Introduction To Accounting Standards

Front 1

What is according

Back 1

Recording of financial transactions by an entity for ascertaining

Financial performance

Financial position

Front 2

Difference between Statement of PL and P and L a/c

Back 2

Statement of PL - accumulated profits, expenses are written off against

P&L a/c - Current years profit and loss, expenses are written off in

Front 3

Problem of users of financial statements

Back 3

The major problem for the users of FS is comparability.

Since lot of alternatives were available for 1 accounting transaction to the people who were preparing FS.

Hence to address this issue of reducing alternatives in preparation of FS within the bounds of rationality, thereby ensuring comparability of FS of different enterprises, Accounting Standards were framed and issued.

Front 4

What are accounting standards?

Back 4

AS are written policy documents issued by the government of India with support of regulatory bodies like MCA and NFRA covering the following aspects of accounting transactions or events in the financial statements.

Front 5

Standard setting process

Back 5

1. Identification

2. Constitution of study group

3. Preparation of draft AS and it's circulation (CBIT / SEBI)

4. Ascertainment of views of different bodies on draft AS

5. Finalisation of Exposure draft

6. Comments recommended on exposure draft and it's modification

7. Issue of AS

Front 6

Criteria for SMC

Back 6

- Debt or equity not listed nor in the process of listing

- Banks, Financial Institutions and Insurance Co

- Turnover <= 250 cr

- Borrowing <= 50 cr

Front 7

Criteria for non-SMC

Back 7

any co other than SMC

Front 8

Companies can be classified into?

Back 8

Front 9

Non-corporate entities criteria for different level

Back 9