ASLB 24 Budget Information

Accounting Standards for Local Bodies (ASLB) 24
Presentation of Budget Information in Financial
Statements
Contents
Paragraphs
OBJECTIVE 1
SCOPE 2–6
DEFINITIONS 7–13
Approved Budgets 8–10
Original and Revised Budget 11–12
Actual Amounts 13
PRESENTATION OF A COMPARISON OF BUDGET AND
ACTUAL AMOUNTS 14–38
Presentation and Disclosure 21–24
Level of Aggregation 25–28
Changes from Original to Revised Budget 29–30
Comparable Basis 31–36
Multi-year Budgets 37–38
NOTE DISCLOSURES OF BUDGETARY BASIS, PERIOD
AND SCOPE 39–46
RECONCILIATION OF ACTUAL AMOUNTS ON A COMPARABLE
BASIS AND ACTUAL AMOUNTS IN THE FINANCIAL
STATEMENTS 47–53
ILLUSTRATIVE EXAMPLES
APPENDIX 1: COMPARISON WITH IPSAS 24, ‘PRESENTATION OF
BUDGET INFORMATION IN FINANCIAL STATEMENTS’
Compendium of Accounting Standards for Local Bodies (ASLBs)

Accounting Standard for Local Bodies (ASLB) 24
Presentation of Budget Information in Financial
Statements
(This Accounting Standard includes paragraphs set in bold italic type and
plain type, which have equal authority. Paragraphs in bold italic type indicate
the main principles. This Accounting Standard should be read in the context
of its objective and the Preface to the Accounting Standards for Local
Bodies1)
The Accounting Standard for Local Bodies (ASLB) 24, ‘Presentation of
Budget Information in Financial Statements’, issued by the Council of the
Institute of Chartered Accountants of India, will be recommendatory in nature
in the initial years for use by the Local Bodies. This Standard will be
mandatory for Local Bodies in a State from the date specified in this regard
by the State Government concerned 2.
The following is the text of the Accounting Standard for Local Bodies.

Objective
1. This Standard requires a comparison of budget amounts and the
actual amounts arising from execution of the budget to be included in
the financial statements of entities that are required to, or elect to,
make publicly available their approved budget(s), and for which they
are, therefore, held publicly accountable. This Standard also requires
disclosure of an explanation of the reasons for material differences
between the budget and actual amounts. Compliance with the
requirements of this Standard will ensure that entities discharge their
accountability obligations and enhance the transparency of their
financial statements by demonstrating (a) compliance with the
approved budget(s) for which they are held publicly accountable and
(b) where the budget(s) and the financial statements are prepared on
the same basis, their financial performance in achieving the budgeted
results.

1 Attention is specifically drawn to paragraph 4.2 of the ‘Preface to the Accounting
Standards for Local Bodies’, according to which Accounting Standards are intended to
apply only to items which are material.
2 In respect of compliance with the Accounting Standards for Local Bodies, reference

may be made to the paragraph 7.1 of the ‘Preface to the Accounting Standards for
Local Bodies’.

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 Presentation of Budget Information in Financial Statements

Scope
2. An entity that prepares and presents financial statements under
the accrual basis of accounting should apply this Standard.
3. This Standard applies to all entities that are described as the
Local Bodies in the Preface to Accounting Standards for Local
Bodies and are required or elect to make their approved budget(s)
publicly available.
4. [Refer to Appendix 1]
5. This Standard does not require approved budgets to be made publicly
available, nor does it require that the financial statements disclose
information about, or make comparisons with, approved budgets that
are not made publicly available.
6. In some cases, approved budgets will be compiled to encompass all
the activities controlled by a Local Body. In other cases, separate
approved budgets may be required to be made publicly available for
certain activities, groups of activities, or entities included in the
financial statements of a Local Body. This may occur where, for
example, financial statements of a Local Body encompass Local
Body‟s agencies or programmes that have operational autonomy and
prepare their own budgets. This Standard applies to all entities that
present financial statements when approved budgets for the entity, or
components thereof, are made publicly available.

Definitions
7. The following terms are used in this Standard with the meanings
specified:
Annual budget means an approved budget for one year. It does
not include published forward estimates or projections for
periods beyond the budget period.
Appropriation is an authorisation granted by a governing body to
allocate funds for purposes specified by the governing body or
similar authority.
Approved budget means the anticipated revenue or receipts and
expenditure approved by the governing body or similar authority
relating to the budgeted period.

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Budgetary basis means the accrual, cash, or other basis of
accounting adopted in the budget that has been approved by the
governing body.
Budget period is the period covered by the budget as prescribed
in the relevant legislation.
Comparable basis means the actual amounts presented on the
same accounting basis, same classification basis, for the same
entities and for the same period as the approved budget.
Revised budget3 is the original budget adjusted for all reserves,
carry-over amounts, transfers, allocations, supplemental
appropriations and other changes authorised by the governing
body or similar authority changes applicable to the budget period.
Governing body is a body that is authorised by relevant
legislative law to formulate policies concerning the activities of a
Local Body such as a Committee, Board or a Council.
Multi-year budget is an approved budget for more than one year.
It does not include published forward estimates or projections for
periods beyond the budget period. 4
Original budget is the initial approved budget for the budget
period.
Terms defined in other ASLBs are used in this Standard with the
same meaning as in those other Standards.
Approved Budgets
8. An approved budget as defined by this Standard reflects the
anticipated revenues or receipts expected to arise in the annual or
multi-year budget period, based on current plans and the anticipated
economic conditions during that budget period, and expenses or
expenditures approved by the governing body or other relevant
authority. An approved budget is not a forward estimate or a projection
based on assumptions about future events and possible management

3 The revised budget defined in this ASLB is the revised budget of the current financial

year that is presented along with the budget of the next financial year by a Local Body to
its governing body at the specified date as per the existing applicable law /practice.
4 At present the concept of multi-year budget is not prevalent in India.

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 Presentation of Budget Information in Financial Statements

actions that are not necessarily expected to take place. Similarly, an
approved budget differs from prospective financial information, which
may be in the form of a forecast, a projection, or a combination of
both; for example, a one-year forecast plus a five-year projection.
9. The critical feature of approved budgets is that the authority to
withdraw funds for agreed and identified purposes is provided by the
governing body. The approved budget establishes the expenditure
authority for the specified items. The expenditure authority is generally
considered the legal limit within which an entity must operate. In some
cases, the approved budget for which the entity will be held
accountable may be the original budget, and in others cases it may be
the revised budget.
10. If a budget is not approved prior to the beginning of the budget period,
the original budget is the budget that was first approved for application
in the budget year.
Original and Revised Budget
11. The original budget may include residual appropriated amounts
automatically carried over from prior years by law. In some cases,
there may be a legal provision that requires the automatic rolling
forward of appropriations to cover prior year commitments.
Commitments encompass possible future liabilities based on a current
contractual agreement. In some cases, they may be referred to as
obligations or encumbrances, and include outstanding purchase
orders, work orders and contracts where goods or services have not
yet been received.
12. Supplemental appropriations may be necessary where the original
budget did not adequately envisage expenditure requirements arising
from, for example, natural disasters. In addition, there may be a
shortfall in budgeted revenues during the period, and internal transfers
between budget heads or line items may be necessary to
accommodate changes in funding priorities during the fiscal period.
Consequently, the funds allotted to an entity or activity may need to be
cut back from the amount originally appropriated for the period in order
to maintain fiscal discipline. The revised budget includes all such
authorised changes or amendments.

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Compendium of Accounting Standards for Local Bodies (ASLBs)

Actual Amounts
13. This Standard uses the term actual or actual amount to describe the
amounts that result from execution of the budget. In some cases,
budget out-turn, budget execution, or similar terms may be used with
the same meaning as actual or actual amount.

Presentation of a Comparison of Budget and
Actual Amounts
14. Subject to the requirements of paragraph 21, an entity should
present a comparison of the budget amounts for which it is held
publicly accountable and actual amounts, either as a separate
additional financial statement or as additional budget columns in
the financial statements currently presented in accordance with
ASLBs. The comparison of budget and actual amounts should
present separately for each level of governing body’s oversight:
(a) The original and revised budget amounts;
(b) The actual amounts on a comparable basis; and
(c) By way of note disclosure, an explanation of material
differences between the budget for which the entity is held
publicly accountable and actual amounts.
15. Presentation in the financial statements of the original and
revised budget amounts and actual amounts on a comparable basis
with the budget that is made publicly available will complete the
accountability cycle by enabling users of the financial statements to
identify whether resources were obtained and used in accordance with
the approved budget. Differences between the actual amounts and the
budget amounts, whether original or revised budget (often referred to
as the variance in accounting), may also be presented in the financial
statements for completeness.
16. An explanation of the material differences between actual amounts
and the budget amounts will assist users in understanding the reasons
for material departures from the approved budget for which the entity
is held publicly accountable.
17. An entity may be required, or may elect, to make publicly
available its original budget, its revised budget, or both its original and

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revised budget. In circumstances where both the original and revised
budget are required to be made publicly available, the regulation,
governing body or other similar authority will often provide guidance
on whether explanation of material differences between the actual
and the original budget amounts, or actual and the revised budget
amounts, is required in accordance with paragraph 14(c). In the
absence of any such guidance, material differences may be
determined by reference to, for example, (a) differences between
actual and original budget to focus on performance against original
budget, or (b) differences between actual and revised budget to focus
on compliance with the revised budget.
18. In some cases, the revised budget and the actual amount may be the
same. This is because budget execution is monitored over the
reporting period, and the original budget progressively revised to
reflect changing conditions, changing circumstances, and experiences
during the reporting period. Paragraph 29 of this Standard requires the
disclosure of an explanation of the reasons for changes between the
original and revised budget. Those disclosures, together with the
disclosures required by paragraph 14 above, will ensure that entities
that make publicly available their approved budget(s) are held publicly
accountable for their performance against, and compliance with, the
relevant approved budget.
19. Management discussion and analysis, operations review, or other
public reports that provide commentary on the performance and
achievements of the entity during the reporting period, including
explanations of any material differences from budget amounts, are
often issued in conjunction with the financial statements. In
accordance with paragraph 14(c) of this Standard, explanation of
material differences between actual and budget amounts will be
included in notes to the financial statements.
20. [Refer to Appendix 1]
Presentation and Disclosure
21. An entity should present a comparison of budget and actual
amounts as additional budget columns in the primary financial
statements only where the financial statements and the budget
are prepared on a comparable basis.

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Compendium of Accounting Standards for Local Bodies (ASLBs)

22. Comparisons of budget and actual amounts may be presented in a
separate financial statement, (Statement of Comparison of Budget and
Actual Amounts or a similarly titled statement) included in the
complete set of financial statements as specified in ASLB 1.
Alternatively, where the financial statements and the budget are
prepared on a comparable basis – that is, on the same basis of
accounting for the same entity and same reporting period, and adopt
the same classification structure – additional columns may be added to
the existing primary financial statements presented in accordance with
ASLBs. These additional columns will identify original and revised
budget amounts and, if the entity so chooses, differences between the
budget and actual amounts.
23. When the budget and financial statements are not prepared on a
comparable basis, a separate Statement of Comparison of Budget and
Actual Amounts is presented. In these cases, to ensure that readers
do not misinterpret financial information that is prepared on different
bases, the financial statements could usefully clarify that the budget
and the accounting bases differ, and that the Statement of Comparison
of Budget and Actual Amounts is prepared on the budget basis.
24. In some cases where budgets are prepared on the accrual basis and
encompass the full set of financial statements, additional budget
columns can be added to all the primary financial statements required
by ASLBs. However, in some cases, budgets prepared on the accrual
basis may be presented in the form of only certain of the primary
financial statements that comprise the full set of financial statements
as specified by ASLBs – for example, the budget may be presented as
an income and expenditure statement or a cash flow statement, with
additional information provided in supporting schedules. In these
cases, the additional budget columns can be included in the primary
financial statements that are also adopted for presentation of the
budget.
Level of Aggregation
25. Budget documents may provide great detail about particular activities,
programmes, or entities. These details are often aggregated into broad
classes under common budget heads, budget classifications, or
budget headings for presentation to, and approval by, the governing

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body or other similar authority. The disclosure of budget and actual
information consistent with those broad classes and budget heads or
headings will ensure that comparisons are made at the level of
governing body‟s or other similar authority‟s oversight identified in the
budget documents.
26. ASLB 3, „Accounting Policies, Changes in Accounting Estimates and
Errors‟ requires financial statements to provide information that meets
a number of qualitative characteristics, including that the information
is:
(a) Relevant to the decision-making needs of users; and
(b) Reliable in that the financial statements:
(i) Represent faithfully the financial position, financial
performance, and cash flows of the entity;
(ii) Reflect the economic substance of transactions, other
events, and conditions, and not merely the legal form;
(iii) Are neutral, that is, free from bias;
(iv) Are prudent; and
(v) Are complete in all material respects.
27. In some cases, the detailed financial information included in approved
budgets may need to be aggregated for presentation in financial
statements in accordance with the requirements of this Standard. Such
aggregation may be necessary to avoid information overload and to
reflect relevant levels of governing body‟s or other similar authority‟s
oversight. Determining the level of aggregation will involve
professional judgment. That judgment will be applied in the context of
the objective of this Standard and the qualitative characteristics of
financial reporting as outlined in paragraph 26 above and in „The
Conceptual Framework for General Purpose Financial Reporting in
Local Bodies‟.
28. Additional budget information, including information about service level
benchmarks, may be presented in documents other than financial
statements. A cross reference from financial statements to such
documents is encouraged, particularly to link budget and actual data to
non-financial budget data and service level benchmarks.

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Changes from Original to Revised Budget
29. An entity should present an explanation of whether changes
between the original and revised budget are a consequence of
reallocations within the budget, or of other factors by way of note
disclosure in the financial statements.
30. The revised budget includes all changes approved by the governing
body or other designated authority to revise the original budget.
Consistent with the requirements of this Standard, an entity will include
in the notes to the financial statements, an explanation of changes
between the original and revised budget. That explanation will include
whether, for example, changes arise as a consequence of
reallocations within the original budget parameters or as a
consequence of other factors, such as changes in the overall budget
parameters, including changes in government policy.
Comparable Basis
31. All comparisons of budget and actual amounts should be
presented on a comparable basis to the budget.
32. The comparison of budget and actual amounts will be presented on
the same accounting basis (accrual, cash, or other basis), same
classification basis, and for the same entities and period as for the
approved budget. This will ensure that the disclosure of information
about compliance with the budget in the financial statements is on the
same basis as the budget itself. In some cases, this may mean
presenting a budget and actual comparison on a different basis of
accounting, for a different group of activities, and with a different
presentation or classification format than that adopted for the financial
statements.
33. Financial statements consolidate entities and activities controlled by
the entity. As noted in paragraph 5, separate budgets may be
approved and made publicly available for individual entities or
particular activities that make up the consolidated financial statements.
Where this occurs, the separate budgets may be recompiled for
presentation in the financial statements in accordance with the
requirements of this Standard. Where such recompilation occurs, it will
not involve changes or revisions to approved budgets. This is because

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this Standard requires a comparison of actual amounts with the
approved budget amounts.
34. Entities may adopt different bases of accounting for the preparation of
their financial statements and for their approved budgets. For
example, a Local Body may adopt the accrual basis for its financial
statements and the cash basis for its budget. In addition, budgets may
focus on, or include information about, commitments to expend funds
in the future and changes in those commitments, while the financial
statements will report assets, liabilities, net assets/equity, revenues,
expenses, other changes in net assets/equity, and cash flows.
However, the budget entity and financial reporting entity will often be
the same. Similarly, the period for which the budget is prepared and
the classification basis adopted for the budget will often be reflected in
financial statements. This will ensure that the accounting system
records and reports financial information in a manner that facilitates
the comparison of budget and actual data for management and for
accountability purposes. For example, for monitoring progress of
execution of the budget during the budget period and for reporting to
the Government, the public, and other users on a relevant and timely
basis.
35. [Refer to Appendix 1]
36. [Refer to Appendix 1]
Multi-year Budgets
37. Some Local Bodies approve and make publicly available multi-year
budgets, rather than separate annual budgets. Conventionally, multi -
year budgets comprise a series of annual budgets or annual budget
targets. The approved budget for each component annual period
reflects the application of the budgetary policies associated with the
multi-year budget for that component period. In some cases, the multi-
year budget provides for a roll forward of unused appropriations in any
single year.
38. Entities with multi-year budgets may take different approaches to
determining their original and revised budget, depending on how their
budget is passed. For example, a Local Body may pass a biennial
budget that contains two approved annual budgets, in which cas e an

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original and revised approved budget for each annual period will be
identifiable. If unused appropriations from the first year of the biennial
budget are legally authorised to be spent in the second year, the
original budget for the second-year period will be increased for these
carry over amounts. In the rare cases in which a Local Body passes a
biennial or other multi-period budget that does not specifically
separate budget amounts into each annual period, judgment may be
necessary in identifying which amounts are attributable to each annual
period in determining annual budgets for the purposes of this
Standard. For example, the original and revised approved budget for
the first year of a biennial period will encompass any approved capital
acquisitions for the biennial period that occurred during the first year,
together with the amount of the recurring revenue and expenditure
items attributable to that year. The unexpended amounts from the first
annual period would then be included in the original budget for the
second annual period, and that budget together with any amendments
thereto would form the revised budget for the second year. Where
multi-period budgets are adopted, entities are encouraged to provide
additional note disclosure about the relationship between budget and
actual amounts during the budget period.
Note Disclosures of Budgetary Basis, Period and
Scope
39. An entity should explain in notes to the financial statements the
budgetary basis and classification basis adopted in the approved
budget.
40. There may be differences between the accounting basis (cash,
accrual, or some modification thereof) used in preparation and
presentation of the budget and the accounting basis used in the
financial statements. These differences may occur when the
accounting system and the budget system compile information from
different perspectives – the budget may focus on cash flows, or cash
flows plus certain commitments, while the financial statements report
cash flows and accrual information.
41. Formats and classification schemes adopted for presentation of the
approved budget may also differ from the formats adopted for the
financial statements. An approved budget may classify items on the

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 Presentation of Budget Information in Financial Statements

same basis as is adopted in the financial statements, for example, by
economic nature (compensation of employees, use of goods or
services, etc.), or function (health, education, etc.). Alternatively, the
budget may classify items by specific programmes (for example,
poverty reduction or control of contagious diseases) or programme
components linked to performance outcome objectives (for example,
students completing training under nursing programme or surgical
operations performed by hospital emergency services), which differ
from classifications adopted in the financial statements. Further, a
recurrent budget for ongoing operations (for example, education or
health) may be approved separately from a capital budget for capital
outlays (for example, infrastructure or buildings).
42. ASLB 1, „Presentation of Financial Statements‟, requires entities to
present, in notes to the financial statements, information about the
basis of preparation of the financial statements and the significant
accounting policies adopted. Disclosure of the budgetary basis and
classification basis adopted for the preparation and presentation of
approved budgets will assist users to better understand the
relationship between the budget and accounting information disclosed
in the financial statements.
43. An entity should disclose in notes to the financial statements the
period of the approved budget.
44. Financial statements are presented at least annually. Entities may
approve budgets for an annual period or for multi-year periods.
Disclosure of the period covered by the approved budget, where that
period differs from the reporting period adopted for the financial
statements, will assist the users of those financial statements to better
understand the relationship of the budget data and budget comparison
to the financial statements.
45. An entity should identify in notes to the financial statements the
entities included in the approved budget.
46. [Refer to Appendix 1]

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Reconciliation of Actual Amounts on a
Comparable Basis and Actual Amounts in the
Financial Statements
47. The actual amounts presented on a comparable basis to the
budget in accordance with paragraph 31 should, where the
financial statements and the budget are not prepared on a
comparable basis, be reconciled to the following actual amounts
presented in the financial statements, identifying separately any
basis, timing, and entity differences:
(a) If the accrual basis is adopted for the budget, total
revenues, total expenses, and net cash flows from
operating activities, investing activities, and financing
activities; or
(b) If a basis other than the accrual basis is adopted for the
budget, net cash flows from operating activities, investing
activities, and financing activities.
The reconciliation should be disclosed on the face of the
statement of comparison of budget and actual amounts, or in the
notes to the financial statements.
48. Differences between the actual amounts identified consistent with the
comparable basis, and the actual amounts recognised in the financial
statements, can usefully be classified into the following:
(a) Basis differences, which occur when the approved budget is
prepared on a basis other than the accounting basis. For
example, where the budget is prepared on the cash basis or
modified cash basis and the financial statements are prepared
on the accrual basis;
(b) Timing differences, which occur when the budget period differs
from the reporting period reflected in the financial statements;
and
(c) Entity differences, which occur when the budget omits
programmes or entities that are part of the entity for which the
financial statements are prepared.

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There may also be differences in formats and classification schemes
adopted for presentation of financial statements and the budget.
49. The reconciliation required by paragraph 47 of this Standard will
enable the entity to better discharge its accountability obligations, by
identifying major sources of difference between the actual amounts on
a budget basis and the amounts recognised in the financial
statements. This Standard does not preclude reconciliation of each
major total and subtotal, or each class of items, presented in a
comparison of budget and actual amounts with the equivalent
amounts in the financial statements.
50. For some entities adopting the same basis of accounting for
preparation of both the budget documents and the financial
statements, only the identification of differences between actual
amounts in the budget and the equivalent amounts in the financial
statements will be required. This will occur where the budget (a) is
prepared for the same period, (b) encompasses the same entities, and
(c) adopts the same presentation format as the financial statements. In
these cases, a reconciliation is not required. For other entities
adopting the same basis of accounting for the budget and the financial
statements, there may be a difference in presentation format, reporting
entity, or reporting period; for example, the approved budget may
adopt a different classification or presentation format to the financial
statements, may include only non-commercial activities of the entity,
or may be a multi-year budget. A reconciliation would be necessary
where there are presentation, timing, or entity differences between the
budget and the financial statements prepared on the same accounting
basis.
51. For those entities using the cash basis (or a modified cash or modified
accrual basis) of accounting for the presentation of the approved
budget and the accrual basis for their financial statements, the major
totals presented in the statement of budget and actual comparison will
be reconciled to net cash flows from operating activities, net cash
flows from investing activities, and net cash flows from financing
activities as presented in the cash flow statement prepared in
accordance with ASLB 2, „Cash Flow Statements‟.

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52. The disclosure of budget related comparative information in
respect of the previous period in accordance with the
requirements of this Standard is not required.
53. This Standard requires a comparison of budget and actual amounts to
be included in the financial statements of entities that make publicly
available their approved budget(s). It does not require the disclosure of
a comparison of actuals of the previous period with the budget of that
previous period, nor does it require that the related explanations of
differences between the actuals and budget of that previous period be
disclosed in the financial statements of the current period.
54. [Refer to Appendix 1]
55. [Refer to Appendix 1]

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Illustrative Examples
These examples accompany, but are not part of, ASLB 24, ‘Presentation of
Budget Information in Financial Statements’.
Statement of Comparison of Budget and Actual Amounts
For Local Body XX for the Year Ended March 31, 20XX
Budget on Cash Basis
(Classification of Payments by Functions)
Note: The budget and the accounting basis is different. This Statement of
Comparison of Budget and Actual Amounts is prepared on the budget basis.
(In `)
Actual Particulars Original Revised Actual *Difference:
20XX- (1) Budget Budget Amounts Revised
XX (2) (3) on Budget and
Comparable Actual
Basis (5) = (3) –
(4) (4)
RECEIPTS
X Taxation X X X X
Aid Agreements
X International agencies X X X X
X Other Grants and Aid X X X X
X Proceeds: Borrowing X X X X
Proceeds: Disposal of X X X X
Plant & Equipment
X
X Trading Activities X X X X
Other receipts X X X X
X Total Receipts X X X X
PAYMENTS
(X) Health (X) (X) (X) (X)
(X) Education (X) (X) (X) (X)
(X) Public order/safety (X) (X) (X) (X)
(X) Social protection (X) (X) (X) (X)

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(X) Housing and community (X) (X) (X) (X)
amenities
(X) Recreational, cultural and (X) (X) (X) (X)
religion
(X) Economic affairs (X) (X) (X) (X)
(X) Others (X) (X) (X) (X)
(X) Total Payments (X) (X) (X) (X)
X NET RECEIPTS/ X X X X
(PAYMENTS)
* The “Difference…” column is not required. However, a comparison between actual
and the original or the revised budget, clearly identified as appropriate, may be
included.

Additional Column Approach
For Local Body YY for the Year Ended March 31, 20XX
Both Annual Budget and Financial Statements Adopt Accrual Basis
(Illustrated only for Income and Expenditure Statement. Similar
presentation would be adopted for other financial statements.)
(In `)
Actual Particulars Actual Revised Original *Difference:
20XX- (2) 20XX Budget Budget Original
XX (3) 20XX 20XX Budget and
(1) (4) (5) Actual
(6) = (5) - (3)
Revenue
X Taxes X X X X
X Fees, fines, penalties, and X X X X
licenses
X Revenue from exchange X X X X
transactions
X Transfers from other X X X X
governments
X Other revenue X X X X
X Total revenue X X X X
Expenses
(X) Wages, salaries, employee (X) (X) (X) (X)
benefits
(X) Grants and other transfer (X) (X) (X) (X)
payments

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(X) Supplies and consumables (X) (X) (X) (X)
(X) used (X) (X) (X) (X)
Depreciation/amortisation
(X) expense (X) (X) (X) (X)
(X) Other expenses (X) (X) (X) (X)
Finance costs
(X) Total expenses (X) (X) (X) (X)
X Share of surplus of associates X X X X
X Surplus/(deficit) for the X X X X
period
Attributable to:
X Owners of the controlling entity X X X X
X Minority interest X X X X
X X X X X
*The “Difference…” column is not required. However, a comparison between actual
and the original or the revised budget, clearly identified as appropriate, may be
included.

Extract of Note Disclosures—for Local Body X
(Local Body X presents its approved budget on a cash basis and the financial
statements on the accrual basis.)
1. The budget is approved on a cash basis by functional classification.
The approved budget covers the fiscal period from April 1, 20XX to
March 31, 20XX, and includes all entities within the Local Body.
(Prepared in accordance with ASLB XX, „Consolidated and Separate
Financial Statements‟)
2. The original budget was approved by governing body on (date),
and a supplemental appropriation of XXX for disaster relief support
was approved by governing body on (date) due to the earthquake in
the Northern Region on (date). The original budget objectives and
policies and subsequent revisions are explained more fully in the
Operational Review and Budget Outcomes reports issued in
conjunction with the financial statements.
3. The excess of actual expenditure over the revised budget of XX%
(XX% over original budget) for the Health function was due to
expenditures above the level approved by governing body in response
to the earthquake. There were no other material differences between
the final approved budget and the actual amounts.
4. The budget and the accounting bases differ. The financial statements
are prepared on the accrual basis, using a classification based on the

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nature of expenses in the income and expenditure statement. The
financial statements are consolidated statements that include all
controlled entities for the fiscal period from April 1, 20XX to March 31,
20XX. The financial statements differ from the budget which is
approved on the cash basis.
5. The amounts in the financial statements were re-cast from the accrual
basis to the cash basis, and reclassified by functional classification to
be on the same basis as the final approved budget. In addition,
adjustments to amounts in the financial statements for timing
differences associated with the continuing appropriation were made to
express the actual amounts on a comparable basis to the final
approved budget. The amount of these adjustments are identified in
the following table.
6. A reconciliation between the actual amounts on a comparable
basis as presented in the Statement of Comparison of Budget and
Actual Amounts and the actual amounts in the Statement of Cash
Flows for the Year Ended March 31, 20XX is presented below. The
financial statements and budget documents are prepared for the same
period. There is an entity difference: the budget is prepared for the
Local Body and the financial statements consolidate all controlled
entities.
There is also a basis difference: the budget is prepared on a cash basis and
the financial statements on the accrual basis.
(In `)
Operating Financing Investing Total
Actual Amount on X X X X
Comparable Basis as
Presented in the Budget
and Actual Comparative
Statement
Basis Differences X X X X
Timing Differences - - - -
Entity Differences X X X X
Actual Amount in the X X X X
Statement of Cash Flows
(This reconciliation could be included on the face of the Statement of
Comparison of Budget and Actual Amounts or as a note disclosure.)

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 Presentation of Budget Information in Financial Statements

Encouraged Note Disclosure: Biennial Budget on Cash Basis— For
Local Body A for the Year Ended March 31, 20XX
Particulars Original Target Revised 1st Year Balance Target Revised 2nd Year *Difference:
Biennial Budget Budget Actual on Available Budget Budget Actual on Budget and
Budget for 1st in 1st Comparable for 2nd for 2nd in 2nd Comparable Actual over
Year Year Year Basis Year Year Year Basis Budget
Period
1 2 3 4 5 6=2-4 7=2-3 8 9 10
RECEIPTS
Taxation X X X X X X X X X
Aid
Agreements X X X X X X X X X
Proceeds: X X X X X X X X X
Borrowing
Proceeds: X X X X X X X X X
Disposal of
plant and
equipment
Trading X X X X X X X X X
Activities
Other receipts X X X X X X X X X
Total
X X X X X X X X X
Receipts
PAYMENTS
Health (X) (X) (X) (X) (X) (X) (X) (X) (X)
Education (X) (X) (X) (X) (X) (X) (X) (X) (X)
Public order (X) (X) (X) (X) (X) (X) (X) (X) (X)
and safety
Social (X) (X) (X) (X) (X) (X) (X) (X) (X)
protection
Housing, (X) (X) (X) (X) (X) (X) (X) (X) (X)
community
amenities
Recreational, (X) (X) (X) (X) (X) (X) (X) (X) (X)
cultural,
religion
Economic (X) (X) (X) (X) (X) (X) (X) (X) (X)
affairs
Other (X) (X) (X) (X) (X) (X) (X) (X) (X)
Total (X) (X) (X) (X) (X) (X) (X) (X) (X)
Payments
NET
RECEIPTS/ X X X X X X X X X
(PAYMENTS)
*This column is not required. However, a comparison between actual and the original or the revised
budget, clearly identified as appropriate, may be included.

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Compendium of Accounting Standards for Local Bodies (ASLBs)

Appendix 1
Note: This Appendix is not a part of the Accounting Standard for Local
Bodies. The purpose of this Appendix is only to bring out the major
differences, if any, between Accounting Standard for Local Bodies (ASLB) 24
and the corresponding International Public Sector Accounting Standard
(IPSAS) 24, „Presentation of Budget Information in Financial Statements’.
Comparison with IPSAS 24, ‘Presentation of Budget
Information in Financial Statements’
1. Different terminologies have been used in ASLB 24 as compared to
corresponding IPSAS 24, e.g., terms „balance sheet‟, „income and
expenditure statement‟, „governing body‟, „revised budget‟ and „service
level benchmarks‟ have been used in place of „statement of financial
position‟, „statement of financial performance‟, „legislative body‟, „final
budget‟ and „service achievements‟.
2. Some definitions additional to that in IPSAS 24 have been provided in
ASLB 24 and definition of „accounting basis‟ given in IPSAS 24 has
been deleted in ASLB 24.
3. Paragraph 4 of IPSAS 24 which provides that Government Business
Enterprises (GBEs) should use IFRSs, has been deleted, as it is not
relevant for Local Bodies in India.
4. Paragraphs 35 - 36 of IPSAS 24 relating to preparation of the budgets
in accordance with or in consistent with statistical reporting system
have been deleted as the same does not seem relevant for Local
Bodies in India.
5. Some examples provided in IPSAS 24 have been modified in ASLB 24
to better address the circumstances of the Local Bodies.
6. In line with corresponding IPSAS 24, ASLB 24 requires an explanation
of material differences between the budget for which the entity is held
publicly accountable and the actual amounts. However, if such
explanation is provided in any other public document, then cross
referencing of that document is not permitted in ASLB 24 which is
permitted in IPSAS 24.

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7. Paragraphs pertaining to effective date have been deleted as ASLB 24
would become mandatory for the Local Bodies in a State from the date
specified by the State Government concerned.
8. Other consequential changes in ASLB 24 have also been made due to
all above changes. However, paragraph numbers have been retained
to maintain consistency with the corresponding IPSAS.

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