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50 Corporate Finance BRILLIANT’S

The objective and scope of standards are ñQ>¢S>S²>©g Ho$ CÔoí` VWm joÌ {ZåZ{b{IV h¡…
as under:
Objective: The standard deals with the CÔoí`… `h >ñQ>¢S>S>© {ZåZ{b{IV Ho$ \$m`Z|{e`b
treatment in financial statements of: ñQ>oQ>_|Q²>g _| Q´>rQ>_|Q> na MMm© H$aVm h¡…
(a) Contingencies and (a) H§$qQ>O|grO VWm
(b) Events occurring after the balance sheet (b) ~¡b|g erQ> H$s {XZm§H$ Ho$ níMmV² hmoZo dmbr KQ>ZmE±
date.
Scope: The following contingencies are joÌ… Bg>ñQ>¢S>S>© go {ZåZ{b{IV H§$qQ>O|grO H$mo AbJ
excluded from this standard: aIm J`m h¡…
(a) Liabilities of life assurance and general (a) Omar H$s J`r Zr{V`m| go CËnÝZ OrdZ ~r_m VWm
insurance enterprises arising from gm_mÝ` ~r_m à{Vð>mZ H$s bm`{~{bQ>rO&
policies issued.
(b) Obligations under retirement benefit (b) [aQ>m`a_§oQ ~oZr{\$Q> ßbm§g Ho$ A§VJ©V H$Îm©ì`&
plans.
(c) Commitments arising from long-term (c) XrKm©d{Y brO H$m°ÝQ´>¡³Q²>g go CËnÝZ à{V~ÕVmE±&
lease contracts. NPP
AS-5: Net Profit or Loss for the Period, AS-5: Ad{Y Ho$ {bE Hw$b bm^ `m hm{Z, nyd© Ad{Y
Prior Period items and Changes in Ac- Am`Q>åg VWm AH$mC§qQ>J Zr{V`m| _| n[adV©Z
counting Policies
The objective and scope of the standard ñQ>¢S>S>© Ho$ CÔoí` VWm joÌ {ZåZ{b{IV h¢o…
are as under:
Objective: The objective of this accounting CÔoí`… Bg AH$mC§qQ>J ñQ>¢S>S>© H$m CÔoí` bm^ VWm
standard is to prescribe the criteria for certain hm{Z ImVo _| Hw$N> dñVwAm| Ho$ {bE _mnX§S> {ZYm©[aV H$aZm
items in the profit and loss account so that h¡ {Oggo {H$ \$m`Z|{e`b ñQ>oQ>_|Q> H$s VwbZmË_H$Vm ~‹T>m`r
comparability of the financial statement can
be enhanced. This standard also deals with the Om gHo$& `h ñQ>¢S>S>© AH$mC§qQ>J nm°{bgrO, AH$mC§qQ>J
change in accounting policy, accounting EñQ>r_oQ²>g VWm AgmYmaU dñVwAm§o _| n[adV©Z na ^r MMm©
estimates and extraordinary items. H$aVm h¡&
AS-7: Construction Contracts AS-7: H§$ñQ´>ŠeZ H$m°ÝQ´>¡³Q²>g
The objective and the scope of the standard ñQ>¢S>S>© Ho$ CÔoí` VWm joÌ {ZåZ{b{IV h¢…
are as under:
Objective: The objective of this standard CÔoí`… Bg ñQ>¢S>S>© H$m CÔoí` H§$ñQ´>ŠeZ H$m°Q´>¡ŠQ²>g
is to prescribe the accounting treatment of go g§~§{YV amOñd VWm bmJVm| Ho$ AH$mC§qQ>J Q´>rQ>_|Q> H$m
revenue and costs associated with construction dU©Z H$aZm h¡&
contracts.
Scope: These standards should be applied joÌ… `h ñQ>¢S>S>© H$m°ÝQ´>¡ŠQ>g© Ho$ \$m`Z|{e`b ñQ>oQ>_|Q>
in accounting for construction contracts in the _| H§$ñQ´>³eZ H$m°ÝQ´>¡³Q²>g Ho$ {bE AH$mC§qQ>J _| bmJy {H$`m
financial statement of contractors.
OmZm Mm{hE&