During the recent past what progress has been made in India regarding standardization of accounting practices...

During the recent past what progress has been made in India regarding standardization of accounting practices in the light of on going liberalization & Globalisation?

The Institute of Chartered Accountants of India (ICAI) formed the Accounting Standards Board (ASB) in April 1977 which includes representatives from industry and government. In line with procedure followed in other countries, the preliminary drafts prepared by the study groups and. approved by ASB are circulated amongst various external agencies, including the representative bodies of trade commerce and industry. So far, twenty-eight standards have been issued by ASB, a brief description of which is provided a Appendix I to end of document.
The standards are recommendatory in nature in the initial years. They are recommended for use by companies listed on a recognized Stock Exchange and other large commercial, industrial land business enterprises in the public and private sectors.
We advise that you read all or at least some of these standards in order to get a feel of what these standards are all about. What policies and procedures of accounting these standards aim to standardize and why? Do not worry if you are unable to understand some of the ideas or expressions contained in the standards. You may like to come back to these standards after you have been through all the' blocks of this course in order to have a better grasp of them.
Regarding the position India, it has been stated that the standards have been developed without first establishing the essential theoretical framework. Without such a framework, it has been contended; any accounting standards and principles developed are likely to lack direction and coherence. This type of shortcoming also existed in U.K and U.S.A but then it was recognized and remedied ling back. In the United State the first task, which FASB undertook, was to develop a conceptual framework project, which aimed at defining the objectives of financial reporting (a sample of which is presented in Appendix II). This was to be followed by the spelling out of concepts and standards establishing vvhat have been frequently referred to as generally accepted accounting principles (GAAP). Any attempt to develop a conceptual frame work regarding the objectives of reporting will have to take into consideration the answers to the following questions:
i) Who are the users of financial reports? ii) What decisions these user groups have to take?
iii) What information can be provided which would assist them to take such decision.




The objectives, as you have already noted, depend upon the economic, social, legal and political environment of the country.
Appendix I
Accounting Standards Board
Institute of Chartered Accountants of India (ICAI) has so far issued twenty eight standards:
Framework for the Preparation and Presentation of Financial Statements
(AS 1) Disclosure of Accounting Policies
(AS2) Valuation of Inventories
(AS3) Cash Flow Statements
(AS4) Contingencies and Events Occurring after the Balance Sheet Date
(ASS) Net Profit or Loss period, Prior Period and Extraordinary Items and Changes in
Accounting Policies
Announcement - Limited Revision to Accounting Standards (AS) 5
(AS6) Deprecation Accounting
(AS7) Accounting for Construction Contracts
Revised Accounting Standard (AS) 7, Construction Contracts, 28-05-2002
(ASS) Accounting for Research and Development
(AS9) Revenue Recognition
(AS 10) Accounting for Fixed Assets
Announcement-Status of certain provisions of AS 10, Accounting for Fixed Assets,
pursuant to the issuance of AS 19, Leases and As 16, Borrowing Costs
(AS 11) Accounting for the Effects and Change on Foreign Exchange Rate
(ASH) (Revised 2003). The Effects of Changes in Foreign Exchange Rate 21-02-2003
(AS 12) Accounting for Government Grants
(AS 13) Accounting for Investments
(ASH) Accounting for Amalgamations -
(AS 15) Accounting for Retirement Benefits in the Financial Statement of Employers
(AS 16) on Borrowing Costs
(AS 17) Segment Reporting
Disclosure of corresponding previous year figures in the first year of application of Accounting Standard (AS) 17, Segment Reporting
Accounting Standard 18, Related Party Disclosures
Applicability of Accounting Standards (AS) 18, Related Party Disclosures






(AS 19) Leases
(AS20) Earnings Per Share
(AS21) Consolidated Financial Statements
(AS22) Accounting of Taxes on Income
Clarification on Accounting Standards (AS)22, Accounting for Taxes on Income (AS23) Accounting for Investment in Associates in Consolidated Financial Statements (AS24) Discontinuing Operations
Announcement-Accounting Standards (AS)24, Discontinuing Operations
(AS25) Interim Financial Reporting
(AS26) Intangible Assets
(AS27) Financial Reporting of Interests in Joint Ventures
(AS28) Impairment of Assets 30-05-2002