Cost Accounting Standards (CAS)

Overview

Cost Accounting Standards have been developed by Cost Accounting Standards Board (CASB) keeping in view legal developments. While formulating the 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.

CASB issued a total of 24 Cost Accounting Standards to date. To explain the requirements of Standards and provide guidance on technical issues, CASB also issued Guidance Notes. 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.