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TMI BlogSummary of First 2 ICDS issue by CBDTX X X X Extracts X X X X X X X X Extracts X X X X ..... Summary of First 2 ICDS issue by CBDT - By: - Deepak Aggarwal - Income Tax - Dated:- 3-4-2015 - - Income Computation and Disclosure Standards (ICDS) Issued by CBDT under power under section 145(2) of Income Tax Act, 1961 vide notification no.32/2015, dated 31-3-2015 Purpose: Computation of Income under PGBP head and Income from Oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sources head Applicability: All assessee following mercantile accounting system W.e.f. 01/04/2015 i.e. Assessment year 2016-17 S.No. Scope of ICDS Particulars i Significant Accounting policies 1) Fundamental Accounting assumption - Going Concern, Consistency and Accrual. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) Consideration in selection and change of accounting policies - Such as presents a true and fair view of income, Governed by their substance, Non recognition of mark to market loss or any expected loss, policy not be changed without any reason. 3) Disclosure of accounting policies - All significant policies need to be disclosed , All material changes with amount need to be disclosed, in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se changes not ascertainable then fact need to be disclosed , if change in accounting policies impact previous years then fact need to be disclosed in relevant previous years, disclosures itself not a remedy of a wrongful treatment of an item , Fact in case fundamental accountning assumption not followed. ii Valuation of Inventories 1) Not covered items - work in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... progress arising under construction contract, work in progress which dealt by any other ICDS, shares, debentures and other financial instruments held as stock in trade , live stock ,agricultural and forest products , mineral oils , ores and gases to the extent measured at NRV, machinery spares of a tangible fixed assets. 2) Definitions given in ICDS - Inventories ,Net realisable vaule (NRV) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3) Measurement - Lower of Cost or NRV. 4) Cost of Inventories - All costs of purchases , services ,conversion cost and all other costs incurred to make inventories for their present location and conditions. exclusion are abnormal waste materials, storage cost , administrative overheads and selling costs. 5) FIFO and Weighted cost formula in case products are inter changeable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6) Retail method in case FIFO and Weighted cost method can not be followed 7) NRV will be calculated item by item basis, valuation will be based on most reliable evidence available at the time of valuation. 8) Dissolution - Valuation at NRV in case of dissolution 9) Disclosures - Accounting policies used in Measuring inventories with cost formula , total carrying amount of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nventories and classification. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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