Accounting Standards & Auditing & Assurance Standards C. P. Mansoor S. Ahmed., M. Com, PGDBA

Introduction – Accounting Standards Accounting Standard Board - ASB AS is a selected set of accounting policies Broad guidelines regarding the principles and methods to be chosen out of the alternatives. ASB – authority in India Harmonize diversified policies to make the system effective and useful. ASB – 1977 International Accounting Standards Committee – IASC M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Introduction – Auditing & Assurance Standards Auditing Practices Committee – Auditing & Assurance Standard Board Statements on Standard Auditing Practices – Auditing Assurance Standard Framework of services of an auditor Who Why When Where How M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Auditing & Assurance Standard AAS 1 Basic Principle Governing An Audit! Professional Responsibility Independent Examination of Financial Statements irrespective of its Size, or Legal Form Compliance with basic principles – requires application of auditing procedure and reporting practices Integrity, Objectivity and Independence Confidentiality Relying on work performed by others; Delegation Documentation Planning – Time Management Audit Evidence Accounting System & Internal Control Audit Conclusions & Reporting M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Indian Accounting Standard 1 Disclosure of Accounting Policies! Significant Accounting Policies Impact of Accounting Policies on the Financial Statements Legal Requirement – Disclosure ICAI Recommends – translation policies of Foreign Currency Items Notes to the Accounts – Disclosure (Subjective) Better Understanding and a meaningful comparisons of firms Following are the fundamental accounting assumptions: Going Concern Consistency Accrual M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Indian Accounting Standard 1 Disclosure of Accounting Policies! Methods of Depreciation Treatment of Expenditure during Construction Conversion or translation of Foreign currency items Valuation of Inventories Valuation of Goodwill Valuation of Investments Treatment of Retirement Benefits Recognition of Profits on long term contracts Valuation of fixed assets Treatment of Contingent Liabilities Differing Situation M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Indian Accounting Standard 1 Disclosure of Accounting Policies! Should Exhibit true & Fair view of the state of affairs Major governing consideration for selection are Prudence - Profits Substance over form – content over law Materiality – influential to users decision M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018

Indian Accounting Standard 1 Disclosure of Accounting Policies! Disclosure – Understanding As a part of Financial Statement One set preferred over many statements, Schedules and notes Change in Accounting Policy Impact of Change on Financial Statement as a result of change in Accounting Policy M & M Ahmed Wednesday, 14 November 2018Wednesday, 14 November 2018