what are INDIAN GAAPS?

Question

introduction,what is it about?
recent changes to INDIANGAAPS?
Proposed changes in near future?

Answer 1

Yeah, what is an Indian Gaap?

I certainly don't know.

Answer 2

English WAGS: Wives and Girlfriends
GAAPS: Grandpas And Also Parents

Answer 3

The full form of the word GAAPS is Generally Accepted Accounting principles.

As per Auditing and Assurance Standard 28 issued by the ICAI, the financial statements have to be extracted from the books of account maintained as per the broad framework of accounting so as to be reported to be showing a true and fair view. GAAPs consist of four components: the requirements of law; judgments of various courts of law; pronouncements of the governing body from time to time; and requirements of regulatory Authority SEBI.

In India, since the ASB is not yet functional, the accounting standards as pronounced by the ICAI are adaptable by every entity whose financial statements are subject to audit.

Certain of the accounting standards conform to the International Accounting Standards. Effort is on to match Indian standards with the IASs. There are significant variations between the Indian and international accounting standards. A study of the variations between the two would be interesting. Here are a few of them:

Valuation of inventories: LIFO method is not allowed as per Indian AS but is permitted under US GAAPs.

Pooling of interests method for mergers is allowed under Indian AS but not under US GAAPs.

Interest costs and borrowing costs are treated differently in Indian AS and US GAAPs.

Prevailing laws of the land significantly contribute to the variances between accounting standards of one country with the other. Perhaps the title of account as well as nomenclature differs from one country to the other.

Procedure for standard setting


Accounting standard setting, by its very nature, involves reaching an optimal balance of the requirements of financial information for various interest groups having a stake in financial reporting.

To reach a consensus, to the extent possible, as to the requirements of the relevant interest-groups and, thereby, bringing about general acceptance of the accounting standards among such groups, considerable research, consultations and discussions with the representatives of the relevant interest-groups at different stages of standard formulation becomes necessary.

The standard-setting procedure of the ASB, as briefly outlined below, is designed in such a way so as to ensure such consultation and discussions:


Identification of the broad areas by the ASB for formulating the accounting standards.

Constitution of the study groups by the ASB for preparing the preliminary drafts of the proposed accounting standards.

Consideration of the preliminary draft prepared by the study group by the ASB and revision, if any, of the draft on the basis of deliberations at the ASB.

Circulation of the draft, so revised, among the Council members of the ICAI and 12 specified outside bodies such as the Standing Conference of Public Enterprises (SCOPE), the Indian Banks' Association, Confederation of Indian Industry (CII), the Securities and Exchange Board of India (SEBI), the Comptroller and Auditor General of India (C& AG) and the Department of Company Affairs, for comments.

Meeting with the representatives of specified outside bodies to ascertain their views on the draft of the proposed accounting standard.

Finalisation of the exposure draft of the proposed accounting standard on the basis of comments received and discussion with the representatives of specified outside bodies.

Issuance of the exposure draft inviting public comments.

Consideration of the comments received on the exposure draft and finalisation of the draft accounting standard by the ASB for submission to the ICAI for its consideration and approval for issuance.

Consideration of the draft accounting standard by the Council of the Institute, and, if found necessary, modification of the draft in consultation with the ASB.

The accounting standard, so finalised, is issued under the authority of the Council.

For more information, please check the following link:

http://www.thehindubusinessline.com/mentor/2006/01/09/stories/2006010900201000.htm

Answer 4

well...nothing like that in cricket..