Accounting Standards & Bookkeeping — Guides, Updates & Practical Insights
Indian Accounting Standards (AS 1-29), bookkeeping principles, GST accounting entries, and valuation rules
“Financial Statements” in Accounting Standards & Bookkeeping
AS 11 Effects of Changes in Foreign Exchange Rates: Complete Guide
AS 11 (Accounting Standard 11) prescribes the accounting treatment for foreign currency transactions and foreign operations. This guide covers initial recognition, reporting at balance sheet date, exchange differences, forward contracts, integral and non-integral foreign operations, and disclosure requirements.
AS 18 Related Party Disclosures: Identification, Transactions and Disclosure Requirements
AS 18 (Accounting Standard 18) requires disclosure of related party relationships and transactions. This guide covers identification of related parties, types of related party transactions, key management personnel, control and significant influence, and disclosure requirements.
AS 10 Property, Plant and Equipment: Recognition, Depreciation and Disclosure
AS 10 (Accounting Standard 10) prescribes the accounting treatment for property, plant and equipment (PPE). This guide covers recognition criteria, measurement at cost, elements of cost, depreciation methods (SLM and WDV), subsequent expenditure, derecognition, and disclosure requirements.
Consolidation procedure under Ind AS 110: combining line by line, eliminating the investment against equity, goodwill, non-controlling interests, intra-group balances and unrealised profit, with a worked example
Under Ind AS 110, paragraph B86, a parent combines like items line by line, eliminates its investment against its share of the subsidiary's equity (with goodwill under Ind AS 103), and eliminates in full intra-group balances, income, expenses and unrealised profits. Non-controlling interests are...
AS 13 Accounting for Investments: Classification, Valuation and Disclosure
AS 13 (Accounting Standard 13) prescribes the accounting treatment for investments. This guide covers classification into current and long-term investments, cost of acquisition, carrying amount, reclassification, disposal, and disclosure requirements with practical examples.
AS 9 Revenue Recognition: Conditions, Methods and Disclosure Requirements
AS 9 (Accounting Standard 9) establishes the principles for revenue recognition from the sale of goods, rendering of services, and use of enterprise resources by others (interest, royalties, dividends). This guide explains the conditions for recognition, percentage of completion method, and disclosure requirements.
AS 16 Borrowing Costs: Capitalisation, Qualifying Assets and Disclosure
AS 16 (Accounting Standard 16) prescribes the accounting treatment for borrowing costs. This guide explains which borrowing costs to capitalise, what constitutes a qualifying asset, when capitalisation begins/suspends/ceases, and disclosure requirements with practical examples.
AS 29 Provisions, Contingent Liabilities and Contingent Assets: Complete Guide
AS 29 (Accounting Standard 29) prescribes accounting for provisions, contingent liabilities and contingent assets. This guide covers recognition criteria, measurement (best estimate, present value), the distinction between provisions and contingent liabilities, and disclosure requirements.
AS 3 Cash Flow Statements: Direct & Indirect Method with Format and Examples
AS 3 (Accounting Standard 3) requires enterprises to present a cash flow statement as part of their financial statements. This guide explains the classification of cash flows into operating, investing and financing activities, the direct and indirect methods, and disclosure requirements with a sample format.
AS 1 Disclosure of Accounting Policies: Meaning, Assumptions and Examples
AS 1 (Accounting Standard 1) issued by ICAI deals with disclosure of significant accounting policies adopted in the preparation and presentation of financial statements. This guide explains the three fundamental accounting assumptions — going concern, consistency and accrual — the nature and selection of accounting policies, and disclosure requirements under the Companies Act 2013.
AS 5 Net Profit or Loss: Prior Period Items and Changes in Accounting Policies
AS 5 (Accounting Standard 5) prescribes the classification and disclosure of certain items in the profit and loss statement. This guide covers extraordinary items, prior period items, changes in accounting policies, and changes in accounting estimates with practical examples.
AS 2 Valuation of Inventories: Cost Formulas, NRV and Disclosure Requirements
AS 2 (Accounting Standard 2) prescribes the treatment for valuation of inventories. This guide explains the measurement of inventories at cost or net realisable value (whichever is lower), cost formulas (FIFO and Weighted Average), and disclosure requirements under Indian accounting standards.
AS 17 Segment Reporting: Business Segments, Geographical Segments and Disclosure
AS 17 (Accounting Standard 17) establishes principles for reporting financial information by segments. This guide covers business segments, geographical segments, primary and secondary reporting formats, reportable segment thresholds, and disclosure requirements.
AS 21 Consolidated Financial Statements: Procedures, Minority Interest and Goodwill
AS 21 (Accounting Standard 21) prescribes the preparation and presentation of consolidated financial statements for a group of enterprises. This guide covers consolidation procedures, line-by-line aggregation, elimination of intra-group transactions, minority interest, goodwill on consolidation, and disclosure requirements.
AS 12 Accounting for Government Grants: Recognition, Presentation and Disclosure
AS 12 (Accounting Standard 12) deals with accounting for government grants. This guide covers recognition criteria, capital approach vs income approach, grants related to fixed assets, revenue grants, non-monetary grants, refund of grants, and disclosure requirements.
First-time adoption under Ind AS 101: the date of transition, the opening Ind AS balance sheet, mandatory exceptions, optional exemptions such as deemed cost, and the equity and profit reconciliations, with a worked example
Prepare an opening Ind AS balance sheet at the date of transition (paragraph 6) using the Ind AS effective at the end of the first reporting period (paragraph 7). Adjustments go directly to retained earnings (paragraph 11). Apply the mandatory exceptions (paragraphs 14 to 17 and Appendix B) and...
SRS 4410 (Revised), Compilation Engagements: when the standard applies, what the practitioner does and does not do, misleading information, documentation and the compilation report
In a compilation the accountant helps prepare financial information from what management provides, and reports in a way that makes the limited role clear. The accountant is not required to verify the accuracy or completeness of the information (paragraph 6) and the report cannot carry an opinion or...
AS 24 Discontinuing Operations: Recognition, Disclosure and Presentation
AS 24 (Accounting Standard 24) establishes principles for reporting information about discontinuing operations. This guide covers the definition, initial disclosure event, recognition and measurement, required disclosures, and presentation with practical examples.
AS 4 Contingencies and Events After Balance Sheet Date: Complete Guide
AS 4 (Accounting Standard 4) deals with the treatment of contingencies and events occurring after the balance sheet date. This guide explains contingent losses, contingent gains, adjusting events, non-adjusting events, and disclosure requirements with practical examples.
SRS 4400, Engagements to Perform Agreed-upon Procedures regarding Financial Information: objective, terms of the engagement, procedures and evidence, and the report of factual findings
In an agreed-upon procedures engagement the accountant performs specified procedures on specified financial information and issues a report of factual findings. No assurance is expressed (paragraph 5): the reader decides what the findings mean. The report is restricted to the parties who agreed the...
Ind AS 110 — Consolidated Financial Statements
Ind AS 110 establishes a single control-based model for consolidation, defining control through power, exposure to variable returns and the link between them.
Audit of revenue and trade receivables: the presumed fraud risk in revenue recognition, cut-off tests, external confirmations, alternative procedures, ageing and the allowance for doubtful debts
SA 240 (paragraph 26) tells the auditor to presume that there are fraud risks in revenue recognition and to evaluate which revenue types or transactions give rise to them. The auditor then tests cut-off, confirms balances directly with customers under SA 505, uses alternative procedures where there...
Trade Payables Under Schedule III: MSME Split and What Belongs There
Only amounts due for goods purchased or services received in the normal course of business. Statutory dues, contractually reimbursable expenses and amounts for capital goods do not belong there — and the MSME split runs across the face of the balance sheet.
SA 230, Audit Documentation: timely preparation, form, content and extent of working papers, departures from requirements, matters after the report date, assembly of the final audit file and retention
The auditor must prepare documentation on a timely basis that lets an experienced auditor with no previous connection to the audit understand the procedures, results, evidence, significant matters and judgments. The file is assembled soon after the report (ordinarily within 60 days), nothing is...