Professional Documents
Culture Documents
PRESENTED TO:
Dr. Harpreet Kaur
Punjabi
University Patiala
PRESENTED BY:
JASPREET KAUR
Research Scholar
Department of Commerce
Punjabi University Patiala
AGENDA OF DISCUSSION
Accounting Standard 1
Accounting Standard 17
Accounting Standard 1
Disclosure of Accounting Policies
2.Consistency:
3.Accrual:
Accounting Polices
Method of Depreciation:
1. Straight line method.
2. Written down value method.
Valuation of investments and fixed costs:
1. Cost2. Market Value 3. replaceable Value
Treatment of contingent liabilities.
Treatment of Goodwill.
Recognition on profit on long term contracts.
Treatmentofexpenditure incurred during
construction.
Conversion offoreign currencies.
Disclosure
To ensure properunderstanding offinancial
statements, it is necessary that all accounting
policies adopted in the preparation and
presentation of financial statements should be
disclosed and at one place.
SEGMENT REPORTING
Segment Reporting
A company cannot survive running with single
product. Diversification is necessary in todays
market, to secure itself from the attacks and
counter attacks of competitors on any
product. Specially in a multi product company
or a company operating in different
geographical Ares needs segment reporting
Objectives
To enable the users of financial statements to:
Better understand the performance of the
enterprise;
Better assess the risks and returns of the
enterprise:
Make more informed judgments about the
enterprise as a whole.
Applicability
Level I entities and Non SMCs
Listed Companies
Companies in the process of listing their
equity or debt securities
Banks including Co-operative banks
Financial Institutions
Insurance companies
Cont.
All commercial and business reporting
enterprises having turnover exceeding Rs. 50
Crores.
All commercial and business reporting
enterprises having borrowings including public
deposits in excess of Rs. 10 Crore at any time
during the accounting period.
Holding and subsidiary companies of above.
Definitions
Business Segment is a
distinguishable component of an enterprise
that is engaged in providing an individual
product or service or a group of related
products or services and
that is subject to risks and returns that are
different from those of other business
segments.
Factors For consideration of
Business Segment
Nature of products or services
Nature of product processes
Type or class of customers for the product
or services
Distribution Methods
The nature of regulatory environment, for
example, banking, insurance or public
utilities.
Business Segments of
Reliance
Exploration and Production
Petroleum Refining and Marketing
Petrochemicals
Textiles
Retail
Geographical Segment - Definition
Geographical segment is a distinguishable
component of an enterprise:
that is engaged in providing products or
services within a particular economic
environment; and
that is subject to risks and returns that are
different from those of components operating in
other economic environments.
Factors for determination of
geographical segment