The Institute of Cost Accountants of India (ICAI), recognizing the need for structured approach to the measurement of cost in manufacture or service sector and to provide guidance to the user organizations, government bodies, regulators, research agencies and academic institutions to achieve uniformity and consistency in classification, measurement and assignment of cost to product and services, has constituted Cost Accounting Standards Board (CASB) in the year 2001 with the objective of formulating the Cost Accounting Standards (CASs).
The structure of Cost Accounting Standard consists of Introduction, Objectives of issuing standards, Scope of standard, Definitions and explanations of the terms used in the standard, Principles of Measurement, Assignment of Cost, Presentation and Disclosure.
Statement showing date of mandatory application of Cost Accounting Standards issued by Council of the Institute of Cost Accounts of India is as follows
|CAS No.||Title||Effective Date(From period of commencing)|
|CAS-1 (Revised 2015)||Classification of Cost||1st April 2015|
|CAS-2 (Revised 2012)||Capacity Determination||1st April 2012|
|CAS-2 (Revised 2015)||Capacity Determination||1st April 2016|
|CAS-3 (Revised 2011)||Overheads||1st April 2012|
|CAS-3 (Revised 2015)||Production and Operation Overheads||1st April 2016|
|CAS-4||Cost of Production for Captive Consumption||1st April 2010|
|CAS-5||Average (Equalized) cost of transportation||1st April 2010|
|CAS-6||Material cost||1st April 2010|
|CAS-7||Employee Cost||1st April 2010|
|CAS-8||Cost of Utilities||1st April 2010|
|CAS-9||Packing Material Cost||1st April 2010|
|CAS-10||Direct Expenses||1st April 2010|
|CAS-11||Administrative Overheads||1st April 2010|
|CAS-12||Repairs & Maintenance Cost||1st April 2010|
|CAS-13||Cost of Service Cost Centre||1st April 2011|
|CAS-14||Pollution Control Cost||1st April 2012|
|CAS-15||Selling and Distribution Overheads||1st April 2013|
|CAS-16||Depreciation and Amortisation||1st April 2014|
|CAS-17||Interest and Financing Charges||1st April 2014|
|CAS-18||Research and Development Costs||1st April 2014|
|CAS-19||Joint Costs||1st April 2014|
|CAS-20||Royalty and Technical Know-How Fee||1st April 2014|
|CAS-21||Quality Control||1st April 2014|
|CAS-22||manufacturing Cost||1st April 2015|
In view of the Council Resolutions passed on different dates, the Cost Accounting Standards are mandatory with effect from the period as mentioned above for being applied for preparation and certification of the General Purpose Cost Statements.In case the cost accountant is of the opinion that aforesaid standards have not been compiled with for preparation of Cost Statements, it shall be his duty to make a suitable disclosure/qualification in his audit report/certificate.
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