GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting. The acronym is pronounced "gap." GAAP specifications include definitions of concepts and principles, as well as industry-specific rules.
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Section 2(2): “Accounting Standards” means the standards of accounting or any addendum thereto for companies or class of companies referred to in section 133; (New Definition in the Companies Act, 2013)
Section No.
|
Section Name
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132
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Constitution of National Financial Reporting Authority
|
133
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Central Government to prescribe accounting standards
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AS TRICKS: After Completing Studies, A wants to start a New Business....
So he makes various
Plans and POLICIES
regarding the new
Business.
AS-2 Valuation of INVENTORIES (IndAS 2)
He decides to acquire
various INVENTORIES
for his new business.
AS-3 CASH FLOW Statements (IndAS 7)
Because he knows that
by selling inventories he will get CASH FLOWS
AS-4 CONTINGENCIES and Events occurring after Balance Sheet Date (IndAS 10)
But he is not aware of various
CONTINGENCIES and his
stocks were destroyed.
AS-5 Net Profit or Loss for the Period, PRIOR PERIOD items and Changes in Accounting Policies (IndAS 8)
The Fire took place because of
wrong electrical wiring done in
the PRIOR PERIOD
AS-6 DEPRECIATION Accounting (IndAS 16)
Due to Fire, all his Assets
get DEPRECIATED
AS-7 CONSTRUCTION Contracts (Revised 2002) (IndAS 11)
After the Business Loss, he is
now going to CONSTRUCT a
new Business.
AS-9 REVENUE Recognition (IndAS 18)
And it is clear that
only after Constructing
a new business, he will generate REVENUE
AS-10 Accounting for FIXED ASSETS (IndAS 16)
So he starts acquiring
FIXED ASSETS for
his new business.
AS-11 The Effects of Changes in FOREIGN EXCHANGES Rates (Revised 2003) (IndAS 21)
As he lost everything in
that Fire Accident. So he
is now taking a Loan from
FOREIGN EXCHANGE
AS-12 Accounting for Government GRANTS (IndAS 20)
He is very closed to MODI,
hence Govt. gives him
GRANT too, to re-start his
business
AS-13 Accounting for INVESTMENTS (IndAS 40)
Now he has Money
received from Foreign
Loan and Grant, so this
time, he decided to make
INVESTMENT wisely.
AS-14 Accounting for AMALGAMATIONS (IndAS 103)
As he made good
Investments, his business
is now making Profits and
therefore receives an offer
of AMALGAMATION
from Mukesh Ambani.
AS-15 EMPLOYEE BENEFITS (IndAS 19)
When the EMPLOYEES
informed about the
Amalgamation, they
shouted for the settlement
of their outstanding
BENEFITS.
AS-16 BORROWING Costs (IndAS 23)
To settle the employee’s
benefits, he takes further BORROWING.
AS-17 SEGMENT Reporting (IndAS 108)
Before Amalgamation, it
was observed that one of
the SEGMENT is
performing negatively.
AS-18 RELATED PARTY Disclosure (IndAS 24)
The Segment Report reveals that
abnormal payments were made
to the RELATED PARTY.
AS-19 LEASES (IndAS 17)
The abnormal payments
made to the Related
Parties was for high
LEASE rentals.
Hence decided to close it
down.
AS-20 EARNINGS PER SHARE (IndAS 33)
After closing the Lease
Segment, the EPS is
increased and all the
ShareHolders are
Happy.
AS-21 CONSOLIDATED Financial Statements (IndAS 27)
Now at the year end,
he prepares his
CONSOLIDATED
Financial Statements.
AS-22 Accounting for TAXES on Income (IndAS 12)
After closing the accounts,
proper TAX has been paid
to the Govt.
AS-23 Accounting for Investment in ASSOCIATES in Consolidated Financial Statements (IndAS 28)
The company has not
paid any tax for his ASSOCIATES businesses.
AS-24 DISCONTINUING Operations (IndAS 105)
Because the Associate
business is now DISCONTINUED.
AS-25 INTERIM Financial Reporting (IndAS 34)
To Cross Check the
authenticity of that
discontinued Business,
INTERIM reports are
reviewed.
AS-26 INTANGIBLE Assets (IndAS 38)
After all the efforts,
the business has made
its own Goodwill
(INTANGIBLE)
AS-27 Financial Reporting of Interests in JOINT VENTURE (IndAS 31)
Due to his Goodwill, he is
now going to enter into a
very Big Project through
JOINT VENTURE.
AS-28 IMPAIRMENT of Assets (IndAS 36)
After completing the Joint
Venture, the assets are not
justifies the Book Value of
few of the Assets hence
results IMPAIRMENT of
Assets.
AS-29 Provisions, CONTINGENT Liabilities and CONTINGENT Assets (IndAS 37)
During the Joint Venture a
Labour got injured and filed a
case against the company, which
is creating a CONTINGENT
Liability for the business.
AS-30 Financial Instruments : Recognition and MEASUREment (IndAS 39)
The amount of money payable to the labour is
MEASURE by the Court
AS-31 Financial Instruments : PRESENTation (IndAS 32)
And an order has been passed to PRESENT the
required money to the Labour
AS-32 Financial Instruments : DisCLOSURE (IndAS 107)
For the CLOSURE of the case.
AS 1 Disclosure of Accounting Principles
AS 2 Valuation of Inventories Limited Revision
AS 3 Cash Flow Statements
AS 4 Contingencies and Events Occurring After the Balance Sheet Date
AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 6 Depreciation Accounting
AS 7 Construction Contracts (Revised 2002)
AS 9 Revenue Recognition
AS 10 Accounting for Fixed Assets
AS 11 The Effects Of Changes In Foreign Exchange Rates (Revised 2003) Limited Revision
AS 12 Accounting for Government Grants
AS 13 Accounting for Investments
AS 14 Accounting for Amalgamations
AS 15 Employee Benefits (Revised 2005)
AS 16 Borrowing Costs
AS 17 Segment Reporting
AS 18 Related Party Disclosures
AS 19 Leases Limited Revision
AS 20 Earnings Per Share
AS 21 Consolidated Financial Statements Limited Revision
AS 22 Accounting for taxes on income
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements Limited Revision
AS 24 Discontinuing Operations
AS 26 Intangible Assets Limited Revision
AS 27 Financial Reporting of Interests in Joint Ventures Limited Revision
AS 28 Impairment of Assets Limited Revision
AS 29 Provisions, Contingent Liabilities and Contingent Assets Limited Revision
AS 30 Financial Instruments: Recognition and Measurement Withdrawn in November 2016
AS 31 Financial Instruments: Presentation Withdrawn in November 2016
Indian Accounting Standards Tricks
Ind As No. Name of Indian Accounting Standard
Ind AS 103 Business Combination
Ind AS 105 Non-Current Assets Held for Sale and Discontinued Operations
Ind AS 106 Exploration for and Evaluation of Mineral Resources
Ind AS 107 Financial Instruments: Disclosures
Ind AS 108 Operating Segments
Ind AS 109 Financial Instruments
Ind AS 110 Consolidated Financial Statements
Ind AS 111 Joint Arrangements
Ind AS 113 Fair Value Measurement
Ind AS 1 Presentation of Financial Statements
Ind AS 2 Inventories
Ind AS 7 Statement of Cash Flows
Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Ind AS 10 Events after Reporting Period
Ind AS 11 Construction Contracts
Ind AS 12 Income Taxes
Ind AS 16 Property, Plant and Equipment
Ind AS 17 Leases
Ind AS 19 Employee Benefits
Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance
Ind AS 21 The Effects of Changes in Foreign Exchange Rates
Ind AS 23 Borrowing Costs
Ind AS 24 Related Party Disclosures
Ind AS 27 Separate Financial Statements
Ind AS 28 Investments in Associates and Joint Ventures
Ind AS 29 Financial Reporting in Hyperinflationary Economies
Ind AS 32 Financial Instruments: Presentation
Ind AS 33 Earnings per Share
Ind AS 34 Interim Financial Reporting
Ind AS 36 Impairment of Assets
Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets
Ind AS 41 Agriculture
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Teaching Aptitude: https://goo.gl/UF2ojY
Research Aptitude: https://goo.gl/TgyqyK
ICT- Computer Aptitude :https://goo.gl/7smZNu
Higher Education: https://goo.gl/3dSkPn
If any one wants to get PDFs by Navclasses then click here: https://www.facebook.com/groups/navclasses/files/
Join on FB Group: https://www.facebook.com/groups/navclasses/
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