Limited Revision to Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies

The Council of the Institute of Chartered Accountants of India has decided to add the following paragraph after paragraph 32 of AS 5:

“33. A change in accounting policy consequent upon the adoption of an Accounting Standard should be accounted for in accordance with the specific transitional provisions, if any, contained in that Accounting Standard. However, disclosures required by paragraph 32 of this Statement should be made unless the transitional provisions of any other Accounting Standard require alternative disclosures in this regard. ”

The above revision comes into effect in respect of accounting periods commencing on or after 1.4.2001.