1. Applicable Indian Accounting Standards
Applicability of Accounting Standards
Level I Enterprise
Level II & III Enterprise

2. Applicable Indian Accounting Standard
Level I Enterprise
Enterprises whose equity or debt securities are listed whether in India or outside India.
Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors’ resolution in this regard.
Banks including co-operative banks.
Financial institutions.
Enterprises carrying on insurance business.
All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crore. Turnover does not include ‘other income’.
All commercial, industrial and business reporting enterprises having borrowings including public deposits, in excess of Rs. 10 crore at any time during the accounting period.
Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

3. List of Indian Accounting Standard
AS 1
Disclosure of accounting policies
AS 2
Valuation of inventories
AS 3
Cash flow statements
AS 4
Contingencies and events occurring after the balance sheet date
AS 5
net profit or loss for the period, prior period items
AS 6
Depreciation Accounting
AS 7
Construction contract
AS 8
R & D replaced by AS 26 Impairment of Assets
AS 9
Revenue Recognition
AS 10
Fixed Assets
AS 11
Foreign Exchange
AS 12
Government Grants
AS 13
Investment
AS 14
Amalgamations
AS 15
Employee Costs

4. List of Indian Accounting Standard
AS 16
Borrowing Costs
AS 17
Segment Reporting
AS 18
Related Party Disclosure
AS 19
Leases
AS 20
Earning Per Share
AS 21
Consolidated Financial Statements
AS 22
Deferred Tax
AS 23
Investment in associates in CFS
AS 24
Discontinuing Operations
AS 25
Interim Financial Reporting
AS 26
Intangible Assets
AS 27
FR of interests in joint venture
AS 28
Impairment of assets
AS 29
Provision, Contingent liabilities and contingent assets

5. List of IAS IAS 1 Presentation of Financial Statements IAS 2
Inventories
IAS 7
Cash Flow Statements
IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10
Events After the Balance Sheet Date.
IAS 11
Construction Contracts
IAS 12
Income Taxes
IAS 14
Segment Reporting (superseded by 8 on January 1, 2008)
IAS 16
Property, Plant and Equipment
IAS 17
Leases
IAS 18
Revenue
IAS 19
Employee Benefits
IAS 20
Accounting for Government Grants and Disclosure of Government Assistance
IAS 21
The Effects of Changes in Foreign Exchange Rates
IAS 23
Borrowing Costs
IAS 24
Related Party Disclosures
IAS 26
Accounting and Reporting by Retirement Benefit Plans

6. List of IAS IAS 27 Consolidated Financial Statements IAS 28
Investments in Associates
IAS 29
Financial Reporting in Hyperinflationary Economies
IAS 31
Interests in Joint Ventures
IAS 32
Financial Instruments: Presentation (Financial instruments disclosures are in 7 Financial Instruments: Disclosures, and no longer in 32)
IAS 33
Earnings Per Share
IAS 34
Interim Financial Reporting
IAS 36
Impairment of Assets
IAS 37
Provisions, Contingent Liabilities and Contingent Assets
IAS 38
Intangible Assets
IAS 39
Financial Instruments: Recognition and Measurement
IAS 40
Investment Property
IAS 41
Agriculture

7. List of IFRS
IFRS 1
First time Adoption of International Financial Reporting Standards
IFRS 2
Share-based Payment
IFRS 3
Business Combinations
IFRS 4
Insurance Contracts
IFRS 5
Non-current Assets Held for Sale and Discontinued Operations
IFRS 6
Exploration for and Evaluation of Mineral Resources
IFRS 7
Financial Instruments: Disclosures
IFRS 8
Operating Segments[1]

8. AS 1 – Disclosure of Accounting Policies
Fundamental Accounting Assumptions
Going Concern
Consistency
Accrual
The accounting policies refer to the specific accounting principles and the methods of applying those principles adopted by the enterprise in the preparation and presentation of financial statements.

9. AS 1 – Disclosure of Accounting Policies
Areas in Which Differing Accounting Policies are Encountered
Methods of depreciation, depletion and amortization
Treatment of expenditure during construction
Conversion or translation of foreign currency items
Valuation of inventories
Treatment of goodwill
Valuation of investments
Treatment of retirement benefits
Recognition of profit on long-term contracts
Valuation of fixed assets
Treatment of contingent liabilities.
The above list of examples is not intended to be exhaustive.

10. AS 1 – Disclosure of Accounting Policies
major considerations governing the selection and application of accounting policies are:—
a. Prudence
In view of the uncertainty attached to future events, profits are not anticipated but recognized only when realized though not necessarily in cash. Provision is made for all known liabilities and losses even though the amount cannot be determined with certainty and represents only a best estimate in the light of available information.
b. Substance over Form
The accounting treatment and presentation in financial statements of transactions and events should be governed by their substance and not merely by the legal form.
c. Materiality
Financial statements should disclose all “material” items, i.e. items the knowledge of which might influence the decisions of the user of the financial statements.

11. AS 1 – Disclosure of Accounting Policies
All significant accounting policies adopted in the preparation and presentation of financial statements should be disclosed.
The disclosure of the significant accounting policies as such should form part of the financial statements and the significant accounting policies should normally be disclosed in one place.
Any change in the accounting policies which has a material effect in the current period or which is reasonably expected to have a material effect in later periods should be disclosed. In the case of a change in accounting policies which has a material effect in the current period, the amount by which any item in the financial statements is affected by such change should also be disclosed to the extent ascertainable. Where such amount is not ascertainable, wholly or in part, the fact should be indicated.
If the fundamental accounting assumptions, viz. Going Concern, Consistency and Accrual are followed in financial statements, specific disclosure is not required. If a fundamental accounting assumption is not followed, the fact should be disclosed.

12. AS 2 – Valuation of Inventories
Scope
This Statement should be applied in accounting for inventories other than:
1. work in progress arising under construction contracts, including directly related service contracts (see Accounting Standard (AS) 7, Accounting for Construction Contracts ;
2. work in progress arising in the ordinary course of business of service providers;
3. shares, debentures and other financial instruments held as stock-in-trade; and
4. producers’ inventories of livestock, agricultural and forest products, and mineral oils, ores and gases to the extent that they are measured at net realizable value in accordance with well established practices in those industries.

13. AS 2 – Valuation of Inventories
Definitions
The following terms are used in this Statement with the meanings specified: Inventories are assets:
held for sale in the ordinary course of business;
in the process of production for such sale; or
in the form of materials or supplies to be consumed in the production process or in the rendering of services.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

14. AS 2 – Valuation of Inventories
Measurement of Inventories
Inventories should be valued at the lower of cost and net realizable value.
Cost of Inventories
The cost of inventories should comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

15. AS 2 – Valuation of Inventories
Exclusions from the Cost of Inventories
abnormal amounts of wasted materials, labour, or other production costs;
storage costs, unless those costs are necessary in the production process prior to a further production stage;
administrative overheads that do not contribute to bringing the inventories to their present location and condition; and
selling and distribution costs.

16. AS 2 – Valuation of Inventories
Cost Formulas
The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects should be assigned by specific identification of their individual costs.
The cost of inventories, other than those dealt with in previous paragraph, should be assigned by using the first-in, first-out (FIFO), or weighted average cost formula. The formula used should reflect the fairest possible approximation to the cost incurred in bringing the items of inventory to their present location and condition.

17. AS 2 – Valuation of Inventories
Disclosure
The financial statements should disclose:
the accounting policies adopted in measuring inventories, including the cost formula used; and
the total carrying amount of inventories and its classification appropriate to the enterprise.

18. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Scope
This Statement should be applied by an enterprise in presenting profit or loss from ordinary activities, extraordinary items and prior period items in the statement of profit and loss, in accounting for changes in accounting estimates, and in disclosure of changes in accounting policies.

19. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Ordinary activities are any activities which are undertaken by an enterprise as part of its business and such related activities in which the enterprise engages in furtherance of, incidental to, or arising from, these activities. Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly. Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods. Accounting policies are the specific accounting principles and the methods of applying those principles adopted by an enterprise in the preparation and presentation of financial statements.

20. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
All items of income and expense which are recognized in a period should be included in the determination of net profit or loss for the period unless an Accounting Standard requires or permits otherwise.
The net profit or loss for the period comprises the following components, each of which should be disclosed on the face of the statement of profit and loss:
profit or loss from ordinary activities; and
extraordinary items.
Extraordinary Items
Extraordinary items should be disclosed in the statement of profit and loss as a part of net profit or loss for the period. The nature and the amount of each extraordinary item should be separately disclosed in the statement of profit and loss in a manner that its impact on current profit or loss can be perceived.

21. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Profit or Loss from Ordinary Activities
When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items should be disclosed separately.
Prior Period Items
The nature and amount of prior period items should be separately disclosed in the statement of profit and loss in a manner that their impact on the current profit or loss can be perceived.

22. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
Changes in Accounting estimate
The effect of a change in an accounting estimate should be included in the determination of net profit or loss in:
the period of the change, if the change affects the period only; or
the period of the change and future periods, if the change affects both.
The effect of a change in an accounting estimate should be classified using the same classification in the statement of profit and loss as was used previously for the estimate.
The nature and amount of a change in an accounting estimate which has a material effect in the current period, or which is expected to have a material effect in subsequent periods, should be disclosed. If it is impracticable to quantify the amount, this fact should be disclosed.

23. AS 5 - Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
A change in an accounting policy should be made only if the adoption of a different accounting policy is required by statute or for compliance with an accounting standard or if it is considered that the change would result in a more appropriate presentation of the financial statements of the enterprise.
Any change in an accounting policy which has a material effect should be disclosed. The impact of, and the adjustments resulting from, such change, if material, should be shown in the financial statements of the period in which such change is made, to reflect the effect of such change. Where the effect of such change is not ascertainable, wholly or in part, the fact should be indicated. If a change is made in the accounting policies which has no material effect on the financial statements for the current period but which is reasonably expected to have a material effect in later periods, the fact of such change should be appropriately disclosed in the period in which the change is adopted.

24. AS 9 - Revenue Recognition
This Statement deals with the bases for recognition of revenue in the statement of profit and loss of an enterprise. The Statement is concerned with the recognition of revenue arising in the course of the ordinary activities of the enterprise from
the sale of goods,
the rendering of services, and
the use by others of enterprise resources yielding interest, royalties and dividends.
This Statement does not deal with the following aspects of revenue recognition to which special considerations apply:
Revenue arising from construction contracts;
Revenue arising from hire-purchase, lease agreements;
Revenue arising from government grants and other similar subsidies;
Revenue of insurance companies arising from insurance contracts.

25. AS 9 - Revenue Recognition
Definitions
Revenue is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of an enterprise from the sale of goods, from the rendering of services, and from the use by others of enterprise resources yielding interest, royalties and dividends. Revenue is measured by the charges made to customers or clients for goods supplied and services rendered to them and by the charges and rewards arising from the use of resources by them. In an agency relationship, the revenue is the amount of commission and not the gross inflow of cash, receivables or other consideration.
Completed service contract method is a method of accounting which recognizes revenue in the statement of profit and loss only when the rendering of services under a contract is completed or substantially completed.
Proportionate completion method is a method of accounting which recognizes revenue in the statement of profit and loss proportionately with the degree of completion of services under a contract.

26. AS 9 - Revenue Recognition
Sale of goods
Rendering of services
Others:
interest-charges for the use of cash resources or amounts due to the enterprise;
royalties-charges for the use of such assets as know-how, patents, trade marks and copyrights;
dividends-rewards from the holding of investments in shares

27. AS 9 - Revenue Recognition
Disclosure
In addition to the disclosures required by Accounting Standard 1 on ‘Disclosure of Accounting Policies’ (AS 1), an enterprise should also disclose the circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

28. AS 6 – Depreciation
This Statement deals with depreciation accounting and applies to all depreciable assets, except the following items to which special considerations apply:—
forests, plantations and similar regenerative natural resources;
wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources;
expenditure on research and development;
goodwill;
live stock.

29. AS 6 – Depreciation Depreciable assets Useful life Depreciable amount
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined.
Depreciable assets
Useful life
Depreciable amount

30. AS 6 – Depreciation
The following information should be disclosed in the financial statements:
the historical cost or other amount substituted for historical cost of each class of depreciable assets;
total depreciation for the period for each class of assets; and
the related accumulated depreciation

31. AS 26 – Intangible Assets Introduction
Effective from accounting periods commencing on or after 1st April 2003.
The following AS stand withdrawn w.e.f. introduction of AS 26:
AS 8 Accounting for Research and development
AS 6 with respect to amortization of intangible assets;
AS 10 with respect to Fixed Assets like Goodwill, Patents and Know- how (Para 16.3 to 16.7, 37 & 38)

32. AS 26 – Intangible Assets Not applicable in respect of
Intangible assets covered by other AS
Financial assets
Mineral rights and expenditure on exploration
Intangible assets arising in insurance enterprises from contracts with policyholders
Intangible assets held for sale in ordinary course of business
Deferred tax assets
Leases within the scope of AS 19 Leases
Goodwill arising on amalgamation

33. AS 26 – Intangible Assets What is an intangible assets?
An intangible asset is an identifiable non –monetary assets, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes
As asset is a resources:
Controlled by an enterprise as a result of past events; and
From which future economic benefits are expected to flow to the enterprise
Monetary assets are money held and assets to be received in fixed or determinable amounts of money
Non- monetary assets are assets other than monetary assets

34. AS 26 – Intangible Assets Index Applicability and objective
Definitions
Overview
Internally Generated Intangible Assets
Recognition of expenses
Subsequent Expenditure
Amortization of intangibles
Impairment of losses
Disclosure requirements

35. AS 26 – Intangible Assets Recognition and initial measurement
An intangible asset should be recognized if:
it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise;
And
the cost of the asset can be measured reliably
An intangible asset should be measured initially at cost

36. Future Economic benefits
AS 26 – Intangible Assets
AS 26
Identifiably
Control
Future Economic benefits

37. AS 26 – Intangible Assets Internally Generated Intangible Assets
To assess whether an internally generated intangible asset meets criteria for recognition, the generation of asses is classified into:
Research phase; and
Development phase

38. AS 26 – Intangible Assets Internally Generated Intangible Assets
Research activities….
activities aimed at obtaining new knowledge
Search, evaluation & final selection of applications of research findings
Search for alternatives for materials, devices, products, processes, systems or services
Formulation, design, evaluation and final selection of possible alternatives for new or improved materials, devices, products, processes, systems or services

39. AS 26 – Intangible Assets Internally Generated Intangible Assets
Development activities….
Design, construction and testing of pre – production or pre – use prototypes and models;
Design of tools, jigs, moulds and dies involving new technology;
Design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production; and
Design, construction and testing of a chosen alternative for new or improved materials, devices, products, processes, systems or services

40. AS 26 – Intangible Assets Internally Generated Intangible Assets
Development activities….
Design, construction and testing of pre – production or pre – use prototypes and models;
Design of tools, jigs, moulds and dies involving new technology;
Design, construction and operation of a pilot plant that is not of a scale economically feasible for commercial production; and
Design, construction and testing of a chosen alternative for new or improved materials, devices, products, processes, systems or services

41. AS 26 – Intangible Assets
Amortization
Intangible asset should be amortized over the best estimate of its useful life, with a rebuttable presumption that the useful life will not exceed ten years from the date when the asset is available for use.

42. AS 26 – Intangible Assets
Disclosure
Useful life
Amortization method
Gross carrying amount and accumulated amortization
Reconciliation of carrying amount at beginning and year end covering;
additions; retirements and disposals; impairment losses recognized or reversed in the statement of profit and loss; amortization; other changes

43. AS 26 – Intangible Assets
Additional disclosure
Whether a intangible asset is amortised over more than ten years, its reasons describing the factors that played a significant role in determining the useful life;
For an individual material intangible asset; description, carrying amount and remaining period of amortisation;
Restricted titles, pledged assets and commitments for acquisition
Aggregate amount of R & D expenditure recognised as expenses during the period.

44. AS 28 – Impairment of Assets
Applicability
Scope
Objective
Computation
Accounting treatment
Disclosure
Transitional Provisions

45. AS 28 – Impairment of Assets
Scope
Applies to all assets other than
Inventories (AS 2)
Assets arising from construction contract (AS 7)
Financial Assets/Instruments (AS 30/31)
Deferred Tax Assets

46. AS 28 – Impairment of Assets
Objectives
To identify assets which are carried at amounts in excess of their recoverable amount
AS 28 defines recoverable amount as the higher of value in use and net selling price
Assets is impaired if carrying amount exceeds recoverable amount

47. AS 28 – Impairment of Assets
Indications of impairment
Assess at each Balance Sheet date whether an asset may be impaired on the basis of following factors;
Internal sources of information
Physical damage of asset
When enterprise plan to discontinue or restructure operations
Internal reporting on economic performance of an asset

48. AS 28 – Impairment of Assets
External sources of information
An assets market value has declined significantly due to passage of time or normal use.
Change in technology, market, economic or legal environment in which the enterprise operates
Market interest rate
Carrying amount of the net assets of the enterprise is more than its market capitalisation

49. AS 28 – Impairment of Assets
Impairment Loss
If carrying amount < = recoverable amount, then asset is not impaired
If carrying amount > recoverable amount, then asset is impaired
Impairment Loss = any excess of carrying amount over recoverable amount

50. AS 28 – Impairment of Assets
Measuring Recoverable Amount
Recoverable amount is the higher of net selling price and its value in use
Net selling price
Assets market price less cost of disposal
Value in use
Present value factor * (Estimated future net value cash flows arising from use of the asset + disposal value)

51. AS 28 – Impairment of Assets
Measuring Recoverable Amount
Recoverable amount is the higher of net selling price and its value in use
Net selling price
Assets market price less cost of disposal
Value in use
Present value factor * (Estimated future net value cash flows arising from use of the asset + disposal value)