Accounting Standards & Bookkeeping — Guides, Updates & Practical Insights
Indian Accounting Standards (AS 1-29), bookkeeping principles, GST accounting entries, and valuation rules
“Financial Statements” in Accounting Standards & Bookkeeping
AS 11 Effects of Changes in Foreign Exchange Rates: Complete Guide
AS 11 (Accounting Standard 11) prescribes the accounting treatment for foreign currency transactions and foreign operations. This guide covers initial recognition, reporting at balance sheet date, exchange differences, forward contracts, integral and non-integral foreign operations, and disclosure requirements.
AS 18 Related Party Disclosures: Identification, Transactions and Disclosure Requirements
AS 18 (Accounting Standard 18) requires disclosure of related party relationships and transactions. This guide covers identification of related parties, types of related party transactions, key management personnel, control and significant influence, and disclosure requirements.
AS 13 Accounting for Investments: Classification, Valuation and Disclosure
AS 13 (Accounting Standard 13) prescribes the accounting treatment for investments. This guide covers classification into current and long-term investments, cost of acquisition, carrying amount, reclassification, disposal, and disclosure requirements with practical examples.
AS 10 Property, Plant and Equipment: Recognition, Depreciation and Disclosure
AS 10 (Accounting Standard 10) prescribes the accounting treatment for property, plant and equipment (PPE). This guide covers recognition criteria, measurement at cost, elements of cost, depreciation methods (SLM and WDV), subsequent expenditure, derecognition, and disclosure requirements.
AS 9 Revenue Recognition: Conditions, Methods and Disclosure Requirements
AS 9 (Accounting Standard 9) establishes the principles for revenue recognition from the sale of goods, rendering of services, and use of enterprise resources by others (interest, royalties, dividends). This guide explains the conditions for recognition, percentage of completion method, and disclosure requirements.
AS 16 Borrowing Costs: Capitalisation, Qualifying Assets and Disclosure
AS 16 (Accounting Standard 16) prescribes the accounting treatment for borrowing costs. This guide explains which borrowing costs to capitalise, what constitutes a qualifying asset, when capitalisation begins/suspends/ceases, and disclosure requirements with practical examples.
AS 29 Provisions, Contingent Liabilities and Contingent Assets: Complete Guide
AS 29 (Accounting Standard 29) prescribes accounting for provisions, contingent liabilities and contingent assets. This guide covers recognition criteria, measurement (best estimate, present value), the distinction between provisions and contingent liabilities, and disclosure requirements.
AS 3 Cash Flow Statements: Direct & Indirect Method with Format and Examples
AS 3 (Accounting Standard 3) requires enterprises to present a cash flow statement as part of their financial statements. This guide explains the classification of cash flows into operating, investing and financing activities, the direct and indirect methods, and disclosure requirements with a sample format.
AS 1 Disclosure of Accounting Policies: Meaning, Assumptions and Examples
AS 1 (Accounting Standard 1) issued by ICAI deals with disclosure of significant accounting policies adopted in the preparation and presentation of financial statements. This guide explains the three fundamental accounting assumptions — going concern, consistency and accrual — the nature and selection of accounting policies, and disclosure requirements under the Companies Act 2013.
AS 5 Net Profit or Loss: Prior Period Items and Changes in Accounting Policies
AS 5 (Accounting Standard 5) prescribes the classification and disclosure of certain items in the profit and loss statement. This guide covers extraordinary items, prior period items, changes in accounting policies, and changes in accounting estimates with practical examples.
AS 17 Segment Reporting: Business Segments, Geographical Segments and Disclosure
AS 17 (Accounting Standard 17) establishes principles for reporting financial information by segments. This guide covers business segments, geographical segments, primary and secondary reporting formats, reportable segment thresholds, and disclosure requirements.
AS 2 Valuation of Inventories: Cost Formulas, NRV and Disclosure Requirements
AS 2 (Accounting Standard 2) prescribes the treatment for valuation of inventories. This guide explains the measurement of inventories at cost or net realisable value (whichever is lower), cost formulas (FIFO and Weighted Average), and disclosure requirements under Indian accounting standards.
AS 21 Consolidated Financial Statements: Procedures, Minority Interest and Goodwill
AS 21 (Accounting Standard 21) prescribes the preparation and presentation of consolidated financial statements for a group of enterprises. This guide covers consolidation procedures, line-by-line aggregation, elimination of intra-group transactions, minority interest, goodwill on consolidation, and disclosure requirements.
AS 12 Accounting for Government Grants: Recognition, Presentation and Disclosure
AS 12 (Accounting Standard 12) deals with accounting for government grants. This guide covers recognition criteria, capital approach vs income approach, grants related to fixed assets, revenue grants, non-monetary grants, refund of grants, and disclosure requirements.
AS 24 Discontinuing Operations: Recognition, Disclosure and Presentation
AS 24 (Accounting Standard 24) establishes principles for reporting information about discontinuing operations. This guide covers the definition, initial disclosure event, recognition and measurement, required disclosures, and presentation with practical examples.
AS 4 Contingencies and Events After Balance Sheet Date: Complete Guide
AS 4 (Accounting Standard 4) deals with the treatment of contingencies and events occurring after the balance sheet date. This guide explains contingent losses, contingent gains, adjusting events, non-adjusting events, and disclosure requirements with practical examples.
First-time adoption under Ind AS 101: the date of transition, the opening Ind AS balance sheet, mandatory exceptions, optional exemptions such as deemed cost, and the equity and profit reconciliations, with a worked example
Prepare an opening Ind AS balance sheet at the date of transition (paragraph 6) using the Ind AS effective at the end of the first reporting period (paragraph 7). Adjustments go directly to retained earnings (paragraph 11). Apply the mandatory exceptions (paragraphs 14 to 17 and Appendix B) and...
Consolidation procedure under Ind AS 110: combining line by line, eliminating the investment against equity, goodwill, non-controlling interests, intra-group balances and unrealised profit, with a worked example
Under Ind AS 110, paragraph B86, a parent combines like items line by line, eliminates its investment against its share of the subsidiary's equity (with goodwill under Ind AS 103), and eliminates in full intra-group balances, income, expenses and unrealised profits. Non-controlling interests are...
OCI Tax Effects Under Division III: Aggregate Items, Separate Tax
Ind AS 1 offers a choice between presenting OCI net of tax or gross with one aggregate tax figure. Schedule III does not — it requires the items in aggregate with the tax shown separately.
Ind AS Applicability and Roadmap — Who Must Adopt Ind AS
The MCA roadmap sets out which companies must adopt Ind AS based on net worth and listing status, phased across financial years from 2016-17.
Ind AS 110 — Consolidated Financial Statements
Ind AS 110 establishes a single control-based model for consolidation, defining control through power, exposure to variable returns and the link between them.
MSMED Disclosures Under Section 22: Five Items and the Appointed Day
Five disclosures under section 22 of the MSMED Act, carried into Schedule III — principal and interest unpaid, interest paid with the late payments, interest due for the delay, interest accrued and unpaid, and interest remaining payable in succeeding years.
SA 210, Agreeing the Terms of Audit Engagements: the preconditions for an audit, management's responsibilities, what the engagement letter must contain, recurring audits and a request to change the terms
Before accepting an audit, the auditor must establish two preconditions: management is using an acceptable financial reporting framework, and management acknowledges its responsibilities for the statements, internal control and access to information and people. The terms are then recorded in an...
Projected financial statements for a bank loan: building the projected profit and loss account, balance sheet and cash flow from a sales forecast, with a worked example for a small manufacturer
Start from a sales forecast. Project costs as a share of sales, then the profit and loss account. Project stock, debtors and creditors from days or percentages of sales, add the fixed assets and funding already agreed, and let borrowing be the balancing figure in the balance sheet. Then derive the...