Accounting Standard Accounting Standards Essay - 1118 Words

Accounting Standard (AS) 2 Inventories constitute a major portion of current assets of an entity. A primary issue in accounting for inventories is the amount of cost to be recognized as an asset and carried forward until the related revenues are recognized. Indian Accounting Standard (Ind AS) 2, Inventories, prescribes the accounting treatment for inventories, such as, determination of cost and its subsequent recognition as expense, including any write-downs of inventories to net realizable value and reversal of write-downs. Scope Ind AS 2 applies to all inventories, except: (a) work in progress arising under construction contracts, including directly related service contracts; (b) financial instruments (c) biological assets (i.e., living animals or plants) related to agricultural activity and agricultural produce at the point of harvest. This Standard does not apply to the measurement of inventories held by: (a) producers of agricultural and forest products, agricultural produce after harvest, and minerals and mineral products, to the extent they are measured at net realizable value in accordance with well-established practices in those industries. When such inventories are measured at net realizable value, changes in that value are recognized in profit or loss in the period of the change. (b) commodity broker-traders who measure their inventories at fair value less costs to sell. When such inventories are measured at fair value less costs to sell, changesShow MoreRelatedAccounting Standard Of Australian Accounting Standards1140 Words   |  5 Pagesin there financial statements of their company. Australia Accounting Standard Board publish some new accounting standard related to the RDR implementing to review the differential reporting framework. These standards made on 30 June 2010 and implement on or after 1 July 2013. 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To resolve these discrepancies three separate standard setting bodies have been tasked with developing Generally Accepted Accounting Principles (GAAP) for these different organizations: The Federal Accounting Standards Advisory Board (FASAB) for federal accounting, the Governmental Accounting Standards Board (GASB) for SLG, and the Fi nancial Accounting Standards BoardRead MoreThe Need for Accounting Standards3286 Words   |  14 PagesWhat would financial statements look like if there were no accounting standards?† Accounting standards are a set of principle that govern current accounting practice and are used as a reference to determine the appropriate treatment of complex transactions. 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