CAS - Mandatory - ICWAI

CMA.Devarajan Swaminathan (ACMA) (1067 Points)

24 April 2009  

Cost Accounting Standards (CAS) made mandatory by ICWAI

 

The Council of the ICWAI at its 251st Meeting held on 12-13 February 2009 decided
as below:

 

Mandatory application of Cost Accounting Standards

 

“RESOLVED THAT the following Cost Accounting Standards

 

CAS 1: Classifications of Costs

CAS 2: Capacity Determination

CAS 3: Overheads

CAS 4: Cost of Production for Captive Consumption

CAS 5: Determination of Average (Equalized) Cost of Transportation

CAS 6: Material Cost


shall be mandatory with effect from period commencing on or after 1st April 2010 for
being applied for the preparation and certification of General Purpose Cost Accounting
Statements. Since there is no statutory requirement for the application of such Cost
Accounting Standards for the preparation and certification of Cost Accounting
Statements, in case the cost accountant is of the opinion that the aforesaid standards have
not been complied with for the preparation of the Cost Statements, it shall be his duty to
make a suitable disclosure/qualification in his audit report/certificate”