Accounting Standards

Accounting bodies all over the world are striving to achieve a degree of uniformity in accounting policies by prescribing certain accounting standards with respect to presentation and collection of accounting information.

In India, the Accounting Standards Board of the Institute of Chartered Accountants of India have framed and issued formally under the authority of the council of Chartered Accountants.

In case a company doesn’t conform to mandatory  accounting standards, the auditor will have to qualify his report justifying the reasons for deviations. The accounting standards presently issued are:

• Disclosure of accounting policies
• Valuation of inventory
• Changes in financial position
• Contingencies and events occurring after the balance sheet due
• Prior Period and extraordinary items and changes in accounting policies
• Depreciation accounting
• Accounting from construction contracts
• Accounting from Research and development
• Revenue recognition
• Accounting for fixed assets
• Accounting for Foreign exchange transactions
• Accounting for government grants
• Accounting for investments
• Accounting for amalgamation
• Accounting for retirement benefits