Page 60 - Corporate Finance PDF Final new link

60 Corporate Finance BRILLIANT’S

liabilities and in dealing with contingent assets, Ho$ gmW H$m`© H$aZo _| AH$mC§{Q>§J _| bmJy {H$`m OmZm
except: Mm{hE…
(a) Those resulting from financial investments (a) Omo \$m`Z|{e`b BÝñQ´>y_|Q²>g go CËnÝZ hþE h¢ {OÝh|
that are carried at fair value; \o$`a d¡ë`yO go {b`m J`m h¡,
(b) Those resulting from executory contracts; (b) Omo EŠOrŠ`yQ>ar H$m°ÝQ´>¡³Q²>g go CËnÝZ hþE h¢,
(c) Those arising in insurance enterprises (c) Omo nm°{bgrhmoëS>a Ho$ gmW H$m°ÝQ´>¡³Q²>g go B§í`moa|g
from contracts with policy holder; and E§Q>aàmBOog _| CËnÝZ hþE h¢ VWm
(d) Those covered by another AS. (d) Omo AÝ` AS Ûmam gpå_{bV {H$`o J`o h¢&
Objectives of Accounting Standards AH$mC§qQ>J ñQ>¢S>S>© Ho$ CÔoí`…
The main objectives of accounting AH$mC§qQ>J ñQ>¢S>S²>©g Ho$ _w»` CÔoí` {ZåZ{b{IV h¢…
standards are as under:
1. Increases comparability: Accounting 1. VwbZmË_H$Vm ~‹T>mZm: AH$mC§qQ>J>ñQ>¢S>S²>©g
standards increases the comparability, \$m`Z|{e`b ñQ>oQ>_|Q²>g H$s VwbZmË_H$Vm, àm_m{UH$Vm VWm
credibility and understandability of the
financial statements. NPP g_P ~‹T>mVo h¢&
2. Providing information: The main 2. gyMZm àXmZ H$aZm: AH$mC§qQ>J>ñQ>¢S>S>© H$m _w»`
purpose of accounting standard is to provide CÔoí` `yOg© H$mo gyMZm àXmZ H$aZm h¡&
information to the users.
3. Remove the effect of diverse 3. {d{dY AH$mC§qQ>J H$m à^md hQ>mZm: AH$mC§qQ>J
accounting: Accounting standards remove the ñQ>¢S>S²>©g {d{dY AH$mC§qQ>J H$m`m] VWm Zr{V`m| Ho$ à^md H$mo
effect of diverse accounting practices and hQ>mVo h¢ {Oggo {H$ \$m`Z|{e`b ñQ>oQ>_|Q²>g A{YH$ AW©nyU©
policies, so that financial statements may
become more meaningful. hmo OmVo h¢& 
INTRODUCTION TO INTERNATIONAL ACCOUNTING STANDARDS
B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g H$m n[aM`

Q.6. What are international accounting standards? / B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g Š`m h¢?
OR
Explain the evolution of International accounting standards. State the issued standards.
B§Q>aZoeZb AH$mC§{Q>§J ñQ>¢S>S²>©g H$s CËn{Îm g_PmB`o& Omar {H$`o J`o ñQ>¢S>S²>©g ~VmB`o&
International Accounting standards (IASs) B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g (IASs) B§Q>aZoeZb
are framed by the International Accounting AH$mC§qQ>J ñQ>¢S>S²>©g H${_Q>r Ûmam ~Zm`o J`o h¢& B§Q>aZoeZb
standards committee. The International AH$mC§qQ>J ñQ>¢S>S²>©g H${_Q>r (IASC) 1973 _| ~Zm`r J`r
Accounting Standards Committee (IASC) was Wr& 2000 VH$ IASC H$mo BgHo$ Hw$N> gXñ` Xoem| Ho$
formed in 1973, up until 2000 the IASC was à{V{Z{Y`m| Ûmam g§Mm{bV {H$`m OmVm Wm& 2001 _| `h
governed by representative from some of its
member countries. In 2001 it went through a ASC _| n[ad{V©V hmo J`r Omo 1990 _| ASB ~Z J`m Wm&
transformation to the ASC which, in 1990, IASC H$mo 2001 _| B§Q>aZoeZb AH$mC§qQ>J ñQ>¢S>S²>©g ~moS>©
became the ASB. The IASC was renamed the (IASB) H$m Zm_ {X`m J`m Wm O~ `h EH$ ñdV§Ì ~moS>©