Applicability of Accounting Standards
For accounting standards to be applicable to various organisations, all enterprises are classified into three categories that are Level I, Level II and Level III. Certain accounting standards may not be applicable to a particular level. Let us see the list of accounting standards, and to which level they are applicable.
List of Accounting standards issued by ICAI
Accounting Standard |
Description |
Applicable To Level |
---|---|---|
AS1 |
Disclosure of Accounting Policies |
All |
AS2 |
Valuation of Inventories |
All |
AS3 |
Cash Flow Statements |
1 |
AS4 |
Contingencies and Events Occurring After the Balance Sheet Date |
All |
AS5 |
Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies |
All |
AS6 |
Depreciation Accounting |
—– |
AS7 |
Construction Contracts |
All |
AS8 |
Accounting for Research and Development |
All |
AS9 |
Revenue Recognition |
All |
AS10 |
Accounting for Fixed Assets |
All |
AS11 |
The Effects of Changes in Foreign Exchange Rates |
All |
AS12 |
Accounting for Government Grants |
All |
AS13 |
Accounting for Investments |
All |
AS14 |
Accounting for Amalgamations |
All |
AS15 |
Accounting for Retirement Benefits in the Financial Statements of Employers |
All |
AS16 |
Borrowing Costs |
All |
AS17 |
Segment Reporting |
1 |
AS18 |
Related Party Disclosures |
1 |
AS19 |
Leases |
All |
AS20 |
Earnings Per Share |
All |
AS21 |
Consolidated Financial Statements |
See Note |
AS22 |
Accounting for Taxes on Income |
All |
AS23 |
Accounting for Investments in Associates in Consolidated Financial Statements |
See Note |
AS24 |
Discontinuing Operations |
1,2 |
AS25 |
Interim Financial Reporting |
All |
AS26 |
Intangible Assets |
All |
AS27 |
Financial Reporting of Interests in Joint Ventures |
See Note |
AS28 |
Impairment of Assets |
All |
AS29 |
Provisions, Contingent Liabilities and Contingent Assets |
All |
Note: AS 21, AS 23 and AS 27 for the preparation of consolidated financial statements are required to be complied with by a non-corporate entity if the non-corporate entity voluntarily prepares and presents the consolidated financial statements.
Accounting Standards : Need, Benefits, Limitations and Applicability
Accounting is a process of recording an organisation’s financial exchanges in order to retain data that can be referred to in the ,future to make important decisions. But it is very necessary that the records are maintained in a proper format and all the firms follow some specific rules to maintain the records for ease and to create uniformity in the format of records all over the country.
Table of Content
- What are Indian Accounting Standards?
- Need for Accounting Standards
- Benefits of Accounting Standards
- Limitations of Accounting Standards
- Applicability of Accounting Standards
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