Pantaloons Accounting Standard

Topics: Balance sheet, Generally Accepted Accounting Principles, Depreciation Pages: 7 (2028 words) Published: August 22, 2013
Pantaloons Retail India Limited
The Accounting Standards as per their 2011-12 Annual Report are- 1. AS 1: Disclosure of Accounting Policies-
* It deals with disclosure of Accounting Principles and policies used for preparation of financial statements of the companies.

2. AS 2: Valuation of Inventories-
* It deals with determination of amount of inventory to be shown in financial statements. It is not applicable to shares, debentures, stock etc. The cost formulae prescribed are FIFO, weighted average.

3. AS 3: Cash Flow Statements-
* It standard requires companies to report cash generation and utilization. Cash flow is presented in three main segments: operating, investing and financing. Transactions arising from foreign currency should be recorded by applying exchange rate at the date of transaction.

4. AS 5: Net Profit/Loss for the period, Prior Period Items and Changes in Accounting Policies- * It states that all items of income and expenses occurring activities are to be included in the profit and loss account. Those items of incomes and expenses which arise due to the errors or omissions of previous years but it does not include correction of accounting estimates made in earlier years.

5. AS 6: Depreciation Accounting-
* It states the amount of depreciation of some assets to be charged. It is calculated using the Straight Line Method, Written down Value or any other method carefully selected. When the method of calculating depreciation is changed it must be applied to all previous years and deficiency or surplus due to change must be adjusted in the profit and loss account.

6. AS 9: Revenue Recognition-
* The standard deals with timing and amount of revenue to be recognized in the profit and loss account. * This standard is not applicable to construction contracts. * The flow of revenue from the following sources is recognized from the following sources – sale of goods, services and use of resources by others. * In case of goods, the revenue is recognized when the property in the goods is transferred to the buyer. * The amount of turnover less excise duty is disclosed on the face of profit and loss account.

7. AS 10: Accounting for Fixed Assets-
* The cost of fixed assets includes purchase price, delivery and handling, installation charges and interest before commissioning. * Assets which have been acquired under barter should be recorded at fair market value of assets acquired or net book value of the assets given up. * Repair expenses on the purchase of a second hand asset should be capitalised, but the regular maintenance expenses should be charged to profit and loss account. * The losses and gains on disposal are transferred to profit and loss account. * In the case of revaluation of the assets the entire class of assets should be revalued rather than only a particular asset. * The information regarding the gross and net value of assets at the beginning and at the end and the expenses incurred on acquisition should be disclosed.

8. AS 11: The Effects of Changes in Foreign Exchange Rates (revised 2003)- * The standard applies to accounting for transactions in foreign currency and translating the financial statements of foreign branches. * The gain or loss resulting from net exchange difference should be transferred to profit and loss account. * The amount of exchange difference accounted in profit and loss account and adjustment in fixed assets should be disclosed.

9. AS 13: Accounting for Investments-
* The Accounting standard deals with the classification of investment, cost of investment, carrying amount/valuation of investments, disposal of investments, reclassification of investments, and disclosure of investment in the financial statements. * However, it does not apply to operating or finance leases, investment of retirement benefit plans and life insurance enterprises. It also...
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