Accounting Standards and

Mechanism and Disclosure.

Accounting standards

A selected set of accounting policies or guidelines

which are issued by a governing body.

Accounting standards at International

and Indian level

IASC-INTERNATIONAL ACCOUNTING

STANDARDS COUNCIL NOW NAMED AS

IASB-INTERNATIONAL ACCOUNTING

STANDARDS BOARD FROM YEAR 2001.THE

STANDARDS BEING ISSUED BY THIS BOARD

ARE KNOWN AS INTERNATIONAL

ACCOUNTING STANDARDS(IAs),which are 41

in total, now are being converted into IFRS-

INTENATIONAL FINANCIAL REPORTING

STANDARDS.

In INDIA the ICAI- INSTITUTE OF CHARTERED

ACCOUNTATNTS OF INDIA is working as an apex

institute for establishing the accounting principles and

guidelines. The formulation of the standards is done

through ASB- ACCOUNTING STANDARD BOARDS

as a functionary of ICAI which was established in

year 1977. There are 31 accounting standards in

India till date. These are soon to be adapted as

IFRS.

Need for accounting standards

Removal of confusing variations.

Uniform presentation of accounts.

Avoidance of manipulation.

Globalized business.

Disclosure beyond law.

Accounting disclosure

Accounting disclosure means the disclosure of

complete accounting information which have any

kind of direct or indirect impact upon the users of

the accounting information..

Features of accounting

disclosures

Full disclosure.

Informative.

Accurate.

Helpful to both internal and external users.

Helpful in any kind of analysis.

Accounting mechanism

Single entry

Desi Nama

Double entry

Equities=assets

owner 'equity + creditors’ equity= assets

Capital+ Liabilities= assets

Features ,advantages and disadvantages

of double entry book keepingFeatures

Two parties

Two sides

Equal amount

Recording

Advantages

Complete

Financial position

Finding out the tax liabilities

Analysis of data

Disadvantages

Expert knowledge is required

Lengthy

expensive

Journal

French word jour- day

Day book

Book of original entry

Chronological order

Subsidiary to ledger

Narration

Relation between debit and credit

Identification of transaction

Source document

Invoice

Cash receipt

Counter foil of pay in slip

Cheque

Cash memo

Columns of journal

Date

Particulars

Ledger folio

Debit amount

Credit amount

From is used as to

Narration

Journalizing

The process of entering the transaction in the

journal is known as journalizing.

Benefits

Process of journalizing