PPT: Accounting Standards (29) | Advanced Accounting for CA Intermediate PDF Download

 Page 1


  
Points to be noted for AS-29
?
Accounting standards 29 should be applied in 
accounting for provisions of contingent 
liabilities.
?
Meaning of liabilities : Liabilities may be 
defined as the obligations for which the 
company/organization has to pay for.
?
Meaning of contingent : The word contingent 
means doubtful happening. 
Page 2


  
Points to be noted for AS-29
?
Accounting standards 29 should be applied in 
accounting for provisions of contingent 
liabilities.
?
Meaning of liabilities : Liabilities may be 
defined as the obligations for which the 
company/organization has to pay for.
?
Meaning of contingent : The word contingent 
means doubtful happening. 
  
Contd.,
?
Meaning of contingent liabilities : A possible 
obligation that arises from past events and the 
existence of which will be confirmed only by the 
occurrence or non-occurrence of one or more 
uncertain future events which are not 
completely within the control of the company.
?
In normal terms contingent liabilities means 
liabilities for the amounts which may or may not 
happen and it is still under doubtfulness. These 
are to be mentioned in the footnotes. 
Page 3


  
Points to be noted for AS-29
?
Accounting standards 29 should be applied in 
accounting for provisions of contingent 
liabilities.
?
Meaning of liabilities : Liabilities may be 
defined as the obligations for which the 
company/organization has to pay for.
?
Meaning of contingent : The word contingent 
means doubtful happening. 
  
Contd.,
?
Meaning of contingent liabilities : A possible 
obligation that arises from past events and the 
existence of which will be confirmed only by the 
occurrence or non-occurrence of one or more 
uncertain future events which are not 
completely within the control of the company.
?
In normal terms contingent liabilities means 
liabilities for the amounts which may or may not 
happen and it is still under doubtfulness. These 
are to be mentioned in the footnotes. 
  
Provisions
?
Provisions should be made when the company 
has a present obligation as a result of a past 
event.
?
When it is possible that the outcome of the 
obligation will be affecting the financial 
condition when it resurfaces.
?
A reliable estimate can be made of the amount 
of the obligation.
?
Provisions and contingent liabilities are to 
shown in the foot note on the balance sheet.
Page 4


  
Points to be noted for AS-29
?
Accounting standards 29 should be applied in 
accounting for provisions of contingent 
liabilities.
?
Meaning of liabilities : Liabilities may be 
defined as the obligations for which the 
company/organization has to pay for.
?
Meaning of contingent : The word contingent 
means doubtful happening. 
  
Contd.,
?
Meaning of contingent liabilities : A possible 
obligation that arises from past events and the 
existence of which will be confirmed only by the 
occurrence or non-occurrence of one or more 
uncertain future events which are not 
completely within the control of the company.
?
In normal terms contingent liabilities means 
liabilities for the amounts which may or may not 
happen and it is still under doubtfulness. These 
are to be mentioned in the footnotes. 
  
Provisions
?
Provisions should be made when the company 
has a present obligation as a result of a past 
event.
?
When it is possible that the outcome of the 
obligation will be affecting the financial 
condition when it resurfaces.
?
A reliable estimate can be made of the amount 
of the obligation.
?
Provisions and contingent liabilities are to 
shown in the foot note on the balance sheet.
  
Disclosure 
Provisions -
?
The amount should be carried forward to the 
next period.
?
Additional provisions to be made in this period.
?
Amount used during this period.
?
Unused amount reversed during the period.
Page 5


  
Points to be noted for AS-29
?
Accounting standards 29 should be applied in 
accounting for provisions of contingent 
liabilities.
?
Meaning of liabilities : Liabilities may be 
defined as the obligations for which the 
company/organization has to pay for.
?
Meaning of contingent : The word contingent 
means doubtful happening. 
  
Contd.,
?
Meaning of contingent liabilities : A possible 
obligation that arises from past events and the 
existence of which will be confirmed only by the 
occurrence or non-occurrence of one or more 
uncertain future events which are not 
completely within the control of the company.
?
In normal terms contingent liabilities means 
liabilities for the amounts which may or may not 
happen and it is still under doubtfulness. These 
are to be mentioned in the footnotes. 
  
Provisions
?
Provisions should be made when the company 
has a present obligation as a result of a past 
event.
?
When it is possible that the outcome of the 
obligation will be affecting the financial 
condition when it resurfaces.
?
A reliable estimate can be made of the amount 
of the obligation.
?
Provisions and contingent liabilities are to 
shown in the foot note on the balance sheet.
  
Disclosure 
Provisions -
?
The amount should be carried forward to the 
next period.
?
Additional provisions to be made in this period.
?
Amount used during this period.
?
Unused amount reversed during the period.
  
Disclosure 
Contingent liabilities-
?
An estimate of the financial effects is to be 
made and disclosed.
?
An indication of the uncertainties relating to any 
possible outcome to be mentioned.
?
The possibility of reimbursement.