PRINCIPLES OF BOOK KEEPING.

1
PRINCIPLES OF BOOK KEEPING.

• K.ESWAR. MBA( XLRI)
• CHIEF MANAGER FACULTY
• SPBT COLLEGE. MUMBAI
• 16.10.07

2
DEFINITION AND SCOPE ACCOUNTING STANDARDS.

• ACCOUNTING IS LANGUAGE OF BUSINESS.
• OOMMUNICATE THE RESULT OF BUSINESS OPERATIONS AND
  ITS OTHER ASPECTS.
• ACCOUNTING IS AN ART OF RECORDING CLASSIFYING
  AND SUMMARIZING IN A SIGNIFICANT MANNER AND IN
  TERMS OF MONEY TRANSACTIONS AND EVENTS WHICH ARE
  IN PART AT LEAST OF FINANCIAL CHARACTER AND
  INTERPRETING THE RESULTS THEREOF.

3
DIFFERENCE BETWEEN ACCOUNTANY AND BOOKKEEPING.

• BOOK KEEKPING IS MERELY RECORDING THE BUSINESS
  TRANSACTIONS IN BOOKS AND LEDGERS .
• ACCOUNTANCY IS WIDER CONCEPT COMPLIATION OF
  ACOUNTS IN SUCH A WAY THAT ONE IS IN A POSITION
  TO UNDERSTAND STATE OF AFFAIRS OF BUSINESS.
• USERS OF FINANCIAL STATEMENTS ARE INCOME TAX
  DEPAREMENT, ST DEPARMENT SHAREHOLDERS, INVESTORS
  ,BANKS AND FIS AND SO ON.
• IT IS IN THE INTEREST OF ALL THAT FINANCIAL
  STATEMENTS REFLECT TRUE AND FAIR VIEW OF STATE OF
  AFFIAIRS OF AN ENTITY.

4
ACCOUNTANCY

• ACCOUNTANCY INVOLVES
• SYSTAMATIC CLALSSIFICATION OF BUSINESS
  TRANSACTIONS IN TERMS OF MONEY AND FINANCIAL
  CHARACTER.
• SUMMARIZING TRAIL BALANACE AND B/S
• INTERPRETING THE FINANCIAL TRANSACTIONS.

5
PURPOSE OF ACCOUNTANCY

• TO KEEP A SYSTAMATIC RECORD
• TO ASCERTAIN THE RESULTS OF OPERATIONS
• TO ASCERTAIN FINANCIAL POSITION OF BUSINESS.
• TO FACILITATE RATIONAL DECISION MAKING
• TO SATISFY REQUIREMENT OF LAW AND USEFUL IN MANY
  RESPECTS.

6
CONCEPTS OF ACCOUNTANCY.

• COST CONCEPT BUSINESS TRANSACTIONS ARE RECORDED
  IN BOOKS AT COST PRICE.
• FIXED ASSETS ARE KEPT AT COST OF PURCHASE AND NOT
  AT THEIR MARKET PRICE.
• EVERY TRANSACTION IS RECORDED WITH PRESENT VALUE
  AND NOT ANY FUTURE VALUE.
• UNREALIZED GAINS ARE IGNORED.
• COST OF AN ASSET THAT HAS LONG BUT LIMITED LIFE
  IS SYSTAMATICALLY REDUCED BY A PROCESS CALLED
  DEPRECIATION. BUT SUCH DEPRECIATION HAS NO
  RELATION TO MARKET VALUE OF ASSET.

7
MONEY MEASUREMENT CONCEPT

• MONEY MEASUREMENT CONCEPT EVERY TRANSACTION IS
  MEASURED IN TERMS OF MONEY. VIZ
  PRODUCTION/SALES/WAGES ETC ALL CONVERTED TO
  MONEY.
• INFLATION OR DEFLATION NOT INCLUDED IN VALUE OF
  ANY ASSET.

8
BUSINESS ENTITY CONCEPT

• THIS CONCEPT SEPARATES THE ENTITY OF PROPRIETOR
  FROM THE BUSINESS TRANSACTION.
• CAPITAL CONTRIBUTED BY THE OWNER IS LIABILITY FOR
  BUSINESS BECAUSE BUSINESS IS DIFFERENT FROM
  OWNER.
• ANY MONEY WITHDRAWN BY PROP. IS DRAWINGS.
• PROFIT IS LIABILITY AND LOSS IS AN ASSET.
• ALL ENTRIES ARE KEPT FROM THE POINTOF VIEW OF
  BUSINESS AND NOT FROM OWNER.
• AN ENTERPRISE IS ECONOMIC UNIT SEPARATE FROM
  OWNER.

9
REALISATION CONCEPT.

• THIS CONCEPT TELLS US WHEN REVENUE IS TREATED AS
  REALISED OR EARNED. IT IS TREATED AS REALIZED
  ON THE DATE WHEN PROPERTY IN GOODS PASSES TO
  BUYER AND HE BECOMES LEGALLY LIABLE TO PAY.
• NO FUTURE INCOME IS CONSIDERED.
• GOODS SOLD ON APPROVAL WILL BE INCLUDED IN SALES
  BUT ON COST ONLY.

10
GOING CONCERN CONCEPT

• BUSINESS IS A GOING CONCERN AND TRANSACTIONS ARE
  RECORDED ACCORDINGLY.
• IF AN EXPENSE IS INCURRED AND UTILITY IS
  CONSUMED DURING THE YEAR, THEN IT IS TREATED AS
  AN EXPENSE OTHERWISE IT IS RECORDED AS AN ASSET.
• RESERVES AND PROVISIONS ARE CREATED FOR ANY
  FUTURE LIABILITY.
• DEFERRED REVENUE EXPENDITURE IS WRITTEN OFF OVER
  NUMBER OF YEARS.

11
DUAL ASPECT CONCEPT

• EVERY TRANSACTION HAS DOUBLE EFFECT.
• ACCOUNTING EQUATION ASSETS CAP LIABILITY.

12
ACCOUNTING PERIOD CONCEPT.

• BUSINESS WILL RUN THROUGH LONG PERIOD. HENCE
  ACCOUNTS OF EACH PERIOD IS RECORDED.
• RESULTS OF OPERATIONS CAN BE KNOWN PRECISELY
  ONLY AFTER BUSINESS CEASES TO OPERATE AND ENTIRE
  ASSETS ARE SOLD AND ENTIRE LIABILITIES PAID.
• BUT ONE IS INTERESTED IN PERIODICAL OPERATING
  RESULTS OF BUSINESS SAY YEARLY OR HALF YEARLY OR
  QUARTERLY.
• HENCE ALL THE EXPENSES OR INCOME DURING THIS
  ACCOUNTING PERIOD HAS TO BE TAKEN INTO
  CONSIDERATION IRRESPECTIVE OF WHETHER THEY ARE
  REALISED IN CASH OR PAID IN CASH.

13
ACCOUNTING FOR FULL DISCLOSURE

• DISCLOSURE OF MATERIAL FACTS.
• ( MATERIAL AND IMMATERIAL FACT IS MATTER OF
  JUDDGEMENT)
• CONTINGENT LIABILITY
• MARKET VALUE OF INVESTEMENTS.

14
CONVENTION OF CONSERVATISM

• ALL POSSIBLE LOSES TO BE TAKEN INTO CONSIDERATION
  AND ANTICIPTED PROFITS TO BE IGNORED.
• CREATION OF PROVISION FOR DOUBTFUL DEBTS.
• VALUE OF STOCK
• CONVENTION OF CONSISTENCY METHOD OF
  DEPREICATION.

15
DOUBLE ENTRY SYSTEM

• SCIENTIFIC SYSTEM
• EVERY TRANSACTION HAS TWO ASPECTS.
• CRUX OF ACCOUNTANCY IS TO FIND OUT WHICH TWO
  ACCOUNTS ARE EFFECTED AND WHICH IS TO BE DEBITED
  AND WHICH IS TO BE CREDITED.

16
JOURNAL

• JOURNAL RECORDS EACH AND EVERY RECORD.
• BUT TO FIND OUT A TRANSACTION EFFECTING A PERSON,
  EXPENSES ACCOUNT OR ASSET ONE HAS TO TURNOVER
  ALL PAGES OF JOURNAL .
• HENCE TRANSACTIONS ARE POSTED FROM JOURNAL TO
  PARTICULAR PAGES OF LEDGER.
• HENCE JOURNAL CONTAIN A COLUMN L.F

17
JOURNAL FORMAT
DATE PARTICULARS L.F DEBIT RS. CREDIT RS.

18
CASH BOOK

• CASH BOOK KEEPS RECORDS OF ALL CASH TRANSACTIONS
  I.E CASH RECEIPTS AND CASH PAYMENTS.
• ALL RECEIPTS ARE RECORDED ON RIGHT SIDE AND ALL
  PAYMENTS ON LEFT SIDE.
• CASH BOOK IS BOOK OF ORIGINAL ENTRY.

19
CASH BOOK FORMAT
DR. CR
DATE PARTICULARS R.NO L.F CASH BANK DISCOUNT DATE PARTICULARS VR.NO. LF CASH BAJK DISCOUNT

20
RECORD KEEPING BASIS

• RECORDING JOURNALISING AS AND WHEN TRANSACTION
  TAKES PLACE. JOURNAL IS BOOK OF ORIGINAL OR
  FIRST ENTRY.
• CLASSIFYING ALL ENTRIES IN JOURNAL OR SUBSIDARY
  BOOKS ARE POSTED TO LEDGER ACCOUNT(POSTING) TO
  FIND OUT AT A GLANCE THE TOTAL EFFECT OF ALL
  SUCH TRANSACTIONS. LEDGER IS BOOK OF SECONDARY
  ENTRY.

21
RECORD KEEPING CONTD..

• SUMMASRISING LAST STAGE IS TO PREPARE THE TRIAL
  BALANCE AND FINAL ACCOUNTS WITH A VIEW TO
  ASCERTAIN THE PROFIT OR LOSS DURING PARTICULAR
  PERIOD.
• IT IS CUSTOMARY TO USE TO AND BY WHILE POSTING
  LEDGER.
• BALANCING AN ACCOUNT MEANS EQUALIZTING TWO SIDES.
  
• IF DEBIT SIDE OF ACCOUNT EXCEED CREDIT SIDE,
  DIFFERENCE IS PUT ON CREDIT SIDE AND IT IS SAID
  TO HAVE DEBIT BALANCE AND VICE VERSA..

22
LEDGER
DR CR
DATE PARTICULARS J.F AMOUNT(RS) DATE PARTICULARS J.F AMOUNT RS.

23
Questions.

• CREDIT BALANCE IN CAPITAL ACCOUNT IS LIABILITY OR
  AN ASSET
• A. LIBILITY
• B. A REVENUE
• C. AN EXPENSE
• D. NONE OF THESE.

24
QUESTION

• AMOUNT BROUGHT IN BY PROPRIETOR IN BUSINESS
  SHOULD BE CREDITED TO
• A. PROPRIETORS ACCOUNT
• B.DRAWINGS ACCOUNT
• C.CAPITAL ACCOUNT
• D.ASSET ACCOUNT

25
QUESTIONS

• WAGES PAID TO RAJU TO BE DEIBED TO
• A. RAJU
• B WAGES
• C. CASH
• D. BANK

26
QUESTIONS.

• Q. CREDIT SALES MADE TO ROHIT TO BE DEIBTED TO
• A. SALES
• B. PURCHASE
• C. CASH
• D. ROHIT

27
QUESTIONS

• FURNITURE PURCHASED BY ISSUING CHEQUE
• WHAT ENTRIES TO BE PASSED
• A. DEBIT FURNITURE AND CREDIT BANK ACCOUNT
• DEBIT BANK ACCOUNT AND CREDIT FURNITURE
• DEBIT FURNITURE AND CREDIT CASH.
• DEBIT BANK AND CREDIT FUNITURE SHOP ACCOUNT

28
QUESTIONS

• RETURN OF GOODS SHOULD BE CREDITED TO
• A. SALES RETURN
• B PURCHASE RETURN
• C.CUSTOMER ACCOUNT
• D. GOODS ACCOUNT

29
MATCH FOLLOWING
A B
A RAMESH 1 REAL
B DENA BANK 2 PERSONAL
C RENT 3 NOMINAL
D COMPUTER 4 REAL
E LAND 5 NOMINAL
F DISCOUNT 6 PERSONAL
30
QUESTION

• WHAT IS JOURNAL ENTRY
• A. ORIGINAL ENTRY
• B. DOUBLE ENTRY
• C DUPLICATE ENTRY
• NONE

31
QUESTION

• TRANSACTION IN BANK COLUMN ON CREDIT SIDE OF
  THREE COLUMNAR CASH BOOK INDICATE
• A. AMOUNT WITHDRAWN FROM BANK
• C .AMOUNT DEPOSITED IN BANK
• D .BOTH A AND B
• E. NONE

32
QUESTION

• PASS JOURNAL ENTRY
• RENT PAID FOR OFFICE PREMISES RS.30000 OUT OF
  WHICH PART AMOUNT OF RS.10000 PAID BY CHEQUE AND
  REST BY CASH.

33
QUESTION

• PASS JOURNAL ENTRY
• PURCHASED 100 SHARES OF CENTRAL BANK OF INDIA
  FOR RS.100 PER SHARE.

34
QUESTIONS

• PASS JOURNAL ENTRY
• SOLD GOODS TO TENDULKAR RS.15000

35
QUESTIONS

• PASS JOURNAL ENTRY
• DRAVID INVOICED GOODS FOR RS.12000 TO US.

36
QUESTIONS

• PASS JOURNAL ENTRY
• RECEIVED DUE AMOUNT FROM TENDULAKAR AND ALLOWED
  HIM DISCOUNT OF 10

37
QUESTIONS

• PASS JOURNAL ENTRY
• PAID SALARY AND RENT RS.1200 AND 1500
  RESPECTIVELY.

38
QUESTIONS

• PASS JOURNAL ENTRY
• KIRAN BECAME INSOLVENT. HE HAD TO PAY 10000 TO
  US. BUT WE RECEIVED ONLY 25 PAISE A RUPEE.

39
QUESTION

• PASS JOURNAL ENTRY
• PAID MONTHLY CAR INSTALMENT OF PROPRIETORS
  PERSONAL CAR RS.12000

40
QUESTION

• PASS JOURNAL ENTRY
• BOUGHT FURNITURE FROM GODREJ BOYCE CO. LTD AND
  PAID BY CHEQUE RS.50000

41
QUESTION

• PASS JOURNAL ENTRY
• DEPOSITED CASH IN BANK RS.1000

42
QUESTION

• JOURNALIZE FOLLOWING
• COMMENCED BUSINESS WITH Rs.15000 OF WHICH RS.5000
  WAS BORROWED FROM HIS WIFE AT 12 INTEREST P.A.

43
QUESTIONS

• PASS JOURNAL ENTRY
• PURCHASED GENERATOR FROM RAMA CO. RS.50000

44
QUESTIONS

• PASS JOURNAL ENTRY
• PAID CARRIAGE AND CARTERAGE ON GOODS SOLD TO
  NAYAN ON HIS BEHALF.

45
QUESTION

• PASS JOURNAL ENTRY
• BOUGHT GOODS FROM SATISH AT ONE MONTHS CREDIT
  RS.6000
• OUT OF WHICH HALF WAS INVOICED TO MR. RAM AT 30
  ABOVE COST.

46
ACCOUNTING STANDARDS.

• INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
  RECOGNISING THE NEED TO HARMONISE THE DIVERSE
  ACCOUNTING POLICIES AND PRACTICES CONSTITUTED AN
  ACCOUNTING STANDARDS BOARD IN THE YEAR 1977.
• ASB FORMULATE ACCOUNTING STANDRDS SO THAT
  COUNCIL OF ICAI MAY MANDATE SUCH STANDARDS.

47
OBJECTIVES QUESTIONS ON ACCOUNTING STANDARDS

• Q. MANDATORY ACCOUNTING STANDARD IF NOT FOLLOWED
  REQUIRES AUDITORS WHO ARE MEMBERS OF ICAI TO
• A. QUALIFY THEIR AUDIT REPORTS.
• B. INFORM TO MANAGEMENT OF COMPANY
• C. INFORM TO ICAI
• D. NEED NOT REPORT ANYTHING.

48
QUESTIONS

• SEBI AND COMPANYS ACT REQUIRE AUDITORS TO
  QUALIFY AUDIT REPORTS THAT
• A. THAT DO NOT CONFORM TO MANDATORY ACCOUNTING
  STANDARDS.
• B. CONFORM TO MANDATORY ACCOUNTING STANDARDS.
• C. DO NOT CONFORM TO ACCOUNTING STANDARDS.
• D . NO RESPOSIBILITY ON AUDITORS.

49
QUESTIONS.

• Q WHICH SECTION OF COMPANIES ACT CAST
  RESPONSIBILITY ON BOARD OF DIRECTORS TO COMPLAY
  WITH MANDATORY ACCOUNTING STANDARDS
• A. SECTION 217(2AA)
• B. SECTION 215
• C. SECTION 125
• D. SECTION 44.

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ACCOUNTING STANDARDS

• AS -1
• ALL SIGNIFICANT POLICIES ADOPTED IN PREPARATION
  OF FINANCIAL STATEMENTS SHOULD BE DISCLOSED.
• ANY CHANGE IN ACCOUNTING POLICIES WHICH HAS
  MATERIAL EFFECT IN CURRENT PERIOD OR IN LATER
  PERIOD SHOULD BE DISCLOSED.

51
AS 2

• DEALS WITH DETERMINATION OF VALUE AT WHICH
  INVENTORIES ARE CARRIED/VALUED
• INVENTORIES TO BE VALUED AT LOWER OF COST OR NET
  REALISABLE VALUE.
• AVERAGE COST OR FIFO METHODS ARE PERMITTED IN
  CASE WHERE GOODS ARE INTERCHANGEABLE.

52
AS-3

• PREPARATION OF CASH FLOW STATEMENT AND ITS
  PRESENTATION ALONGWITH FINANIAL STATEMENTS
• CASH FLOW TO BE CLASSIFIED BY OPERATING/INVESTING/
  FINANCING ACTIVITIES.

53
AS 4

• TREATMENT OF CONTINGENCIES AND EVENTS IN
  FINANCIAL STATEMENTS.
• EG. CASES IN HIGH COURT OR PENALTY PROCEEDINGS
  UNDER LAW.
• CONTINGENCIES MUST BE PROVIDED IF LOSSES CAN BE
  ESTIMATED.
• EVENTS AFTER BALANCESHEET DATE AND BEFORE
  APPROVAL OF BOARD OF DIRECTORS SHOULD BE
  APPROPRIATELY ADJUSTED IN VALUE OF ASSETS AND
  LIABILITIES.
• IF INSUFFECIENT EVIDENCE, DISCLOSURE TO BE MADE
• CONTINGENT GAINS ARE NOT RECOGNIZED.

54
AS-5

• DEALS WITH TREATMENT OF PRIOR PERIOD AND
  EXTRAORDINARY EVENTS.
• DEBITS OR CREDITS WHICH ARISE IN CURRENT YEAR OR
  AS A RESULT OF OMMISSION/MISTAKES IN PRIOR YEAR.
• ALSO EXTRAORDINARY ITEMS LIKE WRITING OFF
  IVENTORIES.
• DISPOSAL OF FIXED ASSETS.

55
AS -6

• DEPRECIATION IS MEASURE OF WEARING OUT ASSETS.
• DEPRECIATION METHOD SHOULD CAREFULLY BE
  SELECTED AND CONSISTENCY APPLIED FOR YEAR TO
  YEAR.
• TREATMENT FOR REVALUATION OF ASSETS
• DEPRECIATION METHOD TO BE DISCLOSED.

56
AS-7

• ACCOUNTING OF CONSTRUCTION CONTRACTS .CONTRACT
  FOR CONSTRUCTION EXCEED ONE YEAR OR SO.
• ACCOUNTING ISSUES OF REVENUE, TREATMENT OF
  ADVANCE RECEIVED, WORK IN PROGRESS, IN FINANCIAL
  STATEMENTS.
• TYPES OF CONTRACTS FIXED PRICE CONTRACT
  ESCALATION COST OR COST PLUS A FIXED FEE.
• AMOUNT AND METHOD USED TO DETERMINE REVENUE
  RECOGNIZED.

57
AS-8

• STAND DELETED FROM 1.4.03 RD EXPENSES ARE NOW
  COVERED ON AS-10

58
AS-9

• BASIS FOR RECOGNITION OF REVENUE I.E INCOME AND
  TIME WHEN INCOME IS SAID TO HAVE ARISEN
• WHEN REVENUE RECOGNITION POSTPONED , DISCLOSURE
  OF CIRCUMASTANCES TO BE MADE.

59
AS-10

• ACOUNTING OF FIXED ASSETS AND DISCLOSURE THERE
  OF.
• COMPONENTS OF COST.
• PURCHASE PRICE IMPORT DUTYTAXESDIRECT COST
  TO BRING ASSET TO ITS WORKING CONDITION-TRADE
  DISCOUNTS.
• FINANCING COST TO THE EXTENT SUCH COST RELATE TO
  PERIOD AFTER SUCH ASSETS ARE READY TO USE-NOT TO
  BE CAPITALIZED.
• TEST RUN EXPENSES CAPITALIZED.

60
AS-11

• TRANSLATION OF ACOUNTING TRANSATION IN FOREIGN
  CURRENCIES IN REPORTING CURRENCY.
• FINANCIAL STATEMENT OF FOREIGN OPERATIONS
• FORWARD EXCHANGE CONTRACTS.
• EXCHANGE DIFFERENCE INCLUDED I.E PROFIT OR LOSS
  TO BE DISCLOSED.

61
AS-12

• GOVERNMENT GRANTS RECEIVED BY AN ENTITY.
• SUBSIDIES/CASH INCENTIVE/DUTY DRAWBACK
• DOES NOT INCLUDE ANY TAX EXEMPTION OR TAX HOLIDAY.

62
AS-13

• ACCOUNTING FOR INVESEMENTS MADE BY AN ENTITY.
• CURRENT AND LONG TERM.

63
AS-14

• AMALGAMATION OF TREATMENT OF RESULTANT GOODWILL
  OR RESERVES
• TAKE OVER OF EXISTING BUSINESS AND FORMATION OF
  NEW BUSINESS.

64
AS-15

• ACCOUNTING OF RETIREMENT BENEFIT TO EMPLOYEES IN
  FINANCIAL STATEMENTS
• PF/PENSION/GRATUIITY LEAVE ENCASHMENT POST
  RETIREMENT WELFARE SCHEME
• METHOD BY WHICH RETIREMENT BENEFITS VALUED.

65
AS-16

• CAPITALIZATION OF BORROWING COST ATTRIBUTABLE TO
  ACQUISITION/CONSTRUCTION OR PRODUCTION WHERE
  QUALIFYING ASSET TAKES SUBSTANTIAL PERIOD TO GET
  IT READY FOR INTENDED USE OR SALE.

66
AS-17

• SEGMENT REPORTING
• REPORTING OF INFORMATION ABOUT DIFFERENT TYPES
  OF PRODUCT AND SERVICES OF AN ENTERPRISE AND
  ITS OPERATIONS IN DIFFERENT GEOGRAPHICAL AREAS.
• FOR ASSESSING RISK AND RETURN OF DIVERSIFIED OR
  MULTILOCATIONAL ENTERPRISE.

67
AS-18

• REPORTING OF RELATED PARTY RELATIONSHIP AND
  TRANSACTIONS BETWEEN A REPORTING ENTERPRISE AND
  RELATED PARTY.
• NAME OF RELATED PARLTY AND RELATIONSHIP WHERE
  CONTROL EXIST TO BE DISCLOSED.

68
AS-19

• LEASE A LEASE IS AN AGREEMENT WHEREBY THE
  LESSOR CONVEYS TO THE LESEE IN RETURN FOR A
  PAYMENT OR SERIES OF PAYMENTS THE RIGHT TO USE
  AN ASSET FOR A AGREED PERIOD.
• ACCOUNTING POLICIES FOR LESSOR AND LESSEE AND
  DISCLOSURE IN RELATION TO FINANCIAL LEASE AND
  OPERATING LEASE.

69
AS-20

• PRINCIPLES DETERMINATION OF EARINGS PER SHARE
• COMPARISON BETWEEN ENTERPRISES.
• NET PROFI(LOSS)/ WEIGHTED AVERAGE NUMBER OF
  SHARES.

70
AS 21

• CONSOLIDATED FINANCIAL STATEMENT OF PARENT AND
  SUBSIDARIES.

71
AS-22

• METHOD OF DETERMINATION OF AMOUNT OF EXPENSES OR
  SAVING RELATING TO TAXES ON INCOME IN RESPECT OF
  AN ACCOUNTING PERIOD.
• DEFERRED TAX ASSETS AND LIABILITIES SHOULD BE
  DISTINGUISHED FROM CURRENT TAX ASSETS AND
  LIABILITIES

72
AS-23

• ACCOUNTING FOR INVESTMENT IN ASSOCIATES.

73
AS-24

• DISCONTINUATION OF OPERATION OF PARTICULAR
  SEGMENT.
• DISCLOSURE OF PRE TAX PROFIT OR LOSS FROM
  ACTIVITIES ATTRIBUTABLE TO DISCONTINUING
  OPERATIONS.

74
AS-25

• INTERIM REPORTING WHICH IS NOT FOR COMPLETE
  REPORTING PERIOD.
• CONDENSED B/S
• CONDENSED PL
• CONDENSED CASH FLOW STATEMENT
• EXPLANTORY NOTES.

75
AS-26

• OTHER THAN INTANGIBLE ASSETS COVERED IN AS-22(
  DEFERRED TAX ASSETS)
• RELATE TO START UP COST ( EG ADVT ETC)
• RD
• PATENTS AND COPY RIGHT
• GOODWILL
• DISCLOSURE USEFUL LIFE OR AMORATIZATION RATE
• AMORATIZATION METHOD.

76
AS-27

• TWO OR MORE PARTIES UNDER TAKE ECONOMIC ACTIVITY
  WITH JOINT CONTROL
• ACCOUNTING FOR JOINT VENTURE IN A CONSOLIDATED
  FINANCIAL STATEMENT.
• DISCLOSURE ANY CONTINGENT LIABILITY INCURRED BY
  VENTURER AND ITS SHARE.
• ANY CAPITAL COMMITMENT AND ITS SHARE.

77
AS-28

• EQUITY OR DEBT LISTED
• TURNOVER EXCEED RS.50 CRORES
• PRINCIPAL OF THIS AS IS TO ENSURE CARRYING COST
  OF ASSET IS NOT MORE THAN RECOVERABLE ASSET.
• NOT APPLIED TO INVENTORIES -AS 2
• CONSTRUCTION CONTRACT AS 7
• FINANCIAL ASSETS AS 13 DEF TAX AS 22

78

• THANK YOU.