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
(withdrawn FY 2016-17)

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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What are Indian Accounting Standards?

The Institute of Chartered Accountants of India (ICAI) lays down the standards to be followed in India, which is known as the Indian Accounting Standard, and these standards were laid under the oversight of the Accounting Standards Board. These standards ensure uniformity, transparency, consistency, and comparability across firms....

Need for Accounting Standards

Accounting Standards are needed due to the following reasons:...

Benefits of Accounting Standards

The benefits of Accounting Standards are as follows:...

Limitations of Accounting Standards

Accounting Standards have various limitations too. These are:...

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....

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