580 likes | 2.18k Views
COST ACCOUNTING STANDARDS (CAS- 2, 4, 6, 7, 8, 9, 10, 11 & 16). List of Cost Accounting Standards. CAS-2 (CAPACITY DETERMINATION). Introduction:-. Determination of Capacity:. CAS-2 (CAPACITY DETERMINATION). Disclosures:. FORMAT OF QUANTITY DETAILS. FORMAT OF COST SHEET.
E N D
COST ACCOUNTING STANDARDS • (CAS- 2, 4, 6, 7, 8, 9, 10, 11 & 16)
CAS-2 (CAPACITY DETERMINATION) Introduction:- Determination of Capacity:
CAS-2 (CAPACITY DETERMINATION) Disclosures:
CAS-6 (MATERIAL COST) Introduction:- Principles of Measurement:-
CAS-6 (MATERIAL COST) • 6. Losses due to shrinkage or evaporation and gain due to elongation or absorption of moisture etc., before the material is received shall be absorbed in material cost to the extent they are normal, with corresponding adjustment in the quantity. The adjustment for moisture will depend on whether dry weight is used for measurement. Principle of valuation of issue of material:-
CAS-6 (MATERIAL COST) Assignment of costs - Direct Expenses :- Disclosures : -
CAS-8 (COST OF UTILITIES) Introduction:- Principles of measurement:- Presentation:-
CAS-8 (COST OF UTILITIES) Disclosures:-
CAS-7 (EMPLOYEE COST) Introduction:- Definitions:-
CAS-7 (EMPLOYEE COST) • 5. Cost of Idle time is ascertained by the idle hours multiplied by the hourly rate applicable to the idle employee or a group of employees. • 7. Any recovery from the employee towards any benefit provided e.g. housing shall be reduced from the employee cost. Principles of Measurement :
CAS-7 (EMPLOYEE COST) Assignment of costs : • 5. Idle time cost shall be assigned direct to the cost object or treated as overheads depending on the economic feasibility and the specific circumstances causing such idle time. • Cost of idle time for reasons anticipated like normal lunchtime, holidays etc is normally loaded in the Employee cost while arriving at the cost per hour of an Employee/a group of Employees whose time is attributed direct to cost objects. Presentation :
CAS-7 (EMPLOYEE COST) Disclosures : • The cost statements shall disclose the following: • Employee cost attributable to capital works or jobs in the nature of deferred revenue expenditure indicating the method followed in determining the cost of such capital work. • Separation costs payable to employees. • Any abnormal cost excluded from Employee cost. • Penalties and damages paid etc excluded from Employee cost. • Any Subsidy, Grant, Incentive and any such payment reduced from Employee cost. • The Employee cost paid to related parties. • Employee cost incurred in foreign exchange.
CAS-4 (CAPTIVE CONSUMPTION) Introduction:- Periodicity of Cost Sheet/Certification of CAS-4:-
CAS-4 (CAPTIVE CONSUMPTION) Cost of Production:- Some Important Points:-
CAS-4 (CAPTIVE CONSUMPTION) Abnormal and non-recurring cost:
CAS-4 (CAPTIVE CONSUMPTION) Valuation of Goods Covered under CAS-4:
CAS-4 (CAPTIVE CONSUMPTION) Cost Sheets and Cost Records:- Some Important Disclosures:-
CAS-4 (CAPTIVE CONSUMPTION) Open Market value of supply of goods or services is the full value in money, excluding the GST and Cess, payable by a person for a transaction. If the recipient is eligible for full input tax credit, then the value declared in the invoice will be considered as the open market value. This method is applicable when the open market value of the goods or services is not available. This metrics is at the option of Supplier and only applicable if goods are intended for further supply by the recipient.
Stock Transfer Under GST Regime • Since the manufacturing unit is registered in MP and fully eligible for input tax credit, the invoice value of Rs. 18,000 will be considered as open market value and X Ltd. is required to pay GST on Rs. 18,000. • In arriving the taxable value of such transfers, X Ltd. needs to value the supply of goods and/or services of like kind and quality. Hence, branch transfer will be valued at Rs.25,000 and GST will be levied on it. • Here, the invoice value cannot be considered as the open market value because the manufacturing plant registered in Goa is engaged in 100% supply of exempted goods and is not eligible to avail input tax credit. The stock transfer will be valued at the open market value of Rs. 20,000. However, X Ltd. can also opt to pay 90% of price charged for the supply of like kind and quality goods i.e. Rs.19,800. This is because, the finished goods are transferred for further supply. Scenario Valuation Example X ltd, a registered manufacturer in Maharashtra, transferred finished goods to their depot located in MP. At the time of transfer, the open market value of the finished goods was Rs. 20,000. Also, the depot supplied goods of like kind and quality at price of RS. 22,000 • X Ltd, a registered manufacturer in Maharashtra, transferred semi- finished goods to another manufacturing plant, registered in MP, for further processing. • The invoice value of such goods was at Rs.18,000 • X Ltd., a registered manufacturer in Maharashtra, transferred semi- finished goods to another manufacturing plant, registered in Goa. The unit in Goa is engaged in manufacturing goods which are exempted. • Assume, the open market value is not available at the time of transfer and value of like kind and quality of goods was at Rs. 25,000.
CAS-9 (PACKING MATERIAL COST) Introduction:-
CAS-9 (PACKING MATERIAL COST) • 2. Self manufactured packing materials shall be valued including direct material cost, direct employee cost, direct expenses, job charges, factory overheads including share of administrative overheads comprising factory management and administration and share of research and development cost incurred for development and improvement of existing process or product. Principles of Measurement : -
CAS-9 (PACKING MATERIAL COST) Assignment of Costs :-
CAS-10 (DIRECT EXPENSES) Introduction:- Principles of measurement:-
CAS-10 (DIRECT EXPENSES) Assignment of costs :- Presentation :-
CAS-10 (DIRECT EXPENSES) Disclosures :-
CAS-11- (ADMINISTRATION OVERHEAD) Introduction:- Principles of measurement:-
CAS-11- (ADMINISTRATION OVERHEAD) Assignment 0f Costs :-
CAS-11- (ADMINISTRATION OVERHEAD) Disclosures :-
CAS-16-(DEPRECIATION & AMORTISATION) Introduction:- Principles of Measurement:-
CAS-16-(DEPRECIATION & AMORTISATION) • D. The impact of higher depreciation due to revaluation of assets shall not be assigned to cost object. Assignment of costs - Direct Expenses :-
SPEAKER Dinesh Sha Partner, Mani & Co, Cost Accountants CONTACT Address: 111, Southern Avenue Kolkata – 70029 Email: dineshsha@vsnl.net Phone:- 9831025610