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This standard is superseded by IAS – 15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Superseded by IAS – 38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Superseded by IAS – 1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.