Required by law in some cases

Translation policies in respect of foreign currency items

Going concernConsistencyAccrual

Treatment of goodwillValuation of inventoriesMethod of depreciation, depletion

Investments, fixed assets,

•Valuation of inventories

Determination of value at which inventories are carried in financial statements until the related revenues are recognized.

ascertainment of cost of inventories and any written down thereof to net realizable value.

Asset and held for sale Used in process of production and then we

sale

Example:- merchandise purchased by a retailer and

held for resale consumables and loose tools awaiting use in

the production process, land, computer software

LIFOFIFOHIFOWeighted average

The accounting policies adopted in measuring inventories, including the cost formula used

The total carrying amount of inventories and its classification appropriate to the enterprise

•Cash Flow Statements

It includes only those items which effects cash.

It is also called as statement of changes in financial position

Cash flows from (used in) operating activities

Cash receipts from customersCash paid to suppliers and employeesCash generated from operations  Interest paid  Income taxes paid   

Purchase and sale of fixed assets

Dividends received

Interest received

 Dividends paid

Interest paid

Proceeds from issue of share capital

Accounting standard :- 1 applicable to cipla

Disclosure of Particulars in the Report of Board of Directors Rules, 1988

Directors have taken proper and sufficient care for the maintenance of adequate accounting records for safeguarding the assets of the Company and for preventing and detecting fraud and irregularities

Accounting standard :- 2 applicable to Cipla

During the financial year goods physically verified by management

Perpetual inventory system

Physical verification of stock followed by management are reasonable and adequate

Accounting standard

3

applicable to cipla

Profit before tax 838.36Net cash flow operating activity 380.20Net cash used in investing activity -687.25Net cash used in fin. Activity 254.84Net inc/dec in cash and equivlnt -52.21Cash and equivalnt begin of year 131.49

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