1. Rayat Shikshan Sanstha’s S. M. Joshi College, Hadapsar, Pune-28
Department of Commerce
S.Y.B.COM
Corporate Accounting
Accounting Standards
Prepared by
Prof. S.T. Suryawanshi

2. Chapter:- 1 Accounting Standards
S.Y.B.Com
Sub- Coporate Accounting
Prof.S.T.Suryawanshi

3. Introduction:-
Accounting standards are written documents, policy documents issued by expert accounting body or by Govt. or other regulatory body covering the aspects of recognition, measurement, treatment, presentation and disclosure of accounting transactions in the financial statement.

4. Advantages of accounting standards:-
Standards reduce to a reasonable extent variation in the accounting treatment used to prepare the financial statements.
There are certain areas where important information is not required by law to be disclosed, standards may require such disclosure.
It facilitates comparison of financial statements of different companies situated at different places.

5. Disadvantages:-
1)There are may be a trend towards rigidity in applying accounting standards.
2) Differences in accounting standards are bound to be because of differences in traditions and legal system from one.
3) Accounting standards can not override the law.
4) The choice between better alternative accounting treatment in a particular situation is eliminated.

6. Scope of accounting standards:-
The accounting standards which are in conformity with the provisions of applicable laws, customs, usages and business environment in India.
It not override the local regulations which govern the preparation and presentation of financial statement in country.
They are determine the extent of disclosure to be made in the financial statement and the auditors report.

7. Accounting Standards in corporate accounting
As-5 Net profit For the period ,priod period items & change in accounting policies
As-6Deprecition Accounting
As-10Accounting for fixed Assets
As-14 Accounting for amalgamations
As-21 Consolidated Financial Statements

8. AS-5 Net profit For the period , prior period items & change in accounting policies
1.Objective:- This accounting standards deals with change in accounting policy , accounting estimates & extra ordinary items.
2.Applicability:-This standards is applicable to all entities.
Definition:-
a) Ordinary activity:- The activities which are undertaken by an enterprise as part of its business.
Examples:1)Profit or loss on sale of fixed assets.
b) Extra ordinary items :-are income or expenses that arise from transactions that are clearly distinct from ordinary activities.they are not regular or frequent.
Examples:-1)Loss due to earthquake.
2)Merger related items.

9. AS-6 Depreciation Accounting
Objectives:-The objective of this standard is to lay down the criteria for ascertaining the depreciable amount , expected useful lives of depreciable assets, residual value, method to be used.
Meaning:-It is a measure of wearing out , consumption or other loss of value of a depreciable asset arising from use and passage of time.
1) are expected to be used for more than one accounting period.
2)has limited useful life.
3)are held for use in production of goods and services.
Calculation of Deprecation
Deprecation= Cost-Scrap Value at the end of useful life
Estimated useful life in number

10. AS-10 Accounting For Fixed Assets
Objective:-The objective of this standard is to prescribe the accounting treatment of fixed assets and the related disclosuere requirements in the financial statements.
Scope & Applicability:-
It is applicable to all entities except to the following items
1) Forests plantation and similar regenerative natural resources.
2)Westing assets like minerals
3)Expenditure on real estate development.
4) Live stock

11. Thank You