Advanced Accounting Lecture Notes

good evening students I am C Asha as a faculty of accounts from Board of studies welcome to the live learning classes LLC for intermediate paper one Advanced accounting these classes will be helpful for students appearing for May 2024 examination as ICI is rolling out the new scheme which will be applicable from May 2024 and onwards I would be extremely happy to introduce our eminent faculty see Sangeet Shah who would be taking care who would be taking you through the accounting standard sessions these classes will be help you gain to gain the understanding of provisions of accounting standards and their applicability all your doubts will be clear during the session with this note I would like to request see sanket to please start the session see Sangeet please start the session thank you ma'am and thank you Board of studies or giving me opportunity first I will introduce myself hello students good evening to all of you I am CA sanket Shah today marks of the beginning of an exciting Journey as we commence a new course online batch with ICI Institute in this batch we will come together to acquire a crucial knowledge required to become a successful chartered accountant we are stepping into a challenging yet rewarding face and I am fully committed to being supportive guide for all of you my aim is to provide you with all the necessary assistance and guidance so you can achieve your ca aspirations so whether today we are going to start with our first session of advanced accounting and why Advance accounting first we have to understand why Advanced accounting what is new in this Advanced accounting course before starting today's session first I will tell you this lectures will be in English that is I will first explain all Concepts in English and then better we will do Revision in Hindi also or wros yes lectures will be in English for your concept Clarity revisions will be little bit in the Hindi so before starting to registration I will first give you introduction of our syllabus Advanced accounting sir accounting is a language of business accounting language of business so here now in this slide first I will introduce what is accounting standards or what is the advanced accounting course then syllabus part small topics big topics overview overall and then conclusion and then we will start with first chapter so before starting today's session better say good evening in the comment section challenge yes good evening you can interact okay so before starting today's session what is Introduction part about this Advanced accounting why this subject so anything before starting we should know why we are learning this subject accounting is one of the core competencies of Chartered Accountants so every chartered accountant name itself it is accounting and once accounting focuses on understanding applicability and Mandate of accounting standards now at Foundation level you already understood how to pass journal entries Ledger account trial balance pnl and balance sheet now at intermediate level in advance accounting your focus should be on accounting standards how we are going to use that standards and some corporate accounting Concepts better index is also there now everyone every company listed company has to follow index but in the syllabus we have at CF final level today I will give you introduction of inter index but we have in detail what is accounting standard and that Journey we are going to start from today I won't say it is now it is a practical syllabus this may entries now syllabus is slightly change now it is more towards uh you know Accounting Standards now what is accounting standard learning how to make it interactive yes I have done lot of hard work on these slides to make it very simple okay so don't worry you are in safe hands students are expected to gain the ability to apply accounting standards and legislations to different transactions and events and understand the presentation of financial statements so what is the syllabus first thing syllabuses Accounting Standards accounting standards and accounting standards okay so disclosure based accounting standard yes I will give you this there are total 7 accounting standards in disclosure base this is your chapter number four okay your chapter starts from chapter number four each and every accounting standard you can see your accounting standard one yes I will give you that Journey Don't worry so disclosure standard asset based standards so what is asset based so this accounting standard is going to affect your assets so these are S2 10 13 16 19 26 and 28 so again seven Accounting Standards asset base so seven Accounting Standards disclosure repairs and seven accounting standards are asset based okay after that liability so you are aware about the equation asset minus liability is equal to Capital and income minus expense is equal to profit so this is reliability base so asset based up first one is disclosure based disclosure base then asset best and then liability best how many liability based accounting standard only two based on liability okay only two then you have impact on financial statement best now what is this is four events occurring after balance sheet data and S5 is 11 and 22. these are not specifically income expenses these are impact which is given on the financial statement so these are four accounting standards and after that Revenue based Accounting Standards 7 and 9 are Revenue based Accounting Standards so Revenue based Accounting Standards asset base to a disclosure based then you have uh asset based then liability base then financial statement impact and last year Revenue base and last one will be other is that is only two okay so other is residual category then you have Consolidated financial statement that is holding company and subsidiary company in which we are going to see Consolidated financial statements so is 21 23 and 27. your journey is only and only Accounting Standards accounting standards and accounting standards so small topics introduction to us framework for preparation of financial statement then applicability of accounting standards and buyback only four small chapters are there and big chat chapters are big topics are 11 number that is cash flow statement plus balance sheet pro forma amalgamation of company reconstruction of company and 15 number is accounting for branches including foreign Branch so there are four big chapters and four small chapters okay and this is how you are going to do your journey so this is the end part accounting for branches so accounting for branches so today is the first day then overview so overview is what under this new syllabus you are expected to understand various accounting standards and corporate see the level it is Corporate accounting Concepts so here we have to understand that company level corporate level professional level sole proprietorship partnership we have done at the foundation level now it's a corporate world transparency understandability shareholders what we are going to learn while preparing financial statements so what is the expectation from student by Institute students are expected to gain the ability to apply this accounting standard and lazy legislation to different transaction and events or transaction in events I already taught you at Foundation level Foundation level transaction means what any any happening and result is called as event so transaction any Act is called as transaction and result is called as events so while passing any entry and then after that how to apply accounting standard for that entry we have to understand it while preparation of financial statements sir there are some standards accounting standard 20 in which we need the formula also okay so concept and formula maintain index of notebook okay so index is also very important so it will help you at the time of revision and practice questions after lecture using tick Tiki technique so Technique we have to solve these questions in at home be consistent and result will come to your way okay so all the best for your foreign foreign yourself so it is one of the benefit which is given by The Institute sir best faculties not only for any advanced accounting subject but for all subjects and here every faculty yes they focus only on study material or study materials they have taken a lot of efforts so every one of you please try to understand colorful nodes read from study material make study material your bhagavad-gita Bible Quran then you will get the success what happens students normally they think they don't want to come out of their comfort zone yes definitely will make easy but ultimately you have to do a lot of hard work here the results will be yours okay but already sir we attended some classes we already attended these classes but we have not understood so every one of you this this is very comfortable timing in the evening 6 to 8 30 and morning early morning our classes are there you do your self-study and six to eight thirty two and a half hours may I see a classes we focus only on Concepts or seven to eight months from here up to May month you have to do proper hard work or success before starting today Journey bus I want you every one of you please try to recall all Accounting Standards can names okay so accounting standard is accounting standards one minute so accounting standards and in next session I challenge you all okay try to get the names at least okay names so list of accounting standard first one I will be very slow for accounting standard yes first one is disclosure of accounting policy this is your first accounting standard yes then S2 is valuation of inventory number three is cash flow statement number four contingencies and events occurring after balance sheet date number five net profit or loss for the period prepared items and changes in accounting policies number seven Construction contract number nine Revenue recognition number 10 property plant and Equipment 11 effects of changes in foreign exchange rate and accounting for government grant investment accounting accounting for investment accounting for amalgamation and employee benefits is 15 number these are only 15 Accounting Standards out of that you can see there is no number for six and eight because it is removed instead of six now we have 10 accounting numbers standard 10 that is property plant and equipment and instead of eight before that research so it will be now intangible asset that is accounting standard 26 upgrade okay so they are removed from age six and eight abusive numbers so they are permanent deleted and they introduced in another accounting standards and therefore these numbers are not there six and eight are permanently deleted okay after that borrowing cost 17 is segment reporting 18 number related party disclosure 19 leases 20 earning per share 21 Consolidated financial statements 22 accounting for taxes on income 23 accounting for investment in Associates in Consolidated financial statements 24 discontinuing operation 25 interim financial reporting 26 intangible assets 27 financial reporting of interest in joint venture then impairment of assets and 29 is provision contingent liability and contingent assets so two standards are removed so remaining standard set 27 I give you challenge I give you challenge for these accounting standards and it is a challenge for you okay upload next session at least 10 names okay before starting any session I will start with the numbers foreign screen 30 seconds you can recall this accounting standard name so don't worry so all Accounting Standards at least try to recall names very very simple okay maximum time I will speak it in English some students are asking me to speak it in Hindi so both beta ultimately Concepts will be in English and revisions will be in Hindi okay will these live classes be sufficient in case of we are not enrolled in any other classes yes better Rehan why not a classes are sufficient now Institute also improved number of lectures or increase so better definitely you will get good number of sessions no don't worry by which month we are going to complete our syllabus sir I think uh before February or March 15th of March complete not only for this subject Die Hard your fans sir thank you better part your way of teaching is the best sir okay thank you beta therefore revision with you okay yes good evening sir 27 Accounting Standards Nisha yes better thank you sir yes don't worry thank you sir for joining ICI faculty yes beta Pawan thank you yes you are one way our way you yes our way is different okay additional questions are required sir okay after a long time I'm watching your classes of my favorite sir yes thank you chandan sir will you discuss rtps yes can we get these notes definitely why not better oh actually so now can we start Ed comments so we will start with our journey chapter number one actually okay let's move so our first chapter is Introduction to accounting standards how to remember these Accounting Standards okay daily five Accounting Standards you can recall and daily five accounting standards you will learn it definitely over the period it's not a journey of one day it will take some time for within seven days you can recall all these names of accounting standard don't worry about that daily five Accounting Standards so our Journeys for four days in a week Saturday you can recall all names of this accounting standard okay yes overview of accounting standards first one in this chapter first I will introduce what is the concept accounting standard then how this standard setting process how any accounting standard is said by the ICI okay standard setting process after that list of accounting standard that we already covered all names of accounting standards need for conversions to Global standards so now we are also adopting IFRS but not as it is now what is not as it is that we have to understand that is global standards International financial reporting standard that is IFRS so what is exactly IFRS is that word IFRS that we learned today International Accounting standard board sir in India we have accounting standard board that is concept number two so similarly we have International Accounting standard board at International level and we are not following IFRS as it is Journey started and now everybody listed company they adopted in this okay so roadmap for implementation of index so this is how we are going to start in this chapter targeted chapter number one chapter number one no beta after every 15 minutes I will take your queries I won't disturb my lecture in between if you comment also but I will ignore that comments I will give you proper three minutes in this batch I will give you proper three minutes you have to take some screenshots but screenshots some things you have to write in your notebook foreign please don't ignore this message after your session 100 Pages book you have to maintain it compulsory I will show you some students notebook so accordingly you follow that technique and write your 100 Pages book on daily basis it's not for my subject you can follow this technique for other subjects also okay hundred Pages it's a summary book okay sir and some students are saying me to speak it in English don't worry revisions I will take it in Hindi don't worry yes yes you please share it to your maximum friends say all over India okay friends okay yes we have to follow ICA and I says we have to understand concept from study materials yes every one of you so please follow ICI classes only okay so first we are going to start with the introduction part so what is the introduction of accounting standards see generally accepted accounting principles Accounting Standards means accounting principles so you should know or your reader of financial statements they must know what you are following so that is the accounting principle okay common set of accepted accounting principle I will show you one report foreign I will show you Indian Tobacco Company annual report of 2016. you can see here these are some financial statements in notes convention so this how this is how you have to write your financial statements see financial statement means what financial statement is balance sheet the handle cash flow statement notes to accounts and accounting policies so notes to accounts and now these notes to accounts these accounting policies what you are following that you have to tell to your readers this is what we are called as notes to the financial statement so this is ITC report it is a corporate policy convention convention means what to prepare financial statement in accordance with applicable accounting standards in India and a summary of important accounting policies set out below the financial statement so this you have to write and this is how you will prepare your report basis of accounting We are following accrual concept okay so basis of accounting in accordance with the historical costs the word which is called as historical cost now what is historical cost what is convention okay Concepts fixed assets as and when they are undertaken all assets and liabilities are classified as current or non-current as per company normal operating cycle so these words current non-current you should know okay reader will understand it definitely but you have to present in the simple way but before starting this phase to unwrite these things you must know what are Accounting Standards so yes through Accounting Standards what we have to learn in this index uh for not index sorry Accounting Standards what we have to understand how to prepare these nodes chartered accountant as to understand while becoming a CA and after becoming a CA you will prepare financial statements of corporates and therefore you must learn what are generally accepted accounting policies okay understood these are common setups see common set of accepted accounting principles standards and procedures definition common set of accepted accounting principles common set common set okay so inventory valuation applicability what is in the accounting standard two it is applicable for Reliance company also and ITC also Tata and small koi company so that will be also yes beta here common setup accepted accounting principles standards and procedures that entity must follow while preparation and presentation of financial statements sir what are financial statements balance sheet piano cash flow statement statement of changes inequity and notes to accounts so these are financial statements and while preparing this we must know common set of accepted accounting principles standards and procedures got the concept what is General accepted accounting policies at International level at International level and it is called as IFRS International financial reporting standards and at National level we are calling it as in India Accounting Standards see accounting standards are different and index is also different so both are better different things the first thing come to your mind as are different and index are different index big brother and small sister you can call it for accounting standards so we have two set of accounts accounting standard one is one is s and second one is index in India in India we follow accounting standards and end is comment section every one of you write it in comment section accounting standards and Indies okay okay SOC explanation yes but I will statement of changes in equity statement of changes in equity so in India yes very good we follow please be interactive Accounting Standards I won't say it is very you know boring Journey but yes so you have to understand you have to create interest in accounting standard an accounting standard if you think it is now it's like theoretical subject yes now it's not no more it's a practical in po JSI income expenditure then we will prepare balance sheet no beta now syllabus is changed okay and you have to take interest in this subject or interest okay but you have to sit on one place okay so only one thing I required from you you promise me all okay yes sir we will attend these sessions we will attend these sessions mandatorily so accounting standards and in this there are two categories very good beta very good every one of you better have written this yes and though you already attended some sessions of any faculty or better don't miss these sessions okay extra knowledge Board of studies faculty say might be this thing happens you'll understand this is more interactive session and instead of joining bit of face-to-face classes what happens your maximum time you can attend it you can save your money of your parent no one gives guarantee of CA course okay no one you it's only you who will give result if you are consistent you'll get the result you have to be consistent for next eight months then only you will get the result here okay yes no one will miss this session no one Joe attendance okay and please give feedbacks please give feedbacks okay and feedbacks are very important always okay accounting standards are policy documents issued by first one government this policy documents MCA now what is MCA Ministry of company Affairs and in consultation with nafra now what is nafra National financial reporting Authority they prepare accounting standards for non-corporate entity but for company level company level ICI for non-corporate entity write down it in the comment section ICI prepares Accounting Standards okay sir government is also preparing accounting standard it is similar ultimately Institute of Chartered Accountants say data and nafra yes we will pass it in Parliament or accounting standards are then applicable for corporate entity see government has watch over okay that Ministry of company uh Affairs has watched over these Accounting Standards so yes I said definitely helps them but in consultation with nafra they have different regulatory Authority okay so National financial reporting Authority is different and our Institute prepares Accounting Standards but it is applicable for non-corporate entity for example individuals Huf then partnership firms then whether your Association of persons Boi so all this covers under non-corporate entity okay in income tax we are going to learn this for ICI gives Accounting Standards yes sir we uh know that okay ICA issues accounting standard but wait when it is applicable for company then MCA with consultation with nafra they called it nafra and in consultation with them they issue Accounting Standards is foreign very good for corporate affairs for corporate Affairs it's MCA with consultation with nafra and for non-corporate entities it is ICI so accounting standard who issues not Phoebe today ICI introduce Accounting Standards I will show you website we have one committee for accounting standard board who is the chairman that you will understand on our site I will show you exactly where you have to see this accounting standard bear text but bear text definitely difficult to understand and therefore by making it is simple by making a chart we make it very simple and you will learn it from its in simple form and when you are able to read uh bear text then better you understood accounting standard in detail if you can read from uh where it is then better your accounting standard knowledge is improved tell you okay ah sir Advanced accounting me yes technical team please check it though voices [Music] no okay why is this clear ly accounting standard deals with now this is very very important Point rmpd analysis rmpd rmpd rnpd rmpd rmpd rmpd okay voice is clear R for recognition of events and transactions are for recognition of events and transactions aim for measurement P for presentation and D for disclosures okay so our MPD analysis rmpd analysis are for recognition M for measurement team for presentation and D for disclosures so tell me full forms beta yes without looking into a slide you can tell me what is the full form recognition information presentation and disclosures please be interactive please comments yes if you have pain also better please type it so it will be very interactive okay every one of you try to write all these answers recognition measurement presentation disclosure recognition measurement presentation disclosure okay so rmpd analysis sir rmpd analysis this very interesting rmpd okay recognition measurement presentation disclosures benefits of accounting standards or what are benefits of accounting standards now after understanding these slides okay you can refer your study material and you will get each and every Concept in detail okay if you read your study material after the session it will be very easy for you you can recall all these Concepts I made it very simple okay so rmpd analysis R stands for recognition information P for presentation and D for disclosures what are the benefits of accounting standards sir first one you can recognize these standards you can oh oh benefits slide foreign what are benefits of NS or s okay what are benefits yes you can summarize from here cello standardization of alternative accounting treatment so benefits standardization Whenever there is a confusion okay so there is lot of confusion better when you want to reach at one level you may get five four four five rows Google Maps so now that will be a confusion which route I should consider so accounting standard standards gives you standardization or alternative accounting treatment when there are n number of options I Institute of Chartered Accountants they better introduce Accounting Standards which will give you standardized method for accounting standards okay requirement for additional disclosures requirement for additional disclosures okay so what you have to disclose it more to your investor that you are getting it from Accounting Standards third point you can compare your financial statements comparability and last one reduction of scope of Creative Accounting reduction of scope of creative accounts okay so one point yes one time in Hindi very bits of accounting standards policies foreign difference recognition measurement presentation disclosure recognition measurement presentation disclosure recognition measurement presentation disclosure rmpd analysis closure so this is the accounting standard benefits standardization standardization of the alternative accounting principle requirement for additional disclosure comparability foreign now yes your questions and my answers up to this point if you have any query you can ask me okay I won't take your queries now your queries if you are inequality till now otherwise better tell me clear I will go to next concept okay or please South Indian students please bear for some time revisions will be in Hindi that will be helpful for all our India students and your Concepts if you have any problem in concept you can give it in comment section so I will explain you it further don't worry National financial reporting Authority pallavi Sharma is foreign [Music] reduction of the scope yes of Creative Accounting means you cannot do this accounting okay so you won't do that so that is called as Creative Accounting additional disclosure means apart from basic disclosure every accounting standard at the end test what you have to disclose in your reports it's not only a point of entry but you should disclose what policy We are following and that is additional disclosure sir um how many marks Theory would do we have so almost now it's paper of accounting standards 60 to 65 voltage marks weightage of accounting standard and remaining consolidation and all yes better that question you will get don't worry additional disclosures don't worry search audit also a better faculty say don't worry they will tell you foreign benefits are there yes but I will tell you afterwards any doubt till now sir topics you explained do we have to uh remember like whatever yes better some points you have to buy heart that by her point I will tell you don't worry that by her point I will tell you right tomorrow points called it as rattamar yes I will give you in every standard all raktamar points no doubt sir sir creative I already explained I am from SRO now it's understanding Hindi yes Karthik ji sorry Karthik G yes thank you sir will you teach all Accounting Standards Rita uh I say Board of studies other means I said decides uh uh all faculty list so if they give me this opportunity yes definitely I will teach and yes I already told you to give feedback forms okay this is not the right platform mock test will be announced shortly by Institute so do we have any advantage over news scheme but a new scheme is always preferable because only six subjects are remaining and you will get some extra knowledge so and your article shift starts after only passing of your two exams to sorry two groups so better definitely your article ship time is also reduced so these are some advantages of new scheme so I won't give true uh yes pros and cons of new stream so definitely you have advantages whether to take both groups of single group definitely both groups better don't think for a single group I sir kindly teaching English and go very slow yes beta yes I will go slow wherever I think sir please explain notes to accounts and statement of changes in equity but I will show you at the end sakshiji wait for some time I will show you exactly what are notes to accounts and what are yes can we take some important points of screenshots sir wait for some time I will give you screenshots also otherwise we will move further yes 7 15 go I will give you break 7 15 to 7 30. okay 7 15 to 7 30 15 minutes break but before that we have to understand how to set the accounting standard by Institute so accounting Standard Institute foreign so don't refer recorded lectures but sometimes if you have any medical emergency or family emergency then you can go for the recorded one but better recorded lectures May two and a half hours betna is not possible to sit on one place for two and a half hours is really not possible so I won't pray for recorded lectures and you have to improve your stamina yes definitely for sitting place on one place it's very very important and whenever you are attending my lectures don't attend it from bed or anything better business or sofa please sit on your table and chair okay chair payment table Yeah if you respect okay I have seen my uh better ducks foreign okay other things sir will you share this PDF so no break search statement of changes in equity so every chapter we have to make 100 Pages 100 Pages all important points foreign next one now we will move to next part these are some notes to accounts convention for this ITC report I have shown you basis of accounting depreciation so what you are exactly following so this is what given in every annual report every annual report fixed asset inventories so these are some notes okay now if you see Bajaj Finance limited or notes so you'll get basis of preparation use of estimates then they have property plan and equipment then they have depreciation so these are some Accounting Standards earning per share is 20. okay so this is how you have to understand notes to accounts that is disclosure part this you have to disclose in every annual report see the annual report I will show you the annual report report see every accounting standard I will show you from the annual report once you can read this annual report if it is easy to read the annual report you can solve any question okay yes you can see here these are some notes um balance sheet profit and loss account yes I will show you this is the number of pages more than 100 Pages you can see the annual report only financial statements report of board of directors and all these things better these are annexures reports okay remuneration board of directors now this is Auditors report see first auditor gives this certificate independent auditor certificate so here to members members means normally shareholders okay so in this you will get the balance sheet balance sheet you can see here equity and liability which you already studied at Foundation level then you have P Angel statement then you have P handle statement after that you have cash flow statement third statement cash flow operating activity investing activity and financing activity then after that statement of changes in equity what is the share Capital At the beginning and what is at the end so these are statement of changes in equity and after that you have nodes in notes you will learn all numbers what is how share Capital derived how resource and surplus and then finally disclosures okay so extra disclosures given by the company what how they are following Accounting Standards okay which policy they have accepted so that they have to give it in the writing okay so these are disclosures so this is how your financial statements are prepared every member will get this financial report in their annual report of every company you will get this report okay balance sheet profit and loss account cash flow statement statement of changes in equity and notes to accounts okay now clear everyone is clear with this okay what is exactly disclosure disclosure is nothing but what policy you have followed disclosures okay shalom but the last way I will tell you okay yes Villas you are interacting on the correct place now I will teach you what is the standard setting process standard setting process now listen it carefully how accounting standards are set by ICI okay instead of Chartered accountant of India how they set any accounting standards ICI took leadership role in constituting ASB now what is accounting standard board yes you can see our website foreign on this if you see here committees committee and first committee you will know this is accounting standard board see a promote joint yeah okay okay we have yes you can see here then you have other members Vice chairman president vice president so they are members of this committee board then charge bearers of this accounting standard boards since Inception to increase yes 15 16 16 17 17 18 and now 22 Thug yes MP Vijay Kumar sir contributions you can see here okay next so this is how accounting standard board okay you can see in members no sorry in communities accounting standard boards you will get educational videos in this effect today top index amendments you will get everything which is new either exposure drop now see what is the exposure draft Volume 11 issued by ISD see better this is next level I won't say you understand all these things at intermediate level but at least you must know because this is very vast Journey okay so very very big journey of accounting standards but we have you know very little or very small things to understand okay we do not have in exact details all these things because 29 Accounting Standards to learn in the eight months itself is not possible along with other subjects okay so I will give you insight for this subject it's not possible that every time uh I will give 100 you know depth knowledge it's not possible and don't try to take deep knowledge now first start your articleship and in articleship you can go in detail first your focus is always how to clear my both groups okay in first exam is my clear clear thought okay and I should start my article ship as early as possible Chile standard setting process hanji so you now understood so ASB is our ICI cup body separate body separate committee for this tooks leadership okay in the leadership role in the constituting accounting standard board accounting standard board considers IFRS at International level they can compare it now what is going on the international level okay and at International level we have two sets like in India we have s and index but here in this are totally different and uh you know A's are totally different but IFRS and is in combine in Combined we will call it as whole International standards okay so we consider our board considers and IIs while deciding it at globalization level some Industries Association and government Department also government Department also although accounting standard board if constituted by ICI it is Implement independent for formulation of accounting standard board only for uh ASB you know formation of ASP but ASB has right for implementation of any accounting standard okay recommends the standards to MCA and consultation within Institute of Chartered Accountants and then MCA has to spell out this accounting standard applicable for companies in India so India May Joby applicable standards okay MCA inco applicable all over Indian companies okay so this is how our journey starts okay so accounting standard board consequences accounting standard board okay yes then ASB considers IFRS then composition of accounting standard board although ASB nafra and MC has to spell out as applicable for companies in India okay sir I will read from mpbj Kumar book answer I followed mpbj commercial also the hours are also then uh South Carolina faculties yeah okay okay next one here's better all Sharma definitely oh okay so now what is the standard setting processor accounting standard board one time I will tell it in Hindi some students are asking me for explaining Hindi also so see beta Accounting Standards promotions foreign what is the first thing what is the first thing you have to identify area identify the area so first thing so this is the process then area in which you need accounting standard then you constitute the study group study group prepare one draft okay prepare one draft taking views and feedback finalize the draft modify the exposure drop and then issue Accounting Standards so slowly slowly break me you can recall it identification of area where you need Accounting Standards so there are two different accounting policies okay two different accounting policies some people they record it as expenditure and some people they record it as asset some accountant they record it as expenditure and some uh accountant they record as an asset because there is no standard procedure okay rent everyone will record as expenditure but see now any such expenditure for example interest now interest is also capitalized accounting standard rule 16 requires it okay so interesting it's a revenue expenditure weight sometimes interest is a capital expenditure also for two different accounting policy one is called it as expense and second one they called it is an asset so there are two different thinkings okay so whenever there is a fight for between accountant so better accounting standard board Institute will come into the picture so Institute Aya Institute formed one group Institute form one study group then better they prepare one draft draft yes this is how you have to treat suppose interest is when to be capitalized and when two interest is recorded expenses so they prepared the draft they are taking views and feedbacks they it is open to all okay so you can see on website also website exposure draft exposure drop for annual Improvement so this is how Institute has given it on the website the website so this is the exposure drop this is not the final draft okay so exposure draft exposure drop means not a final draft okay so after getting comments Institute May modify that exposure and after exposure drop it will get converted into Accounting Standards see the process it is not one day decision it takes a Time First Institute will study that accountants they are doing two different accountings they think okay yes we need one accounting standard everyone should need this accounting standard they should know how to record it for for example now suppose inventory valuation some accountants are doing fifo some other accountants are doing info some accountants are doing weighted average so institutes come into the picture once you follow the policy you have to accept it for next Years also so expenses so here we need in the uh accounting standard two inventory valuation okay some standards are only disclosure standards like S3 cash flow statement is 20 earning per share is 24 is 25 is 17 are some disclosure standards then Institute prepares one draft draft then it is draft is open for taking views and feedbacks from expert people then this draft is finalized then it is presented on the website website modified then still comments received by the general public okay don't you comment sir basically immediately don't give comments first be expert on this field and then issue accounting standards and then finally you have to study that accounting standard this is how process is there okay how Accounting Standards Institute issues Accounting Standards at which level and how it is Institute uh comments with the accounting standard or how they introduce accounting standard yes this is a process I hope everyone is happy with this process now everything so what is the new thing you to understood today yes exposure drop means rough drop data rough draft okay yes okay South Indian students please sorry if you have taken wrongly uh yes wrong pronunciation in your name sir I'm your fan please take classes in English I cannot understand Hindi beta I normally take classes in English only only revision part will be in Hindi please try to understand because some students they are not understanding English immediately and Institute also has two options one is English and one in Hindi we are not started with Hindi classes so sometimes I have to explain it in Hindi also please spare some time okay please try to adjust here exposure draft yes exposure draft is Idi or kuch please have patience till last minute we will complete today first session first chapter and yes now you take a screenshots if you have any question what is the constitution of study group so study group means they prepare one study group here you can see Institute okay study group is there okay uh thoughts bearers are different educationally videos you can see effective date of index then announcement IFRS publication in this implementation research projects accounting standard status outside India foreign Center circulations and there are study groups that are they are continuously doing study of accounting standards okay so this is how they form one group so they will discuss all these things where they need accounting standards and ASB conferences and events we'll get on this yes okay here you will get all these things in detail yes are you finding this interesting till now tell me in comment section better after that we are going to see list of accounting standard we already completed then whether we are going to see what is Need for conversions to Global standards slowly slowly huh so what you have to write it in 100 Pages book today okay 100 pages better yes today you copy all these things uh-huh in your 100 Pages book yes overview you can write over there okay you can take a screenshot till now this you have to write it in your 100 Pages book all these things after the lecture so you can take a screenshots screenshots and please write it number one concept number two write it in the same way concept number two what are generally accounting standards and principles I will show you one notebook students say how beautifully she has written all these things number three Accounting Standards deals with and benefits of accounting standards and this is the accounting standard setting process okay so write it properly after break we are going to start with next Concepts that is next concept concierge yes Global Accounting Standards okay and after break I will show you one notebook of 100 Pages thank you welcome back once again see how beautifully one of my students has written all these notes in detail you can check here yes and if you want at least you will understand so this is the page number one what generally accepted accounting principles so this is your 100 Pages book what are the generally accepted accounting principles common set of accepted accounting principal standards and procedures you already taken these notes accounting standards are written by policy documents government can start concept number three pay accounting standard deals with recognition measurement presentation and disclosures so by heart can never return a recognition means entry measurement means amount presentation and disclosures for NPD analysis trade pain Bill why benefits of accounting standard you can see by heart Karnataka standardization of alternative accounting treatment requirement for additional disclosures comparability of financial statements and reduction of the scope so this is very easy for revising all the concepts yes better so welcome back welcome back don't waste your time now okay we have to start this journey as early as possible okay yes shallow next one then sir please please please don't trust on all these myths and uh false statements now she's telling better one thing I will tell you clearly you follow only ICI faculties okay if you want to follow other faculties you can but beta myths are always theirs they will give false statement that new course is very tough but nothing is tough in the new course just this new course is introduced to make it you know comparable in your competitive market okay so new course is related to uh you know what is going in the real life okay so they removed many topics from the syllabus which are not required and that's why many faculties now accounting standards are very boring part to teach so many faculties they do not have grip over the accounting standards okay and this that's why they make this nuisance key no no new course is very difficult new courses if you go by my Approach you will never find new codes difficult new course is very easy as compared to earlier course you are very lucky that now you don't have to read Eis essay okay you don't have to read accounting you know in there are two parts Advanced accounting plus accounting okay so your syllabus is now reduced and your article ship will start Foundation level no doubt it will be difficult one but inter level according to me it's not very difficult so YouTubers see this student how beautifully she has written everything okay she maintained her notebook properly daily basis yes I have given advice okay because I am taking some Zoom classes on uh Branch also but it is so so you believe on us don't worry Institute has increased the number of stations also previously we are also in the learning phase we are giving this facility free of cost so might be revisions okay so don't worry better and YouTube this is the simple advice if you understand my things if you read study material and you are getting the same point suppose now now if I will show you the study material okay see this is the first chapter huh see study material generally accepted accounting policies principles have I covered this yes sir you covered this okay recognition measurement presentation disclosure yes sir accounting standard benefits better now under that you have to read by your own requirement for additional disclosures now at least you know the headings comparability so beta this is very simple for you okay then standard setting process so we have covered seven pages in a day here till now okay we are getting two and a half hours daily study two subjects regularly it will be very easy for you okay don't start with four sessions four lectures immediately okay step by step approach accounts you read it in detail now that's why I requested IC I could take four days in a week account session and only two days in a week loss session in the morning you can start with your second group also so simultaneously you can start with your other subjects okay and that's why and meanwhile if you have a better no article ship so definitely you do not have article shipping from 11 to 6 PM now so better in that period you can read from study material okay make your notes handwritten notes are always very important but she has written it beautifully okay so upload this screenshots after the session it will take two hours to write all these things daily towards classes to our study plan better make your simple simple steps towards your success so once again you got the opportunity so you start your journey once again don't worry don't see your past now still you have eight months yes wake up call and please do it regularly okay I will motivate you don't worry cello or kuch yes beta yes yes thank you accounting standards are very boring but still you explain it and make it very interesting thank you next one release top Accounting Standards we have done better so now let's move to next concept need list of accounting standards we are done 52 seconds so now next concept need for convergence to Global standards sir what is the need for conversion to Global standards yes hello welcome back beta welcome back welcome back yes don't miss the session everyone will attend till last minute you have to be very careful today we have to complete full chapter chapter number one okay so I want your cooperation from Yuri student okay cello son what is the need for conversion to Global standards sir why there is need key right India they think we should go for Global level Global level reasons are very simple I don't know what happened one minute safe problems yes okay okay cello yes let's start once again need for convergence to Global standards sir Global standards let's understand it quickly now I will take your queries after 15 to 20 minutes so now next 20 minutes are very crucial don't don't get Disturbed so need for conversions first one each country has its own set of rules see every country for example us U.S have U.S cap UK they have IFRS okay so each country has own set of rules and regulation it's like your uh cable religion so every religion has its own rules and regulations so every set of rules and regulations for accounting and financial reporting so to raise from the capital from International Market so see now I'm in India okay I think now assume okay uh Kazakhstan has you know uh lower interest rate as compared to India okay their rate of interest might be lower than our interest rate and you know one kazakian uh exactly don't know but five rupees okay whatever the currency so five unke currency is our one rupee currency so now therefore now what happens suppose if I think you know I will raise loan from the Kazakhstan Bank okay so now in that case uh they will study my financial statements because they are not aware about my financial statement it might be in Indian rupees Okay so here what is going to happen yes so therefore now at Global level I want to translate and we in statement reinstatement means what I will well my financial statement I will convert it at Global level standards suppose now is following their rules and my rules are Indian standards okay now to compare it is very difficult so we need one accounting standard where beta yes now they are better speaking in Russian language because it's near to Europe and we are speaking in Hindi so one medium of you know language is English okay it might be better very difficult for Indian people they might speak good English but better for them it's very difficult okay because they never speak in better proper English so it is very difficult but yes whatever the English they are getting so our statement must be comparable with their statements okay they must understand our language so English is a language similarly we are having global standards so Global standards means what it is English language in simple way now you can correlate so their set of rules are different over set of rules are different but to make it comparative we will have one set of account and that is called as IFRS okay that is called as International financial reporting standards okay very simple and therefore investors also now investors suppose for example if U.S investor is there they want to invest in Indian company they have option to invest in the Kazakhstan so beta so our financial statement must be comparable and therefore we need to accept so if I want Finance from the US company instead of uh Kazakhstan investment I want Finance we are in that case beta I will ask that investor and he will ask for my financial statement and this financial statement must be understandable by him and therefore we need Global standards okay so investor also needs Global standards next one next one is multiplicity of accounting standards they create confusions dick create confusion so multiplicity Indian standards are different Sri Lankan standards are different Nepal Valley yes okay so multiplicity of accounting standards create confusion and encourage errors or may facilitate okay so here here multiplicity of accounting standards create confusion and encourage errors and many facilitate frauds okay so we need a single set of global standards we need a single setup only one set so all over world you can read it okay and therefore we need Global basis space standards to improve the ability of investor to compare the investment in global basis and for companies with joint listing for example Indian company which may be is listed on the New York Stock Exchange to Beta for that listing purpose we need one set of standards and therefore Global standards are required so Indian standards are not sufficient so our standard must match with International level now you got the concept why there is a need of global standard once in Hindi foreign foreign foreign okay so now you got the concept yes sir we got the conceptual so this is Global standards punching need for conversion of global standards so you can see here already she has written all these things better in details yes so screenshots yes I will give you time to take screenshots but not now next one I will show you okay Why Us is not following IFRS beta they are thinking they are superior okay okay we are superior than IFRS so they are not following and it's not compulsion it is not compulsion that you should know the English language if you know English language is okay it doesn't mean that everyone should speak it in English only no okay so similarly everyone we can force every country to adopt uh IFRS or index okay so we are also not following IFRS as it is that you will understand now that you will understand don't worry so now you will understand what is exactly IFRS okay and what is the difference between IFRS and our standards so International financial reporting standard now you understood what is uh Global standards now let's understand International financial reporting standards okay IFRS it means not only standards it is interpretation also interpretation sometimes are very difficult to Define so we have interpretations in it which is issued by IFRS okay so we have IFRS we have a separate committee for that second one um okay here's better all subjects don't worry take care my channel I will show you my channel okay so IFRS are International Accounting Standards which are issued by iasc okay okay yes some technical problems okay beta IFRS are issued by ISB are issued by iasp so yes so this is international accounting standard board okay now foreign okay now International Accounting standard are issued by iasc yeah so see there are two you know uh Accounting Standards see this is very interesting how IFRS Journey started C previously before IFRS before IFRS there were International Accounting Standards and in 2001 they introduced out to uh one two I think okay so before 20012 there are International Accounting Standards and then they introduce IFRS so whatever in there in is they slightly made some changes okay according to Global standards but they followed the same Ias and whatever new accounting standard they introduced is called as IFRS I will show you yes stop International standards IFRS so you will understand it okay hmm children foreign list yes IFRS list I will show you IFRS list okay so you can see here there are two numbers you can check International Accounting standard see 1975 so for standard they introduced in 1975 and then presentation they introduced in 1997. okay and now after all these Accounting Standards now this some Accounting Standards better they removed it why they removed it because they introduced IFRS and IFRS this started in 2003 2002 Journey they started in 2003 too and then first time adoption so see the list so IIs up to 2000 they have is International Accounting Standards okay so yeah and then they extended then they extended it to IFRS today Que is starting with this started with is International Accounting Standards and then they introduced IFRS from yes when they started their Journey better you can check it on Wikipedia Wikipedia yes they started their Journey from 1975. so first standard when they introduced in the Global level pay 1975. and IFR is they introduced in 2003. first diaphras and the combined list we will call it as IFRS it's not only IFRS now we called it as the IFRS but previously they have list of is also and in that list they started yes they uh introduced new accounting standard which is called as IFRS but they don't change they didn't change the name of their original standards they kept up to 2000 the same number and with the same concept that is International Accounting standard and after 2000 whatever they have introduced it is called as IFRS now what India has done both of them in India they termed it as Indus now in this Joe is similar to is number but in this when index 1 is there it is is one it is equivalent to is1 the name is same but IFRS number one in India we have one zero one we have one zero one so in this we are not giving two different names i s and IFRS no in India we have only one set which is comparable with global standards if you don't want to compare our standards with global one we have two sets we have only Accounting Standards so lot of confusion wait wait wait our original standards are accounting standards and to make it comparable over the world we introduced in this so previously all companies all companies they are they were following s but after 2016 we have new rules and we started with index there is no connection between them Ace list is different indexes list is different okay AAS still We are following for some companies for non-corporate entities We are following accounting standards but at International level our listed companies they are following index okay so in simple language small companies very small companies they are following is to make it very easy level and big companies they are following index I will tell you roadmap roadmap means how we started in this wait today we are going to learn that so what is the new thing that I want to express yes I will teach in Hindi also don't worry so see International level International level and at India level okay International level they have they started their Journey with International Accounting Standards and they introduced IFRS and both of them when the combined set they called it as IFRS we do not have two separate sets and IFRS because we have only one set to make it comparable that is index they are similar their is our number one and therefore IFRS one is our one zero one to make it comparable to make it comparable you got the concept is one one IFRS their IFRS our one zero one so you have to understand this thing so now we have only single set of rules in this yes clear every picture yes yes no index we have to learn in intermediately final level this syllabus is at final level but you must know what India is following okay you must know what India is following India is following in this we are not following IFRS we are not following our name is different our name is not is our name is in this okay foreign our own identity is in this I will show you the numbers of index so it will make you clear okay it will make you very clear yes you will get the names yes you can check here in this case you can check here either a list ha See now this is ifrs1 which is compared with one zero one zero one means IFRS and only one is is one only two is is2 and when it is 1 0 1 so beta it is IFRS 1 okay so they have is plus IFRS and we have only in this in this one is2 in this 2 is2 index 101 so no need to learn this list it will be very confusing you'll you'll read only simple list of accounting standards you go with simple list of accounting standards six simple Accounting Standards you got the concept very difficult but now it's simple Yes Hindi foreign yes now please you type it in the comment section whatever you understood okay if I think you are doing mistakes yes I will Rectify you but now other students better those who are very comfortable in Hindi questions foreign foreign foreign foreign foreign foreign so this is what the international journey is so at International level it is is plus IFRS an Indian level we have only in this just understood this story yes perfect guidance node GN means guidance note yes story understood capital yes so new Concepts many new things today you are going to learn in the standards okay Veda so many new things ha now now we are got adopting in this uh industry we are not our adopting IFRS we are converting them as per our need okay so there are two types of IFRS one the country who is adopting as it is this is called as adoption process means pure IFRS no change no change as per your country you are following IFRS as it is you do not have separate said but we are not in the adoption process we are in the convergence process now what is Convergence we are making changes in IFRS and we are not following them as it is so we are in the conversion stage we are not adopting we are not adopting those who are adopting countries is they are purely so if they are saying okay we have adopted IFRS when they have used IFRS as it is and if you are using the word we converge IFRS means we have made changes in IFRS may change okay okay yes easy hanji very good karthika ji has written India has had Ace but to make it comparable with the global standard they called it as in this small companies still follow s and similarly International label we have IFRS and Iris equivalent to 1 and 1 0 1. with index at first IAC developed is after 2001 and ISB was formed with 75 countries Nevada she has given extra knowledge karthika ji very good very good now I'm going to tell you that things yes and adoption means purely and convergence means partially very beautifully written by karthikachi yes beta very beautifully yes many in yes South Indian students now we got the logic behind it very good beta very good yes I want every one of you please note down these changes and you understood it very well I don't want to force you okay but I want everyone must know the Journey of in this and as everyone before sleep everyone must know what is the difference between is IFRS index and as superb explained it in very well way okay Charlie and when we change we have some deviations and deviations are called as carve ends and carve outs what is the name carvings carvings means not whatever deviation you have made see some deviations for example they are using the word financial position statement we are using the word balance sheet they are using the word comprehensive income statement we are using the word p and l so this is the deviation so words are different their words their terminologies are different from Indian terminologies so terminological difference is Peak okay very good very good yes so benefits of conversion what is the benefit yes will you take this screenshot afterwards becoming the IFRS adopted compliant compliant we are in the conversion stage we are not following as it is we are not following as it is we have some changes in words also and in Concepts also cross-border flow of party now it's possible it's possible okay you can exchange your flow of money Global listing in different stock markets so if you are following index or IFRS now global string is possible because our balance sheet is similar to their balance sheet presentation comparability of financial statement it is possible an enhanced accountability so enhanced accountability means you are responsibility is increased okay and greater transparency see IFRS has given you extra disclosures okay and transparency is more so we are shifted from Accounting Standards to in this okay we also shifted change okay so new codes all codes to new codes it's a shifting similarly we previously accounting standards and now in this so we shifted from Accounting Standards to index so this is the journey this is the benefit of accounting standard yes sir now we got the concept what is IFRS we are not following IFRS as it is we have converged them okay yes okay yes but I will explain carabouts don't worry simply logically yes sir wait number wait Mr please wait sometime wait for some time I am going to explain you floor mat don't worry roadmap you will tell me it in the next session today I will cover both uh you know remaining part so we will cover it on Wednesday so you will I will give some homework okay and uh in next session yes I will explain you remaining part conversations now convergence is conversion to IFRS not adoption yes sir you already taught us applicability of IFRS in India considers legal and other conditions prevailing in India so there are some deviations so India culture so deviation hoga you can force us to wear only you know foreign Western uh dress yes we have sari we have Punjabi dress so we will wear that okay yes yes it is there might be a deviation so similarly in accounting standard also there is a deviation from the corresponding IFRS if required okay and accounting standard board in consultation with MCA but obvious we always take MCA consultation we derive two sets one is index which is applicable for big companies okay are we which companies wait for some time there is turnover criteria and second one is s accounting standards for small company you can call it a small company okay other than big companies so this is how we have to understand this yes convert chance so we are not following as it is so we have two set of books one is index and one is s okay so till now everything is clear ISB okay so with the objective of sitting global standard so in IFRS they have International Accounting standard board similarly they say India ISP International Accounting standard board but before like in 2002 their board is not there there is a committee there was a committee there was a committee and now they have board they switch into board with the help of 75 countries so 75 countries they adopted IFRS adopting some conversion and ISC restructured into ISP for US History it is only history now no one is going to ask you okay what is exactly poor and committee so when they started when they started their journey of International Accounting Standards when they started their Journey 1975 so first time first accounting standard they introduced in 1975 okay so it takes two to three years we started 83. so similarly so that was the difference similarly similarly when we started our journey International Accounting standard they started their Journey they started their journey in 1973 and for that they formed one group and that group is called as iasc International Accounting standard committee so previously it was committee it's not one day process it's we are running it from 1973 India our first standard okay so they introduced committee committee introduced intra in IIs and is they formed a group of ISC they form this country's accounting bodies every country yes they introduce this accounting standard they ask other countries to adopt this and then India is but we followed our way yes and that structure get changed so committees say they formed into board then board they started okay so two thousands 31st March 2001 it is called as ISC up to 2001 so I told you and after 2001 they called it as board that is IFRS so committee introduced Ias and board introduced IFRS and we have board we have only board and we introduce in this but when in 2016 that is a road map that that one road map we are going to see it in the next lecture but this is how this International standard board is formed okay so International standard board is not immediately formed in 2001 before 2001 they have committee and they started with IAS and board started with IRS understood the journey say yes or no better journey is very beautiful always okay say fraud is not going to restrict more transparency is there your accounting set increased okay I will show you now I will show you don't worry okay you will read in this journey okay so in this journey uh I will explain you in the next session but before that you must finish your homework what I am expecting from you you go through your study material perfectly foreign foreign almost carve outs carvings beta I will tell you it in the next session yes definitely I will tell you in the next session so you have to finish today till conversions to yes index Journey you are going to tell me in the next session uh don't this roadmap is important try to read this journey better and in next session but I will finish this topic and we'll start with the chapter number two what are my expectations hanji take screenshots better screenshots better write it in your 100 Pages book it will take 40 to 50 minutes then read your study material s yes take a screenshots foreign you can write one by one or is issued by ISC and adopted by ISP sorry either say sorry Miracle Theory one two three four standard interpretation committee interpretations are issued by Sick Sick Muslim standards interpretation committee so interpretation committee is different okay so interpretation committee yes I left this part so committee is different for interpretations interpretation means if any word is not understandable that word or more clarification required for that word then better committee gives that interpretation separate committee so these are principle based standards principle based standards so accounting standards are not rule based IFRS are principle based so you can write over here not rule based principle based rules principles and rules are different that story I will tell you it in the next session and become IFRS compliant okay and what are the benefits you can take a screenshot of these two benefits of Converse standards with IFRS cross-border flow of money benefits also you can take a screenshot yes and India conversion yes take a screenshot of this convergence process you can take a screenshot of conversions you can write over this okay so this is the next concept and concept 6 is with the objective of setting standards yeah yes we have to write it in 100 Pages book today itself and in less we'll see it in the next session so index session I will show you the notebook of my student also one of my students so she has written it very beautifully International financial reporting standards International Financial Global standards IFRS compliant and benefits of converge with s and IFRS or you can see only four pages only four pages concept number nine tuck yes or ISB is five pages so you have to finish only five pages writing and study material okay we have covered almost 20 pages so this is how we have to write our answers I will do I would give you notes directly sibera it's very easy for me to give notes also but I want every one of you please write it in your 100 Pages book writing will develop your skill okay you read your study material now thoroughly each and every point you will find it very simple if you have any doubt in your study material you can ask me in the next session I will be very happy if you read it from your study material so I will fill like is I'm a great mentor if you are able to read the study material and you can interpret the study material and if you are creating interest in study material though I am a good teacher otherwise I am not a good teacher I hope you will share this session to every friend is most there are 300 plus students they are watching on YouTube 400 plus and 1000 plus students on our app session almost watched by 1500 plus students and many students are there those who are not attending this but tell your friends to share this session please share this session to your friends also and make this session very interesting yes please your comments and like button is very important comments here you can give me comments and uh yes I will read your comments thank you so much or please please please lecture Miss don't miss a single session thank you good night take care or before better sleep please read all these points and complete your 100 Pages cup book completion is very important thank you good night yes yes over

good evening students I am C Asha as a faculty of accounts from Board of studies welcome to the live learning classes LLC for intermediate paper one Advanced accounting these classes will be helpful for students appearing for May 2024 examination as ICI is rolling out the new scheme which will be applicable from May 2024 and onwards I would be extremely happy to introduce our eminent faculty see Sangeet Shah who would be taking care who would be taking you through the accounting standard sessions these classes will be help you gain to gain the understanding of provisions of accounting standards and their applicability all your doubts will be clear during the session with this note I would like to request see sanket to please start the session see Sangeet please start the session thank you ma&#39;am and thank you Board of studies or giving me opportunity first I will introduce myself hello students good evening to all of you I am CA sanket Shah today marks of the beginning of an exciting Journey as we commence a new course online batch with ICI Institute in this batch we will come together to acquire a crucial knowledge required to become a successful chartered accountant we are stepping into a challenging yet rewarding face and I am fully committed to being supportive guide for all of you my aim is to provide you with all the necessary assistance and guidance so you can achieve your ca aspirations so whether today we are going to start with our first session of advanced accounting and why Advance accounting first we have to understand why Advanced accounting what is new in this Advanced accounting course before starting today&#39;s session first I will tell you this lectures will be in English that is I will first explain all Concepts in English and then better we will do Revision in Hindi also or wros yes lectures will be in English for your concept Clarity revisions will be little bit in the Hindi so before starting to registration I will first give you introduction of our syllabus Advanced accounting sir accounting is a language of business accounting language of business so here now in this slide first I will introduce what is accounting standards or what is the advanced accounting course then syllabus part small topics big topics overview overall and then conclusion and then we will start with first chapter so before starting today&#39;s session better say good evening in the comment section challenge yes good evening you can interact okay so before starting today&#39;s session what is Introduction part about this Advanced accounting why this subject so anything before starting we should know why we are learning this subject accounting is one of the core competencies of Chartered Accountants so every chartered accountant name itself it is accounting and once accounting focuses on understanding applicability and Mandate of accounting standards now at Foundation level you already understood how to pass journal entries Ledger account trial balance pnl and balance sheet now at intermediate level in advance accounting your focus should be on accounting standards how we are going to use that standards and some corporate accounting Concepts better index is also there now everyone every company listed company has to follow index but in the syllabus we have at CF final level today I will give you introduction of inter index but we have in detail what is accounting standard and that Journey we are going to start from today I won&#39;t say it is now it is a practical syllabus this may entries now syllabus is slightly change now it is more towards uh you know Accounting Standards now what is accounting standard learning how to make it interactive yes I have done lot of hard work on these slides to make it very simple okay so don&#39;t worry you are in safe hands students are expected to gain the ability to apply accounting standards and legislations to different transactions and events and understand the presentation of financial statements so what is the syllabus first thing syllabuses Accounting Standards accounting standards and accounting standards okay so disclosure based accounting standard yes I will give you this there are total 7 accounting standards in disclosure base this is your chapter number four okay your chapter starts from chapter number four each and every accounting standard you can see your accounting standard one yes I will give you that Journey Don&#39;t worry so disclosure standard asset based standards so what is asset based so this accounting standard is going to affect your assets so these are S2 10 13 16 19 26 and 28 so again seven Accounting Standards asset base so seven Accounting Standards disclosure repairs and seven accounting standards are asset based okay after that liability so you are aware about the equation asset minus liability is equal to Capital and income minus expense is equal to profit so this is reliability base so asset based up first one is disclosure based disclosure base then asset best and then liability best how many liability based accounting standard only two based on liability okay only two then you have impact on financial statement best now what is this is four events occurring after balance sheet data and S5 is 11 and 22. these are not specifically income expenses these are impact which is given on the financial statement so these are four accounting standards and after that Revenue based Accounting Standards 7 and 9 are Revenue based Accounting Standards so Revenue based Accounting Standards asset base to a disclosure based then you have uh asset based then liability base then financial statement impact and last year Revenue base and last one will be other is that is only two okay so other is residual category then you have Consolidated financial statement that is holding company and subsidiary company in which we are going to see Consolidated financial statements so is 21 23 and 27. your journey is only and only Accounting Standards accounting standards and accounting standards so small topics introduction to us framework for preparation of financial statement then applicability of accounting standards and buyback only four small chapters are there and big chat chapters are big topics are 11 number that is cash flow statement plus balance sheet pro forma amalgamation of company reconstruction of company and 15 number is accounting for branches including foreign Branch so there are four big chapters and four small chapters okay and this is how you are going to do your journey so this is the end part accounting for branches so accounting for branches so today is the first day then overview so overview is what under this new syllabus you are expected to understand various accounting standards and corporate see the level it is Corporate accounting Concepts so here we have to understand that company level corporate level professional level sole proprietorship partnership we have done at the foundation level now it&#39;s a corporate world transparency understandability shareholders what we are going to learn while preparing financial statements so what is the expectation from student by Institute students are expected to gain the ability to apply this accounting standard and lazy legislation to different transaction and events or transaction in events I already taught you at Foundation level Foundation level transaction means what any any happening and result is called as event so transaction any Act is called as transaction and result is called as events so while passing any entry and then after that how to apply accounting standard for that entry we have to understand it while preparation of financial statements sir there are some standards accounting standard 20 in which we need the formula also okay so concept and formula maintain index of notebook okay so index is also very important so it will help you at the time of revision and practice questions after lecture using tick Tiki technique so Technique we have to solve these questions in at home be consistent and result will come to your way okay so all the best for your foreign foreign yourself so it is one of the benefit which is given by The Institute sir best faculties not only for any advanced accounting subject but for all subjects and here every faculty yes they focus only on study material or study materials they have taken a lot of efforts so every one of you please try to understand colorful nodes read from study material make study material your bhagavad-gita Bible Quran then you will get the success what happens students normally they think they don&#39;t want to come out of their comfort zone yes definitely will make easy but ultimately you have to do a lot of hard work here the results will be yours okay but already sir we attended some classes we already attended these classes but we have not understood so every one of you this this is very comfortable timing in the evening 6 to 8 30 and morning early morning our classes are there you do your self-study and six to eight thirty two and a half hours may I see a classes we focus only on Concepts or seven to eight months from here up to May month you have to do proper hard work or success before starting today Journey bus I want you every one of you please try to recall all Accounting Standards can names okay so accounting standard is accounting standards one minute so accounting standards and in next session I challenge you all okay try to get the names at least okay names so list of accounting standard first one I will be very slow for accounting standard yes first one is disclosure of accounting policy this is your first accounting standard yes then S2 is valuation of inventory number three is cash flow statement number four contingencies and events occurring after balance sheet date number five net profit or loss for the period prepared items and changes in accounting policies number seven Construction contract number nine Revenue recognition number 10 property plant and Equipment 11 effects of changes in foreign exchange rate and accounting for government grant investment accounting accounting for investment accounting for amalgamation and employee benefits is 15 number these are only 15 Accounting Standards out of that you can see there is no number for six and eight because it is removed instead of six now we have 10 accounting numbers standard 10 that is property plant and equipment and instead of eight before that research so it will be now intangible asset that is accounting standard 26 upgrade okay so they are removed from age six and eight abusive numbers so they are permanent deleted and they introduced in another accounting standards and therefore these numbers are not there six and eight are permanently deleted okay after that borrowing cost 17 is segment reporting 18 number related party disclosure 19 leases 20 earning per share 21 Consolidated financial statements 22 accounting for taxes on income 23 accounting for investment in Associates in Consolidated financial statements 24 discontinuing operation 25 interim financial reporting 26 intangible assets 27 financial reporting of interest in joint venture then impairment of assets and 29 is provision contingent liability and contingent assets so two standards are removed so remaining standard set 27 I give you challenge I give you challenge for these accounting standards and it is a challenge for you okay upload next session at least 10 names okay before starting any session I will start with the numbers foreign screen 30 seconds you can recall this accounting standard name so don&#39;t worry so all Accounting Standards at least try to recall names very very simple okay maximum time I will speak it in English some students are asking me to speak it in Hindi so both beta ultimately Concepts will be in English and revisions will be in Hindi okay will these live classes be sufficient in case of we are not enrolled in any other classes yes better Rehan why not a classes are sufficient now Institute also improved number of lectures or increase so better definitely you will get good number of sessions no don&#39;t worry by which month we are going to complete our syllabus sir I think uh before February or March 15th of March complete not only for this subject Die Hard your fans sir thank you better part your way of teaching is the best sir okay thank you beta therefore revision with you okay yes good evening sir 27 Accounting Standards Nisha yes better thank you sir yes don&#39;t worry thank you sir for joining ICI faculty yes beta Pawan thank you yes you are one way our way you yes our way is different okay additional questions are required sir okay after a long time I&#39;m watching your classes of my favorite sir yes thank you chandan sir will you discuss rtps yes can we get these notes definitely why not better oh actually so now can we start Ed comments so we will start with our journey chapter number one actually okay let&#39;s move so our first chapter is Introduction to accounting standards how to remember these Accounting Standards okay daily five Accounting Standards you can recall and daily five accounting standards you will learn it definitely over the period it&#39;s not a journey of one day it will take some time for within seven days you can recall all these names of accounting standard don&#39;t worry about that daily five Accounting Standards so our Journeys for four days in a week Saturday you can recall all names of this accounting standard okay yes overview of accounting standards first one in this chapter first I will introduce what is the concept accounting standard then how this standard setting process how any accounting standard is said by the ICI okay standard setting process after that list of accounting standard that we already covered all names of accounting standards need for conversions to Global standards so now we are also adopting IFRS but not as it is now what is not as it is that we have to understand that is global standards International financial reporting standard that is IFRS so what is exactly IFRS is that word IFRS that we learned today International Accounting standard board sir in India we have accounting standard board that is concept number two so similarly we have International Accounting standard board at International level and we are not following IFRS as it is Journey started and now everybody listed company they adopted in this okay so roadmap for implementation of index so this is how we are going to start in this chapter targeted chapter number one chapter number one no beta after every 15 minutes I will take your queries I won&#39;t disturb my lecture in between if you comment also but I will ignore that comments I will give you proper three minutes in this batch I will give you proper three minutes you have to take some screenshots but screenshots some things you have to write in your notebook foreign please don&#39;t ignore this message after your session 100 Pages book you have to maintain it compulsory I will show you some students notebook so accordingly you follow that technique and write your 100 Pages book on daily basis it&#39;s not for my subject you can follow this technique for other subjects also okay hundred Pages it&#39;s a summary book okay sir and some students are saying me to speak it in English don&#39;t worry revisions I will take it in Hindi don&#39;t worry yes yes you please share it to your maximum friends say all over India okay friends okay yes we have to follow ICA and I says we have to understand concept from study materials yes every one of you so please follow ICI classes only okay so first we are going to start with the introduction part so what is the introduction of accounting standards see generally accepted accounting principles Accounting Standards means accounting principles so you should know or your reader of financial statements they must know what you are following so that is the accounting principle okay common set of accepted accounting principle I will show you one report foreign I will show you Indian Tobacco Company annual report of 2016. you can see here these are some financial statements in notes convention so this how this is how you have to write your financial statements see financial statement means what financial statement is balance sheet the handle cash flow statement notes to accounts and accounting policies so notes to accounts and now these notes to accounts these accounting policies what you are following that you have to tell to your readers this is what we are called as notes to the financial statement so this is ITC report it is a corporate policy convention convention means what to prepare financial statement in accordance with applicable accounting standards in India and a summary of important accounting policies set out below the financial statement so this you have to write and this is how you will prepare your report basis of accounting We are following accrual concept okay so basis of accounting in accordance with the historical costs the word which is called as historical cost now what is historical cost what is convention okay Concepts fixed assets as and when they are undertaken all assets and liabilities are classified as current or non-current as per company normal operating cycle so these words current non-current you should know okay reader will understand it definitely but you have to present in the simple way but before starting this phase to unwrite these things you must know what are Accounting Standards so yes through Accounting Standards what we have to learn in this index uh for not index sorry Accounting Standards what we have to understand how to prepare these nodes chartered accountant as to understand while becoming a CA and after becoming a CA you will prepare financial statements of corporates and therefore you must learn what are generally accepted accounting policies okay understood these are common setups see common set of accepted accounting principles standards and procedures definition common set of accepted accounting principles common set common set okay so inventory valuation applicability what is in the accounting standard two it is applicable for Reliance company also and ITC also Tata and small koi company so that will be also yes beta here common setup accepted accounting principles standards and procedures that entity must follow while preparation and presentation of financial statements sir what are financial statements balance sheet piano cash flow statement statement of changes inequity and notes to accounts so these are financial statements and while preparing this we must know common set of accepted accounting principles standards and procedures got the concept what is General accepted accounting policies at International level at International level and it is called as IFRS International financial reporting standards and at National level we are calling it as in India Accounting Standards see accounting standards are different and index is also different so both are better different things the first thing come to your mind as are different and index are different index big brother and small sister you can call it for accounting standards so we have two set of accounts accounting standard one is one is s and second one is index in India in India we follow accounting standards and end is comment section every one of you write it in comment section accounting standards and Indies okay okay SOC explanation yes but I will statement of changes in equity statement of changes in equity so in India yes very good we follow please be interactive Accounting Standards I won&#39;t say it is very you know boring Journey but yes so you have to understand you have to create interest in accounting standard an accounting standard if you think it is now it&#39;s like theoretical subject yes now it&#39;s not no more it&#39;s a practical in po JSI income expenditure then we will prepare balance sheet no beta now syllabus is changed okay and you have to take interest in this subject or interest okay but you have to sit on one place okay so only one thing I required from you you promise me all okay yes sir we will attend these sessions we will attend these sessions mandatorily so accounting standards and in this there are two categories very good beta very good every one of you better have written this yes and though you already attended some sessions of any faculty or better don&#39;t miss these sessions okay extra knowledge Board of studies faculty say might be this thing happens you&#39;ll understand this is more interactive session and instead of joining bit of face-to-face classes what happens your maximum time you can attend it you can save your money of your parent no one gives guarantee of CA course okay no one you it&#39;s only you who will give result if you are consistent you&#39;ll get the result you have to be consistent for next eight months then only you will get the result here okay yes no one will miss this session no one Joe attendance okay and please give feedbacks please give feedbacks okay and feedbacks are very important always okay accounting standards are policy documents issued by first one government this policy documents MCA now what is MCA Ministry of company Affairs and in consultation with nafra now what is nafra National financial reporting Authority they prepare accounting standards for non-corporate entity but for company level company level ICI for non-corporate entity write down it in the comment section ICI prepares Accounting Standards okay sir government is also preparing accounting standard it is similar ultimately Institute of Chartered Accountants say data and nafra yes we will pass it in Parliament or accounting standards are then applicable for corporate entity see government has watch over okay that Ministry of company uh Affairs has watched over these Accounting Standards so yes I said definitely helps them but in consultation with nafra they have different regulatory Authority okay so National financial reporting Authority is different and our Institute prepares Accounting Standards but it is applicable for non-corporate entity for example individuals Huf then partnership firms then whether your Association of persons Boi so all this covers under non-corporate entity okay in income tax we are going to learn this for ICI gives Accounting Standards yes sir we uh know that okay ICA issues accounting standard but wait when it is applicable for company then MCA with consultation with nafra they called it nafra and in consultation with them they issue Accounting Standards is foreign very good for corporate affairs for corporate Affairs it&#39;s MCA with consultation with nafra and for non-corporate entities it is ICI so accounting standard who issues not Phoebe today ICI introduce Accounting Standards I will show you website we have one committee for accounting standard board who is the chairman that you will understand on our site I will show you exactly where you have to see this accounting standard bear text but bear text definitely difficult to understand and therefore by making it is simple by making a chart we make it very simple and you will learn it from its in simple form and when you are able to read uh bear text then better you understood accounting standard in detail if you can read from uh where it is then better your accounting standard knowledge is improved tell you okay ah sir Advanced accounting me yes technical team please check it though voices [Music] no okay why is this clear ly accounting standard deals with now this is very very important Point rmpd analysis rmpd rmpd rnpd rmpd rmpd rmpd okay voice is clear R for recognition of events and transactions are for recognition of events and transactions aim for measurement P for presentation and D for disclosures okay so our MPD analysis rmpd analysis are for recognition M for measurement team for presentation and D for disclosures so tell me full forms beta yes without looking into a slide you can tell me what is the full form recognition information presentation and disclosures please be interactive please comments yes if you have pain also better please type it so it will be very interactive okay every one of you try to write all these answers recognition measurement presentation disclosure recognition measurement presentation disclosure okay so rmpd analysis sir rmpd analysis this very interesting rmpd okay recognition measurement presentation disclosures benefits of accounting standards or what are benefits of accounting standards now after understanding these slides okay you can refer your study material and you will get each and every Concept in detail okay if you read your study material after the session it will be very easy for you you can recall all these Concepts I made it very simple okay so rmpd analysis R stands for recognition information P for presentation and D for disclosures what are the benefits of accounting standards sir first one you can recognize these standards you can oh oh benefits slide foreign what are benefits of NS or s okay what are benefits yes you can summarize from here cello standardization of alternative accounting treatment so benefits standardization Whenever there is a confusion okay so there is lot of confusion better when you want to reach at one level you may get five four four five rows Google Maps so now that will be a confusion which route I should consider so accounting standard standards gives you standardization or alternative accounting treatment when there are n number of options I Institute of Chartered Accountants they better introduce Accounting Standards which will give you standardized method for accounting standards okay requirement for additional disclosures requirement for additional disclosures okay so what you have to disclose it more to your investor that you are getting it from Accounting Standards third point you can compare your financial statements comparability and last one reduction of scope of Creative Accounting reduction of scope of creative accounts okay so one point yes one time in Hindi very bits of accounting standards policies foreign difference recognition measurement presentation disclosure recognition measurement presentation disclosure recognition measurement presentation disclosure rmpd analysis closure so this is the accounting standard benefits standardization standardization of the alternative accounting principle requirement for additional disclosure comparability foreign now yes your questions and my answers up to this point if you have any query you can ask me okay I won&#39;t take your queries now your queries if you are inequality till now otherwise better tell me clear I will go to next concept okay or please South Indian students please bear for some time revisions will be in Hindi that will be helpful for all our India students and your Concepts if you have any problem in concept you can give it in comment section so I will explain you it further don&#39;t worry National financial reporting Authority pallavi Sharma is foreign [Music] reduction of the scope yes of Creative Accounting means you cannot do this accounting okay so you won&#39;t do that so that is called as Creative Accounting additional disclosure means apart from basic disclosure every accounting standard at the end test what you have to disclose in your reports it&#39;s not only a point of entry but you should disclose what policy We are following and that is additional disclosure sir um how many marks Theory would do we have so almost now it&#39;s paper of accounting standards 60 to 65 voltage marks weightage of accounting standard and remaining consolidation and all yes better that question you will get don&#39;t worry additional disclosures don&#39;t worry search audit also a better faculty say don&#39;t worry they will tell you foreign benefits are there yes but I will tell you afterwards any doubt till now sir topics you explained do we have to uh remember like whatever yes better some points you have to buy heart that by her point I will tell you don&#39;t worry that by her point I will tell you right tomorrow points called it as rattamar yes I will give you in every standard all raktamar points no doubt sir sir creative I already explained I am from SRO now it&#39;s understanding Hindi yes Karthik ji sorry Karthik G yes thank you sir will you teach all Accounting Standards Rita uh I say Board of studies other means I said decides uh uh all faculty list so if they give me this opportunity yes definitely I will teach and yes I already told you to give feedback forms okay this is not the right platform mock test will be announced shortly by Institute so do we have any advantage over news scheme but a new scheme is always preferable because only six subjects are remaining and you will get some extra knowledge so and your article shift starts after only passing of your two exams to sorry two groups so better definitely your article ship time is also reduced so these are some advantages of new scheme so I won&#39;t give true uh yes pros and cons of new stream so definitely you have advantages whether to take both groups of single group definitely both groups better don&#39;t think for a single group I sir kindly teaching English and go very slow yes beta yes I will go slow wherever I think sir please explain notes to accounts and statement of changes in equity but I will show you at the end sakshiji wait for some time I will show you exactly what are notes to accounts and what are yes can we take some important points of screenshots sir wait for some time I will give you screenshots also otherwise we will move further yes 7 15 go I will give you break 7 15 to 7 30. okay 7 15 to 7 30 15 minutes break but before that we have to understand how to set the accounting standard by Institute so accounting Standard Institute foreign so don&#39;t refer recorded lectures but sometimes if you have any medical emergency or family emergency then you can go for the recorded one but better recorded lectures May two and a half hours betna is not possible to sit on one place for two and a half hours is really not possible so I won&#39;t pray for recorded lectures and you have to improve your stamina yes definitely for sitting place on one place it&#39;s very very important and whenever you are attending my lectures don&#39;t attend it from bed or anything better business or sofa please sit on your table and chair okay chair payment table Yeah if you respect okay I have seen my uh better ducks foreign okay other things sir will you share this PDF so no break search statement of changes in equity so every chapter we have to make 100 Pages 100 Pages all important points foreign next one now we will move to next part these are some notes to accounts convention for this ITC report I have shown you basis of accounting depreciation so what you are exactly following so this is what given in every annual report every annual report fixed asset inventories so these are some notes okay now if you see Bajaj Finance limited or notes so you&#39;ll get basis of preparation use of estimates then they have property plan and equipment then they have depreciation so these are some Accounting Standards earning per share is 20. okay so this is how you have to understand notes to accounts that is disclosure part this you have to disclose in every annual report see the annual report I will show you the annual report report see every accounting standard I will show you from the annual report once you can read this annual report if it is easy to read the annual report you can solve any question okay yes you can see here these are some notes um balance sheet profit and loss account yes I will show you this is the number of pages more than 100 Pages you can see the annual report only financial statements report of board of directors and all these things better these are annexures reports okay remuneration board of directors now this is Auditors report see first auditor gives this certificate independent auditor certificate so here to members members means normally shareholders okay so in this you will get the balance sheet balance sheet you can see here equity and liability which you already studied at Foundation level then you have P Angel statement then you have P handle statement after that you have cash flow statement third statement cash flow operating activity investing activity and financing activity then after that statement of changes in equity what is the share Capital At the beginning and what is at the end so these are statement of changes in equity and after that you have nodes in notes you will learn all numbers what is how share Capital derived how resource and surplus and then finally disclosures okay so extra disclosures given by the company what how they are following Accounting Standards okay which policy they have accepted so that they have to give it in the writing okay so these are disclosures so this is how your financial statements are prepared every member will get this financial report in their annual report of every company you will get this report okay balance sheet profit and loss account cash flow statement statement of changes in equity and notes to accounts okay now clear everyone is clear with this okay what is exactly disclosure disclosure is nothing but what policy you have followed disclosures okay shalom but the last way I will tell you okay yes Villas you are interacting on the correct place now I will teach you what is the standard setting process standard setting process now listen it carefully how accounting standards are set by ICI okay instead of Chartered accountant of India how they set any accounting standards ICI took leadership role in constituting ASB now what is accounting standard board yes you can see our website foreign on this if you see here committees committee and first committee you will know this is accounting standard board see a promote joint yeah okay okay we have yes you can see here then you have other members Vice chairman president vice president so they are members of this committee board then charge bearers of this accounting standard boards since Inception to increase yes 15 16 16 17 17 18 and now 22 Thug yes MP Vijay Kumar sir contributions you can see here okay next so this is how accounting standard board okay you can see in members no sorry in communities accounting standard boards you will get educational videos in this effect today top index amendments you will get everything which is new either exposure drop now see what is the exposure draft Volume 11 issued by ISD see better this is next level I won&#39;t say you understand all these things at intermediate level but at least you must know because this is very vast Journey okay so very very big journey of accounting standards but we have you know very little or very small things to understand okay we do not have in exact details all these things because 29 Accounting Standards to learn in the eight months itself is not possible along with other subjects okay so I will give you insight for this subject it&#39;s not possible that every time uh I will give 100 you know depth knowledge it&#39;s not possible and don&#39;t try to take deep knowledge now first start your articleship and in articleship you can go in detail first your focus is always how to clear my both groups okay in first exam is my clear clear thought okay and I should start my article ship as early as possible Chile standard setting process hanji so you now understood so ASB is our ICI cup body separate body separate committee for this tooks leadership okay in the leadership role in the constituting accounting standard board accounting standard board considers IFRS at International level they can compare it now what is going on the international level okay and at International level we have two sets like in India we have s and index but here in this are totally different and uh you know A&#39;s are totally different but IFRS and is in combine in Combined we will call it as whole International standards okay so we consider our board considers and IIs while deciding it at globalization level some Industries Association and government Department also government Department also although accounting standard board if constituted by ICI it is Implement independent for formulation of accounting standard board only for uh ASB you know formation of ASP but ASB has right for implementation of any accounting standard okay recommends the standards to MCA and consultation within Institute of Chartered Accountants and then MCA has to spell out this accounting standard applicable for companies in India so India May Joby applicable standards okay MCA inco applicable all over Indian companies okay so this is how our journey starts okay so accounting standard board consequences accounting standard board okay yes then ASB considers IFRS then composition of accounting standard board although ASB nafra and MC has to spell out as applicable for companies in India okay sir I will read from mpbj Kumar book answer I followed mpbj commercial also the hours are also then uh South Carolina faculties yeah okay okay next one here&#39;s better all Sharma definitely oh okay so now what is the standard setting processor accounting standard board one time I will tell it in Hindi some students are asking me for explaining Hindi also so see beta Accounting Standards promotions foreign what is the first thing what is the first thing you have to identify area identify the area so first thing so this is the process then area in which you need accounting standard then you constitute the study group study group prepare one draft okay prepare one draft taking views and feedback finalize the draft modify the exposure drop and then issue Accounting Standards so slowly slowly break me you can recall it identification of area where you need Accounting Standards so there are two different accounting policies okay two different accounting policies some people they record it as expenditure and some people they record it as asset some accountant they record it as expenditure and some uh accountant they record as an asset because there is no standard procedure okay rent everyone will record as expenditure but see now any such expenditure for example interest now interest is also capitalized accounting standard rule 16 requires it okay so interesting it&#39;s a revenue expenditure weight sometimes interest is a capital expenditure also for two different accounting policy one is called it as expense and second one they called it is an asset so there are two different thinkings okay so whenever there is a fight for between accountant so better accounting standard board Institute will come into the picture so Institute Aya Institute formed one group Institute form one study group then better they prepare one draft draft yes this is how you have to treat suppose interest is when to be capitalized and when two interest is recorded expenses so they prepared the draft they are taking views and feedbacks they it is open to all okay so you can see on website also website exposure draft exposure drop for annual Improvement so this is how Institute has given it on the website the website so this is the exposure drop this is not the final draft okay so exposure draft exposure drop means not a final draft okay so after getting comments Institute May modify that exposure and after exposure drop it will get converted into Accounting Standards see the process it is not one day decision it takes a Time First Institute will study that accountants they are doing two different accountings they think okay yes we need one accounting standard everyone should need this accounting standard they should know how to record it for for example now suppose inventory valuation some accountants are doing fifo some other accountants are doing info some accountants are doing weighted average so institutes come into the picture once you follow the policy you have to accept it for next Years also so expenses so here we need in the uh accounting standard two inventory valuation okay some standards are only disclosure standards like S3 cash flow statement is 20 earning per share is 24 is 25 is 17 are some disclosure standards then Institute prepares one draft draft then it is draft is open for taking views and feedbacks from expert people then this draft is finalized then it is presented on the website website modified then still comments received by the general public okay don&#39;t you comment sir basically immediately don&#39;t give comments first be expert on this field and then issue accounting standards and then finally you have to study that accounting standard this is how process is there okay how Accounting Standards Institute issues Accounting Standards at which level and how it is Institute uh comments with the accounting standard or how they introduce accounting standard yes this is a process I hope everyone is happy with this process now everything so what is the new thing you to understood today yes exposure drop means rough drop data rough draft okay yes okay South Indian students please sorry if you have taken wrongly uh yes wrong pronunciation in your name sir I&#39;m your fan please take classes in English I cannot understand Hindi beta I normally take classes in English only only revision part will be in Hindi please try to understand because some students they are not understanding English immediately and Institute also has two options one is English and one in Hindi we are not started with Hindi classes so sometimes I have to explain it in Hindi also please spare some time okay please try to adjust here exposure draft yes exposure draft is Idi or kuch please have patience till last minute we will complete today first session first chapter and yes now you take a screenshots if you have any question what is the constitution of study group so study group means they prepare one study group here you can see Institute okay study group is there okay uh thoughts bearers are different educationally videos you can see effective date of index then announcement IFRS publication in this implementation research projects accounting standard status outside India foreign Center circulations and there are study groups that are they are continuously doing study of accounting standards okay so this is how they form one group so they will discuss all these things where they need accounting standards and ASB conferences and events we&#39;ll get on this yes okay here you will get all these things in detail yes are you finding this interesting till now tell me in comment section better after that we are going to see list of accounting standard we already completed then whether we are going to see what is Need for conversions to Global standards slowly slowly huh so what you have to write it in 100 Pages book today okay 100 pages better yes today you copy all these things uh-huh in your 100 Pages book yes overview you can write over there okay you can take a screenshot till now this you have to write it in your 100 Pages book all these things after the lecture so you can take a screenshots screenshots and please write it number one concept number two write it in the same way concept number two what are generally accounting standards and principles I will show you one notebook students say how beautifully she has written all these things number three Accounting Standards deals with and benefits of accounting standards and this is the accounting standard setting process okay so write it properly after break we are going to start with next Concepts that is next concept concierge yes Global Accounting Standards okay and after break I will show you one notebook of 100 Pages thank you welcome back once again see how beautifully one of my students has written all these notes in detail you can check here yes and if you want at least you will understand so this is the page number one what generally accepted accounting principles so this is your 100 Pages book what are the generally accepted accounting principles common set of accepted accounting principal standards and procedures you already taken these notes accounting standards are written by policy documents government can start concept number three pay accounting standard deals with recognition measurement presentation and disclosures so by heart can never return a recognition means entry measurement means amount presentation and disclosures for NPD analysis trade pain Bill why benefits of accounting standard you can see by heart Karnataka standardization of alternative accounting treatment requirement for additional disclosures comparability of financial statements and reduction of the scope so this is very easy for revising all the concepts yes better so welcome back welcome back don&#39;t waste your time now okay we have to start this journey as early as possible okay yes shallow next one then sir please please please don&#39;t trust on all these myths and uh false statements now she&#39;s telling better one thing I will tell you clearly you follow only ICI faculties okay if you want to follow other faculties you can but beta myths are always theirs they will give false statement that new course is very tough but nothing is tough in the new course just this new course is introduced to make it you know comparable in your competitive market okay so new course is related to uh you know what is going in the real life okay so they removed many topics from the syllabus which are not required and that&#39;s why many faculties now accounting standards are very boring part to teach so many faculties they do not have grip over the accounting standards okay and this that&#39;s why they make this nuisance key no no new course is very difficult new courses if you go by my Approach you will never find new codes difficult new course is very easy as compared to earlier course you are very lucky that now you don&#39;t have to read Eis essay okay you don&#39;t have to read accounting you know in there are two parts Advanced accounting plus accounting okay so your syllabus is now reduced and your article ship will start Foundation level no doubt it will be difficult one but inter level according to me it&#39;s not very difficult so YouTubers see this student how beautifully she has written everything okay she maintained her notebook properly daily basis yes I have given advice okay because I am taking some Zoom classes on uh Branch also but it is so so you believe on us don&#39;t worry Institute has increased the number of stations also previously we are also in the learning phase we are giving this facility free of cost so might be revisions okay so don&#39;t worry better and YouTube this is the simple advice if you understand my things if you read study material and you are getting the same point suppose now now if I will show you the study material okay see this is the first chapter huh see study material generally accepted accounting policies principles have I covered this yes sir you covered this okay recognition measurement presentation disclosure yes sir accounting standard benefits better now under that you have to read by your own requirement for additional disclosures now at least you know the headings comparability so beta this is very simple for you okay then standard setting process so we have covered seven pages in a day here till now okay we are getting two and a half hours daily study two subjects regularly it will be very easy for you okay don&#39;t start with four sessions four lectures immediately okay step by step approach accounts you read it in detail now that&#39;s why I requested IC I could take four days in a week account session and only two days in a week loss session in the morning you can start with your second group also so simultaneously you can start with your other subjects okay and that&#39;s why and meanwhile if you have a better no article ship so definitely you do not have article shipping from 11 to 6 PM now so better in that period you can read from study material okay make your notes handwritten notes are always very important but she has written it beautifully okay so upload this screenshots after the session it will take two hours to write all these things daily towards classes to our study plan better make your simple simple steps towards your success so once again you got the opportunity so you start your journey once again don&#39;t worry don&#39;t see your past now still you have eight months yes wake up call and please do it regularly okay I will motivate you don&#39;t worry cello or kuch yes beta yes yes thank you accounting standards are very boring but still you explain it and make it very interesting thank you next one release top Accounting Standards we have done better so now let&#39;s move to next concept need list of accounting standards we are done 52 seconds so now next concept need for convergence to Global standards sir what is the need for conversion to Global standards yes hello welcome back beta welcome back welcome back yes don&#39;t miss the session everyone will attend till last minute you have to be very careful today we have to complete full chapter chapter number one okay so I want your cooperation from Yuri student okay cello son what is the need for conversion to Global standards sir why there is need key right India they think we should go for Global level Global level reasons are very simple I don&#39;t know what happened one minute safe problems yes okay okay cello yes let&#39;s start once again need for convergence to Global standards sir Global standards let&#39;s understand it quickly now I will take your queries after 15 to 20 minutes so now next 20 minutes are very crucial don&#39;t don&#39;t get Disturbed so need for conversions first one each country has its own set of rules see every country for example us U.S have U.S cap UK they have IFRS okay so each country has own set of rules and regulation it&#39;s like your uh cable religion so every religion has its own rules and regulations so every set of rules and regulations for accounting and financial reporting so to raise from the capital from International Market so see now I&#39;m in India okay I think now assume okay uh Kazakhstan has you know uh lower interest rate as compared to India okay their rate of interest might be lower than our interest rate and you know one kazakian uh exactly don&#39;t know but five rupees okay whatever the currency so five unke currency is our one rupee currency so now therefore now what happens suppose if I think you know I will raise loan from the Kazakhstan Bank okay so now in that case uh they will study my financial statements because they are not aware about my financial statement it might be in Indian rupees Okay so here what is going to happen yes so therefore now at Global level I want to translate and we in statement reinstatement means what I will well my financial statement I will convert it at Global level standards suppose now is following their rules and my rules are Indian standards okay now to compare it is very difficult so we need one accounting standard where beta yes now they are better speaking in Russian language because it&#39;s near to Europe and we are speaking in Hindi so one medium of you know language is English okay it might be better very difficult for Indian people they might speak good English but better for them it&#39;s very difficult okay because they never speak in better proper English so it is very difficult but yes whatever the English they are getting so our statement must be comparable with their statements okay they must understand our language so English is a language similarly we are having global standards so Global standards means what it is English language in simple way now you can correlate so their set of rules are different over set of rules are different but to make it comparative we will have one set of account and that is called as IFRS okay that is called as International financial reporting standards okay very simple and therefore investors also now investors suppose for example if U.S investor is there they want to invest in Indian company they have option to invest in the Kazakhstan so beta so our financial statement must be comparable and therefore we need to accept so if I want Finance from the US company instead of uh Kazakhstan investment I want Finance we are in that case beta I will ask that investor and he will ask for my financial statement and this financial statement must be understandable by him and therefore we need Global standards okay so investor also needs Global standards next one next one is multiplicity of accounting standards they create confusions dick create confusion so multiplicity Indian standards are different Sri Lankan standards are different Nepal Valley yes okay so multiplicity of accounting standards create confusion and encourage errors or may facilitate okay so here here multiplicity of accounting standards create confusion and encourage errors and many facilitate frauds okay so we need a single set of global standards we need a single setup only one set so all over world you can read it okay and therefore we need Global basis space standards to improve the ability of investor to compare the investment in global basis and for companies with joint listing for example Indian company which may be is listed on the New York Stock Exchange to Beta for that listing purpose we need one set of standards and therefore Global standards are required so Indian standards are not sufficient so our standard must match with International level now you got the concept why there is a need of global standard once in Hindi foreign foreign foreign okay so now you got the concept yes sir we got the conceptual so this is Global standards punching need for conversion of global standards so you can see here already she has written all these things better in details yes so screenshots yes I will give you time to take screenshots but not now next one I will show you okay Why Us is not following IFRS beta they are thinking they are superior okay okay we are superior than IFRS so they are not following and it&#39;s not compulsion it is not compulsion that you should know the English language if you know English language is okay it doesn&#39;t mean that everyone should speak it in English only no okay so similarly everyone we can force every country to adopt uh IFRS or index okay so we are also not following IFRS as it is that you will understand now that you will understand don&#39;t worry so now you will understand what is exactly IFRS okay and what is the difference between IFRS and our standards so International financial reporting standard now you understood what is uh Global standards now let&#39;s understand International financial reporting standards okay IFRS it means not only standards it is interpretation also interpretation sometimes are very difficult to Define so we have interpretations in it which is issued by IFRS okay so we have IFRS we have a separate committee for that second one um okay here&#39;s better all subjects don&#39;t worry take care my channel I will show you my channel okay so IFRS are International Accounting Standards which are issued by iasc okay okay yes some technical problems okay beta IFRS are issued by ISB are issued by iasp so yes so this is international accounting standard board okay now foreign okay now International Accounting standard are issued by iasc yeah so see there are two you know uh Accounting Standards see this is very interesting how IFRS Journey started C previously before IFRS before IFRS there were International Accounting Standards and in 2001 they introduced out to uh one two I think okay so before 20012 there are International Accounting Standards and then they introduce IFRS so whatever in there in is they slightly made some changes okay according to Global standards but they followed the same Ias and whatever new accounting standard they introduced is called as IFRS I will show you yes stop International standards IFRS so you will understand it okay hmm children foreign list yes IFRS list I will show you IFRS list okay so you can see here there are two numbers you can check International Accounting standard see 1975 so for standard they introduced in 1975 and then presentation they introduced in 1997. okay and now after all these Accounting Standards now this some Accounting Standards better they removed it why they removed it because they introduced IFRS and IFRS this started in 2003 2002 Journey they started in 2003 too and then first time adoption so see the list so IIs up to 2000 they have is International Accounting Standards okay so yeah and then they extended then they extended it to IFRS today Que is starting with this started with is International Accounting Standards and then they introduced IFRS from yes when they started their Journey better you can check it on Wikipedia Wikipedia yes they started their Journey from 1975. so first standard when they introduced in the Global level pay 1975. and IFR is they introduced in 2003. first diaphras and the combined list we will call it as IFRS it&#39;s not only IFRS now we called it as the IFRS but previously they have list of is also and in that list they started yes they uh introduced new accounting standard which is called as IFRS but they don&#39;t change they didn&#39;t change the name of their original standards they kept up to 2000 the same number and with the same concept that is International Accounting standard and after 2000 whatever they have introduced it is called as IFRS now what India has done both of them in India they termed it as Indus now in this Joe is similar to is number but in this when index 1 is there it is is one it is equivalent to is1 the name is same but IFRS number one in India we have one zero one we have one zero one so in this we are not giving two different names i s and IFRS no in India we have only one set which is comparable with global standards if you don&#39;t want to compare our standards with global one we have two sets we have only Accounting Standards so lot of confusion wait wait wait our original standards are accounting standards and to make it comparable over the world we introduced in this so previously all companies all companies they are they were following s but after 2016 we have new rules and we started with index there is no connection between them Ace list is different indexes list is different okay AAS still We are following for some companies for non-corporate entities We are following accounting standards but at International level our listed companies they are following index okay so in simple language small companies very small companies they are following is to make it very easy level and big companies they are following index I will tell you roadmap roadmap means how we started in this wait today we are going to learn that so what is the new thing that I want to express yes I will teach in Hindi also don&#39;t worry so see International level International level and at India level okay International level they have they started their Journey with International Accounting Standards and they introduced IFRS and both of them when the combined set they called it as IFRS we do not have two separate sets and IFRS because we have only one set to make it comparable that is index they are similar their is our number one and therefore IFRS one is our one zero one to make it comparable to make it comparable you got the concept is one one IFRS their IFRS our one zero one so you have to understand this thing so now we have only single set of rules in this yes clear every picture yes yes no index we have to learn in intermediately final level this syllabus is at final level but you must know what India is following okay you must know what India is following India is following in this we are not following IFRS we are not following our name is different our name is not is our name is in this okay foreign our own identity is in this I will show you the numbers of index so it will make you clear okay it will make you very clear yes you will get the names yes you can check here in this case you can check here either a list ha See now this is ifrs1 which is compared with one zero one zero one means IFRS and only one is is one only two is is2 and when it is 1 0 1 so beta it is IFRS 1 okay so they have is plus IFRS and we have only in this in this one is2 in this 2 is2 index 101 so no need to learn this list it will be very confusing you&#39;ll you&#39;ll read only simple list of accounting standards you go with simple list of accounting standards six simple Accounting Standards you got the concept very difficult but now it&#39;s simple Yes Hindi foreign yes now please you type it in the comment section whatever you understood okay if I think you are doing mistakes yes I will Rectify you but now other students better those who are very comfortable in Hindi questions foreign foreign foreign foreign foreign foreign so this is what the international journey is so at International level it is is plus IFRS an Indian level we have only in this just understood this story yes perfect guidance node GN means guidance note yes story understood capital yes so new Concepts many new things today you are going to learn in the standards okay Veda so many new things ha now now we are got adopting in this uh industry we are not our adopting IFRS we are converting them as per our need okay so there are two types of IFRS one the country who is adopting as it is this is called as adoption process means pure IFRS no change no change as per your country you are following IFRS as it is you do not have separate said but we are not in the adoption process we are in the convergence process now what is Convergence we are making changes in IFRS and we are not following them as it is so we are in the conversion stage we are not adopting we are not adopting those who are adopting countries is they are purely so if they are saying okay we have adopted IFRS when they have used IFRS as it is and if you are using the word we converge IFRS means we have made changes in IFRS may change okay okay yes easy hanji very good karthika ji has written India has had Ace but to make it comparable with the global standard they called it as in this small companies still follow s and similarly International label we have IFRS and Iris equivalent to 1 and 1 0 1. with index at first IAC developed is after 2001 and ISB was formed with 75 countries Nevada she has given extra knowledge karthika ji very good very good now I&#39;m going to tell you that things yes and adoption means purely and convergence means partially very beautifully written by karthikachi yes beta very beautifully yes many in yes South Indian students now we got the logic behind it very good beta very good yes I want every one of you please note down these changes and you understood it very well I don&#39;t want to force you okay but I want everyone must know the Journey of in this and as everyone before sleep everyone must know what is the difference between is IFRS index and as superb explained it in very well way okay Charlie and when we change we have some deviations and deviations are called as carve ends and carve outs what is the name carvings carvings means not whatever deviation you have made see some deviations for example they are using the word financial position statement we are using the word balance sheet they are using the word comprehensive income statement we are using the word p and l so this is the deviation so words are different their words their terminologies are different from Indian terminologies so terminological difference is Peak okay very good very good yes so benefits of conversion what is the benefit yes will you take this screenshot afterwards becoming the IFRS adopted compliant compliant we are in the conversion stage we are not following as it is we are not following as it is we have some changes in words also and in Concepts also cross-border flow of party now it&#39;s possible it&#39;s possible okay you can exchange your flow of money Global listing in different stock markets so if you are following index or IFRS now global string is possible because our balance sheet is similar to their balance sheet presentation comparability of financial statement it is possible an enhanced accountability so enhanced accountability means you are responsibility is increased okay and greater transparency see IFRS has given you extra disclosures okay and transparency is more so we are shifted from Accounting Standards to in this okay we also shifted change okay so new codes all codes to new codes it&#39;s a shifting similarly we previously accounting standards and now in this so we shifted from Accounting Standards to index so this is the journey this is the benefit of accounting standard yes sir now we got the concept what is IFRS we are not following IFRS as it is we have converged them okay yes okay yes but I will explain carabouts don&#39;t worry simply logically yes sir wait number wait Mr please wait sometime wait for some time I am going to explain you floor mat don&#39;t worry roadmap you will tell me it in the next session today I will cover both uh you know remaining part so we will cover it on Wednesday so you will I will give some homework okay and uh in next session yes I will explain you remaining part conversations now convergence is conversion to IFRS not adoption yes sir you already taught us applicability of IFRS in India considers legal and other conditions prevailing in India so there are some deviations so India culture so deviation hoga you can force us to wear only you know foreign Western uh dress yes we have sari we have Punjabi dress so we will wear that okay yes yes it is there might be a deviation so similarly in accounting standard also there is a deviation from the corresponding IFRS if required okay and accounting standard board in consultation with MCA but obvious we always take MCA consultation we derive two sets one is index which is applicable for big companies okay are we which companies wait for some time there is turnover criteria and second one is s accounting standards for small company you can call it a small company okay other than big companies so this is how we have to understand this yes convert chance so we are not following as it is so we have two set of books one is index and one is s okay so till now everything is clear ISB okay so with the objective of sitting global standard so in IFRS they have International Accounting standard board similarly they say India ISP International Accounting standard board but before like in 2002 their board is not there there is a committee there was a committee there was a committee and now they have board they switch into board with the help of 75 countries so 75 countries they adopted IFRS adopting some conversion and ISC restructured into ISP for US History it is only history now no one is going to ask you okay what is exactly poor and committee so when they started when they started their journey of International Accounting Standards when they started their Journey 1975 so first time first accounting standard they introduced in 1975 okay so it takes two to three years we started 83. so similarly so that was the difference similarly similarly when we started our journey International Accounting standard they started their Journey they started their journey in 1973 and for that they formed one group and that group is called as iasc International Accounting standard committee so previously it was committee it&#39;s not one day process it&#39;s we are running it from 1973 India our first standard okay so they introduced committee committee introduced intra in IIs and is they formed a group of ISC they form this country&#39;s accounting bodies every country yes they introduce this accounting standard they ask other countries to adopt this and then India is but we followed our way yes and that structure get changed so committees say they formed into board then board they started okay so two thousands 31st March 2001 it is called as ISC up to 2001 so I told you and after 2001 they called it as board that is IFRS so committee introduced Ias and board introduced IFRS and we have board we have only board and we introduce in this but when in 2016 that is a road map that that one road map we are going to see it in the next lecture but this is how this International standard board is formed okay so International standard board is not immediately formed in 2001 before 2001 they have committee and they started with IAS and board started with IRS understood the journey say yes or no better journey is very beautiful always okay say fraud is not going to restrict more transparency is there your accounting set increased okay I will show you now I will show you don&#39;t worry okay you will read in this journey okay so in this journey uh I will explain you in the next session but before that you must finish your homework what I am expecting from you you go through your study material perfectly foreign foreign almost carve outs carvings beta I will tell you it in the next session yes definitely I will tell you in the next session so you have to finish today till conversions to yes index Journey you are going to tell me in the next session uh don&#39;t this roadmap is important try to read this journey better and in next session but I will finish this topic and we&#39;ll start with the chapter number two what are my expectations hanji take screenshots better screenshots better write it in your 100 Pages book it will take 40 to 50 minutes then read your study material s yes take a screenshots foreign you can write one by one or is issued by ISC and adopted by ISP sorry either say sorry Miracle Theory one two three four standard interpretation committee interpretations are issued by Sick Sick Muslim standards interpretation committee so interpretation committee is different okay so interpretation committee yes I left this part so committee is different for interpretations interpretation means if any word is not understandable that word or more clarification required for that word then better committee gives that interpretation separate committee so these are principle based standards principle based standards so accounting standards are not rule based IFRS are principle based so you can write over here not rule based principle based rules principles and rules are different that story I will tell you it in the next session and become IFRS compliant okay and what are the benefits you can take a screenshot of these two benefits of Converse standards with IFRS cross-border flow of money benefits also you can take a screenshot yes and India conversion yes take a screenshot of this convergence process you can take a screenshot of conversions you can write over this okay so this is the next concept and concept 6 is with the objective of setting standards yeah yes we have to write it in 100 Pages book today itself and in less we&#39;ll see it in the next session so index session I will show you the notebook of my student also one of my students so she has written it very beautifully International financial reporting standards International Financial Global standards IFRS compliant and benefits of converge with s and IFRS or you can see only four pages only four pages concept number nine tuck yes or ISB is five pages so you have to finish only five pages writing and study material okay we have covered almost 20 pages so this is how we have to write our answers I will do I would give you notes directly sibera it&#39;s very easy for me to give notes also but I want every one of you please write it in your 100 Pages book writing will develop your skill okay you read your study material now thoroughly each and every point you will find it very simple if you have any doubt in your study material you can ask me in the next session I will be very happy if you read it from your study material so I will fill like is I&#39;m a great mentor if you are able to read the study material and you can interpret the study material and if you are creating interest in study material though I am a good teacher otherwise I am not a good teacher I hope you will share this session to every friend is most there are 300 plus students they are watching on YouTube 400 plus and 1000 plus students on our app session almost watched by 1500 plus students and many students are there those who are not attending this but tell your friends to share this session please share this session to your friends also and make this session very interesting yes please your comments and like button is very important comments here you can give me comments and uh yes I will read your comments thank you so much or please please please lecture Miss don&#39;t miss a single session thank you good night take care or before better sleep please read all these points and complete your 100 Pages cup book completion is very important thank you good night yes yes over

Transcript for:Advanced Accounting Lecture Notes

Transcript for:
Advanced Accounting Lecture Notes