Indian accounting standards and ifrs

That could be five years or the production ofwidgets. What is the pattern of benefit or usefulness derived from the asset? How is the asset used? Every day, 5 or 7 days per week?

Indian accounting standards and ifrs

This board also made many amendments in these Accounting standards. But I could not write its simple explain. So, today, this tutorial is just simple explanation of Accounting Standard especially for students who are doing chartered Accountancy in India and accountants who is practising accounting profession in India.

Accounting Standard 1 AS 1 Disclosure of accounting policies This accounting standard guides to company accountants for making their companies financial statements.

After making financial statement, it should disclose all financial information of business because business of company is not the business of one man. It is also duty of accountant to make and disclose also extra accounting policy if company is using different depreciationstock and investment valuation method.

This accounting standard is made also for public interest and providing them full financial information.

Indian accounting standards and ifrs

After they can take the decision of investment by purchasing the shares of company from stock exchange. Accounting Standard 2 AS 2 Valuation of Inventories This accounting standard is very helpful to calculate the value of inventories.

ASB comprise all stocks which is purchased for sale or production in inventories. Value of stock is not fixed by single formula but this standard provides following guidelines for calculating the value of inventories.

Accounting Standard 3 AS 3 Cash flow statement Accounting standard three which is revised in states that cash flow statement is a necessary statement under this standard for banksfinancial institute or any institute whose annual turnover is more than Rs.

This standard does not provide the Proforma of cash flow statement but deeply explain the two way of making this statement.

Ist Way Direct method Under this method, cash flow statement is made by inflow and outflow of cash in operatinginvesting and financial activities.

Under this method cash from operating activities is calculated on the basis of net profit after different adjustments of non cash and non operating items like depreciationinterestdividend paid and also adjusting net changes in working capital. All other part of cash flow from investing and financial activities are as same as direct method.

Accounting standard 4 AS 4 Contingencies and events occurring after the balance sheet date Accounting standard four provides the rules of accounting treatment of losses due to contingencies and event happening after balance sheet date but before approving of balance sheet by board of directors.

Impairment losses of assets is also covered under AS 4 Any losses due to happening of any event is also shown in financial statement before approving financial statement.Our member firm IFRS advisers can help you navigate the complexity of the Standards so you can focus your time and effort on running your business.

IFRS 15 Revenue from Contracts with Customers is the new Revenue Standard effective 1 January The Sstandard involves a 5 step model approach. IND AS VS. IFRS IAS/IFRS Title Ind AS IAS 1 Presentation of Financial Statement 1 IAS 2 Inventories 2 IAS 7 Statement of Cash Flows 7 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 8 IAS 10 Events after the Reporting Period 10 IAS 11 Construction Contracts 11 IAS 12 Income Taxes 12 IAS 16 Property, Plant and Equipment 16 IAS 17 Leases 17 IAS 18 Revenue Financial Accounting for Lenders—ideal for anyone at your financial institution who must be able to understand and assess accrual-based financial statements—explores fundamental accounting and cash flow concepts from a lender’s perspective..

The seven-module eLearning course begins with an exploration of the objectives and . June marked a landmark achievement when the International Accounting Standards Board (IASB) issued IFRS 15 ‘Revenue from Contracts with Customers’.

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What you need to know about the IFRS accounting standards