PPT: Accounting Standards (5) | Advanced Accounting for CA Intermediate PDF Download

 Page 1


ACCOUNTING STANDARD - 5
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ACCOUNTING STANDARD - 5
OBJECTIVE
OBJECTIVE
?
To prescribe the classification and disclosure of 
certain items in the statement of profit and loss so 
that all enterprises prepare and present such a 
statement on a Uniform basis.
?
Increases the Comparability of the Financial 
statements.
?
Requires classification and disclosure of 
extraordinary and prior period items, and the 
disclosure of certain items within profit or loss 
from ordinary activities.
Page 3


ACCOUNTING STANDARD - 5
OBJECTIVE
OBJECTIVE
?
To prescribe the classification and disclosure of 
certain items in the statement of profit and loss so 
that all enterprises prepare and present such a 
statement on a Uniform basis.
?
Increases the Comparability of the Financial 
statements.
?
Requires classification and disclosure of 
extraordinary and prior period items, and the 
disclosure of certain items within profit or loss 
from ordinary activities.
?
 It also specifies the accounting treatment 
for changes in accounting estimates and the 
disclosures to be made in the FS regarding 
changes in accounting policies.
?
Does not deal with the Tax implications of 
extraordinary items, prior period items, 
changes in accounting estimates, and 
changes in accounting policies for which 
appropriate adjustments will have to be 
made depending on the circumstances.
Page 4


ACCOUNTING STANDARD - 5
OBJECTIVE
OBJECTIVE
?
To prescribe the classification and disclosure of 
certain items in the statement of profit and loss so 
that all enterprises prepare and present such a 
statement on a Uniform basis.
?
Increases the Comparability of the Financial 
statements.
?
Requires classification and disclosure of 
extraordinary and prior period items, and the 
disclosure of certain items within profit or loss 
from ordinary activities.
?
 It also specifies the accounting treatment 
for changes in accounting estimates and the 
disclosures to be made in the FS regarding 
changes in accounting policies.
?
Does not deal with the Tax implications of 
extraordinary items, prior period items, 
changes in accounting estimates, and 
changes in accounting policies for which 
appropriate adjustments will have to be 
made depending on the circumstances.
Disclosure under Following category
Financial Statements
Ordinary Items
Extra-Ordinary Items
Prior Period Items
Changes in Accounting 
estimates
Changes in Accounting 
Policies
Page 5


ACCOUNTING STANDARD - 5
OBJECTIVE
OBJECTIVE
?
To prescribe the classification and disclosure of 
certain items in the statement of profit and loss so 
that all enterprises prepare and present such a 
statement on a Uniform basis.
?
Increases the Comparability of the Financial 
statements.
?
Requires classification and disclosure of 
extraordinary and prior period items, and the 
disclosure of certain items within profit or loss 
from ordinary activities.
?
 It also specifies the accounting treatment 
for changes in accounting estimates and the 
disclosures to be made in the FS regarding 
changes in accounting policies.
?
Does not deal with the Tax implications of 
extraordinary items, prior period items, 
changes in accounting estimates, and 
changes in accounting policies for which 
appropriate adjustments will have to be 
made depending on the circumstances.
Disclosure under Following category
Financial Statements
Ordinary Items
Extra-Ordinary Items
Prior Period Items
Changes in Accounting 
estimates
Changes in Accounting 
Policies
 
 
RELEVANT DEFINITIONS
RELEVANT DEFINITIONS
Ordinary activities are any activities and other 
incidental activities which are undertaken by an 
enterprise as part of its business.
Extraordinary items are income or expenses that 
arise from non recurring events and transactions 
and are not expected to recur frequently or 
regularly.
Prior period items are income or expenses, which 
arise, in the current period as a result of errors or 
omissions in the preparation of the financial 
statements of one or more prior periods. It is 
generally infrequent in nature and can be 
distinguished from changes in accounting estimates.