AS 29 - P rovisions Contingent Liabilities and Contingent...

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Accounting Standard (AS) 29 (issued 2003) Provisions, Contingent Liabilities and Contingent Assets Contents 635 OBJECTIVE SCOPE Paragraphs 1-9 DEFINITIONS 10-13 RECOGNITION 14-34 Provisions 14-25 Present Obligation 15 Past Event 16-21 Probable Outflow of Resources Embodying Economic Benefits 22-23 Reliable Estimate of the Obligation 24-25 Contingent Liabilities 26-29 Contingent Assets 30-34 MEASUREMENT 35-45 Best Estimate 35-37 Risks and Uncertainties 38-40 Future Events 41-43 Expected Disposal of Assets 44-45
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636 REIMBURSEMENTS 46-51 CHANGES IN PROVISIONS 52 USE OF PROVISIONS 53-54 APPLICATION OF THE RECOGNITION AND MEASUREMENT RULES 55-65 Future Operating Losses 55-57 Restructuring 58-65 DISCLOSURE 66-72 APPENDICES A. Tables - Provisions, Contingent Liabilities and Reimbursements B. Decision Tree C. Examples: Recognition D. Examples: Disclosure E. Comparison with IAS 37, Provisions, Contingent Liabilities and Contingent Assets (1998) The following Accounting Standards Interpretation (ASI) relates to AS 29: ASI 30 Applicability of AS 29 to Onerous Contracts The above Interpretation is published elsewhere in this Compendium.
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Accounting Standard (AS) 29* (issued 2003) Provisions, Contingent Liabilities and Contingent Assets (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 .) Accounting Standard (AS) 29, ‘Provisions , Contingent Liabilities and Contingent Assets’ , issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of accounting periods commencing on or after 1-4-2004. This Standard is mandatory in nature 2 from that date: (a) in its entirety, for the enterprises which fall in any one or more of the following categories, at any time during the accounting period: (i) Enterprises whose equity or debt securities are listed whether in India or outside India. * A limited revision to this Standard was made in 2005, to include onerous contracts in the scope of the Standard (See ‘The Chartered Accountant’, December 2005, (pp. 927-928)). Pursuant to the limited revision, the words ‘except where the contract is onerous have been added in paragraph 1(b); the sentence ‘Thi s Statement does not apply to executory contracts unless they are onerous. has been added in paragraph 3; and the sentence ‘Howeve r, as AS 19 contains no specific require- ments to deal with operating leases that have become onerous, this Statement applies to such cases has been added in paragraph 5(c). Pursuant to this limited revision, paragraph 2 of Appendix E (dealing with comparison of AS 29 with IAS 37) to AS 29 stands withdrawn. Consequently, the numbering of subsequent para- graphs of Appendix E has been changed. This revision comes into effect in respect of accounting periods commencing on or after April 1, 2006.
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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 29 - P rovisions Contingent Liabilities and Contingent...

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