Transcript PRINCIPALS OF BOOK KEEPING.

PRINCIPLES OF BOOK KEEPING.
K.ESWAR. MBA( XLRI)
CHIEF MANAGER & FACULTY
SPBT COLLEGE. MUMBAI
16.10.07
DEFINITION AND SCOPE ACCOUNTING
STANDARDS.
• ACCOUNTING IS LANGUAGE OF BUSINESS.
• OOMMUNICATE THE RESULT OF BUSINESS
OPERATIONS AND ITS OTHER ASPECTS.
• ACCOUNTING IS AN ART OF RECORDING
CLASSIFYING AND SUMMARIZING IN A SIGNIFICANT
MANNER AND IN TERMS OF MONEY TRANSACTIONS
AND EVENTS WHICH ARE IN PART AT LEAST OF
FINANCIAL CHARACTER AND INTERPRETING THE
RESULTS THEREOF.
DIFFERENCE BETWEEN ACCOUNTANY
AND BOOKKEEPING.
• BOOK KEEKPING IS MERELY RECORDING THE BUSINESS
TRANSACTIONS IN BOOKS AND LEDGERS .
• ACCOUNTANCY IS WIDER CONCEPT: COMPLIATION OF
ACOUNTS IN SUCH A WAY THAT ONE IS IN A POSITION TO
UNDERSTAND STATE OF AFFAIRS OF BUSINESS.
• USERS OF FINANCIAL STATEMENTS ARE INCOME TAX
DEPAREMENT, ST DEPARMENT SHAREHOLDERS, INVESTORS
,BANKS AND FIS AND SO ON.
• IT IS IN THE INTEREST OF ALL THAT FINANCIAL STATEMENTS
REFLECT TRUE AND FAIR VIEW OF STATE OF AFFIAIRS OF AN
ENTITY.
ACCOUNTANCY
• ACCOUNTANCY INVOLVES:
• SYSTAMATIC CLALSSIFICATION OF BUSINESS
TRANSACTIONS IN TERMS OF MONEY AND
FINANCIAL CHARACTER.
• SUMMARIZING : TRAIL BALANACE AND B/S
• INTERPRETING THE FINANCIAL
TRANSACTIONS.
PURPOSE OF ACCOUNTANCY
• TO KEEP A SYSTAMATIC RECORD
• TO ASCERTAIN THE RESULTS OF OPERATIONS
• TO ASCERTAIN FINANCIAL POSITION OF
BUSINESS.
• TO FACILITATE RATIONAL DECISION MAKING
• TO SATISFY REQUIREMENT OF LAW AND
USEFUL IN MANY RESPECTS.
CONCEPTS OF ACCOUNTANCY.
• COST CONCEPT: BUSINESS TRANSACTIONS ARE RECORDED IN
BOOKS AT COST PRICE.
• FIXED ASSETS ARE KEPT AT COST OF PURCHASE AND NOT AT
THEIR MARKET PRICE.
• EVERY TRANSACTION IS RECORDED WITH PRESENT VALUE
AND NOT ANY FUTURE VALUE.
• UNREALIZED GAINS ARE IGNORED.
• COST OF AN ASSET THAT HAS LONG BUT LIMITED LIFE IS
SYSTAMATICALLY REDUCED BY A PROCESS CALLED
DEPRECIATION. BUT SUCH DEPRECIATION HAS NO RELATION
TO MARKET VALUE OF ASSET.
MONEY MEASUREMENT CONCEPT
• MONEY MEASUREMENT CONCEPT: EVERY
TRANSACTION IS MEASURED IN TERMS OF
MONEY. VIZ PRODUCTION/SALES/WAGES ETC
ALL CONVERTED TO MONEY.
• INFLATION OR DEFLATION NOT INCLUDED IN
VALUE OF ANY ASSET.
BUSINESS ENTITY CONCEPT
• THIS CONCEPT SEPARATES THE ENTITY OF PROPRIETOR
FROM THE BUSINESS TRANSACTION.
• CAPITAL CONTRIBUTED BY THE OWNER IS LIABILITY
FOR BUSINESS BECAUSE BUSINESS IS DIFFERENT FROM
OWNER.
• ANY MONEY WITHDRAWN BY PROP. IS DRAWINGS.
• PROFIT IS LIABILITY AND LOSS IS AN ASSET.
• ALL ENTRIES ARE KEPT FROM THE POINTOF VIEW OF
BUSINESS AND NOT FROM OWNER.
• AN ENTERPRISE IS ECONOMIC UNIT SEPARATE FROM
OWNER.
REALISATION CONCEPT.
• THIS CONCEPT TELLS US WHEN REVENUE IS TREATED
AS REALISED OR EARNED. IT IS TREATED AS
REALIZED ON THE DATE WHEN PROPERTY IN GOODS
PASSES TO BUYER AND HE BECOMES LEGALLY LIABLE
TO PAY.
• NO FUTURE INCOME IS CONSIDERED.
• GOODS SOLD ON APPROVAL WILL BE INCLUDED IN
SALES BUT ON COST ONLY.
GOING CONCERN CONCEPT
• BUSINESS IS A GOING CONCERN AND
TRANSACTIONS ARE RECORDED ACCORDINGLY.
• IF AN EXPENSE IS INCURRED AND UTILITY IS
CONSUMED DURING THE YEAR, THEN IT IS
TREATED AS AN EXPENSE OTHERWISE IT IS
RECORDED AS AN ASSET.
• RESERVES AND PROVISIONS ARE CREATED FOR
ANY FUTURE LIABILITY.
• DEFERRED REVENUE EXPENDITURE IS WRITTEN
OFF OVER NUMBER OF YEARS.
DUAL ASPECT CONCEPT
• EVERY TRANSACTION HAS DOUBLE EFFECT.
• ACCOUNTING EQUATION: ASSETS= CAP+
LIABILITY.
ACCOUNTING PERIOD CONCEPT.
• BUSINESS WILL RUN THROUGH LONG PERIOD. HENCE
ACCOUNTS OF EACH PERIOD IS RECORDED.
• RESULTS OF OPERATIONS CAN BE KNOWN PRECISELY ONLY
AFTER BUSINESS CEASES TO OPERATE AND ENTIRE ASSETS
ARE SOLD AND ENTIRE LIABILITIES PAID.
• BUT ONE IS INTERESTED IN PERIODICAL OPERATING RESULTS
OF BUSINESS SAY YEARLY OR HALF YEARLY OR QUARTERLY.
• HENCE ALL THE EXPENSES OR INCOME DURING THIS
ACCOUNTING PERIOD HAS TO BE TAKEN INTO
CONSIDERATION IRRESPECTIVE OF WHETHER THEY ARE
REALISED IN CASH OR PAID IN CASH.
ACCOUNTING FOR FULL DISCLOSURE
• DISCLOSURE OF MATERIAL FACTS.
• ( MATERIAL AND IMMATERIAL FACT IS
MATTER OF JUDDGEMENT)
• CONTINGENT LIABILITY
• MARKET VALUE OF INVESTEMENTS.
CONVENTION OF CONSERVATISM
• ALL POSSIBLE LOSES TO BE TAKEN INTO
CONSIDERATION AND ANTICIPTED PROFITS TO
BE IGNORED.
• CREATION OF PROVISION FOR DOUBTFUL
DEBTS.
• VALUE OF STOCK
• CONVENTION OF CONSISTENCY: METHOD OF
DEPREICATION.
DOUBLE ENTRY SYSTEM
• SCIENTIFIC SYSTEM:
• EVERY TRANSACTION HAS TWO ASPECTS.
• CRUX OF ACCOUNTANCY IS TO FIND OUT
WHICH TWO ACCOUNTS ARE EFFECTED AND
WHICH IS TO BE DEBITED AND WHICH IS TO
BE CREDITED.
JOURNAL
• JOURNAL RECORDS EACH AND EVERY RECORD.
• BUT TO FIND OUT A TRANSACTION EFFECTING A
PERSON, EXPENSES ACCOUNT OR ASSET ONE HAS
TO TURNOVER ALL PAGES OF JOURNAL .
• HENCE TRANSACTIONS ARE POSTED FROM JOURNAL
TO PARTICULAR PAGES OF LEDGER.
• HENCE JOURNAL CONTAIN A COLUMN L.F
JOURNAL FORMAT
DATE
PARTICULARS
L.F
DEBIT RS.
CREDIT RS.
CASH BOOK
• CASH BOOK KEEPS RECORDS OF ALL CASH
TRANSACTIONS I.E CASH RECEIPTS AND CASH
PAYMENTS.
• ALL RECEIPTS ARE RECORDED ON RIGHT SIDE
AND ALL PAYMENTS ON LEFT SIDE.
• CASH BOOK IS BOOK OF ORIGINAL ENTRY.
CASH BOOK FORMAT
DR.
DATE
CR
PARTI
CULA
RS
R.NO
L.F
CASH
BANK
DISCO
UNT
DATE
PARTI
CULA
RS
VR.N
O.
LF
CASH
BAJK
DISCO
UNT
RECORD KEEPING BASIS
• RECORDING: JOURNALISING AS AND WHEN TRANSACTION TAKES PLACE.
JOURNAL IS BOOK OF ORIGINAL OR FIRST ENTRY.
• CLASSIFYING: ALL ENTRIES IN JOURNAL OR SUBSIDARY BOOKS ARE
POSTED TO LEDGER ACCOUNT(POSTING) TO FIND OUT AT A GLANCE THE
TOTAL EFFECT OF ALL SUCH TRANSACTIONS. LEDGER IS BOOK OF
SECONDARY ENTRY.
RECORD KEEPING CONTD..
• SUMMASRISING: LAST STAGE IS TO PREPARE THE TRIAL BALANCE AND
FINAL ACCOUNTS WITH A VIEW TO ASCERTAIN THE PROFIT OR LOSS
DURING PARTICULAR PERIOD.
• IT IS CUSTOMARY TO USE TO AND BY WHILE POSTING LEDGER.
• BALANCING AN ACCOUNT MEANS EQUALIZTING TWO SIDES.
• IF DEBIT SIDE OF ACCOUNT EXCEED CREDIT SIDE, DIFFERENCE IS PUT ON
CREDIT SIDE AND IT IS SAID TO HAVE DEBIT BALANCE AND VICE VERSA..
LEDGER
DR
DATE
CR
PARTICU J.F
LARS
AMOUN
T(RS)
DATE
PARTICU J.F
LARS
AMOUN
T RS.
Questions.
• CREDIT BALANCE IN CAPITAL ACCOUNT IS
LIABILITY OR AN ASSET:
• A. LIBILITY
• B. A REVENUE
• C. AN EXPENSE
• D. NONE OF THESE.
QUESTION
• AMOUNT BROUGHT IN BY PROPRIETOR IN
BUSINESS SHOULD BE CREDITED TO
• A. PROPRIETORS ACCOUNT
• B.DRAWINGS ACCOUNT
• C.CAPITAL ACCOUNT
• D.ASSET ACCOUNT
QUESTIONS
•
•
•
•
•
WAGES PAID TO RAJU TO BE DEIBED TO
A. RAJU
B WAGES
C. CASH
D. BANK
QUESTIONS.
• Q. CREDIT SALES MADE TO ROHIT TO BE
DEIBTED TO
• A. SALES
• B. PURCHASE
• C. CASH
• D. ROHIT
QUESTIONS
•
•
•
•
•
•
FURNITURE PURCHASED BY ISSUING CHEQUE
WHAT ENTRIES TO BE PASSED
A. DEBIT FURNITURE AND CREDIT BANK ACCOUNT
DEBIT BANK ACCOUNT AND CREDIT FURNITURE
DEBIT FURNITURE AND CREDIT CASH.
DEBIT BANK AND CREDIT FUNITURE SHOP ACCOUNT
QUESTIONS
•
•
•
•
•
RETURN OF GOODS SHOULD BE CREDITED TO
A. SALES RETURN
B PURCHASE RETURN
C.CUSTOMER ACCOUNT
D. GOODS ACCOUNT
MATCH FOLLOWING
A
B
A
RAMESH
1
REAL
B
DENA BANK
2
PERSONAL
C
RENT
3
NOMINAL
D
COMPUTER
4
REAL
E
LAND
5
NOMINAL
F
DISCOUNT
6
PERSONAL
QUESTION
•
•
•
•
•
WHAT IS JOURNAL ENTRY
A. ORIGINAL ENTRY
B. DOUBLE ENTRY
C DUPLICATE ENTRY
NONE
QUESTION
• TRANSACTION IN BANK COLUMN ON CREDIT
SIDE OF THREE COLUMNAR CASH BOOK
INDICATE
• A. AMOUNT WITHDRAWN FROM BANK
• C .AMOUNT DEPOSITED IN BANK
• D .BOTH A AND B
• E. NONE
QUESTION
• PASS JOURNAL ENTRY:
• RENT PAID FOR OFFICE PREMISES RS.30000
OUT OF WHICH PART AMOUNT OF RS.10000
PAID BY CHEQUE AND REST BY CASH.
QUESTION
• PASS JOURNAL ENTRY:
• PURCHASED 100 SHARES OF CENTRAL BANK
OF INDIA FOR RS.100 PER SHARE.
QUESTIONS
• PASS JOURNAL ENTRY:
• SOLD GOODS TO TENDULKAR RS.15000
QUESTIONS
• PASS JOURNAL ENTRY:
• DRAVID INVOICED GOODS FOR RS.12000 TO
US.
QUESTIONS
• PASS JOURNAL ENTRY:
• RECEIVED DUE AMOUNT FROM
TENDULAKAR AND ALLOWED HIM DISCOUNT
OF 10%
QUESTIONS
• PASS JOURNAL ENTRY:
• PAID SALARY AND RENT RS.1200 AND 1500
RESPECTIVELY.
QUESTIONS
• PASS JOURNAL ENTRY:
• KIRAN BECAME INSOLVENT. HE HAD TO PAY
10000 TO US. BUT WE RECEIVED ONLY 25
PAISE A RUPEE.
QUESTION
• PASS JOURNAL ENTRY:
• PAID MONTHLY CAR INSTALMENT OF
PROPRIETOR’S PERSONAL CAR RS.12000
QUESTION
• PASS JOURNAL ENTRY:
• BOUGHT FURNITURE FROM GODREJ & BOYCE
CO. LTD AND PAID BY CHEQUE RS.50000
QUESTION
• PASS JOURNAL ENTRY:
• DEPOSITED CASH IN BANK RS.1000
QUESTION
JOURNALIZE FOLLOWING:
COMMENCED BUSINESS WITH Rs.15000 OF
WHICH RS.5000 WAS BORROWED FROM HIS
WIFE AT 12% INTEREST P.A.
QUESTIONS
• PASS JOURNAL ENTRY:
• PURCHASED GENERATOR FROM RAMA & CO.
RS.50000
QUESTIONS
• PASS JOURNAL ENTRY:
• PAID CARRIAGE AND CARTERAGE ON GOODS
SOLD TO NAYAN ON HIS BEHALF.
QUESTION
• PASS JOURNAL ENTRY:
• BOUGHT GOODS FROM SATISH AT ONE
MONTHS CREDIT RS.6000
• OUT OF WHICH HALF WAS INVOICED TO MR.
RAM AT 30% ABOVE COST.
ACCOUNTING STANDARDS.
• INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
RECOGNISING THE NEED TO HARMONISE THE
DIVERSE ACCOUNTING POLICIES AND PRACTICES
CONSTITUTED AN ACCOUNTING STANDARDS BOARD
IN THE YEAR 1977.
• ASB FORMULATE ACCOUNTING STANDRDS SO THAT
COUNCIL OF ICAI MAY MANDATE SUCH STANDARDS.
OBJECTIVES QUESTIONS ON
ACCOUNTING STANDARDS
• Q. MANDATORY ACCOUNTING STANDARD IF
NOT FOLLOWED REQUIRES AUDITORS WHO
ARE MEMBERS OF ICAI TO :
• A. QUALIFY THEIR AUDIT REPORTS.
• B. INFORM TO MANAGEMENT OF COMPANY
• C. INFORM TO ICAI
• D. NEED NOT REPORT ANYTHING.
QUESTIONS
• SEBI AND COMPANY’S ACT REQUIRE
AUDITORS TO QUALIFY AUDIT REPORTS THAT
• A. THAT DO NOT CONFORM TO MANDATORY
ACCOUNTING STANDARDS.
• B. CONFORM TO MANDATORY ACCOUNTING
STANDARDS.
• C. DO NOT CONFORM TO ACCOUNTING
STANDARDS.
• D . NO RESPOSIBILITY ON AUDITORS.
QUESTIONS.
• Q WHICH SECTION OF COMPANIES ACT CAST
RESPONSIBILITY ON BOARD OF DIRECTORS TO
COMPLAY WITH MANDATORY ACCOUNTING
STANDARDS:
• A. SECTION 217(2AA)
• B. SECTION 215
• C. SECTION 125
• D. SECTION 44.
ACCOUNTING STANDARDS
• AS -1
• ALL SIGNIFICANT POLICIES ADOPTED IN
PREPARATION OF FINANCIAL STATEMENTS
SHOULD BE DISCLOSED.
• ANY CHANGE IN ACCOUNTING POLICIES
WHICH HAS MATERIAL EFFECT IN CURRENT
PERIOD OR IN LATER PERIOD SHOULD BE
DISCLOSED.
AS 2
• DEALS WITH DETERMINATION OF VALUE AT
WHICH INVENTORIES ARE CARRIED/VALUED
• INVENTORIES TO BE VALUED AT LOWER OF
COST OR NET REALISABLE VALUE.
• AVERAGE COST OR FIFO METHODS ARE
PERMITTED IN CASE WHERE GOODS ARE
INTERCHANGEABLE.
AS-3
• PREPARATION OF CASH FLOW STATEMENT
AND ITS PRESENTATION ALONGWITH
FINANIAL STATEMENTS
• CASH FLOW TO BE CLASSIFIED BY
OPERATING/INVESTING/FINANCING
ACTIVITIES.
AS 4
• TREATMENT OF CONTINGENCIES AND EVENTS IN FINANCIAL
STATEMENTS.
• EG. CASES IN HIGH COURT OR PENALTY PROCEEDINGS UNDER
LAW.
• CONTINGENCIES MUST BE PROVIDED IF LOSSES CAN BE
ESTIMATED.
• EVENTS AFTER BALANCESHEET DATE AND BEFORE APPROVAL
OF BOARD OF DIRECTORS SHOULD BE APPROPRIATELY
ADJUSTED IN VALUE OF ASSETS AND LIABILITIES.
• IF INSUFFECIENT EVIDENCE, DISCLOSURE TO BE MADE
• CONTINGENT GAINS ARE NOT RECOGNIZED.
AS-5
• DEALS WITH TREATMENT OF PRIOR PERIOD
AND EXTRAORDINARY EVENTS.
• DEBITS OR CREDITS WHICH ARISE IN
CURRENT YEAR OR AS A RESULT OF
OMMISSION/MISTAKES IN PRIOR YEAR.
• ALSO EXTRAORDINARY ITEMS LIKE WRITING
OFF IVENTORIES.
• DISPOSAL OF FIXED ASSETS.
AS -6
• DEPRECIATION IS MEASURE OF WEARING OUT
ASSETS.
• DEPRECIATION METHOD SHOULD CAREFULLY
BE SELECTED AND CONSISTENCY APPLIED FOR
YEAR TO YEAR.
• TREATMENT FOR REVALUATION OF ASSETS
• DEPRECIATION METHOD TO BE DISCLOSED.
AS-7
• ACCOUNTING OF CONSTRUCTION CONTRACTS .CONTRACT
FOR CONSTRUCTION EXCEED ONE YEAR OR SO.
• ACCOUNTING ISSUES OF REVENUE, TREATMENT OF ADVANCE
RECEIVED, WORK IN PROGRESS, IN FINANCIAL STATEMENTS.
• TYPES OF CONTRACTS: FIXED PRICE CONTRACT + ESCALATION
COST OR COST PLUS A FIXED FEE.
• AMOUNT AND METHOD USED TO DETERMINE REVENUE
RECOGNIZED.
AS-8
• STAND DELETED FROM 1.4.03 R&D EXPENSES
ARE NOW COVERED ON AS-10
AS-9
• BASIS FOR RECOGNITION OF REVENUE I.E
INCOME AND TIME WHEN INCOME IS SAID
TO HAVE ARISEN
• WHEN REVENUE RECOGNITION POSTPONED ,
DISCLOSURE OF CIRCUMASTANCES TO BE
MADE.
AS-10
• ACOUNTING OF FIXED ASSETS AND DISCLOSURE THERE OF.
• COMPONENTS OF COST.
• PURCHASE PRICE: + IMPORT DUTY+TAXES+DIRECT COST TO
BRING ASSET TO ITS WORKING CONDITION-TRADE
DISCOUNTS.
• FINANCING COST TO THE EXTENT SUCH COST RELATE TO
PERIOD AFTER SUCH ASSETS ARE READY TO USE-NOT TO BE
CAPITALIZED.
• TEST RUN EXPENSES CAPITALIZED.
AS-11
• TRANSLATION OF ACOUNTING TRANSATION IN
FOREIGN CURRENCIES IN REPORTING CURRENCY.
• FINANCIAL STATEMENT OF FOREIGN OPERATIONS
• FORWARD EXCHANGE CONTRACTS.
• EXCHANGE DIFFERENCE INCLUDED I.E PROFIT OR
LOSS TO BE DISCLOSED.
AS-12
• GOVERNMENT GRANTS RECEIVED BY AN
ENTITY.
• SUBSIDIES/CASH INCENTIVE/DUTY DRAWBACK
• DOES NOT INCLUDE ANY TAX EXEMPTION OR
TAX HOLIDAY.
AS-13
• ACCOUNTING FOR INVESEMENTS MADE BY
AN ENTITY.
• CURRENT AND LONG TERM.
AS-14
• AMALGAMATION OF TREATMENT OF
RESULTANT GOODWILL OR RESERVES
• TAKE OVER OF EXISTING BUSINESS AND
FORMATION OF NEW BUSINESS.
AS-15
• ACCOUNTING OF RETIREMENT BENEFIT TO
EMPLOYEES IN FINANCIAL STATEMENTS
• PF/PENSION/GRATUIITY LEAVE ENCASHMENT
POST RETIREMENT WELFARE SCHEME
• METHOD BY WHICH RETIREMENT BENEFITS
VALUED.
AS-16
• CAPITALIZATION OF BORROWING COST
ATTRIBUTABLE TO
ACQUISITION/CONSTRUCTION OR
PRODUCTION WHERE QUALIFYING ASSET
TAKES SUBSTANTIAL PERIOD TO GET IT READY
FOR INTENDED USE OR SALE.
AS-17
• SEGMENT REPORTING
• REPORTING OF INFORMATION ABOUT
DIFFERENT TYPES OF PRODUCT AND
SERVICES OF AN ENTERPRISE AND ITS
OPERATIONS IN DIFFERENT GEOGRAPHICAL
AREAS.
• FOR ASSESSING RISK AND RETURN OF
DIVERSIFIED OR MULTILOCATIONAL
ENTERPRISE.
AS-18
• REPORTING OF RELATED PARTY RELATIONSHIP
AND TRANSACTIONS BETWEEN A REPORTING
ENTERPRISE AND RELATED PARTY.
• NAME OF RELATED PARLTY AND
RELATIONSHIP WHERE CONTROL EXIST TO BE
DISCLOSED.
AS-19
• LEASE: A LEASE IS AN AGREEMENT WHEREBY
THE LESSOR CONVEYS TO THE LESEE IN
RETURN FOR A PAYMENT OR SERIES OF
PAYMENTS THE RIGHT TO USE AN ASSET FOR
A AGREED PERIOD.
• ACCOUNTING POLICIES FOR LESSOR AND
LESSEE AND DISCLOSURE IN RELATION TO
FINANCIAL LEASE AND OPERATING LEASE.
AS-20
• PRINCIPLES & DETERMINATION OF EARINGS
PER SHARE
• COMPARISON BETWEEN ENTERPRISES.
• NET PROFI(LOSS)/ WEIGHTED AVERAGE
NUMBER OF SHARES.
AS 21
• CONSOLIDATED FINANCIAL STATEMENT OF
PARENT AND SUBSIDARIES.
AS-22
• METHOD OF DETERMINATION OF AMOUNT
OF EXPENSES OR SAVING RELATING TO TAXES
ON INCOME IN RESPECT OF AN ACCOUNTING
PERIOD.
• DEFERRED TAX ASSETS AND LIABILITIES
SHOULD BE DISTINGUISHED FROM CURRENT
TAX ASSETS AND LIABILITIES
AS-23
• ACCOUNTING FOR INVESTMENT IN
ASSOCIATES.
AS-24
• DISCONTINUATION OF OPERATION OF
PARTICULAR SEGMENT.
• DISCLOSURE OF PRE TAX PROFIT OR LOSS
FROM ACTIVITIES ATTRIBUTABLE TO
DISCONTINUING OPERATIONS.
AS-25
• INTERIM REPORTING WHICH IS NOT FOR
COMPLETE REPORTING PERIOD.
• CONDENSED B/S
• CONDENSED P&L
• CONDENSED CASH FLOW STATEMENT
• EXPLANTORY NOTES.
AS-26
• OTHER THAN INTANGIBLE ASSETS COVERED IN AS22( DEFERRED TAX ASSETS)
• RELATE TO START UP COST ( EG ADVT ETC)
• R&D
• PATENTS AND COPY RIGHT
• GOODWILL
• DISCLOSURE: USEFUL LIFE OR AMORATIZATION RATE
• AMORATIZATION METHOD.
AS-27
• TWO OR MORE PARTIES UNDER TAKE ECONOMIC
ACTIVITY WITH JOINT CONTROL
• ACCOUNTING FOR JOINT VENTURE IN A
CONSOLIDATED FINANCIAL STATEMENT.
• DISCLOSURE: ANY CONTINGENT LIABILITY INCURRED
BY VENTURER AND ITS SHARE.
• ANY CAPITAL COMMITMENT AND ITS SHARE.
AS-28
• EQUITY OR DEBT LISTED
• TURNOVER EXCEED RS.50 CRORES
• PRINCIPAL OF THIS AS IS TO ENSURE
CARRYING COST OF ASSET IS NOT MORE THAN
RECOVERABLE ASSET.
• NOT APPLIED TO INVENTORIES -AS 2
• CONSTRUCTION CONTRACT AS 7
• FINANCIAL ASSETS AS 13 & DEF TAX AS 22
•
THANK YOU.