LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

As-5

kannan (jobless) (263 Points)

08 October 2015

In case of ordinary activities in accounting standard - 5 , in what situations we have to disclose the changes in financial statements , Give me an example to understand it easily pls can any one help me

Reply
Follow
Share

6 Replies

Shubham Bansal (Student CA) (62 Points)
Replied 08 October 2015

AS-5 deals with two types of changes:

Changes in accounting estimate: E.g. change in amount of provision of bad debts or estimated useful life for depreciable asset.
CHange in accounting policies: E.g. change in metho dof depreciation i.e. from SLM to WDV.

kannan (jobless) (263 Points)
Replied 08 October 2015

But I have a doubt regarding ordinary activities Can you explain disclosure of ordinary activities @ subham bansal

CA-AK (CA) (600 Points)
Replied 08 October 2015

There are certain transactions which are not extraordinary but still shown separetaly in Statement of Profit and loss.Some of them are-

* Littigation settlement

*Written down value of Investment to NRV or reversal

*Reversal of provision etc.

Along with shown separately, effect of transaction in profit or loss of the period and further period, if affected should be disclosed in notes to accounts.

I hope your query is sorted, if not please clarify where I went wrong in getting your point.