AS 5 - 90 Accounting Standard (AS) 5 (revised 1997) Net...

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90 Accounting Standard (AS) 5 (revised 1997) Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies Contents OBJECTIVE SCOPE Paragraphs 1-3 DEFINITIONS 4 NET PROFIT OR LOSS FOR THE PERIOD 5-27 Extraordinary Items 8-11 Profit or Loss from Ordinary Activities 12-14 Prior Period Items 15-19 Changes in Accounting Estimates 20-27 CHANGES IN ACCOUNTING POLICIES 28-33
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Accounting Standard (AS) 5* (revised 1997) Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies (This Accounting Standard includes paragraphs set in bold italic type and 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 its objective and the Preface to the Statements of Accounting Standards 1 .) The following is the text of the revised Accounting Standard (AS) 5, ‘Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies’ , 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 1.4.1996 and is mandatory in nature. 2 It is clarified thatin respectof accountingperiodscommencingon adatepriorto 1.4.1996, Accounting Standard 5 as originally issued in November, 1982 (and subsequently made mandatory) will apply. Objective The objective of this Statement is to prescribe the classification and disclosure of certain items in the statement of profit and loss so that all enterprises * A limited revision was made in 2001, pursuant to which paragraph 33 has been added in this standard (see footnote 3). The Standard was originally issued in November 1982 and was titled ‘Prior Period and Extraordinary Items and Changes in Accounting Policies’. 1 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. 2 Reference may be made to the section titled ‘Announcements of the Council regarding status of various documents issued by the Institute of Chartered Accountants of Ind ia’ 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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92 AS 5 (revised 1997) prepare and present such a statement on a uniform basis. This enhances the comparability of the financial statements of an enterprise over time and with the financial statements of other enterprises. Accordingly, this Statement requires the classification and disclosure of extraordinary and prior period items, and the disclosure of certain items within profit or loss from ordinary activities.Italso specifiestheaccountingtreatmentforchangesinaccounting estimates and the disclosures to be madein thefinancialstatementsregarding changes in accounting policies.
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AS 5 - 90 Accounting Standard (AS) 5 (revised 1997) Net...

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