Project Report On Indian Accounting Standard and International As - Income Statement - International Financial Reporting Standards PDF

1/26/2020 Project Report on Indian Accounting Standard and International As | Income Statement | International Financial Reporting Standards
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Project Report on Indian
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International As
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CERTIFICATE
This is to certify that project work report titled “ A Projec
Comparative Study of Accounting Standard Issued by

International Accounting Standard” submitted by Mr.
benefited student of this college .
The work of project is a partial fulfillment of the requirem
Master Degree in Commerce affiliated to University of Pune,
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Academic Year 2010-2011.
https://www.scribd.com/doc/57175842/Project-Report-on-Indian-Accounting-Standard-and-International-As 1/46
To the best of my knowledge this is original work.

Place: -
Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on
Auditing Standards - Fin… Accounting… Ifrs Accounting… Accounts Project Accounting…
Date: -
Project Guide
Principle
(Name)
(Name)
Internal Examiner
Date:-
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Acknowledgement
Through this acknowledgment, I take the oppo

express my sincere thanks to various teachers, fr
colleagues for their guidance and assistance through w
project work is completed.
At first I express my gratitude towards XXX – p

XXX and vice-principle – Shri. XXX for their tea
guidance of this subject research Methodology and Pro
and inspiring all students in our class for this project wor
I also express my sincere thanks to Shri. XXX for
guidance for this particular project work.
I also thanks to my friends for making me aware fr
time and guiding me for completing this project in time.
I am also thankful to administrative staff members
office for their co-operation.
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Name: - XXX
Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation
A Study on
Auditing Standards - Fin… Accounting… Ifrs Accounting…
(M.Com
Accounts Project
II)
Accounting…
Research Candidate
TABLE OF CONTENT
A Project Report on Comparative Study of Accounting Stand
by ICAI with International Accounting Standard
SR. No. TOPIC PAG
INTRODUCTION OF INDIAN ACCOUNTING
STANDARDS
• Introduction
• What are Accounting Standards
1 • Who Issues Accounting Standards in 1
India
• About ICAI
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• Process of formulating Accounting
• Process of formulating Accounting
Search Standards 
in India  Sign In Join
INDIAN ACCOUNTING STANDARDS

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24 of 31
Introduction  Search document 
2 4t
• List of Indian Accounting Standards
Auditing Standards - Fin…INTERNATIONAL
Accounting… Ifrs Accounting…
ACCOUNTING Accounts Project Accounting…
STANDARDS
3 • Introduction
13
• About International Accounting
Standard Board
INTERNATIONAL ACCOUNTING
4 STANDARDS 15
Comparative Study In Indian Accounting

5 Standards and International Accounting 20
Standards & Conclusion
Balance Sheet of Infosys Technology Systems
6 24
and Comments.
Bibliography
7
A
Related titles Project Report on
“ASearch  Comparative
Project Report on  Study
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of Accou
Standard Issued by ICAI with International Accoun
Download Now Standard” 24 of 31  Search document 
Indian Accounting Standard : AS-9, 10, 12, 18.
Project on International
Accounting m Com Accounting
Cost ProjectStandard
on Ias vs AS 6IAS- 18,
Depreciation : 16, 24.
20, on
A Study
Submitted To
UNIVERSITY OF PUNE
A Report Submitted in Partial Fulfillment of the Require
M.Com part – II
UNDER THE GUIDANCE OF

Prof. XXX
SUBMITTED BY
Mr. XXX
Roll No. XXX Mo No. XXX
THROUGH
XXX COLLEGE OF COMMERCE, PUNE
(2010-2011)
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Introduction:-
Accounting Standards establish rules relating to

measurement and disclosures thereby ensuring that all enterprises
them are comparable and that their financial statements are tru
transparent. High-quality accounting standards are a necessary an
element of a sound capital market system. In public capital mark
those in the United States. High-quality accounting standa
uncertainty and increase overall efficiency and investor’s con
requiring that financial report provide decision useful informa
relevant, reliable, comparable and transparent once confined

borders transactions in today’s capital market often are driven b
for and supply of capital that transcends national boundaries
increase in cross-border capital rising and investment transaction
increasing demand for a set of high-quality international
standards that could be used as a basis for financial reporting wor
“Accounting Standards are written policy documents is

expert accounting body or by government or other regulatory bo
the aspects of recognition, measurement, presentation and d
accounting transactions in financial statement.”
What are Accounting Standards:-
Accounting Standards are the statements of code of pra

regulatory accounting bodies that are to be observed in the pre
Related titles financial statements. In layman terms accounting standards are
documents issued by the expert’s institutes or other regula
documents issued by the expert s institutes or other regula
covering
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 treatment,
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disclosure of accounting transactions.
Who issues Accounting Standards in India :-
Auditing Standards The
- Fin… Accounting…
institute of Ifrs Accounting…
chartered Accounts Project
Accountants of IndiaAccounting…
(ICAI) r
the need to harmonies the diverse accounting policies and
present in use in India constituted accounting standard board (AS
21, 1977. The main role of ASB is to formulate accounting stan
time to time.
About ICAI:-
The Institute of Chartered Accountants of India (ICAI) is

body established under the Chartered Accountants act
No.XXXXVIII of 1949) for the regulation of the profession o
Accountants in India. During its 61 years of existence, ICAI h
recognition
globally, foras its
a premier accounting
contribution body
in the not only
fields in the counp
of education,
development maintenance of high accounting, auditing a
standards. ICAI now is the second largest accounting body in
world.
Related titles
Procedure of formulating Accounting Standards in In
The institute of Chartered Accountant of India (ICAI) reco

need to harmonize the diverse accounting policies and practices,
an accounting standards boards (ASB) on April 21, 1977. The m
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of ASB so that such 24 of 31
standards may be  Search document
mandated 
by the counc
While formulating the standards in India, ASB will take into co
the applicable laws custom usages and business environment. IC
Auditing the members
Standards - Fin… of International
Accounting… Accounting
Ifrs Accounting… Standards
Accounts Project Committee
Accounting…
has agreed to support the objectives of IASC. ASB wil
consideration to IAS and try to integrate them to the extent poss
of the considerations and practices pre-vailing in India.
The accounting standards issued will apply to ‘Gene
Financial Statement’ this would include balance-sheet, Profit &
and other statement and explanatory notes which form part thereo
the use of shareholders or members, Creditors, Employees an
large. The Accounting Standards are intended to apply only to i
are material. The standards are generally expected to apply pr
unless otherwise stated.
Broadly the following procedure will be ad

Related titles formulating Accounting Standards:-
ASB shall determinethe board areas

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• accountin
need to be formulated and the priority in regards to th
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• In the preparation of the accounting standards ASB will be

Project on Accountingstudy groups
m Com Cost Projectto
constituted on Ias vs AS 6specific
consider Depreciationsubjects.
A Study onIn th
of the study groups provision will be made for wide parti
the members of ICAI and others.
• ASB will also hold a dialogue with the representat

Government, Public sector, Industry and other organ
ascertaining their views.
• Based on the above an exposure draft of the proposed stan

prepared and issued for comments by members of ICAI an
at large.
• After taking into consideration the comments received th

draft will be finalized by the ASB and submitted to the
ICAI.
• The council of ICAI will consider the final draft an

necessary modify the same in consultation with ASB. The
standard on the relevant subject will then be issued under t
of the council.
Related titles

Indian Accounting Standards:-
Introduction:-
The council of the institute of chartered accountant of Ind

issue 32 (thirty two) accounting standard. Whoever accountin
8th on “Accounting for research and development” has been w
consequent to the issuance of accounting standard 26 th
Assets” thus effectively there are 31 st accounting standard at
accounting standard issued by the ABC establish which
complied so that the financial statement are prepared in acco
generally accepted accounting principles.
List of Indian Accounting Standards:-
AS 1 Disclosure of Accounting Principles

AS 2 Valuation of Inventories
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occurring After
Sheet Date
AS 5 Net Profit or Loss for the Period, Prior P
and Changes in Accounting Policies
AS 6 Depreciation Accounting
Related titles
AS
(Revised) 7 Construction Contracts
AS 8 Accounting for Research and Development
AS 9 Revenue Recognition
AS 10 Accounting for Fixed Assets
AS 11 The Effects Of Changes In Foreign Exchang
Project on (Revised
Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on
Auditing Standards
2003)- Fin… Accounting… Ifrs Accounting… Accounts Project Accounting…
AS 12 Accounting for Government Grants

AS 13 Accounting for Investments
AS 14 Accounting for Amalgamations
AS 15 Employee Benefits [click here fo
(Revised announcement]
2005)
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 Ass
Consolidated Financial Statements
AS 24 Discontinuing Operations
Related titles AS 25 Interim Financial Reporting
AS 26 Intangible Assets
AS 27 Financial Reporting of Interests in Joint Ven

AS 28 Impairment of Assets
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AS 29
24 of 31
Provisions, Contingent Liabilities and
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Assets
AS 30 Financial Instruments: Recognition and Me
Auditing AS 31- Fin…
Standards Financial
Accounting… Instruments:
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AS 32 Financial Instruments: Disclosures
Related titles Indian Accounting Standards:-

AS 9: Revenue Recognition:-
Introduction
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statement
m Com Cost was issued
Project onby ICAIASin
Ias vs the year 1985
6 Depreciation A Study&
on the
Auditing Standards - Fin…
Accounting… Ifrs Accounting… Accounts Project Accounting…
it was recommendatory for only level I enterprises & but
mandatory for enterprise in India from april 01, 1993.
Revenue
Revenue is the gross inflow of cash, receivables or other co

arising in the course of the ordinary activities of an enterprise fr
of the goods, from the rendering of the services, & from the use
enterprises resources yielding interest, royalties & dividend.
measured by the charges made to customers or clients for goods
services rendered to them & by the charges & rewards arising f
of resources by them. In an agency relationship, the revenue is th
commission & not the gross inflow of cash, receivable
consideration.
This statement dose not deals with the following aspects

recognition to which special consideration apply:
I. Revenue arising from construction contracts;
II. Revenue arising from hire-purchase, lease agreements;
III. Revenue arising from government grants & other similar s
IV. Revenue of insurance companies arising from insurance co
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place.
Examples of items not included within definition of “reven

purpose of this statement are:
I. Realized gains resulting from the disposal of, & unrea

resulting from the holding of, non-current assets. E.g. app
the value of fixed assets.
II. Unrealized holding gain resulting from the change in valu

assets, & the natural increases in herds & agricultur
products;
III. Realized or unrealized gains resulting from changes

exchange rates & adjustments arising on the translation
currency financial statements;
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IV. Realized gain resulting from the discharged of an obliga
g g g g
than
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V. Unrealized gains resulting from the restatement of t

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24 obligation;
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AS 10: Accounting for Fixed Assets:-

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Introduction
The standard deals with the disclosure of the status of the fix
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terms of value. The of 31
24 standard dose not consideration
takesdocument
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aspects of accounting for fixed assets reflected with the effe
escalations but applies to financial statements on historical cos
Project on Accounting
important tomnote Com Cost Project
that after on Ias vs
introduction AS 6 Depreciation
of AS 16; A Study
19 on& 26
relating to respective AS are held withdrawn & the rest in mand
the accounting year 01/04/2000. an entity should disclose (i) the
book values of fixed assets at beginning and end of an accoun
showing additions, disposals, acquisitions & other mov
expenditure incurred on account of fixed assets in the course of c
or acquisition, (iii) revalued amounts substituted for historical c
assets with the method applied in computing revalued amount.
This statement dose not deal with the accounting for the follow
which special considerations apply:
I. Forests,
II. Wasting plantations & similar regenerative
assets including naturalexpenditu
mineral rights, resource
exploration for an extraction of minerals, oil, natural ga
non-regenerative resources.
III. Expenditure on real estate development and
IV. Live stock.
Identification of fixed assets:
Fixed assets are assets held with the intention of being used for
for the producing or providing goods or services & is not held fo
normal course of business. Stand-by equipment & servicing eq
normally capitalized. Machinery spares are change to the pr
statement as and when consumed. However, if such spare can b
in connection with an item of fixed assets, it may be appropriate
the total cost on a systematic basic over a period not exceeding
life of principal item.
Related titles


AS 12: Accounting For Government Grants
Introduction
The standard comes in to effect in respect of accounti

commencing on or after 01/04/1992 & will be recommendatory i
an initial period of 2 years. Accounting standard 12 deals with
for government’s grants for specifies that the government grants
be recognized until there reasonable assurance that the ent
company comply with the conditions attached to them, and the g
received. The standard also describes the treatment of no
government grants; presentation of grants related to specific f
related to revenue, related to promoters, contributions; treatmen
of governments grants etc. the enterprises are required to disc
accounting policy adopted for government grants including the
presentation in the financial statements; (ii) the nature &
government grants recognized in the financial statement incl
monetary grants of assets given either at a concessional rate or fre
This statement does not deal with:
I. The special problem arising in accounting for governme

financial statements reflection the effects of changing p
supplementary information of a similar nature.
II. Government assistance other than in the form of governme
Related titles III. Government participation in the ownership of the enterpris
The
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 grant by
 an Signenterprise
In Joinis sig
preparation of the financial statement for 2 reasons. F
government grant has been received an appropriate
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accounting therefore is necessary. Secondly, it is desirable 
indication of the extent to which the enterprises has benefite
Project on
grants during
Accounting
the reporting
m Com Cost
period.ASThis
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facilitates compa
6 Depreciation A Study on
Auditing enterprises
Standards - Fin… financial statement
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prior periods &w
Accounting…
other enterprise.
Accounting treatment of government grants
To broad approaches may be followed for the accounting tre

Of government grants: the capital approach under whi
treated as part of share holder funds, and income approach u
a grand is taken to incomes over one or more period.
Those in support of capital approach argue as follows:
I. Many governments’ grants are in the nature of

contribution that is they are given by way of contribut
its total capital outlay ordinarily expected in the cas
grants.
II. They are not earned but represent an incentive p
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government without related costs.

Arguments in support of the income approaches are as follows:
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of &
31 other taxes are charges
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against income,
document
to deal also with government grants, which are an extensi
polices, in the profit & loss statement.
II. In casem grants
Com Cost are credited
Project on Iasto
vs share
AS 6 Depreciation A Study on
holder’s fund, no co
done between the accounting treatment of the grants & the
treatment of the expenditure to which grant relates.
AS 18: Related Party Disclosures

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Introduction
This standard comes into effect in respect of accounting period c

on a after 01/04/2001
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nature. The standard
document pr
requirement for disclosure of related party relationship &
between the reporting enterprise & its related party. The requirem
Project on standard apply
Accounting toCost
m Com the statement ofvs each
Project on Ias reporting Aenterprises
AS 6 Depreciation Study on
consolidate financial statement presented by a holding compan
standers is more subjective, particularly with respect to ident
related parties [through provision related to related party concep
under section 297/299/301 of the companies act 1956 and section
of the income tax act 1961], obtaining corroborative evidence be
difficult for the auditors. Thus successful implementation o
depend upon how transparent the management is an how
auditors are.
Objective
The objective of this statement is to established requirement fo
of:
I. Related party relationship &
II. Transaction between reporting enterprise & it related partie
Scope
This statement should be applied in reporting related party rela

transaction between reporting enterprises & its related p
requirement of this statement applied to the financial statem
reporting enterprises as also to consolidate financial statement p

a holding company.
This statement deals only with related party relationship

to (e) below:
a. Enterprises that directly, or indirectly through o

intermediaries, control, or are controlled by, or
common control with the reporting enterprise (t
Related titles holding company, subsidiaries & fellow subsidiaries

b. Associated & joint venture reporting enterprise & th

party or venture in respect of which the reporting e
an associate or a joint venture.
c. Individual owning, directly or indirectly, an inte
voting power of the reporting enterprises that give th
or significant influence over the enterprises, and
any such individual.
d. Key management personnel & relative of such perso
e. Enterprise over which any person describes in c or
exercise significant influence. This includes enterp
by director or major shareholders of the reporting
of the reporting enterprises & enterprises that have a
key management, with reporting enterprise.
Related titles

International Accounting Standards:-
Introduction:-
Accounting is a language of business communicates th

result of an enterprise to the various interested parties by means
statements exhibiting true and fair view of its state of affairs
working result. Like any of other language, accounting has its
rules, which have been developed by accounting bodies. These r
be absolutely rigid. These rules, accordingly, do provide a
flexibility in line with the economic environment, social n
requirements and technological development. These how ever, d
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that accounting principles and parties can be applied arbitrarily.
Accounting principles have to operate with in the bonds of ratio

Search 
could, perhaps, be considered 
as a genesis
Sign In Join
for setting the
standards.
Accounting Standards are written policy document is
accounting body or by government or other regulatory body c
Project on Accounting m Com Costmeasurement,
aspects recognition, Project on Iaspresentation
vs AS 6 Depreciation A Study on
and disclosure of
transaction in financial statement. The ostensible purpose of t
setting bodies is to promote the dissemination of timely and usef
information to investors and certain other parties having an int
company’s economic performance. The accounting standard
accounting alternative in the preparation of financial statemen
bond of rationality, thereby ensuring comparability of financial s
different enterprises.
The accounting standards deals with the issue of

i. Recognition of events and transactions in the financial stat
ii. Measurement these transaction and events,
iii. Presentation of these transactions and events in th
statement in a manner that is meaningful and understand
reader, and
iv. The disclosure requirements which should be there enabl
at large and the potentational investors in particular, to ge
in to what these financial statement are trying to reflect a
the facilitating them to take prudent and informed busines
Related titles
I t ti lA ti St
https://www.scribd.com/doc/57175842/Project-Report-on-Indian-Accounting-Standard-and-International-Asd dB d 24/46
International Accounting Standard Board:-

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 Search document
mainlyWith the ainternational
view of achieving
committee this (IASC),
objective, the London
responsible for
international accounting standard was established in June
presently known as international
m Com Cost Project on Ias vsaccounting standard
AS 6 Depreciation board
A Study on
comprises theAccounting…
professionalIfrs Accounting…
accounting Accounts Project
bodies of over Accounting…
75 countrie
the ICAI). Primarily, the IASC was established, in the public
formulate and publish, international standard to be follow
presentation of audited financial statement. The member of
undertaken responsibility to support the standards promulgated b
to promulgate those standard in there respective countries.
Between 1973 & 2001, the IASC released international
standard. Between 1997 & 1999, the IASC restructured there o
which resulted in formation of IASB. These changes came in to
April 2001 subsequently, IASB issued statement about current
standards: IASB publishes standards in a series of pronouncem
international financial, reporting standards (IFRS). However, IA
rejected the standards issued by the ISAC those pronouncements
be designated as an “international Accounting standard” (IAS)
approved IASB resolution on IASC standards and there in Ap
which it’s conform the status of all IASC standards and SIC int
in effect as on 1 st April 2001.
Related titles

IAS-18: Revenue
IAS 18 on Revenue is applicable for periods beginning on

Jan 1995
IAS 18 prescribes accounting treatment for revenue arising f

• The sale of goods:
• The rendering of services; &
• The use by others of entity assets yielding interest
dividend
It excludes the treatment of revenue arising from transaction

other standards or amount collected on behalf of third parties (e.g
Summary
Revenue is measured at the fare value of the consideration

receivable. The consideration usually in cash. If the inflow
significant deferred, & there is below-market rate of interest or
the fare value of consideration is determined by discounting exp
receipts. If dissimilar goods or services are exchanged (a
transaction) revenue is fare value of the goods or services or rec
this is not reliably measurable, the fare value of goods or services
Related titles Revenue should measure at the fair value of the consideration rec
• Trade discount & value rebates are deducted to determin
• Trade discount & value rebates are deducted to determin
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ever, payment discounts 
non-deductible.Sign In Join
• The amount of revenue can be measured reliably;
• The costs of24transaction can be measured reliably;
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• Significant risks & rewards of ownership are transferred to
• The seller has no continuing managerial involvement or c
Project on Accountingthe goods;
m Com Cost Project on Ias vs AS 6 Depreciation A Study on
Auditing Standards - Fin… Accounting… Ifrs Accounting… Accounts Project
• It is probable that economic benefits will flow toAccounting…
the seller
Interest revenue should be recognized on time proportion basi

effective interest. Royalties should be recognized on an accru
accordance with the substance of the relevant agreement. Divide
should be recognized when the share holder right to received the
established.
IAS-16: Property, Plant and Equipment:-
IAS 16 on property, plant & equipment was issued in Decembe

applicable to annual accounting period beginning on or after 1 st J
IAS 16 prescribed the accounting treatment for property, plant &

unless another standard requires or permit a different account tre
e.g. IFRS, 5 on non current assets held for sale & discontinued
applies to property, plant & equipment classified as held for sale.
Summary
Property plant & equipment is initially recognized at hist
Related titles Subsequent to initial recognition, property, plant & equipment
ih
either at:
•
Cost less accumulated deprecation & any accumulated
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• Revalued amount less subsequent accumulated deprecati
accumulated impairment loss. The revalued amount is the
Project on Accountingat the date
m Comof
Cost Project on Ias vs
revaluation. AS 6 Depreciation A Study on
The choice of measurement is applied consistently to an ent

property, plant & equipment. Any revaluation increase in
credited directly
revaluation to the
decrease revaluation
previously surplusinin
recognized equity,
profit unless
in loss. Anyi
decrease is recognized in profit or loss. However the subsequent
decrease is debited directly to the revaluation surplus in equity t
of the credit balance in revaluation surplus is respect of that asset
The gain or loss on derecognizing of an item of property, plant &

is the difference between the net disposal proceeds, if any, and t
amount of the item. It is included in profit or loss.

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place.
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IAS: 20- Accounting for government grants and dis

government assistance:-
IAS 20 on “accounting for government grants & disclosure of g

assistance” was issued in April 1983 & was reformatted in the y
came in to effect for annual periods beginning or after 1 January
The objective of IAS 20 is to be prescribing the accounti
disclosure of, grants & other form of government assistance. Ho
20 dose not covered government assistance that is provided in
benefit helpful in determine taxable income.
Summary:
A government grant is recognized only when enterprise w
with any condition attached to the grants received. The grant is
as a income, over the period, to match them with the related cos
they are intended compensate, on a systematic basis, & sho
credited directly to equity.
Non monitory grants are usually accounted for at fair valu

recording both the assets & grants at a nominal amount is also pe
A grant receivable as a compensation for cost already incu
immediate financial support, with no future related cost,
recognized as a income in the period in which it is receivable.
Related titles
A grant relating to assets may be presented as deferred in
deducting the grant from the assets carrying amount. A grant
deducting the grant from the assets carrying amount. A grant
incomeSearch 
may be reported separately  income
as other Sign In
or Join
deduct
related expenses.
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become  Search
should be deferredinc
document
deducting the grant from assets carrying amount. Where the ori
related to income, the repayment should be applied dealt with as
Auditing where the
Standards - Fin… original grants
Accounting… related to
Ifrs Accounting… an assets,
Accounts Projectthe Accounting…
repaymen
treated as increasing the carrying amount of the assets or r
deferred income balance. The cumulative deprecation which w
been charged had the grant not been received should be cha
expense. The government grants do not include governmen
whose value can not be reasonably measured, such as technical o
advice.
IAS 24 Related Party Disclosure:
IAS 24 on “Related Party Disclosure” was issued in dec

applicable for annual periods beginning on or after 1 st jan 2005.
IAS 24 specifies the disclosure necessary to draw attent

possibilities that the financial position & financial performance
may have been affected by the existence of the related pa
transaction and outstanding balance with such related parties.
Summery:
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A i l d i if i
A party is related to an entity if it:

Has joint control over the entity:

Download Now • Has significant24 of influence
31 over the entity;
 Search document 
• Directly or indirectly, controls, is control by or is und
control with, the entity;
Auditing
• Is a
Standards - Fin…
close member
Accounting…
of the family
Ifrs Accounting…
of any individual
Accounts Project
who c
Accounting…
significant influence or joint control over, the entity;
• Is a member of key management personnel of the entity of
• Is a joint venture in which the entity is venture;
•
Is an associates of entity;
• Is an entity that is controlled, jointly controlled or s
influenced by, or for which significant voting power in
resides with, any of the key management personnel;
• Is a post-employment benefits plan for the benefit of empl
entity, or of any of its related parties.
Examples of the kinds of transactions that are disclosed if they

related party:
• Purchase or sale of goods.
• Rendering or receiving of services.
• Purchase or sale of properties or other assets.
• Lease.
• Transfer under license agreements.
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• Transfer of research and development
Transfer of research and development.
• Transfer under finance
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 Sign In loans
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contribution in cash or in kind)
• Settlement 24
of liabilities on behalf of the entity or by th
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behalf of another party.
• Provision of guarantee of collateral.
Auditing Standards
A related - Fin…party
Accounting…
transactionIfrsisAccounting…
a transfer Accounts Project
of resources, Accounting…
services or
between related parties, regardless whether price is charged.
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Comparative Study:-
Indian Accounting International

Standards Standards
Presentation There is no separate standard IAS-1 prescribe
And for disclosure. For structure of
companies, format and statements an
Disclosures disclosure requirements are guidance on dis
set out under schedule VI of
the companies act.
No such requirement under IAS-1 requires
Indian GAAP. of critical judg
by management
accounting polic
AS 5 specifically requires IAS-1 prohibit

disclosure of certain items as to be disclose
extra-ordinary items. ordinary items.
Under Indian GAPP, this is IAS-1 requires

typically spread over several of changes
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captions such as share which comp
p p
capital, reserve & surplus, P transactions w
& L debit balance, etc. holders.
Download Now
Revenue 24 of 31 allows
AS-9 In case ofre
 Search document
completed
Recognition service contract method or rendering of se
proportionate completion18 allows only
method.
of completion
Accounts Project Accounting…
m
AS-9 requires interest IAS-18 require
income to be recognized on a interest metho

time proportion basis. followed for
income recognit
No guidance on barter Deals with ac

transactions. barter transactio
AS-9 permits recognition Under IAS-18

when the goods are received in a
manufactured, identified and goods yet
ready for delivery in such manufactured o
cases. sales cannot be
as revenue until
are delivered to
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For multiple
34/46
For multiple
Search No specific
 guidance inthe Sign
contracts,
In Join the
standards. broadly require
recognized  w
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element is fair
underlying s
Project on Accounting m Com Cost Project on Ias vs
performed.
AS 6 Depreciation A Study on
Fixed Assets AS-10 recommends but does IAS-16

and not force component component acco
accounting.
Depreciation
Depreciation is based on Depreciation i
higher of useful life or useful life.
schedule XIV rates. In
practice most companies use
schedule XIV rates.
Major repair and overhaul Major repairs a

expenditure are expensed. expenditure are
as if it is
component.
AS-10 provides that only that Under IAS

expenditure which increases subsequent
the future benefits from the incurred for rep
existing assets beyond its a part of an ite
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previously assessed standard Sign asset, such

Search   In Join
of performance is included in required to be
the gross book value. and simultan
Download Now 24 of
e.g. an31increase in capacity.
 Search document h
replaced part
capitalized.
AS-6 requires retrospectively
recomputation
of In Accounting…
Accounts Project
case of
depreciation and any excess method of d
or deficit on such IAS-16 requires
recomputation is required to given pr
be adjusted in the period in Change in m
which such change is depreciation is
effected.
as change AS-6inconsiders this
accounting change in I
estimate under
policy.
Estimates of re
Estimates of residual value needs to be upd
are not updated.
Revaluation is
No need to update alternative
revaluation regulatory. however; reval
have to be done
Depreciation on
Depreciation on revaluation portion can be r
portion cannot be recouped of revaluation re
out of revaluation reserve
and will have to be changed
to the P&L account.
Provision o
No guidance in the standard. restoration and
However, guidance note on is mandatory.
oil and gas issued by ICAI
requires capitalization of site
restoration cost.
Government AS-12 requires accounting at In case of n
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Grants acquisition cost. assets acquired
Grants
Search   rate,
Sign In IAS-20
Join
accounting eit
value or at acqu

AS-12
compute requires enterprises to In
depreciation to respect of grant
a specific fixed rela
as
prospectively as a result of becoming refundable, IA
which the revised book value 20 requires retrospect
is provided over the residual re-computation
useful life. depreciation and prescri
charging off the deficit
the period in which s
grant becomes refundabl
AS-12 has no such disclosure IAS-20 requires separ

requirement. disclosure of unfulfi
conditions and ot
contingencies if grant
been recognized.
Related AS-18 does not include this The definition of rela

Party relationship. party under IA
includes post employm
Disclosures
benefit plans of
enterprise or of any ot
entity, which is rela
party of the enterprises.
AS-18 read with ASI-23 IAS-24 requ

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requires disclosure of compensation to KMPs
remuneration paid to key
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be disclosed category w
37/46
remuneration paid to key be disclosed category-w
Search management persons but including
 Sign In share-ba
Join
does not mandate category- payments.
wise disclosures.
AS-18 provides exemption No concession is provi
from disclosure in such under IAS-24 wh
Auditing Standards - Fin… cases.
Accounting… Ifrs Accounting… disclosure
Accounts
would of
Projectconflict informat
Accounting…
with
duties of confidentiality
terms of statute
regulating authority.

The definition of “contr

AS-18 includes control over under IAS-24 is restrict
composition of board of on the count that it does
directors in the definition of include control o
“control”. composition of board
directors.
IAS-24 requires disclos

No such disclosureof terms and conditions
requirement is contained in outstanding ite
AS-18. pertaining to re
parties.
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AS 18 prescribes a rebuttable IAS 24 does not prescrib
AS-18 prescribes a rebuttable IAS-24 does not prescrib
Search presumption of significant rebuttable
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influence if 20% or more of significant influence.

the voting power held by any
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party.  Search document 
Transactions between state No exemption.

Project on Accounting mcontrolled
Com Cost Project on Ias
enterprises vs notAS 6 Depreciation A Study on
are
Auditing Standards - Fin… Accounting…
required to Ifrsbe
Accounting…
disclosedAccounts Project Accounting…
under AS-18.
Conclusion:
There are significant difference between Indian Accounting Stand

and International Accounting Standard. However, both the countries
planning to implement IFRS to cope up with these differences.
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place.
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1/26/2020 Project Report on Indian Accounting Standard and International As | Income Statement | International Financial Reporting Standards

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Full description Project on Accounting m Com Cost

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This is to certify that project work report titled “ A Projec

Comparative Study of Accounting Standard Issued by

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Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on

Through this acknowledgment, I take the oppo

At first I express my gratitude towards XXX – p

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INDIAN ACCOUNTING STANDARDS

Comparative Study In Indian Accounting

UNDER THE GUIDANCE OF

Roll No. XXX Mo No. XXX

XXX COLLEGE OF COMMERCE, PUNE

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Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on

Accounting Standards establish rules relating to

relevant, reliable, comparable and transparent once confined

“Accounting Standards are written policy documents is

What are Accounting Standards:-

Accounting Standards are the statements of code of pra

The Institute of Chartered Accountants of India (ICAI) is

The institute of Chartered Accountant of India (ICAI) reco

Broadly the following procedure will be ad

ASB shall determinethe board areas

• In the preparation of the accounting standards ASB will be

• ASB will also hold a dialogue with the representat

• Based on the above an exposure draft of the proposed stan

• After taking into consideration the comments received th

• The council of ICAI will consider the final draft an

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Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on

Indian Accounting Standards:-

The council of the institute of chartered accountant of Ind

List of Indian Accounting Standards:-

AS 1 Disclosure of Accounting Principles

AS 12 Accounting for Government Grants

AS 27 Financial Reporting of Interests in Joint Ven

AS 32 Financial Instruments: Disclosures

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Revenue is the gross inflow of cash, receivables or other co

This statement dose not deals with the following aspects

I. Revenue arising from construction contracts;

II. Revenue arising from hire-purchase, lease agreements;

III. Revenue arising from government grants & other similar s

IV. Revenue of insurance companies arising from insurance co

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Project on Accounting m Com Cost Project on Ias vs AS 6 Depreciation A Study on