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AS 1 doubt

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)

30 June 2010

Accounting Standard are formed in accourdance with the provision of the applicable law & usages & business environments in India. however if a particulars Accounting standard is found to be not in conformity with law, then the Financial statement will be prepared accourding to Accounting Standard or with the applicable law.

pls give ur suggestion

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10 Replies

ravi. (article trainee) (424 Points)
Replied 30 June 2010

hii pradeep..

well can u give me any one example where Accounting standard is found to be not in conformity with law..?

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CA Shantanu Goyal (Practicing CA) (122 Points)
Replied 01 July 2010

in case any AS is not in conformity with law then financial statements will be prepared in accordance with the las

the best example of it is AS-11 in which as per AS any fixed asset purchased against foreign liability than exchange gain/loss will be taken to P&L but as per schedule VI it is to be adjusted in the value of fixed asset.

Faisal Khan (Chartered Accountant) (77 Points)
Replied 01 July 2010

I agree with Mr. Shantanu Goyal....

Amit Sarawgi (C.A. Final & Arical) (101 Points)
Replied 01 July 2010

I also agree with Mr. Shantanu

shakuntala chhangani (FCA Course co-ordinator WIRC coaching centre) (2525 Points)
Replied 02 July 2010

agreed

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hemal (CA FINAL) (176 Points)
Replied 02 July 2010

However AS 11 is superceded sch vi as per Accounting Standard Rules 2006. So any difference is transferred to profit and loss account.

shakuntala chhangani (FCA Course co-ordinator WIRC coaching centre) (2525 Points)
Replied 02 July 2010

My dear, refer notification dated 31.3.2009

hemal (CA FINAL) (176 Points)
Replied 03 July 2010

But this notification is selected period as specified in that. It means assets must be aquired during that specific period then only capitalized and also reserve is to be created which will amortized in given period of time.