As you are aware that the Institute of Cost & Works Accountants of India, the primary body for the Cost & Management accounting is issuing various standards called Cost Accounting Standards (CAS).
The Council of the ICWAI has decided to make the application of the CAS mandatory. So, far the following CAS are issued:
CAS 1 : Classifications of Costs
CAS 2 : Capacity Determination
CAS 3 : Overheads
CAS 4 : Cost of Production for Captive Consumption
CAS 5 : Determination of Average (Equalized) Cost of Transportation
CAS 6 : Material Cost
CAS 7 : Employee Cost
CAS 8 : Cost of Utilities
CAS 9 : Packing Material Cost
CAS 10: Direct Expenses
The above CAS shall be mandatory with effect from period commencing on or after 1st April 2010 for being applied for the preparation and certification of General PurposeCost Accounting Statements.
In case the cost accountant is of the opinion that the aforesaid standards have not been complied with for the preparation of the Cost Statements, it shall be his duty to make a suitable disclosure/qualification in his audit report/ certificate.
More such CAS are expected from ICWAI. These are really required and should also be easy to apply and comply.
Cheers,
Gopal
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