Accounting Standards 1-29 - Seth & Associates

More documents

Recommendations

Info

19. A change in the method of depreciation is treated as a change in an accounting policy and is disclosed accordingly. ACCOUNTING STANDARD (The Accounting Standard comprises paragraphs 20–29 of this Statement. The Standard should be read in the context of paragraphs 1–19 of this Statement and of the 'Preface to the Statements of Accounting Standards'.) 20. The depreciable amount of a depreciable asset should be allocated on a systematic basis to each accounting period during the useful life of the asset. 21. The depreciation method selected should be applied consistently from period to period. A change from one method of providing depreciation to another should be made only if the adoption of the new method is required by statute or for compliance with an accounting standard or if it is considered that the change would result in a more appropriate preparation or presentation of the financial statements of the enterprise. When such a change in the method of depreciation is made, depreciation should be recalculated in accordance with the new method from the date of the asset coming into use. The deficiency or surplus arising from retrospective recomputation of depreciation in accordance with the new method should be adjusted in the accounts in the year in which the method of depreciation is changed. In case the change in the method results in deficiency in depreciation in respect of past years, the deficiency should be charged in the statement of profit and loss. In case the change in the method results in surplus, the surplus should be credited to the statement of profit and loss. Such a change should be treated as a change in accounting policy and its effect should be quantified and disclosed. 22. The useful life of a depreciable asset should be estimated after considering the following factors: (i) expected physical wear and tear; (ii) obsolescence; (iii) legal or other limits on the use of the asset. 23. The useful lives of major depreciable assets or classes of depreciable assets may be reviewed periodically. Where there is a revision of the estimated useful life of an asset, the unamortised depreciable amount should be charged over the revised remaining useful life. 24. Any addition or extension which becomes an integral part of the existing asset should be depreciated over the remaining useful life of that asset. The depreciation on such addition or extension may also be provided at the rate applied to the existing asset. Where an addition or extension retains a separate identity and is capable of being used after the existing asset is disposed of, depreciation should be provided independently on the basis of an estimate of its own useful life. 25. Where the historical cost of a depreciable asset has undergone a change due to increase or decrease in long term liability on account of exchange fluctuations, price adjustments, changes in duties or similar factors, the depreciation on the revised unamortised depreciable amount should be provided prospectively over the residual useful life of the asset. 26. Where the depreciable assets are revalued, the provision for depreciation should be based on the revalued amount and on the estimate of the remaining useful lives of such assets. In case the revaluation has a material effect on the amount of depreciation, the same should be disclosed separately in the year in which revaluation is carried out.
27. If any depreciable asset is disposed of, discarded, demolished or destroyed, the net surplus or deficiency, if material, should be disclosed separately. 28. The following information should be disclosed in the financial statements: (i) the historical cost or other amount substituted for historical cost of each class of depreciable assets; (ii) total depreciation for the period for each class of assets; and (iii) the related accumulated depreciation. 29. The following information should also be disclosed in the financial statements alongwith the disclosure of other accounting policies: (i) depreciation methods used; and (ii) depreciation rates or the useful lives of the assets, if they are different from the principal rates specified in the statute governing the enterprise.
Page 2 and 3: TABLE OF CONTENTS DISCLOSURE OF ACC
Page 4 and 5: Explanation Fundamental Accounting
Page 6 and 7: 21. Examples of matters in respect
Page 8 and 9: Definitions 3. The following terms
Page 10 and 11: (b) storage costs, unless those cos
Page 12 and 13: 27. Information about the carrying
Page 14 and 15: performance by different enterprise
Page 16 and 17: 15. The separate disclosure of cash
Page 18 and 19: 22. Cash flows arising from the fol
Page 20 and 21: 34. Cash flows arising from taxes o
Page 22 and 23: The appendix is illustrative only a
Page 24 and 25: Interest expense (400) Interest inc
Page 26 and 27: Interest expense 400 Operating prof
Page 28 and 29: 31,850 Less : Sundry debtors at the
Page 30 and 31: Short-term funds (650) Deposits hel
Page 32 and 33: not contingencies as defined in par
Page 34 and 35: 8.6 Events occurring after the bala
Page 36 and 37: Accounting Standard (AS) 5 Net Prof
Page 38 and 39: financial statements in understandi
Page 40 and 41: gratuity scheme by an employer in p
Page 42 and 43: (ii) expected useful life of the de
Page 46 and 47: Accounting Standard 7 (REVISED) Con
Page 48 and 49: 8. A group of contracts, whether wi
Page 50 and 51: a. costs that relate directly to th
Page 52 and 53: estimated reliably when all the fol
Page 54 and 55: of which recovery is probable; and
Page 56 and 57: defects have been rectified. Progre
Page 58 and 59: incurred for work performed upto th
Page 60 and 61: calculated as follows: (amount in R
Page 62 and 63: 4.3 Proportionate completion method
Page 64 and 65: the time of raising of any claim it
Page 66 and 67: should be based on the sales value
Page 68 and 69: Accounting Standard (AS) 10 Account
Page 70 and 71: 9.3 Administration and other genera
Page 72 and 73: 14.4 On disposal of a previously re
Page 74 and 75: either to the asset given up or to
Page 76 and 77: Accounting Standard (AS) 11 (Revise
Page 78 and 79: Reporting currency is the currency
Page 80 and 81: Classification of Foreign Operation
Page 82 and 83: . income and expense items of the n
Page 84 and 85: historical cost for those items in
Page 86 and 87: Appendix Note: This Appendix is not
Page 88 and 89: Accounting Treatment of Government
Page 90 and 91: 8.1 Grants related to specific fixe
Page 92 and 93: (The Accounting Standard comprises
Page 94 and 95:
Accounting Standard (AS) 13 Account
Page 96 and 97:
fair value provides a prudent metho
Page 98 and 99:
31. Investments classified as curre
Page 100 and 101:
(v) No adjustment is intended to be
Page 102 and 103:
Treatment of Reserves on Amalgamati
Page 104 and 105:
(a) consideration for the amalgamat
Page 106 and 107:
41. Where the scheme of amalgamatio
Page 158 and 159:
Accounting Standard (AS) 16 Borrowi
Page 160 and 161:
orrowings made specifically for the
Page 162 and 163:
Accounting Standard (AS) 17 Segment
Page 164 and 165:
statement of profit and loss. Segme
Page 166 and 167:
segments for internal financial rep
Page 168 and 169:
24. Business and geographical segme
Page 170 and 171:
calculation done in applying a part
Page 172 and 173:
Secondary Segment Information 47. P
Page 174 and 175:
segment, both primary and secondary
Page 176 and 177:
REVENUE External sales Intersegment
Page 178 and 179:
101 90 Assets and additions to tang
Page 180 and 181:
and intangible fixed assets by loca
Page 182 and 183:
4. In the context of this Statement
Page 184 and 185:
(c) the director is nominated by th
Page 186 and 187:
(iii) a description of the nature o
Page 188 and 189:
1. upon the occurrence of some remo
Page 190 and 191:
5. The classification of leases ado
Page 192 and 193:
Rs.2,27,805. As this amount is lowe
Page 194 and 195:
f. a general description of the les
Page 196 and 197:
commencement of the lease term is t
Page 198 and 199:
48. If a sale and leaseback transac
Page 200 and 201:
AS 20 Earnings Per Share (In this A
Page 202 and 203:
c. options including employee stock
Page 204 and 205:
merger is the aggregate of the weig
Page 206 and 207:
29. For the purpose of calculating
Page 208 and 209:
41. Potential equity shares are ant
Page 210 and 211:
Note: These appendices are illustra
Page 212 and 213:
EPS for the year 20X0 as originally
Page 214 and 215:
Convertible Preference Shares Incre
Page 216 and 217:
(a) the ownership, directly or indi
Page 218 and 219:
the consolidated financial statemen
Page 220 and 221:
subsidiary and does not become an a
Page 222 and 223:
Accounting Standard (AS) 22 ACCOUNT
Page 224 and 225:
accounting purposes, straight line
Page 226 and 227:
(a) has a legally enforceable right
Page 228 and 229:
6. If for any reason the recognitio
Page 230 and 231:
Deferred tax A/c Dr. 20,000 To Prof
Page 232 and 233:
Accounting Standard (AS) 23 Account
Page 234 and 235:
(b) the associate operates under se
Page 236 and 237:
Disclosure 22. In addition to the d
Page 238 and 239:
. that represents a separate major
Page 240 and 241:
infrequently. All infrequently occu
Page 242 and 243:
g. the amount of pre-tax profit or
Page 244 and 245:
35. Appendix 2 illustrates applicat
Page 246 and 247:
The following is Note 5 to Delta Co
Page 248 and 249:
III. Financial Statements for 20X3
Page 250 and 251:
2 A separate Accounting Standard on
Page 252 and 253:
6. A complete set of financial stat
Page 254 and 255:
g. segment revenue, segment capital
Page 256 and 257:
29. To illustrate: a. the principle
Page 258 and 259:
Accounting Standard to assist in cl
Page 260 and 261:
1. Basic Earnings Per Share 2.Dilut
Page 262 and 263:
provisions for employees (b) Other
Page 264 and 265:
(condensed or complete) for the fol
Page 266 and 267:
1st Quarter 2nd Quarter 3rd Quarter
Page 268 and 269:
Accounting for the Effects of Chang
Page 270 and 271:
a. intangible assets that are cover
Page 272 and 273:
ecoverable amount.4 Carrying amount
Page 274 and 275:
supportable assumptions that repres
Page 276 and 277:
Therefore, in addition to complying
Page 278 and 279:
titles, customer lists and items si
Page 280 and 281:
Past Expenses not to be Recognised
Page 282 and 283:
The enterprise amortises the right
Page 284 and 285:
assets, how it determines the recov
Page 286 and 287:
e. copyrights, and patents and othe
Page 288 and 289:
Appendix A This Appendix, which is
Page 290 and 291:
aforesaid and expensed in an earlie
Page 292 and 293:
without physical substance held for
Page 294 and 295:
Application and Infrastructure Deve
Page 296 and 297:
On 1-4-2003, the remaining period o
Page 298 and 299:
Accounting Standard 27 Financial Re
Page 300 and 301:
The arrangement identifies those de
Page 302 and 303:
the assets; c. its share of any lia
Page 304 and 305:
separately as part of the inventory
Page 306 and 307:
44 In case of transactions between
Page 308 and 309:
Accounting Standard (AS) 28 Impairm
Page 310 and 311:
4. The following terms are used in
Page 312 and 313:
e. evidence is available of obsoles
Page 314 and 315:
15. It is not always necessary to d
Page 316 and 317:
ate can be justified. This growth r
Page 318 and 319:
38. A restructuring is a programme
Page 320 and 321:
. the enterprise’s incremental bo
Page 322 and 323:
generate cash inflows from continui
Page 324 and 325:
determined excluding cash flows tha
Page 326 and 327:
esult from synergy between the iden
Page 328 and 329:
88. In allocating an impairment los
Page 330 and 331:
paragraphs 106 to 107 and for goodw
Page 332 and 333:
102. Any increase in the carrying a
Page 334 and 335:
a. if the enterprise sells the disc
Page 336 and 337:
ased on the enterprise’s primary
Page 338 and 339:
EXAMPLE 3- EXAMPLE 4- EXAMPLE 5- EX
Page 340 and 341:
determining value in use of both X
Page 342 and 343:
Total 10,000 7,000 3,000 A24. T use
Page 344 and 345:
of the asset for tax purposes is Rs
Page 346 and 347:
Gross carrying amount 1,000 2,000 3
Page 348 and 349:
in forecasting cash flows. This res
Page 350 and 351:
Schedule 1. Calculation of the plan
Page 352 and 353:
Schedule 5. Summary of the carrying
Page 354 and 355:
End of 20X4 A B C Goodwill Z Carryi
Page 356 and 357:
in Rs. lakhs) Year Future cash flow
Page 358 and 359:
Accounting Standard (AS) 29 Provisi
Page 360 and 361:
The objective of this Statement is
Page 362 and 363:
settle the obligation; or ii. a rel
Page 364 and 365:
17. Financial statements deal with
Page 366 and 367:
may result in the recognition of in
Page 368 and 369:
warranties). The other party may ei
Page 370 and 371:
expenditures are recognised on the
Page 372 and 373:
It does not form part of the Accoun
Page 374 and 375:
paragraphs 14 and 21). Example 3: O
Page 376 and 377:
2005, the enterprise's lawyers advi
Page 378:
an onerous contract as a contract i
show all

Accounting Standards 1-29 - Seth & Associates

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?