 It gives me immense pleasure to introduce C.A. Mr. Panko's Goyal. I generally tell him Professor Goyal because he has certain qualities that is rarely found among the teachers. He is a very good teacher, erudite teacher and he is a professional par excellence. Now he is working with World Bank. He is here. He will be talking to you on number of standards. So far, we have not talked standards in the forenoon session or prenoon sessions. We talked about concept, principles, etc. You are welcome to ask him questions. But at the same time, he has to be careful that he has to cover a lot of areas and each area is quite huge so that your questions should be quite provocative at least to him so that he can give you a better constructive reply and time is better utilized. That is more important. His time is better utilized. Please attend to him and I invite Professor Goyal to take over. Thank you sir. Thank you sir. First of all, good afternoon everyone. It is a tough session after lunch. I can understand. I will take it as a challenge because whenever the session was planned it was discussed whether I should take a morning session or after lunch and ultimately we decided let me have an after lunch because to take the after lunch session it is always a fear that everyone will be taking a nap or discussing about how was the quality of the food. What was the menu. Today was the quality of food. So what will we get in the evening? What will we get in the morning? So relax. We will discuss all types of menus and everything and my way of taking the topic is very very different. I don't like sitting there. I may come even to any one of you because I know some of you are very very senior. Some are of my age but for me that I have been given a task and I have to complete a task and I still remember I will start this session with complimenting Bakshi Sahab I was reading a lot of annual reports I have requested a lot of annual reports for different different organizations. I would name them because here we are not talking about any specific things we are talking about general things and I was very happy to read in one of the organizations annual report it is written that we will create and implement the accounting standards as per the directions given by Ministry of HRD it is written there and we are just waiting for the formats to come we are just waiting for the formats to come it means already that drive is already there or abhi my lunch may be a lot of discussion actually position educational institutions exactly the same way long back 15 years back local government may be the same you all know government has three tiers central, state or local local government may be the same urban local bodies ULBs may be accounting double entry or cruel or AS and you will be surprised accounting standards are not there yet even ICI Navy has not made all AS ASLB accounting standards for local bodies even when for the first time accounting standards were mentioned maximum was saying we are only implementing because our funding comes from the center if we do not do it center will stop the grants it was not voluntary it was basically compulsory if we do not do it logically our fund will stop if I am correct how many people are sitting here or other institutions in the mind of 90% instead of this we are doing it because it is mandatory otherwise the funds and grants which we record in the books may be closed even I was a part of University of Delhi I was a permanent faculty in DU I resigned in 2006 to start my consulting assignment I will just share 5 minutes so that I can get the idea I cleared my CA long back so generally my appearance people say what will this teach but do not worry we will discuss after 3 hours because you are with me for 3 hours I cleared my CA long back into zone 2 did my graduation from SRCC then I am common in finance I am pursuing my PhD in finance at present and the trainer for the CAG also for the world bank so lot of trainings have been done you will be surprised when we are talking about AS we did one assignment in Afghanistan Kabul it was a world bank assignment even there also we implemented the double tree accounting and your accounting standards so if we can implement and we did in 11 months when it was not in English it was not in Hindi it was in their language Pushto language only so if we can do there in 11 months then frankly speaking anything is possible these are some of the books which I have written then I am just sharing with you so that at least you can get the idea of the scopes this is a project which I am doing it at present this may be exactly world bank project I am sitting at the ministry of urban development it is a 5 year project where across the India 34 cities we are giving this support how to improve their financial system accounting part so exactly here when we come these are some of the trainings which you have taken you can see the training which I did in Kabul and you can see the audience that shows that even these people were interested in and I am talking about the long back in 2006 first of all I will start with the major part because your previous session there was a reason I came early I just wanted to see the feel actually what is the discussion of the audience maximum of you were asking those queries if we take land then what happens what is the standard format of the accounts right how the depreciation should be charged now the discussion was about books you have raised the point I have raised the point from Calcutta sir what should we do on books the rate of depreciation is 4% I have said it on net I have shown it to you and the query was on books generally depreciation is not given and if we have to put a higher rate then it will be against the law I will show it to you it is not we will discuss I have never planned my sessions right and my way of taking will be very different it will be presentations may be some videos also to explain the concept first of all we have AS logically we should know what is accounting standard and how many accounting standards a very simple example if it exists just see in front of you rules yes rules can be you will you shall or you must which one is mandatory last one the first meaning of the standards is that these are rules and those rules there is no deviation secondly in a mind sir we are educational institutions we are not here for profit then why AS have been imposed on us sorry I will take a practical case my house has a temple we have it sir since last 6 years or AS that depreciation claim did not that CA was saying because you are the temple and you are running not for profit so depreciation should not be charged we show to a temple just see in the accounting standards applicability it is clearly written any activity any activity if of commercial nature any activity commercial industrial or business then AS are mandatory a commercial means what even a single rupee profit if you charge when you charge from your students you never charge cost to cost may be 1 rupee extra but your profit element is involved there you conduct your workshops when you conduct your workshops you always charge a fees right it means commercial activity is involved that temple used to give a room for the marriages for the functions everything and used to charge a rent it is a commercial activity AS is the first myth AS is mandatory for us it is not applicable sorry they are they are and don't worry my all presentations I will be uploading them on my website also I will be giving you link of my website no need for any copy each and every thing I will upload it now even how many of you know him who is he please I believe in discussion my way of taking is very different thank you it seems you have eaten when God was born there was a specific purpose behind it the purpose was everyone knows it to basically remove all the bad practices bad practices isn't it that is why all the stories that were told that was a pre-plan it was a conspiracy it is God's conspiracy that is why exactly exactly when CA institute was formed in 1949 there were lot of bad accounting practices are going on there were no rules no format no regulations logically everyone was following their own method logically everyone was following their own method so I take an example ICI was formed in 1949 I call ICI as a mother why I am calling ICI as a mother because ICI is a body of ministry of corporate affairs ICI has all the regulations and rules it has to be ultimately approved by ministry so ICI was formed in 1949 now I am a mother I was watching it for a long time there were lot of bad bad practices going on so my mother gave birth to a baby the name of the baby accounting standard board I am telling you the history of AS so my mother gave birth to a baby on 21st April 1977 ASB the name of the baby accounting standard board logically this baby has grown up now from 77 if we come to 14 then in India if you make AS who will make ICI ASB because you have any AS query you will make ASB immediately you will get a reply till now total 32 accounting standard have been issued means their drafts are ready they are with you you will get it on site but you will be surprised only 30 people come in use the reason is if I count 1 2 3 4 5 6 7 8 there is no 8 9 and the building I am standing in in IIT there was a lot of mandatory for 8 AS 8 was research and development cost research and development cost and all the IITs if you have seen a movie 3 idiots 3 idiots how many people have seen it sorry I know many seniors but I consider you as my student sir how many people have seen 3 idiots there is a scene in the last when Ameer Khan has a scene when entire models are being shown inventions are being shown all those are patents isn't it all those are patents all those patents were research and then it was developed talk about your iPhones if the latest iPhone is available I don't remember which one? i5 what is the price sir 50,000 if I want to purchase i5 will a new model come after that it means the research is still going on you are incurring a expenditure on the research if you are incurring it means the money is going how to record it that all part is being covered in AS-8 but AS-8 was very very old there were not many things in it replaced it scrapped it scrapped AS-26 intangible asset I will be covering this in tomorrow's session when I will have a discussion about depreciation of fixed asset AS-26 is not different but I will be covering that point also this is the point of depreciation sir now basically for usage it is only 31 and out of 31 all the sessions we have planned in 3-4 days in this context in educational institutions generally seeing the accounting policies which are applicable mainly that is why we have planned the main sessions first