ACCOUNTING STANDARDS Financial statements such as Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Funds Flow Statement, etc. become meaningful and useful only if they are ‘comparable with those of different years of the same firm or those with other firms. To ‘achieve this objective of comparability of financial statements, there should be standardised ‘sccounting policies and practices. Hence, accounting standards are formulated to maintain uniformity in accounting principles to be observed in the preparation of financial statements ‘roughout the world to make them sophisticated and reliable, Meaning and Definition Accounting Standard is a selected set of accounting policies or broad gui lelines ‘methods 10 be chosen o1 a several alternative}, Standards conform to applicable laws, customs, usages and business environment. (Chese are written Pecuments issued by expert accounting bodies or Government or other regulatory body i urement, treatment, resentation and disclosure of in financial statements According o T.P. Ghosh “Accounting stiadards qi the recognised expert accountancy body Mreatment and disclosure of account ire the policy documents issued by relating 10 various aspects of measurement, m8 tWansactions and evens”,1.2 Corporate Accounting by ICAI for the purpose of making suggestions for setting accounting standards. ASB has to formulate accounting standards, so that such standards may be mandated by the Council of ICAL, While formulating Accounting Standards in India, ASB has to take into consideration the applicable laws, customs, usages and business environment in the country. Procedure for setting various Accounting Standards in India (Functions of Accounting Standard Board) ‘The function of setting the accounting standard is vested with the Institute of Chartered Accounts of India (ICAI). The following are the steps for setting accounting standards: - Accounting Standard Broad (ASB) shall determine the broad areas in which Accounting Standards need to be formulated and the priority in regard to the selection thereof In the preparation of Accounting Standards, ASB will be assisted by Study Groups constituted to consider specific subjects. In the formation of Study Groups. the smembers of the Institute and others will make provision for wide participation. ASB will also hold a dialogue with the representatives of the Government Public Sector Undertakings, Industry and other organizations for ascertaining their views. ‘On the basis of the work of the Study Groups and the dialogue with the organization an exposure draft of the proposed standard will be prepared and issued for comments ‘by members of the Institute and the public at large. After taking into consideration the comments received, the draft of the proposed standard will be finalised by ASB and submitted to the Council of the Institue. ‘The Council of the Institute will consider the final draft of the proposed standard, 4 if found necessary, modify the same in consultation with ASB. The Accounting Standart ‘an the relevant subject wil then be issued under the authority of the Council of Al Applicability of Accounting Standards w.e.f. 1,4.2004 For the purpose of pplicability of accounting standards, enterprises ar classified Wo three categories -All commercial industrial and business reporting enterprises: baying borrowings, including public deposits, in excess of © 1 crore but not in excess OF 10 crores gp any time during the accounting period, Level 111 enterprise Enterprises which are nol covered under Level I and Level II are considered as Level M1 enterprises, tages of Accounting Standards bjectives / Importance / Need / Purpose) 1. Elimination of variations in accounting treatment: Accounting Standards reduce to 4.) ® reasonable extent or eliminate altogether any confusing variations in accounting I/ t A / yy treatments in the preparation of financial statements. 2. Reduce confusion in accounting practitioners: On giving clear guidelines as to ‘treatment of certain items, which can be treated differently, the accounting practitioners can follow one method which is most suitable for the situation as per the accounting ‘standards. 3. Helps in disclosure of information: There are certain areas where important ‘information is not Tequired to be disclosed by law. But accounting standards may call for disclosure of such information beyond that required by law. Helps : comparison of financial statements: Accounting Standards facilitate Season of indncial staizmenis of different Companies situated at different les Helps to increase the confidence of investors: Statements as per Accounting Standard window reduced to a grea extent which in turn, Will improve the confidence of investors. 6. Helps to reduce fluctuatio Beat inv ns In the value of shares: Manipulation in trading result to Onere Can be Feced 10 » prea exten fal stateme, there i les NuctUAtions i dye Value With the preparation of financial | Slelelelalalplere dressing of the statements can be B ] 8 ] | B | on following accounting standards [3 ‘AS. ‘This results in steady share market where of shares,hy Accounting Standards 13 f Status of some of the Accounting Standards mee by the Institute of Chartered Accountants of India | tet ten co Santer Datefromwtich | Enterprises. | y bed mandatory, towhich Stordard (AS) | fear Trades ure y period P | commending | ie | onoratter) | AS\ | Discosure of Accounting Policies 1-4-1993, LA | [AS2(Revsed) | Vavationcfimentories | 4 t009 | A AS3(Revsed) | CasnRowSeterert [itso ae | UO, : eure oe eee: t é AS4(Revses) | Coringandesand Bers Gxuningafterthe | Balarwe Sheet date | 41998 Al ie ASS (Revised) _| Net Profit or Loss for the Period, Prior Period 4 | tems and Changes in Acoaurting Policies 441996 Al |AS6 (Revised) | Depreciation Accounting 1-4-1905 Al ‘AST (Revised) | Construction Contracts 1-4-2002 Al é as8 | Wthoran and induded in AS-26 - mn ed 9 Revenue Recognition 14-1908 Al 'AS10 Accourting for Fixed Assets 141998 Al : AS ilvesed 03), The elds of changes in Foreign Exchange rate | 1-4-2004 Al ca AS12 Accounting for Got. gents 141964 Al peal S13 | Posting for vestments 44-1005 Al S15 Accounting for Retrerrert Benefits inthe Financ Staerrerts of Employees Al AS 16 Borrowing Costs Al | JAst7 Segrrent Reporting | Ee _L ooretRepotrg | ee Level! A816 Releted Party Disclosures A Od a , Love! F As19 Leases | 4 Al J} ACorporate Accounting 1.6 As-1 Disclosure of Accounting Policies dann, seclosure of accounting policies explains how accounting policies standard on dis ting financing statements, so that, it will be ring and prese paved noecen cy vjatements for meaningful comparison of financial statements J ef the users of fiancial. emerrise) Thre are many items and areas which can be treated differentiy ifferent a situations. This standard discloses information about the method adopted for the preparation of financial statements. Main areas, where more than one method can be followed for accounting: 1. Depreciation: There may be different methods such as: ( Straight Line Method (ii) Written Down Value Method (ii) Anmuity Method (iv) Revaluation Method, etc. « 2. Valuation of Inventories: (FIFO (i) LIFO (Gi) Simple Average (iv) Weighted Average, etc. 2 ‘There can also be different methods for valuation of investments, treatment of ere beefin, valuation of fixed assets, treatment of contingent liabilities, etc. Hence, — Policies contain the information about the method adopted for the preparation bees sept ‘Therefore, statement of accounting policies should form part of Need for disclo: . fo sure of accounting policies For proper and i, Suiits : Doser: understanding of financial statements, it is required that all Policies followed in preparation of financial statement should be disclosed. All significa accounting poic, would be helpful Hing Policies should be disclosed at one place, because i to the reader of financial statements, Accounting Fundameni The fol the financial 1. Going c in fores words, | future. 2. Consiste another. 3. Accrual: statemen involving Account are not fundan any func in financial sta Major points accounting po 1. Prudence: time of pr collectabili under con¢ 2. Substance with actual Like in hireent enough 10 influence the acu policies ‘hanges it accoul ancial statements Ifthere is any the preparation of fin: ffects the Balance She: in the financial statement. The be disclosed to the extent inting, policies in jod to subsequent period, and such change al e must be disclosed i ment is affected should change in accout et or Profit from one per and Loss Ace amount, by_ which the finat ownt, then such chang cial statet ascertainable, Aspper AS-1, a complete set ‘of financial statements include the following components: 1. A statement of Financial Position (Balance Sheet) ‘A statement of Comprehensive Income (Profit and Loss Account) A statement of changes in Equity 4. Statement of Cash Flows 5. Significant Accounting Policies and Explanatory notes 6. Statement of Financial Positic is - sition as at the beginning of the earliest comparative period. 2 Valuation of Inventories ThE ‘ financial statements should disclose the policies adopted in the valuation of 3 ae policies adopt u ion Of inventories and the method of classification aopted. Ye term(inventory includes assets - (@) Keld for sale in the ordi : ndinary course of busit \f business (finis| hed goods) aft AS and intoAccounting Standards ie (b)_ (in the process of production for such sale raw material and work-in-progress) or (©) (in the form of materials or Supplies to be consumed in the production proces: rin the rendering of service (stores, spares, consumable, etc.). Inventories should be valued at cost price, or net realisable value whichever is lower.) The cost of inventories should comprise: (i) all costs of purchase, (ii) cost of conversion and (iii) other costs incurred in bringing the inventories to their present condition. The net realisable value means estimated selling price in ordinary course of business less estimated cost if any to bring it to saleable condition. AS -3 Cash Flow Statement This accounting standard states how various sources and applications of cash of an enterprise can be summarised and presented in the financial statements. The presentation of cash flows is mandatory under AS-3 and by SEBI requirements in respect of companies listed on stock exchange. AS-3 is mandatory in respect ofall other commercial, industrial and business reporting enterprises whose turnover for the accounting period exceeds & 50 crores, a flow statement explains: (i) Cash flow from operating activities, ffom investing activities and (iii) Cash flow from financing activities) i) Cash flow AS 4 Contingencies and Events occurring after Balance Sheet date. ‘his accounting standard deals with the treatment. of contingencies and events occurring after the preparation of fina statemenis. ) “d AS 5 - Net profit or loss for the period, Prior period items and changes in Accounting Policies ‘his Standard deals withthe treatment of prior period items and extra ordinary items * and changes in accounting polices inthe financial statement) This revised standard came into effect inrespect of accounting periods commencing on or after 1.4.1996 and isis Corporate Acconunip, 4 a in nature, The objective of this statement in 0 proscribe the clavsification yg mandatory profit and loss 9 that al) emerprives prepare disclosure of certain items in the statement of and present such a stalement on & uniform basis, ae items are income or expenses which arise in the curren period ay « result of errors or omissions in the preparation of the financial statements of one or mere prior periods, AS 6 - Depreciation Accounting siation is the shrinkage in the value of an asset at a given date as compared ‘with its value on a previous date, It is the permanent and continuing diminution in te quanti, quality or value of an asset,.) Disclosure of accounting policies for depreciation followed by an enterprise is necessary ‘to appreciate the view presented in the financial statements of the enterprise. Depreciation ‘has « significant effect in determining and presenting the financial position and result of ‘operations of an enterprise. Indian Generally Accepted Accounting Principles Indian GAAP means the generally accepted accounting practices in India, which om ‘nto effect from time to time, These are the rules and. guidelines used in preparing Financial Statements and Reports, as recommended by the Institute of Chartered Acconnianas Tw When « company follows GAAP, itis assumed that its Financia’ Statemems show a true and fair View of the sale of affairs of the company. Features of Indian GAAp A The Indian GAAp i p ae by the Ministry of Corporate A fa y ‘The companies in nia are under ‘48 functional or presentation and is applicable ‘ho CoMpuls eae, Pulsion of changing currency of transaction Aeipatsiity Siatiiaté JE Poe sisson wa Sor Wis revdlva MAM repeies 2a Yo ‘nian GAAP 6 every Beton 2a & ‘shies GAAP p Chartered Aooo Yo indian GAAP rz going concern, c Yo sper te tain and there is no 1 Important Generally The GAAP is ma 1. Business entity: and can exist eve business. 2. Going concern (N function longer th deadline set for its 3. Principle of Sing statements carrying 4. Time Line Princi Statements and Bal accountants should 1 the start date and erounting it ‘Accounting Standards jon and Hi be someone 3° The historic value of assets like machinery, property, land, ote, wil bes cemmidord orepare for fair revaluation, od a ‘ ; rapars Ail. CGetermines what information to disclose to enable users of the financial state ° financial statements to ‘evaluate the nature and financial effects of the business combination) ‘The core principles in IPRS-3 are that an T 5-3 ‘acquirer measures the cost of the acquisit ‘the fair value of the consideration paid, allocates that cost to the acquired pas oa ‘sists and liabilities on the basis of their fair Values, allocates the % Ry ‘oodwill and recognises any excess of acquired assets and ia “obeahanelat and the ities over the considerationCorporate Accounting 122 pi “argain purchase’) in profit ot loss immediately. The acquirer discloses information a that enables users to evaluate the nature and financial effects ofthe acquisition at TERS 4: Insurance Contracts Iris superseded by TERS-17 Insurance Contracts. IFRS-A specifies some aspects o the financial reporting for insurance contracts by any entity that issues such contracts ang has not yet applied IFRS-17 ‘An insurance contract is a contract under which one party (the insurer) accepts insurance risk from another party (the policyholder) by agreeing to compensate the policyholder ifa specified uncertain future event (ihe insured event) adversely affects the policyholder. | (FRSA pbiies tou insteance contract (including reinsurance contracts) that an city issues and to reinsurance contracts that itholds, except for specified contracts covers! by other Standards. It does not apply to other assets and liabilities of an insurer, such as financial assets and financial liabilities within the scope of IFRS-9. Furthermore, it does ‘not address accounting by policyholders, TFRS-4 exempts an insurer temporarily (i,¢., until it adopts IFRS-17) from some requirements of other Standards, including the requirement to consider the Conceptual Framework in selecting accounting policies for insurance contracts. However, IFRS-4 }. prohibits provisions for possible claims under contracts that are not in existence at ‘the end of the reporting period (such as catastrophe and ‘equalisation provisions). 1h requires a tes forthe adequacy of recognised insurance liabilities and an impairment ‘est for reinsurance assets; and Accounting Standards IFRS-5 Non-curret IPRS-5 requires: 1. Ca non-current ass ‘amount will be re ‘continuing use; ) ii, assets held for sal less costs to sell; depreciation of an iv. (Separate presentati held for sale and of as held for sale; ar ¥. (Separate presentatis discontinued operat IFRS 6: Exploratior TERS-6 specifies s exploration for and evah 425 and similar non-rege technical feasibility and c i Gemmits an entity to asset9 without specif 8 Accounting Policie adopting IFRS 6 ma before adopting IFR: ii, Eequires entities recog Wda those assets w the assets may excee iii, (varies the recognitior measures the impair identified.)ment sition ities adoeeuaeedgg Nnder ty 1.23 TERS-S Non-current Assets Held for Sale and Discontinued Operations LERS-S requites: { Gonon-current agset or disposal group to be classified as held for sale if ts carrying amount will be recovered principally through a sile transaction instead of through continaing use; ) A Apsets Dele fOr sale to be rmeasured at the lower of the carrying amount and fair value “Tess casts 1 sells) li, Gepreciation of an asset (© cease When it is held for sale; ) iv. (Separate presentation in the statement of financial position of an asset classified as deld for sale-ane of the assets and liabilities included within a disposal group classified ashekd for sale; and_> \. Goparate presentation in the statement of comprehensive income of the results of discontinued operations. TERS 6: Exploration for and Evaluation of Mineral Resources AERS-6 specifies some aspects of the financial reporting for casts incurred for ‘exploration for and evaluation of mineral resources {for example, minerals, oil, natural gas and similar non-regenerative resources), @s well as the costs of determination of the technical feasibility and commercial viability of extracting the mineral resourced’. IFRS 6: i. Gamits an entity to develop an accounting policy for exploration and evalvation ‘asset without specifically considering the requirements of paragraphs 11-12 of IAS 8 Aécounting Policies, Changes in Accounting Estimates and Errors. Thus, an entity adopting IFRS 6 may continue to use the accounting policies applied immediately before adopting IFRS 6. ctiies recognising exploration and evaluation asses to perfortn an impairment Testo those assets when facts and circumstances suggest that the ‘carrying amount of Ae assets may exceed their recoverable amount, - ears the recognition of impairment from that in 1AS-36 Anpairment of Assets but ‘measures the impairment in accordance with that Standart once the impairment is identified.)Corporate Ac ay, 14 : Disclosures TeRS 7: Financial Instruments: vy in their financial state : res enitesw provide dslosures in their financial statement hy CAFRS-7 requires users o evaluate for the entity's financial : Jal instruments for the POSition sy i, the sigifiance of fina! performance. ) 5 ‘ial instruments: hich the enijy ic Ge natare and extent of risks arising from Financial instruments to which tee exposed during the period and at the end ofthe reporting period, and how th xy manages those risks, The qualitative disclosures describe managements obj policies and processes for managing those risks. The quantitative disclosures pris {information about the extent to Which the entity is exposed 0 risk, based on informa Provided internally to the entity's key management personnel. Together, the disclosures provide an overview of the entity’s use of financial instruments ani exposures (o risks they create. LERS-7 applies to all entities, including entities that have few financial instrumess (for example, a manufacturer whose only financial i instruments are cash, accounts receivabe ‘and accounts payable) and those that have many financial instruments (for exam: ‘financial institution 7 t BROS ah iets at Gab litiog-are financial instrument) oe 8: Operating Segments CIFRS-8 requires an entity whose ‘information to enable users a ‘ts ae ‘OF equity securities are publicly traded to dis!** Mets ofthe ditt i slatements to evaluate the nature and fisre2 Accounting Standé IFRS 9: Finar IFRS-9 is ef early application j CEERS-9 speci liabilities, and son TERS-9 requi statement of finan instrument, At init at its fair value ph fair value through acquisition or issu Financial assets When it first entity’s business 1 characteristics, as f 1. Amortised co conditions are iL the asset is to collect c the contrac flows that outstanding 2. Fair value th and measured : business mode! and selling fins“County, at CNable tion ang entity ig the entity rjectives S provide formation er, these sand the struments receivable ample, # s)- Accounting Standards 1.25 IFRS 9: Financial Instruments TERS-9 is effective for annual periods beginning on or afler 1 January 2018, with early application permitted, GERS-9 specifies how ‘an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items, 5 TERS-9 requires an entity to recognise a financial asset or a financial liability in its statement of financial position when it becomes party to the contractual Provisions of the instrument, At inital recognition, an entity measures a financial asset ora financial liability ‘its fair value plus or minus, in the case of a financial asset ora financial lability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or the financial liability. Financial assets ‘When it first recognises a financial asset, the entity classifies it on the basis of the entity's business model for managing the asset and the asset's contractual cash flow characteristics, as follows: 1. -Amortised cost: A financial asset is measured at amortised cost if both of the following ‘conditions are met: & theassetis held within a business model whose objective isto hold assets ers {0 collect contractual cash flows; and ii, the contractual terms of the financial asset give rise flows that are solely payments of principal and intere outstanding. (on specified dates to cash st On the principal amountnue 10 apply we mer meeeerruny 9, it may choose to continue 5 instead of the requirements in IFRS 9, to all of its hedging first applies IFRS requirements of IAS 39, Fae relationships. ei IFRS 10: Consolidated Financial Statements Relat (GERS-10 establishes principles for presenting and preparing consolidated financial i, ig statements when an entity controls one or more other entities. IFRS 10: have ri (requires an entity (the parent) that controls one or more other entities (subsidiaries) IFRS 1. a peer consolidated finial statements) liabilities (an ii é defines the principle of control, and establishes control as the basis for consolidation; Standards app ii, (sets out how to apply the principle of control to identify whether an investor controls A joint ve an investee and therefore must consolidate the investee, ) (see IAS 28). ‘+. (Ges out the accounting requirements for the preparation of consolidated financial IFRS 12: Di statements; and) (irs 12 re v. Gefines an investment entiy aid ets out ‘an exception to consolidating particular Statements to ev, Subsidiaries of an investment entity) re i the nature of Consol ated financial stateinents are financial statements that Present the assets, a liabilities. equity, income, e) it F yeneigall: a and-cash flows of a parent and its subsidiaries as those £ “ oft Ws, IFRS 11: Joint Arrangements TERS 13: Fair V IFRS-11 establi : é aie Principles er Financial reporting by entities that have an mers’ IFRS 13 define scam ore ; ts Controlled jointly Goint arrangements) Tequires disclosures ; A joint arrangement is antity ncial ries) ation; ntrols ancial ticular assets 1s those interest wve joint Accounting Standards 1.29 control. IFRS-11 classifies joint arrangements into two types - joint operations and joint ‘ventures: i, ia joint operation, the parties that have joint control of the arrangement Goint Operators) have rights to particular assets, and obligations for particular liabilities, relating to the arrangement; and ina joint venture, the parties that have joint control of the arrangement (joint venturers) have rights to the net assets of the arrangement. TERS 11 requires a joint operator to recognise and measure its share of the assets and liabilities (and recognise the related revenues and expenses) in accordance with IFRS Standards applicable to the particular assets, liabilities, revenues and expenses, A joint venturer accounts for its interest in the joint venture using the equity method (see LAS 28). TERS 12: Disclosure of Interests in Other Entities (as 12 requires an entity to disclose information that enables users of its financial Statements to evaluate: 4. the nature of, and risks associated with, is interests ina subsidiary, a joint arrangement, ‘en associate or an unconsolidated structured entity; and the effects of those interests on its financial position, financial performance and cash re IPRS 13: Fair Value Measurement (CB 0 defies ai value, sts ont 4 framevork for measuring fair value, and "equires disclosures about fair value measurements it applies when another Standard ‘quires or permits fair value measurements or disclosures about fair value measurements (Gd measurements based on fair value, such as fair value less 0St8 to sell), except in “Pecified circumstances in which other Suundards govern,Comporate Accou, 130 unt and disclosure require ify the measureme een Forexample, IFRS 13 does not specify : jirment of assets. Nor does it estahjy re-based payment transactions, leases oF imps i ae ari fo tials reted wo empoyee Denes ad TUTTE py IFRS 13 eis vane a he ic han wl i . if ut the measurer transfere liability i conderty transaction berween market participants a ree aan eins ‘measuring fair value, an entity uses the assumptions that mar, (a When ‘ e the liability under current market conditcg ‘participants would use when pricing the asset of inchoding assumptions about risk, As a result, an enti cor otherwise fulfil a lability is not relevant when measuring fair value. Differences Between IFRS and Indian GAAP ied 10 sell an asset or pig intention to hold an asset orto vee Accounting Standards 6. Usage of (When staiemen currency in the |functional curre Presentation — |Hiabilities are to the exchange rat 7, Consolidated if the compant Financiallunder the exe Statements —_| mentioned under the companies consolidated find 8. What financial | Companies follo statements need | prepare the Balar to be prepared? | financial position Statement showir Boss TERS Indian GAAP Wes ‘These are a set of accounting |These are the rules and guideline . standards developed to providejused in preparing the Financid ‘high quality, transparent and|Statements and Reports. © comparable information in|recommended by the Institute financial statements. Chartered Accountants of Indi 2. Developed I! by | Imernational Accounting Standards|Ministry of Corporate Atti <2 sae (Mca) ie ‘hat is complying with| When a company is said (0 fll? that thelr trans 884 Motelte Indian GAAP, itis pres ea ae Statements|that it shows a true and fait Vi" 4 Adopt by as ofits financial affairs ! ‘Companies in 110++ countries have i ed only ! opted IFRS, Indian GAAP is adopted 5. How to adopt\ IFRS provi [Indian companies. for firs time | wow ty nage a suction on © Adopt TFRS fF the fe Indian GAAP does not si lear instruction on the fist Isdoption, time, ‘Short Answer Questions (2 marks exe ‘What do you mean by accounting Define accounting standard ‘What do you mean by ASB? ‘What do you mean by Level I ente ‘What do you mei What is golden rule of valuation of ‘What do you mean by Indian GAA. 8 What do you mean by business ent 9%. What do you mean by going concer 10, What do you mean by principles of 11. What do you mean by time fine pri by disclocure ofMle Acorn, OUatng Fequiremeny eS testa irement plang iSS€t OF paig e Measuremen, ms that marke Ket conditions, Sset OF to settle 1AP and guidelines the Financial Reports, 2 the Institute of ants of India porate Affi s said to follow it is presume? ¢ and fair vie“ irs. dopted only ive 32 s not give m the first @E Tes of When otascnsas: ary, pot fo the Currency in the /functional currency, the assets and presentation Mn the caso of Indian GAAP, there is no question of using exchange Fate since Indian GAAP is only used in the Indian context. Habilities are to be transinuted by the exchange rate 4% Consolidated|it the companies do not come Financiallunder the e JAS per the Indian GAAP, the Xemption criteria companies should prepare mentioned under IAS 27 (Para 10), findividual flannel sta the companies need to prepare [consolidated financial statements 8. What financial | Companies following IFRS have to Indian companies following Indian Statements need /prepare the Balance Sheet showing |GAAP needs to Prepare the to be prepared? | financial position and the Income Statement showing profit or loss ents, [There is no need of preparing [consolidated statements, Balance Sheet, profit and toss ‘account, and cash flow statement QUESTIONS ‘Short Answer Questions (2 marks each) 2. What do you mean by accounting standard? 2. Define accounting standard. 3. What do you mean by ASB? 4 What do you mean by Level 1 enterprise? 5. Whar do you mean by disclosure of stcounting policies? 6. What is ‘golden rule of valuation of inventories? 7. What do you mean by Indian GAAP? ‘What do you mean by business entity concept? $2 What do you mean by going concern concept #0; Wat do you mean by principles of single curency/? What do you mean by time tine prneples?