a) “Accounting Standards” means the Accounting Standards as specified in rule 3 of these rules 

b) “Act” means the Companies Act, 1956 (1 of 1956)

For clause (b), the following clauses will be substituted, namely: 

b) “Act” means the Companies Act, 1956 (1 of 1956) or the Companies Act, 2013 (18 of 2013), as the case may be.

d) “General Purpose Financial Statements” include balance sheet, statement of profit and loss, cash flow statement (wherever applicable), and other statements and explanatory notes which form part thereof. 

(e) “Enterprise” means a company as defined in section 3 of the Companies Act, 1956.

For clauses (d) and (e), the following clauses shall be substituted, namely:- (

d) “Financial Statements” means financial statements as defined in sub-section (40) of section 2 of the Companies Act, 2013; 

(e) “Enterprise” means a ‘company’ as defined in sub-section (20) of section 2 of the Companies Act, 2013 or as defined in section 3 of the Companies Act, 1956, as the case may be;’.

Para 27 – Classification of inventories are: 

a) materials and components 

b) work in progress 

c) finished goods 

d) stores and spares 

e) loose tools

Para 27 – New classification of inventories are: 

a) Raw materials and components 

b) Work-in-progress 

c) Finished goods 

d) Stock-in-trade (in respect of goods acquired for trading) 

e) Stores and spares 

f) Loose tools 

g) Others (specify nature)

There are far reaching changes that have been brought out in the new AS -
10. The key changes as compared to erstwhile AS 10 have been enlisted
below:

• AS 10 - Accounting for Fixed Assets is now called as AS 10 (Revised) - Property, Plant and Equipment.
• Substantial aspects of depreciation as per AS 6 – Depreciation Accounting has been covered in this standard and AS-6 is omitted
• This standard does not apply to biological assets related to agricultural activity and wasting assets. The standard however mentions that there is an Accounting Standard on Agriculture that is under preparation, which once introduced will provide guidance on accounting of livestock. Till then this AS will apply for that as well.
• For Measurement tow models viz. cost model and revaluation modelare provided.
• If an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs should be revalued.
• Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item should be depreciated separately.
• The depreciation charge for each period should be recognised in the statement of profit and loss.
• The depreciable amount of an asset should be allocated on a systematic basis over its useful life.
• Cease of depreciation – retired from active use or held for disposal
• Depreciation Method - Straight-line depreciation, Diminishing balance method and Units of production method

• Derecognition - on disposal or when no future economic benefits are expected from its use or disposal. 

  Guidance on accounting change in liability which will imp
   

Para 20 - Investment Properties 

The cost of any shares in a cooperative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property

Para 20 - Investment Properties

 An investment property is accounted for in accordance with cost model as prescribed in Accounting Standard (AS) 10, Property, Plant and Equipment. The cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property

Para 30 - Investment Properties

 An enterprise holding investment properties should account for them as long term investments.

Para 30 - Investment Properties 

An enterprise holding investment properties should account for them in accordance with cost model as prescribed in AS 10 - Property, Plant and Equipment.

Para 42 - Treatment of Reserves Specified in a Scheme of Amalgamation 

The treatment of reserves of the transferor company after amalgamation to be in accordance with the AS 14. If the statute prescribes different treatment the same to be followed. Had no treatment been prescribed by the scheme, the details of the same to be disclosed.

Para 42 - Treatment of Reserves Specified in a Scheme of Amalgamation

 Paragraph 42 will not apply to any scheme of amalgamation approved under the Companies Act, 2013.

Para 9 - Scope of Consolidated Financial Statements 

A parent company which presents consolidated financial statements should consolidate all subsidiaries, domestic as well as foreign

Para 9 - Scope of Consolidated Financial Statements

 The scope of para 9 has been increased to state that where companies do not have subsidiaries are and required to prepare Consolidated Financial Statements, will do it in the following manner 

a) Company having Associate enterprise – To prepare consolidated financial statements as per AS 23 - Accounting for Associates in Consolidated Financial Statements 

b) Company having joint venture enterprises - To prepare consolidated financial statements as per AS 27 - Financial Reporting of Interests in Joint Ventures respectively

Para 35 - Best Estimate 

The amount recognised as a provision should be the best estimate of the expenditure required to settle the present obligation at the balance sheet date. The amount of a provision should not be discounted to its present value.

Para 35 - Best Estimate 

Further, exceptions for discounting the present value are – 

• Decommissioning, restoration and similar liabilities that are recognised as cost. The discount rate (or rates) should be a pre-tax rate (or rates).