Accounting Standards
Introduction
Accounting Standards are written policy documents consists of common set of principles, standards, and procedures that define the basis of financial accounting policies and practices. It covers the aspects of recognition, measurement, treatment, presentation, and disclosure of accounting transactions in financial statements.
List of Accounting Standards
Accounting Standards (AS) Title of the Accounting Standards 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 And Changes In Accounting Policies AS 7 Construction Contracts AS 9 Revenue Recognition AS 10 Property, Plant And Equipment AS 11 The Effect Of Changes In Foreign Exchange Rates AS 12 Accounting For Government Grants AS 13 Accounting For Investments AS 14 Accounting For Amalgamation AS 15 Employee Benefits AS 16 Borrowing Costs AS 17 Segment Reporting AS 18 Related Party Disclosures AS 19 Leases AS 20 Earnings Per Share AS 21 Consolidated Financial Statements AS 22 Accounting For Taxes On Income AS 23 Accounting For Investments In Associates In Consolidated Financial Statements AS 24 Discounting Operations AS 25 Interim Financial Reporting AS 26 Intangible Assets AS 27 Financial Reporting Of Interests In Joint Ventures AS 28 Impairment Of Assets AS 29 Provisions, Contingent Liabilities And Contingent Assets
Classification of Enterprise
The enterprises are classified and labeled as Level I, Level II and Level III companies. Based on the classification and the category in which they fall, the accounting standards are applicable to the enterprises.
Level I Enterprise
Enterprises which fall under any one or more following categories are termed as Level I Companies
- Enterprises whose equity or debt securities are listed in India or outside India.
- Enterprises which are in the process of listing their equity or debt securities. Board of directors’ resolution must be available as evidence.
- Banks including co-operative banks.
- Financial institutions.
- Enterprises carrying on insurance business.
- All commercial, industrial and business reporting enterprises, whose turnover (excluding ‘other income’) for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crores.
- All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 10 crores at any time during the accounting period.
- Holding and subsidiary enterprises of any one of the above at any time during the accounting period.
Level II Enterprise
Enterprises which fall under any following one or more categories are termed as Level II Companies.
- All commercial, industrial and business reporting enterprises, whose turnover (excluding ‘other income’) for the immediately preceding accounting period on the basis of audited financial statements is greater than Rs. 40 lakhs but less than Rs. 50 crores.
- All commercial, industrial and business reporting enterprises having borrowings, including public deposits, is greater Rs. 1 crore but less than Rs. 10 crores at any time during the accounting period.
- Holding and subsidiary enterprises of any one of the above at any time during the accounting period.
Level III Enterprise
Enterprises which do not fall under Level I and Level II, are considered as Level III enterprises.
See also…
Financial Statement Analysis
Tools of Financial Statements Analysis
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