Accounting Standards for Local Bodies (ICAI)

Accounting Standards for Local Bodies – ASLB

Accounting Standards formulated by the ICAI do not override the statute / law that govern the preparation and presentation of general purpose financial statements of a particular Local Body. Accounting Standards (ASs) already issued by ICAI apply to those enterprises as stated in paragraph 3.3 of the ‘Preface to the Statements of Accounting Standards’. These Accounting Standards are not designed to apply to Local Bodies. However, since these Accounting Standards lay down wholesome principles of accounting, Local Bodies may follow these Standards during the transitional period, until the Accounting Standards for Local Bodies (ASLBs) are issued by the ICAI. Thus, once an ASLB is issued, the Local Bodies should follow the ASLB and not the corresponding Accounting Standard issued by the ICAI.

Ensuring compliance with the Accounting Standards for Local Bodies is the responsibility of the appropriate authority which approves the financial statements of the Local Body for the purpose of issuance thereof. Having issued the Accounting Standard for Local Bodies, various State Governments may require Local Bodies to follow the Accounting Standards for Local Bodies issued by the Institute of Chartered Accountants of India. Thus, an Accounting Standard for Local Bodies becomes mandatory for Local Bodies in a State from the date specified in this regard by the State Government concerned.

Financial statements cannot be described as complying with the Accounting Standards for Local Bodies unless they comply with all the requirements of each applicable Standard.

 List of ASLBs issued by the ICAI
Preface to the Accounting standard for Local Bodies
Accounting Standard for Local Bodies (ASLB) 1, ‘Presentation of Financial Statements’
Accounting Standards for Local Bodies (ASLB) 3, ‘Accounting Policies, changes in Accounting Estimates and Errors”
Accounting Standard for Local Bodies (ASLB) 5, ‘Borrowing Costs’
Accounting Standard for Local Bodies (ASLB 9), ‘Revenue from Exchange Transactions’
Accounting standard for Local Bodies (ASLB) 11, “Construction Contracts”
Accounting Standard for Local Bodies (ASLB) 12, ‘Inventories’
Accounting Standard for Local Bodies (ASLB) 14, ‘Events After the Reporting Date’
Accounting Standard for Local Bodies (ASLB) 17, ‘Property, Plant and Equipment’
Accounting Standards for Local Bodies (ASLB) 19, ‘Provision, Contingent Liabilities and Contingent Assets’
Accounting Standards for Local Bodies (ASLB) 31, ‘Intangible Assets’
Accounting Standards for Local Bodies (ASLB), ‘Financial Reporting under Cash Basis of Accounting’
Accounting Standard for Local Bodies (ASLB) 24, ‘Presentation of Budget Information in Financial Statements’

Download PDF copies of ASLBs of ICAI – Complete Text

Leave a Reply