Study Notes

  Unit 2:  Presentation of Financial Statements  Topics covered as per syllabus 1.Users of financial statements 2.objective of financial statements, 3.Underlying assumptions, 4.Qualitative characteristics of financial statements, 5.The elements of financial statements, 6.Recognition of the elements of financial statements, 7.Measurement of the elements of financial statements, 8..Concepts of capital and capital maintenance 1.Users of financial statements The users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public.  (a) Investors. The providers of risk capital need information to help them determine whether they should buy, hold or sell. They are also interested in information to assess the ability of the enterprise to pay dividends.  (b) Employees- Employees and their representative groups are interested in information about the stabi...

  Unit 1:  Introduction to Indian Accounting Standards  Overview of Accounting Standards – Objectives of Accounting Standards – Benefits and Limitations of Accounting Standards – Process of Formulation of Accounting Standards in India – List of Indian Accounting Standards (Ind AS) – Need for Convergence Towards Global Standards– International Financial Reporting Standards as Global Standards – Benefits of Convergence with IFRS – Applicability of Ind AS in India.   Accounting Standards Accounting standards are written statements of standardised accounting rules and procedures used in practice to ensure that financial statements are prepared in a uniform and consistent manner An accounting standard is a set of practices and policies used to systematise bookkeeping and other accounting functions across firms and over time. Banks, investors, and regulatory agencies count on accounting standards to ensure information about a given entity is relevant and accurate.They are...