Paper 1 — Advanced Accounting · Chapter

Indian Accounting Standards (AS 1–29)

Master every Indian Accounting Standard prescribed by ICAI for CA Inter — from disclosure of accounting policies (AS 1) to discontinuing operations (AS 24). These standards form the backbone of financial statement preparation and are tested for 25–40 marks per attempt. Includes recognition, measurement, presentation and disclosure for each standard.

242 microlessons in this chapter

Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.

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AS 1 — Disclosure of Accounting Policies

AS 1 Disclosure of Accounting Policies explained for CA Inter: going concern, consistency, accrual assumptions, policy changes, and exam-rea

AS 2 — Valuation of Inventories

AS 2 Valuation of Inventories explained for CA Inter: cost components, FIFO vs weighted average, NRV rule, and common exam mistakes — May 20

AS 3 — Cash Flow Statements

AS 3 Cash Flow Statement explained for CA Inter May 2026: indirect method, operating/investing/financing classification, and common exam tra

AS 4 — Contingencies & Events After Balance Sheet Date

AS 4 explained for CA Inter: how to account for contingent losses, contingent gains, and events after balance sheet date with exam-focused e

AS 5 — Net Profit/Loss, Prior Period Items & Policy Changes

AS 5 explained for CA Inter: learn how to treat prior period items, extraordinary items & accounting policy changes with examples. May 2026

AS 7 — Construction Contracts

AS 7 Construction Contracts explained for CA Inter: percentage of completion method, foreseeable loss recognition, and worked examples for M

AS 9 — Revenue Recognition

AS 9 Revenue Recognition explained for CA Inter May 2026: when to book sales, service revenue methods, and key exam traps in plain English.

AS 10 — Property, Plant & Equipment

AS 10 PPE explained for CA Inter May 2026: recognition, cost calculation, component depreciation, revaluation surplus & derecognition with w

AS 11 — Effects of Changes in Foreign Exchange Rates

AS 11 explained for CA Inter: learn how to record foreign currency transactions, restate monetary items, treat forward contracts, and handle

AS 12 — Accounting for Government Grants

AS 12 Government Grants explained for CA Inter: recognition rules, capital vs revenue grants, deferred income method, repayment treatment —

AS 13 — Accounting for Investments

AS 13 Accounting for Investments explained for CA Inter: classification, valuation of current vs long-term investments, bonus shares, and ex

AS 14 — Accounting for Amalgamations

AS 14 Amalgamations explained for CA Inter: merger vs purchase method, goodwill vs capital reserve, journal entries — with solved examples f

AS 15 — Employee Benefits

AS 15 Employee Benefits for CA Inter: learn Defined Contribution vs Defined Benefit plans, PUC method, gratuity accounting, and P&L charge c

AS 16 — Borrowing Costs

AS 16 Borrowing Costs for CA Inter May 2026: learn when to capitalise vs expense interest, specific vs general borrowing formulas, with solv

AS 17 — Segment Reporting

AS 17 Segment Reporting explained for CA Inter May 2026: 10% rule, 75% rule, primary vs secondary formats with solved examples and exam tips

AS 18 — Related Party Disclosures

AS 18 Related Party Disclosures explained for CA Inter: who qualifies, what to disclose, KMP rules, and key exam pitfalls in plain English.

AS 19 — Leases

AS 19 Leases explained for CA Inter: finance vs operating lease classification, lessee journal entries, MLP discounting — with Indian exampl

AS 20 — Earnings Per Share

AS 20 Earnings Per Share for CA Inter: learn Basic & Diluted EPS formulas, bonus share adjustments, and exam-ready worked examples for May 2

AS 21 — Consolidated Financial Statements

AS 21 Consolidated Financial Statements explained for CA Inter: goodwill on consolidation, minority interest, intra-group eliminations with

AS 22 — Accounting for Taxes on Income

AS 22 Deferred Tax explained for CA Inter: DTA vs DTL, timing differences, recognition rules, journal entries with solved examples for May 2

AS 23 — Investments in Associates

AS 23 equity method explained for CA Inter: how to account for 20–50% investments in associates in consolidated financial statements with wo

AS 24 — Discontinuing Operations

AS 24 Discontinuing Operations explained for CA Inter May 2026: what qualifies, when to disclose, and what the Initial Disclosure Event mean

AS 26 — Intangible Assets

AS 26 Intangible Assets explained for CA Inter: recognition, research vs development, amortisation rules & exam tips in plain English.

AS 28 — Impairment of Assets

AS 28 Impairment of Assets explained for CA Inter: recoverable amount, CGU, impairment loss calculation, reversal rules — with worked exampl

AS 29 — Provisions, Contingent Liabilities & Assets

AS 29 explained for CA Inter: when to book a provision vs disclose a contingent liability vs ignore a contingent asset — with examples and e

AS 10 PPE — Changes in Decommissioning, Dismantling and Site Restoration Provisions

AS 10 PPE — Changes in Depreciation Estimates (Method, Useful Life, Residual Value)

AS 10 PPE — Classification of Spare Parts, Tools and Servicing Equipment

AS 10 PPE — Component Accounting and Major Replacement

AS 10 PPE — Component Accounting: Cost Allocation and Separate Depreciation

AS 10 PPE — Component Replacement: Derecognition and Recognition

AS 10 PPE — De-recognition: Sale, Disposal and Revaluation Reserve Transfer

AS 10 PPE — Depreciation Period: Commencement and Cessation

AS 10 PPE — Miscellaneous Provisions (Investment Property, Consolidated Purchase, Insurance Claims)

AS 10 PPE — Pro-rata Depreciation on Multiple Assets and Profit/Loss on Disposal

AS 10 PPE — Revaluation Gain: Revaluation Reserve and Post-Revaluation Depreciation

AS 10 PPE — Revaluation Loss Treatment and Asset Disposal (Gross Block Method)

AS 10 – Decommissioning, Dismantling and Site Restoration Costs

AS 10 – Definition of Property, Plant and Equipment (PPE) and Bearer Plants

AS 10 – Depreciation Methods: SLM, WDV, and Units of Production

AS 10 – Initial Measurement of PPE Acquired by Exchange

AS 10 – Initial Measurement: Components of Cost of PPE

AS 10 – Revaluation of PPE: Net Method vs Gross Method

AS 10 – Scope and Recognition Criteria

AS 10 – Transfer of Revaluation Reserve (Mandatory and Optional/Excess Depreciation)

AS 10 – Treatment of Revaluation Gains and Losses (First-time and Subsequent)

AS 10 — Exchange of Assets (Commercial Substance)

AS 10 — Initial Measurement: Cost Components of PPE

AS 10 — Subsequent Measurement: Cost Model and Revaluation Model

AS 11 – Accounting for Foreign Currency Transactions

AS 11 – Forward Exchange Contracts: Hedging

AS 11 – Forward Exchange Contracts: Speculation / Trading

AS 11 – Para 46A Exception: Long-Term Foreign Currency Monetary Items

AS 11 – Scope and Key Definitions

AS 11 – Translation of Financial Statements of Foreign Operations

AS 12 — Definition, Scope, and Recognition of Government Grants

AS 12 — Grants in the Nature of Promoter's Contribution

AS 12 — Monetary Grants for Depreciable Fixed Assets (Two Methods)

AS 12 — Monetary Grants for Non-Depreciable Fixed Assets

AS 12 — Non-Monetary Government Grants (Grants in Kind)

AS 12 — Refund of Government Grants

AS 12 — Revenue Nature Grants (Expense Reimbursement)

AS 13 – Bonus Shares: Accounting Treatment and Cost Per Share

AS 13 – Bonus Shares: Treatment in Investment Account

AS 13 – Brokerage and Stamp Duty on Debenture Transactions

AS 13 – Comprehensive Investment Account: Right Shares, Sale, and Year-End Valuation (Q34)

AS 13 – Conversion of Debentures into Equity Shares

AS 13 – Cum-Interest Purchase of Debentures

AS 13 – Ex-Interest Purchase and Sale of Debentures

AS 13 – Final Dividend: Pre-Acquisition vs Post-Acquisition Treatment

AS 13 – Interim Dividend: Definition, Rules, and Treatment

AS 13 – Investment Account: Three-Column Ledger Format (NV, Interest, Cost)

AS 13 – Investment in Bonds: Cum-Interest Purchase, Partial Sale and Year-End Accrual

AS 13 – Partial Sale of Investments: Weighted Average vs FIFO

AS 13 – Pre-Acquisition vs Post-Acquisition Dividend Treatment

AS 13 – Right Shares: Renouncement and Fall-in-Value Exception

AS 13 – Right Shares: Subscribe vs Renounce and Interim Dividend Treatment

AS 13 – Right Shares: Subscribed and Renounced

AS 13 – Right Shares: Subscribed vs Renounced Treatment

AS 13 – Sale of Investments: Weighted Average Cost Method (WACM)

AS 13 – Sale of Long-term Equity Investments: Cost Calculation and Profit/Loss

AS 13 – Separating Accrued Interest from Investment Cost: Ex-Interest vs Cum-Interest Pricing

AS 13 – Valuation of Current Investments at Lower of Cost or Market Value

AS 13 – Year-End Treatment: Interest Accrual, Ledger Closing, and P&L Transfer

AS 13 – Year-End Valuation of Current Investments (LOCM Rule)

AS 13 — Bonus Shares: Accounting Treatment and Impact on WAM

AS 13 — Classification and Measurement of Investments

AS 13 — Introduction: Forms of Investment and Scope

AS 13 — Investments in Debentures/Bonds: Ex-Interest Purchase

AS 13 — Purchase and Sale of Equity Shares: Weighted Average Method

AS 13 — Reclassification of Investments

AS 13 — Rights Shares: Subscription and Renouncement

AS 13 — Sale of Debentures: Cum-Interest vs Ex-Interest Price

AS 15 – Defined Benefit Plan (DBP): Current Service Cost, Interest Cost & DBO

AS 15 – Defined Benefit Plan: Actuarial Gains & Losses on DBO and Plan Assets

AS 15 – Defined Benefit Plan: Curtailment & Settlement

AS 15 – Defined Benefit Plan: Past Service Cost (Plan Amendment)

AS 15 – Defined Benefit Plan: Plan Assets, Expected Return & Actual Return

AS 15 – Other Long-term Employee Benefits

AS 15 – Overview and Classification of Employee Benefits

AS 15 – Post-Employment Benefits: Defined Contribution Plan (DCP)

AS 15 – Short-term Employee Benefits: Leave Compensation

AS 15 – Short-term Employee Benefits: Salary, Wages & Bonus

AS 15 – Termination Benefits (VRS, Retrenchment)

AS 16 – Borrowing Costs: Introduction, Definitions & Scope

AS 16 – Capitalisation Rate for General Borrowings

AS 16 – Capitalisation of Borrowing Costs: Specific Borrowings

AS 16 – Capitalization Rate for General Borrowings

AS 16 – Capitalizing Borrowing Costs: Specific vs General Borrowings

AS 16 – Exchange Loss on Foreign Currency Borrowings for Qualifying Assets

AS 16 – General Borrowings: Capitalisation Rate (WACC) Method

AS 16 – Mixed Case: Specific Borrowings and General Borrowings Combined

AS 16 – Period of Capitalisation: Commencement, Suspension, and Cessation

AS 16 – Qualifying Asset: Definition and Identification

AS 16 – Qualifying Assets: Identification and Examples

AS 16 – Special Rules in Borrowing Cost Capitalization

AS 16 – Specific Borrowings: Calculation of Eligible Borrowing Costs

AS 18 – Disclosure Requirements

AS 18 – Entities NOT Deemed Related Parties

AS 18 – Exemptions from Disclosure

AS 18 – Related Party Disclosures: Introduction & Types of Relationships

AS 19 Leases – Checking Finance Lease vs Operating Lease: 5 Conditions

AS 19 Leases – Lessor Journal Entries and Finance Charge Amortisation Schedule (Finance Lease)

AS 19 Leases – Lessor Key Terms: Gross Investment, Net Investment, Unearned Finance Income

AS 19 Leases – Special Case 1: Annual Lease Rent Not Given (Derive from Fair Value)

AS 19 Leases – Special Case 2: Interest Rate Not Given (Find IRR)

AS 19 – Interest Rate Implicit in the Lease (IRR Calculation)

AS 19 – Operating Lease Accounting: Straight-Line Basis (Lessor & Lessee Books)

AS 19 – Operating Lease: Output Basis (Special Case)

AS 2 – Cost Formulas: FIFO, Weighted Average, Specific Identification

AS 2 – Cost of Conversion and Fixed Overhead Allocation

AS 2 – Cost of Purchase

AS 2 – Definition and Scope of Inventories

AS 2 – Exclusions from Cost and Abnormal Wastage

AS 2 – Joint Products and By-Products Cost Allocation

AS 2 – Measurement: Lower of Cost or NRV

AS 2 – Net Realisable Value (NRV) for FG, WIP, and Raw Materials

AS 20 – Anti-Dilutive PES and Diluted EPS When Earnings Are Negative

AS 20 – Diluted EPS with Multiple Potential Equity Shares (Ranking Method)

AS 20 – Diluted EPS: Convertible Preference Shares

AS 20 – Diluted EPS: Share Warrants and ESOPs (Free Component / Treasury Stock Method)

AS 20 – EPS for Continuing vs. Discontinued Operations

AS 20 – EPS: Subsidiary ESOPs in Separate vs. Consolidated Financial Statements

AS 20 – Right Issues: Full EPS Computation (CY, PY Original, PY Restated)

AS 20 – Right Issues: Theoretical Ex-Right Price & Bonus Element

AS 20 – Weighted Average Shares: Timing Rules

AS 20 — Basic EPS: Rights Issue and Ex-Rights Price

AS 20 — Diluted EPS: Concept, Formula, and Anti-Dilution Test

AS 20 — Diluted EPS: Hidden Adjustment for Partial-Year Convertible Instruments

AS 22 — Calculating DTA/DTL: The 4-Column Method

AS 22 — Core Framework: Current Tax, DTA and DTL

AS 22 — DTA on Carry Forward Losses and Recognition Criteria

AS 22 — Multi-Period Deferred Tax: Creation and Reversal Across an Asset's Life

AS 22 — Tax Rates, Tax Holiday (Sections 80IA/80IB) and MAT

AS 22 — Timing Differences vs Permanent Differences

AS 26 + AS 28 — Research vs Development Phase and Impairment of Intangible Assets

AS 26 – Amortization, Useful Life and Residual Value

AS 26 – Balance Sheet Presentation and Comprehensive Illustration

AS 26 – De-recognition of Intangible Assets

AS 26 – Definition and Identifiability of Intangible Assets

AS 26 – Impairment of Intangible Assets (AS 28)

AS 26 – Internally Generated Intangible Assets

AS 26 – Recognition Criteria and Initial Measurement

AS 26 – Subsequent Costs and Expenditure Always Recognised as Expense

AS 28 – CGU Impairment with Goodwill: Allocation and Reversal Rules

AS 28 – Impairment of Assets – Scope and Core Concept

AS 28 – Impairment under Revaluation Model: Excess Depreciation and Eroding Revaluation Reserve

AS 28 – Individual Asset Transferred to CGU: Non-Impairment Rule

AS 28 – Recognition and Treatment of Impairment Loss

AS 28 – Recoverable Amount: Value in Use and Net Selling Price

AS 28 – Reversal of Impairment Loss: Maximum Reversal Cap

AS 28 – Value in Use Calculation and Integration with AS 26 (Intangibles)

AS 28 — Basic Impairment Loss Calculation and Journal Entry

AS 28 — Cash Generating Unit (CGU): Concept and Impairment Testing

AS 28 — Corporate Assets in CGU Impairment Testing

AS 28 — Goodwill Allocation to CGUs: Bottom-up and Top-down Approach

AS 28 — Indicators of Impairment (When to Conduct the Test)

AS 28 — Treatment of Impairment Loss with Revaluation Reserve

AS 3 – Cash Flow Statement: Direct Method

AS 3 – Cash Flow Statement: Indirect Method for Operating Activities

AS 3 – Cash Flow from Investing and Financing Activities

AS 3 – Cash Flow from Operating Activities (Indirect Method)

AS 3 – Cash and Cash Equivalents: Definition and Scope

AS 3 – Direct Method: Cash Flow from Operating Activities

AS 3 – Financing Activities: Definition and Examples

AS 3 – Foreign Currency Cash & Cash Equivalents: Exchange Gain/Loss Treatment

AS 3 – Income Tax Refund Treatment in Cash Flow Statement

AS 3 – Income Tax, Insurance Claims, Non-Cash Transactions, and Gross Reporting

AS 3 – Indirect Method: Cash Flow from Operating Activities

AS 3 – Investing Activities: Definition and Examples

AS 3 – Ledger Reconstruction Technique for Cash Flow Preparation

AS 3 – Operating Activities: Definition and Examples

AS 3 – Special Case: Cash Flow When Only Gross Profit (GP) is Given

AS 3 – Special Classification Rules: Financial vs Non-Financial Institutions

AS 3 – Three Categories of Cash Flow Activities: Overview

AS 3 – Working Notes: T-Account Method for Debtors, Creditors and Other Accounts

AS 4 – Adjusting Events

AS 4 – Non-Adjusting Events

AS 4 – Scope, Framework and Key Definitions

AS 4 – Special Cases: Dividends and Going Concern

AS 5 - Change in Accounting Policy vs Change in Accounting Estimate

AS 5 - Classification of Items: Prior Period, Extraordinary, Change in Policy vs Estimate

AS 5 - Extraordinary Items

AS 5 - Prior Period Items

AS 5 - Separate Disclosure of Material Items within Ordinary Activities

AS 5 - Write-back of Provisions No Longer Required (Prior Period vs Extraordinary)

AS 9 – Bill and Hold Arrangements

AS 9 – Consignment Sales and Interdivision Sales

AS 9 – Definition of Revenue

AS 9 – Effect of Uncertainty on Revenue Recognition

AS 9 – Goods Sold Subject to Installation

AS 9 – Principal vs Agent

AS 9 – Revenue from Interest, Royalties and Dividends

AS 9 – Revenue from Rendering of Services

AS 9 – Revenue from Sale of Goods

AS 9 – Sale and Repurchase Agreements

AS 9 – Sale on Approval Basis

AS 9 – Scope and Exclusions

AS 9 – Trade Discount vs Cash Discount

Basic EPS – Formula and Earnings Available for Equity Shareholders (EAFESH)

Bonus Shares, Share Splits, and Share Consolidation

Cash Flow Statement for Sole Proprietor / Partnership Firms

Cash Flow from Financing Activities

Cash Flow from Investing and Financing Activities

Cash Flow from Operating Activities — Direct Method

Cash Flow from Operating Activities — Indirect Method

Combining and Segmenting Construction Contracts

Contract Costs – Inclusions and Exclusions

Contract Revenue – Components and Measurement

Diluted EPS – Concept, Formula, and Potential Equity Shares

Gross Amount Due From / Due To Customer

Hidden Adjustment — Interest on Debentures in Cash Flow

Income Tax Paid — Combined Ledger Method

Indirect Method — Deriving PBT and Adjustments for Operating Activities

Introduction and Scope of AS 7

Loss-Making Contracts – Full and Immediate Loss Recognition

Percentage Completion Method (Stage of Completion)

Shares with Different Nominal Values

Special Adjustments — Undervalued Inventory, Premium on Redemption, and Hidden Creditors for Assets

Weighted Average Number of Equity Shares (WANES)

When Outcome of Contract Cannot Be Estimated Reliably

Working Notes — T-Account Technique for Cash Flow Statement

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