Download Cost Accounting Standards (CAS) 2019 – Summery | Types | Importance

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Cost Accounting Standards (CAS) Introduction : In India, The Institute of Cost Accountants of India (ICMAI), 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) with the objective of formulating the Cost Accounting Standards.

Summery

The structure of Cost Accounting Standard consists of Introduction, Scope of standard, Objectives of issuing standards, Principles of Measurement, Definitions and explanations of the terms used in the standard, Assignment of Cost, Presentation and Disclosure.Download Cost Accounting Standards (CAS) 2019 - Summery | Types | Importance

While formulating the Cost Accounting Standards, the CASB takes into consideration the applicable laws, usage and business environment prevailing in India. CASB also gives due consideration to the Cost Accounting Standards, principles and practices being followed by the other countries in the world. If due to subsequent changes in the law, a particular standard or any part thereof becomes inconsistent with such a law, the provisions of the said law shall prevail.Starting from 2001-02 CASB has met 84 times as on date. Under the Chairmanship of various Chairmen, it has covered a lot of distance and some of the major achievements are given below

Major announcements by the Board:

  • Issued 24 Cost Accounting Standards;
  • Issued Generally Accepted Cost Accounting Principles (GACAP);
  • Issued Guidance Notes on CAS-2 (Revised 2015), CAS-4, CAS-6, CAS-7, CAS-8, CAS-9, CAS-10, CAS-11 and CAS-12.

CASB issued limited Revision of Guidance Notes on the above CASs in view of changes brought out by Companies (Cost Records and Audit) Rules 2014 with respect to maintenance of cost records.Besides above the CASB Secretariat has also organised a number of programmes on Cost Accounting Standards for members and others throughout India. It also organises meetings with the stakeholders to discuss the various flagged issue to arrive at consensus on the same. CASB also issues clarifications and opinions on the queries received from Regulators, Industry and other Stakeholders. The opinions/ clarifications issued as on date are available for download from this webpage.

Procedure for issuing the Cost Accounting Standards

The following procedure shall be adopted for formulating and issuing Cost Accounting Standards:

  • The selection of topics which the Cost Accounting Standards have to be formulated and the sequence in which they will be developed will be decided by the CASB, on its own volition or on the basis of requests received from and interest group.
  • The CASB will constitute a Task Force for each issue taken up for the formulation of the Cost Accounting Standard. The Task force will prepare the initial draft of the proposed standard.
  • The draft of the proposed standard will generally be in the following format:1. Introduction
    2. Objectives
    3. Scope
    4. Definitions and explanations of the terms used
    5. Principles of Measurement
    6. Assignment of Cost
    7. Presentation
    8. Disclosure

LIST OF COST ACCOUNTING STANDARDS (CAS) – Types

LIST OF COST ACCOUNTING STANDARDS (CAS) AND GUIDANCE NOTES ISSUED AS ON DATE
CAS No.TitleEffective Date (For the period commencing from)Guidance Note
CAS 1 (Revised 2015)Classification of Cost1st April 2015
CAS 2 (Revised 2015)

CAS 2 (Revised 2012)

Capacity Determination 

Capacity Determination

1st April 2016 

1st April 2012

Guidance Note on Capacity Determination CAS-2 (Revised 2015)
CAS 3 (Revised 2015) 

CAS 3 (Revised 2011)

Production and Operation Overheads 

Overheads

1st April 2016

1st April 2012

CAS 4Cost of Production for Captive Consumption1st April 2010Revised Guidance Note on Cost of Production for Captive Consumption (CAS-4)
CAS 5Average (Equalized) Cost of Transportation1st April 2010
CAS 6Material Cost1st April 2010Guidance Note on Material Cost (CAS-6)
CAS 7Employee Cost1st April 2010Guidance Note on Employee Cost (CAS-7)
CAS 8Cost of Utilities1st April 2010Guidance Note on Cost of Utilities (CAS-8)
CAS 9Packing Material Cost1st April 2010Guidance Note on Packing Material Cost (CAS-9)
CAS 10Direct Expenses1st April 2010Guidance Note on Direct Expenses (CAS-10)
CAS 11Administrative Overheads1st April 2010Guidance Note on Administrative Overheads (CAS-11)
CAS 12Repairs and Maintenance Cost1st April 2010Guidance Note on Repairs and Maintenance Cost (CAS-12)
CAS 13Cost of Service Cost Centre1st April 2011
CAS 14Pollution Control Cost1st April 2012
CAS 15Selling and Distribution Overheads1st April 2013
CAS 16Depreciation and Amortisation1st April 2014
CAS 17Interest and Financing Charges1st April 2014
CAS 18Research and Development Costs1st April 2014
CAS 19Joint Costs1st April 2014
CAS 20Royalty and Technical Know-How Fee1st April 2014
CAS 21Quality Control1st April 2014
CAS 22Manufacturing Cost1st April 2015
CAS 23Overburden Removal Cost1st April 2017
CAS 24Treatment of Revenue in Cost Statements1st April 2017
Guidance Note on Treatment of Costs Relating to Corporate Social Responsibility (CSR) Activities

Download Cost Accounting Standards

Given PDF documents are useful to understand the cost accounting standards and to make short notes for exams.

Cost Accounting Standards
CAS NoTitleObjective
CAS-1 *
(Revised 2015)
Classification of CostFor preparation of Cost Statements
CAS2*** (Revised 2015)Capacity DeterminationTo bring uniformity and consistency in the principles and methods of determination of capacity with reasonable accuracy.
CAS2**Capacity DeterminationTo bring uniformity and consistency in the principles and methods of determination of capacity with reasonable accuracy.
CAS3 ***
(Revised 2015)
Production and Operation OverheadsTo bring uniformity and consistency in the principles and methods of determining the Production or Operation Overheads with reasonable accuracy.
CAS3**OverheadsTo bring uniformity and consistency in the principles and methods of determining the Overheads with reasonable accuracy.
CAS4Cost of Production for Captive ConsumptionTo determine the assessable value of excisable goods used for captive consumption.
CAS-4
(Revised 2018)#
Cost Accounting Standard on Cost of Production / Acquisition / Supply of Goods / Provision of ServicesTo determine cost of production or acquisition or supply of goods or provision of services or both.
CAS5**Average (equalized) Cost of TransportationTo determine averaged/equalized transportation cost
CAS6****
(Limited Revision 2017)
Material CostTo bring uniformity and consistency in the principles and methods of determining the material cost with reasonable accuracy in an economically feasible manner.
CAS6**Material CostTo bring uniformity and consistency in the principles and methods of determining the material cost with reasonable accuracy in an economically feasible manner.
CAS7****
(Limited Revision 2017)
Employee CostTo bring uniformity and consistency in the principles and methods of determining the Employee cost with reasonable accuracy.
CAS7**Employee CostTo bring uniformity and consistency in the principles and methods of determining the Employee cost with reasonable accuracy.
CAS8****
(Limited Revision 2017)
Cost of UtilitiesTo bring uniformity and consistency in the principles and methods of determining the Cost of Utilities with reasonable accuracy.
CAS8**Cost of UtilitiesTo bring uniformity and consistency in the principles and methods of determining the Cost of Utilities with reasonable accuracy.
CAS9****
(Limited Revision 2017)
Packing Material CostTo bring uniformity and consistency in the principles and methods of determining the Packing Material Cost with reasonable accuracy.
CAS9**Packing Material CostTo bring uniformity and consistency in the principles and methods of determining the Packing Material Cost with reasonable accuracy.
CAS10****
(Limited Revision 2017)
Direct ExpensesTo bring uniformity and consistency in the principles and methods of determining the Direct Expenses with reasonable accuracy.
CAS10**Direct ExpensesTo bring uniformity and consistency in the principles and methods of determining the Direct Expenses with reasonable accuracy.
CAS11****
(Limited Revision 2017)
Administrative OverheadsTo bring uniformity and consistency in the principles and methods of determining the Administrative Overheads with reasonable accuracy.
CAS11**Administrative OverheadsTo bring uniformity and consistency in the principles and methods of determining the Administrative Overheads with reasonable accuracy.
CAS12****
(Limited Revision 2017)
Repairs And Maintenance CostTo bring uniformity and consistency in the principles and methods of determining the Repairs and Maintenance Cost with reasonable accuracy.
CAS12**Repairs And Maintenance CostTo bring uniformity and consistency in the principles and methods of determining the Repairs and Maintenance Cost with reasonable accuracy.
CAS13****
(Limited Revision 2017)
Cost of Service Cost CentreTo bring uniformity and consistency in the principles and methods of determining the Cost of Service Cost Centre with reasonable accuracy.
CAS13**Cost of Service Cost CentreTo bring uniformity and consistency in the principles and methods of determining the Cost of Service Cost Centre with reasonable accuracy.
CAS14****
(Limited Revision 2017)
Pollution Control Cost*To bring uniformity and consistency in the principles and methods of determining the Pollution Control Costs with reasonable accuracy.
CAS14**Pollution Control Cost*To bring uniformity and consistency in the principles and methods of determining the Pollution Control Costs with reasonable accuracy.
CAS15**Selling and Distribution OverheadsTo bring uniformity and consistency in the principles and methods of determining the Selling and Distribution Overheads with reasonable accuracy.
CAS16****
(Limited Revision 2017)
Depreciation and AmortisationTo bring uniformity and consistency in the principles and methods of determining the Depreciation and Amortisation with reasonable accuracy.
CAS16**Depreciation and AmortisationTo bring uniformity and consistency in the principles and methods of determining the Depreciation and Amortisation with reasonable accuracy.
CAS17****
(Limited Revision 2017)
Interest and Financing Charges.To bring uniformity and consistency in the principles ,methods of determining and assigning the Interest and Financing Charges with reasonable accuracy.
CAS17**Interest and Financing Charges.To bring uniformity and consistency in the principles ,methods of determining and assigning the Interest and Financing Charges with reasonable accuracy.
CAS18**Research and Development CostsTo bring uniformity and consistency in the principles and methods of determining the Research, and Development Costs with reasonable accuracy and presentation of the same.
CAS19**Joint CostsTo bring uniformity and consistency in the principles and methods of determining the Joint Costs.
CAS20****
(Limited Revision 2017)
Royalty and Technical Know-How FeeTo bring uniformity and consistency in the principles and methods of determining the amount of Royalty and Technical Know-how Fee with reasonable accuracy.
CAS20**Royalty and Technical Know-How FeeTo bring uniformity and consistency in the principles and methods of determining the amount of Royalty and Technical Know-how Fee with reasonable accuracy.
CAS21****
(Limited Revision 2017)
Quality ControlTo bring uniformity, consistency in the principles, methods of determining and assigning Quality Control cost with reasonable accuracy.
CAS21**Quality ControlTo bring uniformity, consistency in the principles, methods of determining and assigning Quality Control cost with reasonable accuracy.
CAS22****
(Limited Revision 2017)
Manufacturing CostTo bring uniformity and consistency in the principles and methods of determining the Manufacturing Cost of excisable goods
CAS22Manufacturing CostTo bring uniformity and consistency in the principles and methods of determining the Manufacturing Cost of excisable goods
CAS23****
(Limited Revision 2017)
Overburden Removal CostTo bring uniformity, consistency in the principles, methods of determining and assigning Overburden Removal Cost with reasonable accuracy.
CAS23Overburden Removal CostTo bring uniformity, consistency in the principles, methods of determining and assigning Overburden Removal Cost with reasonable accuracy.
CAS24****
(Limited Revision 2017)
Treatment of Revenue in Cost StatementsTo bring uniformity and consistency in the principles and methods for treatment of revenue in cost statements with reasonable accuracy.
CAS24Treatment of Revenue in Cost StatementsTo bring uniformity and consistency in the principles and methods for treatment of revenue in cost statements with reasonable accuracy.

*CAS-1 (Revised 2015) as recommended by the CASB and approved by the Council of the Institute and the same will be mandatory with effect from period commencing on or after 1st April 2015

**Limited review of definition clause of Cost Accounting Standards and GACAP, as recommended by the CASB and approved by Council of the Institute

***CAS-2 (Revised 2015) & CAS-3 (Revised 2015) as recommended by the CASB and approved by the Council of the Institute and the same will be mandatory with effect from period commencing on or after 1st April 2016

****CASs (Limited Revision 2017 on account of Ind AS) as recommended by the CASB and approved by the Council of the Institute and the same shall be effective for the cost statements prepared on or after 1st April 2017.

# Revised 2018- To be applicable from 1st March 2019

Download Guidance Note

Download Guidance Note on Cost Accounting Standard

Serial No.Title
1.Guidance Note on CAS-2 (Revised 2015) Capacity Determination”….
2.Revised Guidance Note on Cost Accounting Standard on Cost of Production for Captive Consumption (CAS-4)
3.Guidance Note on Cost Accounting Standard Material Cost (CAS-6)
4.Guidance Note on Cost Accounting Standard on Employee Cost (CAS-7)
5.Guidance Note on Cost Accounting Standard on Cost of Utilities (CAS-8).
6.Guidance Note on Cost Accounting Standard on Packing Material Cost (CAS-9)
7.Guidance Note on Cost Accounting Standard on Direct Expenses (CAS-10) .
8.Guidance Note on Cost Accounting Standard on Administrative Overheads (CAS-11).
9.Guidance Note on Cost Accounting Standard on Repairs and Maintenance Cost (CAS-12) .
10.Guidance Note on Maintenance of Cost Accounting Records for Construction Industry Including Real Estate and Property Development Activity
11.Guidance Note on Treatment of Costs Relating to Corporate Social Responsibility (CSR) Activities
12.Guidance Note on Cost Accounting Standard on Cost of Service Cost Center (CAS-13)
13.Guidance Note on Compilation Engagements by a Cost Accountant

 

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