Accounting Standard 8 ,9 And 10

Accounting Standard 8 is concerned with accounting for research and development.This standard deals with the treatment of costs of research and development in financial statements.In order to achieve a reasonable degree of comparability between enterprises and between accounting periods of the same enterprise, it is necessary, to identify the elements comprising Research and Development Costs.Amounts of Research and Development costs should be charged as an expense of the periods in which they are incurred.The Research and Development costs of a project may be deferred to future periods under certain conditions.If Research and Development are deferred they should be allocated on a systematic basis to future accounting periods.

The total of Research and Development costs, including the amortized portion of deferred costs, charged as expense should be disclosed in the profit and loss account for the period.Deferred Research and Development should be separately disclosed in the Balance Sheet under the head “Miscellaneous Expenditure”.

 


Accounting standard 9 deals with the base for recognition of revenue in the profit and loss statement of an enterprise.The Statement is concerned with the recognition of revenue arising in the course of the normal activities of the enterprise from the sale of goods, rendering of services and the use by others of the enterprise resources yielding interest, royalties and dividends.The revenue should be recognized, provided that at the time of performance, it is not unreasonable to expect ultimate collection, revenue recognition should be postponed.


Accounting standard 10 deals with the accounting for fixed costs.The gross book value of a fixed asset should be either historical cost or a revaluation computed in accordance with this standard.The cost of a fixed asset should comprise its purchase price and any attributable costs of bringing the asset to its working condition for its intended use, financing costs relating to deferred credits or borrowed funds, attributable to construction or acquisition of fixed assets should be included in the gross book value of the asset to which they relate.
 

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