The Accounting Standards as per their 2011-12 Annual Report are- 1. AS 1: Disclosure of Accounting Policies- * It deals with disclosure of Accounting Principles and policies used for preparation of financial statements of the companies.
2. AS 2: Valuation of Inventories- * It deals with determination of amount of inventory to be shown in financial statements. It is not applicable to shares, debentures, stock etc. The cost formulae prescribed are FIFO, weighted average.
3. AS 3: Cash Flow Statements- * It standard requires companies to report cash generation and utilization. Cash flow is presented in three main segments: operating, investing and financing. Transactions arising from foreign currency should be recorded by applying exchange rate at the date of transaction.
4. AS 5: Net Profit/Loss for the period, Prior Period Items and Changes in Accounting Policies- * It states that all items of income and expenses occurring activities are to be included in the profit and loss account. Those items of incomes and expenses which arise due to the errors or omissions of previous years but it does not include correction of accounting estimates made in earlier years.
5. AS 6: Depreciation Accounting- * It states the amount of depreciation of some assets to be charged. It is calculated using the Straight Line Method, Written down Value or any other method carefully selected. When the method of calculating depreciation is changed it must be applied to all previous years and deficiency or surplus due to change must be adjusted in the profit and loss account.
6. AS 9: Revenue Recognition- * The standard deals with timing and amount of revenue to be recognized in the profit and loss account. * This standard is not applicable to construction contracts. * The flow of revenue from the following sources is recognized from the following sources – sale of goods, services and