acountinng standards

3 ANSWERS

1. Feotoso Terry
   

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2. Muhammad Uzair
   

   Two accounting standards, Accounting Standard AS 30 (Financial Instruments - Recognition and Measurement) and Accounting Standard AS 31 (Financial Instruments: Presentation) have been issued by the Institute of Chartered Accountants of India, both of them dealing with the same subject matter, that is, financial instruments. Why couldn't these standards be combined and set as one standard for the sake of simplicity? N. Asokan, Chennai The two could have been combined but the ICAI has obviously taken a cue from IAS which too has issued two standards — one for recognition and measurement and another for presentation. A compendious and comprehensive standard on a subject is any day preferable than strewing an issue over more than one standard. S. MURLIDHARAN

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3. Arslan Masaud
   

   ACOUNTING STANDARD:A principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions. ACOUNTING POLICIES Principles, rules and procedures selected, and consistently followed, by the management of an organization (the accounting entity) in preparing and reporting the financial statements. Accounting policies deal specifically with matters such as consolidation of accounts, depreciation methods, goodwill, inventory pricing, and research and development costs. Accounting policies must be disclosed in the annual financial statements.

   Report (0) (0)  |   2 years, 6 month(s) ago