TaxTMI 
TaxTMI 
ICDS I (Revised) : Accounting Policies
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....financial statements is of significant magnitude. They often influence the judgement of the readers and users of financial statements. * While it recognizes the fundamental accounting assumptions of going concern, consistency and accrual, it does not recognize the concepts of "materiality" and "prudence" in selection of accounting policies. * Treatment and presentation of transactions have to be governed by their substance and not merely by the legal form. * Marked to market loss or an expected loss is not to be recognized unless recognition of such loss is in accordance with the provisions of any other ICDS. 2. Fundamental accounting assumptions:- Certain fundamental accounting assumptions form the basis of preparation and presenta....
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....r payment is not a relevant. Income accrues when there "arises a corresponding liability of the other party from whom the income becomes due to pay that amount." [CIT v Excel Industries Limited] 2013 (10) TMI 324 - SUPREME COURT Note:- ICDS provides that if the fundamental accounting assumptions of Going Concern, Consistency and Accrual are followed, specific disclosure is not required. If a fundamental accounting assumption is not followed, the fact shall be disclosed. Revised Form 3CD of tax audit report provides necessary columns for such disclosures. 3. Accounting Policies:- Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial sta....
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....e recognition of such loss is in accordance with the provisions of any other Income Computation and Disclosure Standard. Note:- * The ICDS prohibits change in accounting policies unless there is a reasonable cause for such a change. The expression "reasonable cause" has not been defined and would have to be examined on a case to case basis. * If the change in accounting policy is found to be bona fide, imperative and driven by commercial, contractual or statutory compulsions, such a change should be construed as a 'reasonable cause'. Any change in accounting policy should be adjudged as 'reasonable' if it satisfies the criterion outlined in AS 5. 5. Disclosure of Accounting Policies:- All significant accounting policies adopted by a....
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....vised) vs AS-1 Sr No. ICDS I (Revised) AS-1 1. Certain fundamental accounting assumptions underlie the preparation and presentation of financial statements. 2. The following are the fundamental accounting assumptions namely :- * Going Concern "Going concern" refers to an assumption that the person has neither the intention nor the necessity of liquidation or curtailing, materially the scale of the business, profession or vocation and intends to continue his business, profession or vocation for the foreseeable future. * Consistency "Consistency" refers to assumption that accounting policies are consistent from one period to another. * Accrual "Accruals" refers to assumption that revenues and costs are accrued, that is, rec....