AS 4 - 81 Accounting Standard (AS) 4 (revised 1995)...

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81 Accounting Standard (AS) 4 (revised 1995) Contingencies and Events Occurring After the Balance Sheet Date Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-9 Contingencies 4-7 Accounting Treatment of Contingent Losses 5 Accounting Treatment of Contingent Gains 6 Determination of the Amounts at which Contingencies are included in Financial Statements 7 Events Occurring after the Balance Sheet Date 8 Disclosure 9 ACCOUNTING STANDARD 10-17 Contingencies 10-12 Events Occurring after the Balance Sheet Date 13-15 Disclosure 16-17
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Accounting Standard (AS) 4 * (revised 1995) Contingencies 1 and Events Occurring After the Balance Sheet Date (This Accounting Standard includes paragraphs 10-17 set in bold italic type and paragraphs 1-9 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 2 .) The following is the text of the revised Accounting Standard (AS) 4, ‘Contingencie s and Events Occurring After the Balance Sheet Date’ , issued by the Council of the Institute of Chartered Accountants of India. This revised standard comes into effect in respect of accounting periods commencing on or after 1.4.1995 and is mandatory in nature. 3 It is clarified *The Standard was originally issued in November 1982. 1 Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting periods commencing on or after 1-4- 2004, all paragraphs of this Standard that deal with contingencies (viz. paragraphs 1(a), 2, 3.1, 4 (4.1 to 4.4), 5 (5.1 to 5.6), 6, 7 (7.1 to 7.3), 9.1 (relevant portion), 9.2, 10, 11, 12 and 16) stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards. For example, impairment of receivables (commonly referred to as the provision for bad and doubtful debts), would continue to be covered by AS 4. (See Announcement on ‘Applicabilit y of AS 4 to impairment of assets not covered by present Indian Accounting Standards’ (published in ‘Th e Chartered Accountant’ , April 2004, pp. 1151)). This Announcement is reproduced under the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium. 2 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 3 Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard.
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Contingencies and Events Occurring After the Balance Sheet Date 83 that in respect of accounting periods commencing on a date prior to 1.4.1995,
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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AS 4 - 81 Accounting Standard (AS) 4 (revised 1995)...

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