How To Study For Accounting Standards For CA Inter Level?

Accounting Standards (ASs) are written policy documents issued by the Government with the support of other regulatory bodies. Accounting standards apply to the full breadth of an entity’s financial picture, including assets, liabilities, revenue, expenses, and shareholders' equity.


ICAI has a huge affinity towards Accounting Standards. An average of 20 marks come in the exam almost, if not in every, all the attempts so you have to include it in your ca study plan. The topic seems to be easy to understand when you start ca studying it but the problem arises when you have to convert all the theoretical knowledge and put it into paper for practical problem-solving.  

Following the principle of being as close as possible to the source, learning accounting standards directly from the Accounting Pronouncements of ICAI is highly recommended. Though the book appears to be huge, learning everything first-hand makes you understand all the nuances of the standard, the peculiarities of the standard, all the reasons for its principles, and the exact meaning the standard intends to convey.


This is of utmost importance if you are looking at conceptual clarity. Reading the bare Accounting Standards helps you to cover the entire content. As you start your ca study schedule you just need to read a particular standard like you read a novel or a newspaper. The aim here is not to memorize anything. It is just to familiarize yourself with the terminologies and the crux of what each Accounting Standard is saying.

Whenever you start studying the ASs, Go sequentially. As AS-1 is the base so start with that rather than going directly to the last AS. Try to understand the standards, and their practical applications, and don't just read them for fetching marks. Also, solve the questions for the relevant AS simultaneously.


Accounting is frequently referred to as the language of business because it informs others of the company's financial situation. The same syntax and grammar rules apply here as they do in every language. The Accounting Standards are these regulations in the context of accounting (AS). They serve as a nation's foundation for accounting and reporting norms and regulations. Let's look at the key goals behind developing and studying these standards in CA.

  • The fundamental goal is to raise the financial statements' credibility. Users may now rely on financial statements because they must be produced in accordance with standards. They are aware that breaking these rules could have detrimental effects on the businesses.
  • Next comes comparability. Comparisons between and within firms will be possible if these standards are followed. This enables us to monitor the company's development and position in the market.
  • Additionally, it aims to offer a single set of accounting principles that covers both the numerous financial transactions' valuation techniques and the relevant disclosure requirements.


This is a big question as to how to study accounting standards for ca inter. It is strongly advised to learn accounting standards directly from the Accounting Pronouncements of ICAI in accordance with the idea of "staying as close to the source as feasible." Even if the book seems enormous (trust me, it just seems that way), studying everything firsthand helps you appreciate all the subtleties, quirks, and reasoning behind the standard's principles as well as the precise message it seeks to portray.

However, as module 1 simply includes a brief notice of those standards, you might not have enough application issues to practice from it. Therefore, purchase any books on accounting standards written by any author that is now on the market for the only purpose of application issues. As you have already read in the pronouncements, disregard the theory.

1. Structure

In general, an accounting standard includes:

  • Initial introduction sentences
  • Objective and Scope
  • Different Definitions (with detailed descriptions)
  • Principles: The principles are stated in bold. Just below the premise, there are explanations that break down the pertinent principle into straightforward language. This is what makes the standard tick. It serves as a standard's main body. They might involve measurement, identification, specific things in a standard, etc.
  • Presentation and Disclosures

2. Approach

  • Generally speaking, understanding an accounting standard straight from the material in the declarations necessitates initial reads, immediate updates, and simultaneously solving some comprehension puzzles. Give the standard plenty of thought. A single standard must be finished in one sitting. As far as I'm aware, a standard's initial reading takes four hours on average. (Only higher standards require a lot of time)
  • There is also a probability that the exam will include questions about the explanations that follow the principles (such as considerations to be considered, includes and excludes, etc.). You must therefore keep those in mind.
  • Problems with comprehension deserve specific attention. After your first reading and immediate correction, practice as many as you can. For future reference in ca study, note in the margin how tough they are and how much they need to be revised.
  • Identifying the paragraphs that are pertinent to be cited as reasons in the exam is made easier by solving comprehension difficulties. It is not required to present all of the pronouncements' paragraphs during the exam. The rules must be carefully kept. It also helps in evaluating your comprehension and enhancing your exam writing and presenting abilities.
  • Answering comprehension questions, such as "Are you able to quote the exact reason?" is the greatest approach to determining whether you have understood the chapter or not. Many people forget to give a precise justification for the application-focused query. It is beneficial to revise a standard at least four times. The initial reading and rewriting process takes longer than subsequent revisions.

3. Notes

  • While some standards are theory-oriented, others are problem-oriented. Both of them necessitate distinctive methods for taking notes. Making all the necessary notes in the notes would take far too much time.
  • Extensive justifications should be ignored and excluded from declarations. Highlight any keyword if necessary. Be aware that some justifications are required for exam answers. Mark them as needing modification.
  • The announcements contain all of the definitions and principles in very fine detail. Therefore, by simplifying it, you risk changing the expression's original meaning. You will need to replicate the same in notes, which is counterproductive. Simply read them from the pronouncements, then. For easier revision, you can convert them into flowcharts in your notes if necessary.
  • Some of the appendices, such as the Revenue Recognition appendix, are also significant. Avoid including them in notes. To distinguish which keyword is used for what, highlight each one.
  • In the end, if you believe that writing anything down will make it much easier to modify and read than simply reading it from pronouncements, do so.
  • Wherever possible, it is advised to keep notes on problem-related standards.
  • I advise you to write down any notes in your notebook immediately after you've read the material and worked on the comprehension exercises. There may be times when you need to make a note while making immediate modifications.
  • maintaining simplicity Keep your notes brief and highlight any important passage in the pronouncements material.

4. Other Valuable Points

  • Read theory in revision without a doubt for ca study. Therefore, be sure to mark all of the principles, definitions, and explanations that are necessary so that your notes and materials cover the complete standard;
  • application-focused queries that might not have an exact solution, about which you frequently feel uncertain, or that are significant from the perspective of the presentation. (Remove all the fundamental inquiries)
  • You may learn about the introduction of accounting standards in ICAI module 1. If necessary, choose a few intriguing Pronouncement points.
  • Accounting standards and the remaining chapters should be revised simultaneously (parallelly), with enough time allotted for each.
  • No AS only contains challenging material. Therefore, if you're going to skip any AS, at least review its simple content beforehand.
  • The exam places a lot of emphasis on presentation. Refer to previous test questions, collections, and study guides to understand the presenting style. Presenting an AS-related Application question identifying the following is recommended.
  • (Definition/Principle) Standard Name and Number Basis
  • minimal justification
  • Conclusion
  • You are required to write the exact AS figures, definitions, fundamental terms, and principles on the exam. So, while getting ready, carefully read them.
  • The remainder of the accounts covers AS 3 and AS 14. So, take a quick look at these standards.


Understanding an accounting standard in ca study directly from the pronouncements’ material requires initial readings, immediate revisions, and solving some comprehension problems at the same time. Take ample time to comprehend the standard. 

Comprehension problems require special mention. Practice as many as you can immediately after your first reading and immediate revision. Mark their difficulty and necessity to revise in the margin for future reference.

Presentation plays a key role in the exam. Refer to old question papers, compilations, and practice manuals for knowing the way of presentation. A preferred way is to present an AS related Application question identifying the following:

  • Standard Name and Number
  • Basis (definition/principle)
  • Little explanation
  • Conclusion

In the exam, you are expected to write the precise AS numbers, definitions, basic terminology, and principles. So, read them keenly while preparing.

To make your preparation of ca study regarding Accounting Standards complete, it is essential that you look up the RTPs, MTPs, and Past Papers of the ICAI and practice questions from there. You need to know what level of questions you are up against and what more you need to do in order to be able to successfully answer such questions.

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