Accounting Standard are formed in accourdance with the provision of the applicable law & usages & business environments in India. however if a particulars Accounting standard is found to be not in conformity with law, then the Financial statement will be prepared accourding to Accounting Standard or with the applicable law.
pls give ur suggestion
hii pradeep..
well can u give me any one example where Accounting standard is found to be not in conformity with law..?
hi
in case any AS is not in conformity with law then financial statements will be prepared in accordance with the las
the best example of it is AS-11 in which as per AS any fixed asset purchased against foreign liability than exchange gain/loss will be taken to P&L but as per schedule VI it is to be adjusted in the value of fixed asset.
I agree with Mr. Shantanu Goyal....
I also agree with Mr. Shantanu
agreed
However AS 11 is superceded sch vi as per Accounting Standard Rules 2006. So any difference is transferred to profit and loss account.
My dear, refer notification dated 31.3.2009
But this notification is selected period as specified in that. It means assets must be aquired during that specific period then only capitalized and also reserve is to be created which will amortized in given period of time.
WHEN PARTICULAR LAW IS APPLICABLE ON ENTTIY THEN IT HAS TO PREPARE BOOKS OF ACCOUNTS UNDER PROVISONS OF THAT LAW
Dear Hemal, again read para 46 A before further arguement.
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