Accounting Standards and Their Importance

2255 Words Feb 15th, 2007 10 Pages
Accounting Standards and Their Importance

AS-1: DISCLOSURE OF ACCOUNTING POLICIES
The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board, the Institute of Chartered Accountants of India on 'Disclosure of Accounting Policies'. The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements.
AS-2: VALUATION OF INVENTORIES
A primary issue in accounting for inventories is the determination of the value at which inventories are carried in the financial statements until the related revenues are recognized. This Statement deals with the determination of such value, including the ascertainment of cost of inventories and any write-down
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Financial statements disclose certain information relating to fixed assets. This statement deals with accounting for such fixed assets.
AS-11: ACCOUNTING FOR EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES
The following is the text of Accounting Standard 11, 'Accounting for the Effects of Changes in Foreign Exchange Rates', issued by the Council of the Institute of Chartered Accountants of India. An enterprise may have transactions in foreign currencies or it may have foreign branches. Foreign currency transactions should be expressed in the enterprise's reporting currency and the financial statements of foreign branches should be translated into the enterprise's reporting currency in order to include them in the financial statements of the enterprise.
AS-12: ACCOUNTING FOR GOVERNMENT GRANTS
The following is the text of the Accounting Standard 12 issued by the Council of the Institute of Chartered Accountants of India on 'Accounting for Government Grants'. This Statement deals with accounting for government grants.
AS-13: ACCOUNTING FOR INVESTMENTS
The following is the text of Accounting Standard 13, 'Accounting for Investments', issued by the Council of the Institute of Chartered Accountants of India. This Statement deals with accounting for investments in the financial statements of enterprises and related disclosure requirements.
AS-14: ACCOUNTING FOR
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