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01 INTRODUCTION
GAAP: Generally Accepted Accounting Principles
IFRS: International Financial Reporting Standards
ASs: Accounting Standards
IND AS: Indian Accounting Standard
MCA: Ministry of Corporate Affairs
NFRA: National Financial Reporting Authority
Purpose:
Accounting standards deal with 4 aspects:
| ASs deal with 4 Aspects of Accounting Events | |||
| Aspect-I | Aspect-II | Aspect-III | Aspect-IV |
| Recognition of transactions & events | Measurement of transactions & events | Presentation of transactions & events | Disclosure of transactions & events |
02 STANDARDS SETTING PROCESS
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- ICAI had constituted ASB ( Accounting Standard Board) in 1977
- While forming ASs ( Accounting Standards in India, ASB had considered IASs (International Accounting Standardards)/ IFRSs (International Financial Reporting Standards)
- The composition of ASB (Accounting standard Board) includes representatives of industries like ASSOCHAM, FICCI, CII etc.
Important Terms:
ASSOCHAM: Associated Chambers of Commerce and Industry of India
FICCI: Federation of Indian Chambers of Commerce and Industry
CII: Confederation of Indian Industry
The Standards Setting Process Includes 8 Steps As Follows,
I.Identification of Area
II.Constitution of Study Groups
III.Preparation of draft & its circulation
IV.Ascertainment of views of different bodies on draft
V.Finalization of Exposure Draft (ED)
VI.Comments received on Exposure Draft (ED)
VII.Modification of the Draft
VIII. Issue of AS
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