LIST OF ACCOUNTING STANDARDS (issued till date by the ICAI)

AS-1 DISCLOSURE OF ACCOUNTING POLICIES

AS-2 VALUATION OF INVENTORIES

AS-3 CASH FLOW STATEMENTS

AS-4 CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET

DATE

AS-5 NET PROFIT OR LOSS FOR THE PERIOD,PRIOR PERIOD AND CHANGES
IN ACCOUNTING ESTIMATES

AS-6 DEPRICIATION ACCOUNTING

AS-7 ACCOUNTING FOR CONSTRUCTION

CONTRACTS

AS-8 ACCOUNTING FOR RESEARCH AND

DEVELOPMENT

AS-9 REVENUE RECOGNITION

AS-10 ACCOUNTING FOR FIXED ASSETS

AS-11 ACCOUNTING FOR EFFECTS OF CHANGES IN FOREIGN EXCHANGE

RATES

AS-12 ACCOUNTING FOR GOVERNMENT GRANTS

AS-13 ACCOUNTING FOR INVESTMENTS

AS-14 ACCOUNTING FOR AMALGAMATIONS

AS-15 ACCOUNTING FOR RETIREMENT BENEFITS IN THE FINANCIAL

STATEMENTS OF EMPLOYERS

AS-16 ACCOUNTING FOR BORROWING COSTS

AS-17 SEGMENTAL REPORTING

AS-18 RELATED PARTY DISCLOSURES

AS-19 LEASES
 Basic Accounting Terminology 101

Prior to actually beginning work as an accountant, there is generally exposure to

accounting terminology and concepts; whether in the form of classroom instruction
or as an intern with on-the-job training. However, rather than risk the possibility of
an individual beginning work as a bookkeeper, or an accounting intern, without the
necessary understanding of basic terms and concepts, we will provide a brief
overview.

When you get past the automatic block that many individuals put up upon hearing
the word “accounting”, the basic concepts and terms are quite easily grasped. (I
personally believe the terms used in learning to calculate baseball statistics is more
complicated than accounting terminology).

Debits and Credits

Every single transaction recorded in the accounting process falls into one of two
categories: it is either a debit or a credit. We could use the official definitions
here, but I prefer to keep absorption levels (and interest) high, so we are going to
use very simple definitions and examples. A debit is a transaction of value “added”
to an account. A credit is a transaction of value “removed” from an account. Debit,
value is added. Credit, value is removed. For example, in your checking account, a
deposit is a debit, a check is a credit. This is as simple as the definition gets in
practical application. How you apply those transactions, depends upon the type of
account you are working with.

Accounts
Okay, now you will need to know what we mean by >account. Accounts are simply
established to provide a record of individual business transactions as they apply to
a certain area or item. Your personal checking account is established in order to
provide a record of individual personal financial transactions you create when you
write a check.

All of the accounts are listed in a general ledger. Today, the actual ledger book
has long since been replaced by accounting software that creates a general ledger
on the computer. The concept however has not been altered. The general ledger is
the central location for maintaining all your accounts. Journal entries refer to the
posting or entering of the financial transactions to a particular account.

Assets, Liabilities, Equity, Revenue and Expenses

These are all the different types of accounts the accounting system utilizes. Assets
are accounts that add value to your individual or business worth. Liabilities are
accounts that remove value from your individual or business worth. Equity is used
to identify the individual contribution of money, or other financial equivalent,
invested in individual or business worth. The revenue account is simply the
account that tracks all income generated. Expense accounts are the individual
accounts setup to record the financial transactions that occur, as expenditure, in
generating that income.

An example of an asset would be your car. Your car has a dollar value attached to
it. It adds value to your individual worth. An example of a liability would be your
car loan. The loan removes value from your individual worth. The equity in your
car would be any money you paid down toward the purchase. If you use your car to
operate a pizza delivery service, the income generated from delivering pizzas would
be known as revenue. Any expense for gas or car repairs would be recorded in an
expense account known as “automotive expense”.

Accounting System
The reason for establishing any accounting system is to track this information in
order to provide for a unified method of “accounting” for all financial transactions as
they occur. Accounting practices give us a way to keep a record, or to give an
accounting for your financial transactions.

An accounting system offers a method for checking, balancing, and reconciling all
those transactions in order to produce accurate pictures of our financial health.
Profit and Loss Reports, Balance Sheets, and Cash Flow Statements are the
end result of compiling all the transactions into meaningful, usable information for
individuals and business owners alike.

Accounting is the art of analyzing and interpreting data. It may not be apparent to some but every
business and every individual uses accounting in some form. An individual may knowingly or
unknowingly use accounting when he evaluates his financial information and relays the results to
others. Accounting is an indispensable tool in any business, may it be small or multi-national.

The term "accounting" covers many different types of accounting on the basis of the group or
groups served. The following are the types of accounting.

1. Private or Industrial Accounting: This type of accounting refers to accounting activity that is
limited only to a single firm. A private accountant provides his skills and services to a single
employer and receives salary on an employer-employee basis. The term private is applied to the
accountant and the accounting service he renders. The term is used when an employer-employee
type of relationship exists even though the employer is some case is a public corporation.

2. Public Accounting: Public accounting refers to the accounting service offered by a public
accountant to the general public. When a practitioner-client relationship exists, the accountant is
referred to as a public accountant. Public accounting is considered to be more professional than
private accounting. Both certified and non certified public accountants can provide public
accounting services. Certified accountants can be single practitioners or by partnership ranging
in size from two to hundreds of members. The scope of these accounting firms can include local,
national and international clientele.

3. Governmental Accounting: Governmental accounting refers to accounting for a branch or unit

of government at any level, may it be federal, state, or local. Governmental accounting is very
similar to conventional accounting methods. Both the governmental and conventional accounting
methods use the double-entry system of accounting and journals and ledgers. The object of
government accounting units is to give service rather than make profits. Since profit motive
cannot be used as a measure of efficiency in government units, other control measures must be
developed. To enhance control, special funds accounting is used. Governmental units can use the
services of both private and public accountant just as any business entity.

4. Fiduciary Accounting: Fiduciary accounting lies in the notion of trust. This type of accounting
is done by a trustee, administrator, executor, or anyone in a position of trust. His work is to keep
the records and prepares the reports. This may be authorized by or under the jurisdiction of a
court of law. The fiduciary accountant should seek out and control all property subject to the
estate or trust. The concept of proprietorship that is common in the usual types of accounting is
non-existent or greatly modified in fiduciary accounting.

5. National Income Accounting: National income accounting uses the economic or social
concept in establishing accounting rather than the usual business entity concept. The national
income accounting is responsible in providing the public an estimate of the nation's annual
purchasing power. The GNP or the gross national product is a related term, which refers to the
total market value of all the goods and services produced by a country within a given period of
time, usually a calendar year.