce the accounting alternatives in the preparation
of financial statements.
4. To lay down principles for preparation & presentation.
5. To establish benchmark for evaluating the quality of
financial statements.

4. CONTD…
6. To ensure the users of financial statements get
creditable financial information .
7. To facilitate inter-firm comparison.

5. Levels of AS
Accounting standards are divided into three levels.
Level I Enterprises : Enterprises which fall in any one or more of the
following categories , at any time during the accounting period , are
classified as Level I Enterprises.
1). Listed enterprises whether in India or outside India.
2). Enterprises proposing to list their equity or debt securities.
3). Bank including co-operative banks.
4). Financial institutions.
5). Enterprises carrying on insurance business.

6. CONTD….
6). All commercial , industrial and business reporting
enterprises , whose Turnover for the immediately
preceding accounting period exceeds Rs. 50 crore.
7). All commercial , industrial and business reporting
enterprises having Borrowings , including public
deposits , in excess of Rs. 10 crore.
8). Holding and subsidiary of any one of the above.

7. Level II Enterprises :
1). All commercial , industrial & business reporting
enterprises , whose Turnover for the immediately preceding
accounting period exceeds Rs.40 lakhs but does not exceed
Rs.50 crore .
2). All commercial , industrial & business reporting
enterprises having Borrowings ,including public deposits , in
excess of Rs. 1 crore but not excess of Rs. 10 crore .
3). Holding & subsidiary enterprises of any one of the above
at any time during the accounting period.

8. Level III Enterprises :
Enterprises which are not covered under Level I and II are
considered as Level III enterprises .

9. Recognition of Accounting Standard
Accounting Standards(ASs) issued by the ICAI have legal
recognition through Companies Act,2013.
1). Section 129(1) : The financial statements of every
company shall comply with the accounting standards.
2). Section 129(5) : Where the P&L A/c & the balance sheet
do not comply with the accounting standards, such
companies shall disclose, the following:
(a) The deviation from the AS
(b) The reasons for such deviation.
(c) The financial effect due to such deviation.

10. CONTD ….
3). Section 134(5) : The Board’s report shall also include a
Director’s Responsibility Statement indicating therein that in
preparation of annual accounts, the applicable AS had been
followed along with proper explanation relating to material
departure.

11. List Of AS -
The council of ICAI has issued 32 Accounting Standards .
However , AS-8 has been withdrawn .
Thus , effectively there are 31 Accounting Standards
Some of them are namely :
 AS 1- Disclosure of Accounting policies.
 AS 2- Valuation of inventories.
 AS 3- Cash flow Statements.
 AS 4- Contingencies & Events Occurring after the B/S

12. IFRS is a set of international accounting standards stating how
particular types of transactions & other events should be reported in
financial statements.
IFRS are principle-based standards, interpretations & the framework
adopted by the International Accounting Standards Board(IASB).
IFRS comprise of:
 9-IFRS-standards issued after 2001 by IASB.
 29-International Accounting Standards (IAS)-standards issued
before 2001 by IASC which are still valid.
 16-Interpretations issued by International Financial Reporting
Interpretations committee (IFRIC) after 2001.
 11-interpretations issued by Standing Interpretations Committee
(SIC) before 2001.

13. Advantages
 Increased comparability of financial information .
 The financial reporting process would become more transparent.
 The standardization of accounting methodology provides creditors &
investors with the ability to analyze businesses around the world using
the same financial methods.
 Permit international capital to flow more freely.
 Provide better understanding to financial statements .
 Assess the investment opportunities .

14. List of IFRS
The following International Accounting Standards (IAS)/International
Financial Reporting Standards (IFRS) issued by the IASB which are in
force:
 IAS-1 Presentation of Financial Statements
 IAS-2 Inventories
 IAS-7 Cash Flow Statements
 IAS-8 Accounting Policies, Changes in Accounting Estimates &
Errors.
 IAS-10 Events After The Balance Sheet Date.

15. Cont…
 IFRS-1 First-time Adoption of International Financial Reporting
Standards
 IFRS-2 Share-based Payment
 IFRS-3 Business Combinations
 IFRS-4 Insurance Contracts
 IFRS-5 Non-current Assets held for Sale & Discounted Operations
 IFRS-6 Exploration for & Evaluation of Mineral Resources
 IFRS-7 Financial Instrument: Disclosures

16. IND AS -
Ministry of Corporate Affairs (MCA) has
notified Companies (Indian Accounting
Standards) Rules , 2015 prescribing the new
Indian Accounting Standards (Ind AS)
applicable to companies /classes of
companies in contrast with applicability of
Accounting standard specified in Companies
(Accounting Standards ) Rules , 2006

17. List of IND AS-
 IND AS-1 Presentation of Financial Statements.
 IND AS-2 Inventories.
 IND AS-7 Statement of Cash Flows.
 IND AS-8 Accounting Policies , Changes in Accounting Estimates
& Errors
 IND AS-10 Events after the Reporting Period.
 IND AS-11 Construction Contracts.
 IND AS-12 Income Taxes.