international accounting standards ias intro
DESCRIPTION
TRANSCRIPT
An Introduction
Presentation of Financial Statements
This standard deals with the presentation
and disclosure of accounts
InventoriesThis standard deals
with the valuation and disclosure of inventories and related matters
This standard is not followed any more. It is replaced by
IAS – 27 and IAS – 28This standard was about
consolidated financial statements
This standard is not followed any more. It is replaced by
IAS – 16 and IAS – 22 and IAS – 38
The standard was about Depreciation
This standard is replaced by IAS – 1
The standard was about information to be
disclosed in financial statements
This standard is superseded by IAS – 15
The standard was about accounting responses
to changing prices
Cash flow StatementsThis standard is related
to the making of cash flow statement. It
includes the formats and methods allowed and disclosure needed
Net Profit or Loss for the period, Fundamental errors and changes
in accounting policiesThe items related to Income
Statement and changes in accounting policies and
methods along with the errors which are categorized as fundamental errors are
included in this standard
Superseded by IAS – 38
The standard was about research and
development cost
Events after the balance sheet date
This standard is related to the issues that arise after the completion of balance sheet but the effect reaches to past
accounting record
Construction ContractsThis is a part of job order
costing and several matters which arise
because of the extension of the contracts to more
than one year are included in this standard
Income TaxesIncome tax laws may be
different in countries following these standards. This
standard discusses that how this matter is to be handled
and how the effect of taxes is to be shown in financial
statements
Superseded by IAS – 1
Presentation of current assets and current
liabilities
Segment ReportingThis standard deals with
the reporting the company’s performance
and position by segments i.e. by
products, areas etc.
Information reflecting the effects of changing prices
This standard is related to the effect of
changing in prices and the impact on the
organization
Property, Plant and Equipment
It deals with the issues related to the timing
of recognition of assets, their carrying
amounts and depreciation charges
LeasesThis standard prescribes
for lesser and lessee the appropriate
accounting policies and disclosure
RevenueThis deals with the
recognition of revenue i.e. time, amount and heads
which should or should not be
included in the head.
Employee BenefitsThis standard is related to
the accounting and disclosure of employees benefits. This contains
the liability towards them and the expense
related to them
Accounting for government grants and disclosure of government assistance
Whenever there are any government grants and
assistances those are to be accounted for and
disclosed in a specific manner the standards
deals with such accounting and disclosure.
The effects of changes in foreign exchange rates
The enterprises dealing in foreign currency or having operations in
foreign countries both are discussed in this
standard.
Business CombinationsThe accounting and disclosure in case of
acquisition and mergers when an
acquirer can not be identified are covered
in this standard.
Borrowing CostsThe standard deals with
the treatment of the borrowing cost i.e.
whether it should be expensed out in the
year of occurrence or conditions in which this cost can be capitalized.
Related Party disclosuresEnterprises which are
directly or indirectly controlled by reporting
enterprises are considered related party
and that is what is included in this standard.
Superseded by IAS – 29 and IAS - 30
Accounting and reporting by retirement benefits
plansIt is applicable to those
enterprises where retirement benefit
plans are prepared.
Consolidated financial statements and accounting
for investments in subsidiariesIt is related to the
accounting presentation and disclosure of financial
statements of group of enterprises working under
a parent company.
Accounting for investments in associates
This standard is related to the accounting for an
investor who has made investment in associated
companies
Financial Reporting in hyperinflationary
economicsThis standard is only
related to those countries’ economies who
have hyperinflationary economies
Disclosure in the financial statements of banks and
similar financial institutionsThe standard is related to
the accounting and disclosure needed in the statements of banks and
financial institutions
Financial Reporting for interest in Joint Ventures
This standard is related to recording the assets, liabilities, income and expenses in the books
of venturers and investors regardless of
the form of the joint venture
Financial Instruments – Disclosure and Presentation
The standard is related to all types of financial
assets i.e. recognized or unrecognized. The
disclosure and presentation of such
financial assets is included in this standard.
Earnings Per Share – EPSThis standard is applied
to those enterprises whose shares are
publicly traded and who are in the process of
issuing ordinary shares.
Interim Financial ReportingThis standard does not mention that for which
companies it is mandatory to issues interim financial
reports but those companies are required to publish interim financial reports whose shares are
publicly traded.
Discontinuing Operations
This standard applies to all discontinuing operations of all
enterprises
Impairment of AssetsThis standard is applied to the impairment of all assets other than those which are exempted the list is provided in the
standard.
Provisions, Contingent Liabilities and Contingent
AssetsAll provisions, contingent
liabilities and assets are to be created and maintained in the
accounts of a company in the light of this standard.
Intangible Assets
Except a few exceptions this standard is applicable to all
intangible assets.
Financial Instruments – Recognition and Measurement
This is related to recognizing the value, gain/losses on financial
instruments
Investment Property
This standard is related to recognition
measurement and disclosure in investment
property
Agriculture – Effective January 1 2003
The standard is applied to biological assets
agricultural produce and products that are the result of agricultural
activity.