Accounting Standards:

The Institute of Chartered Accountants of India, recognizing the need to harmonize

the divers accounting policies and practices in use in India , and hence to formulate
accounting standards, constituted the ASB (Accounting Standard Board) on 21st April,
1977. The Accounting Standards seek to establish the principles and norms of
standard benchmark treatment of financial accounting, reporting and disclosure
issues which have to be compiled with to ensure that financial statements are
prepared in accordance with the Generally Accepted Accounting Standards.
Accounting standards are applicable to the general purpose financial statements , i.e.
Balance Sheet , Statement of Profit and loss, Cash Flow Statement, where required
and statements and explanatory notes forming part thereof , issued for use of
various stakeholders, and other financial reporting , which are subject to the attest
function of the auditors (members of ICAI). They apply to enterprises- corporate
cooperatives or in other form engaged in commercial , industrial or business
activities, partly or fully, irrespective of whether they are profit oriented or are
established for charitable and religious purposes.
The accounting standards are applicable only to material items. They cannot and do
not override the laws and regulations of the land which govern the preparation and
presentation of financial statements. In such cases, however, the ICAI can determine
the extent of disclosure to be made in the financial statements and auditors report
thereon. In case a particular accounting standard is not in conformity with the .law,
the provisions of the law prevail and the financial statement are to be prepared in
conformity with the law.
A birds eye view of Accounting Standards , herein after termed as AS
AS No.
AS-1
AS-2
AS-3
AS-4
AS-5

Title
Disclosure of Accounting Policies
Valuation of Inventories
Cash Flow Statement
Contingencies and Events Occurring after the Balance Sheet Date
Net Profit or Loss for the Period, Prior Period and Extraordinary items and

AS-6
AS-7
AS-8
AS-9
AS-10
AS-11

Changes in Accounting Policies.

Depreciation Accounting
Accounting for Construction Contracts
Accounting for Research and Development
Revenue Recognition
Accounting for Fixed Assets
Accounting for Effects of Changes in Foreign Exchange Rates

AS-12
AS-13
AS-14
AS-15

Accounting for Government Grants

Accounting for Investments
Accounting for Amalgamations
Accounting for Retirement Benefits

AS-16
AS-17
AS-18
AS-19
AS-20
AS-21
AS-22
AS-23

Employees
Borrowing Costs
Segment Reporting
Related Party Disclosure
Leases
Earning Per Share
Consolidated Financial Statements
Accounting for Taxes on Income
Accounting for Investments in Associates

in

the

Financial

in

Statements

Consolidated

Statements
AS-24
Discounting Operations
AS-25
Interim Financial Reporting
AS-26
Intangible Assets
AS-27
Financial Reporting if interest in Joint Ventures
AS-28
Impairment of Assets
AS-29
Provisions, Contingent Liabilities and Contingent Assets
AS-30
Financial Instruments Recognition and Measurement
AS-31
Financial Presentation
For detailed report log on to - www.icai.org

of

Financial