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Cost Accounting Standards Board (CASB)
The Institute of Cost Accountants of India, 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.
Keeping in view latest legal and contemporary developments, the Cost Accounting Standards Board develops Cost Accounting Standards. To explain the requirements of Standards and provide the guidance with practical examples and illustrations on technical issues relating to Cost Accounting Standards issued by the Institute, CASB also issues Guidance Notes. Further, there may also be other technical issues relating to topics of importance for which the Cost Accounting Standards are not necessary but these technical issues need guidance to members and industry with respect to measurement, classification, assignment and presentation of cost in cost statements, the CASB issues Guidance Notes on such topics. The Institute/Board has so far issued 24 Cost Accounting Standards, Generally Accepted Cost Accounting Principles, 9 Guidance Notes on Cost Accounting Standards and two Guidance Notes on “Treatment of Costs Relating to Corporate Social Responsibility (CSR) Activities” and “Maintenance of Cost Accounting Records for Construction Industry Including Real Estate and Property Development Activity”.
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.
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.
LIST OF COST ACCOUNTING STANDARDS (CAS) AND GUIDANCE NOTES ISSUED AS ON DATE
CAS No. Title Effective Date (For the period commencing from) Guidance Note
CAS 1 (Revised 2015) Classification of Cost 1st 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 4 Cost of Production for Captive Consumption 1st April 2010 Revised Guidance Note on Cost of Production for Captive Consumption (CAS-4)
CAS 5 Average (Equalized) Cost of Transportation 1st April 2010
CAS 6 Material Cost 1st April 2010 Guidance Note on Material Cost (CAS-6)
CAS 7 Employee Cost 1st April 2010 Guidance Note on Employee Cost (CAS-7)
CAS 8 Cost of Utilities 1st April 2010 Guidance Note on Cost of Utilities (CAS-8)
CAS 9 Packing Material Cost 1st April 2010 Guidance Note on Packing Material Cost (CAS-9)
CAS 10 Direct Expenses 1st April 2010 Guidance Note on Direct Expenses (CAS-10)
CAS 11 Administrative Overheads 1st April 2010 Guidance Note on Administrative Overheads (CAS-11)
CAS 12 Repairs and Maintenance Cost 1st April 2010 Guidance Note on Repairs and Maintenance Cost (CAS-12)
CAS 13 Cost of Service Cost Centre 1st April 2011
CAS 14 Pollution Control Cost 1st April 2012
CAS 15 Selling and Distribution Overheads 1st April 2013
CAS 16 Depreciation and Amortisation 1st April 2014
CAS 17 Interest and Financing Charges 1st April 2014
CAS 18 Research and Development Costs 1st April 2014
CAS 19 Joint Costs 1st April 2014
CAS 20 Royalty and Technical Know-How Fee 1st April 2014
CAS 21 Quality Control 1st April 2014
CAS 22 Manufacturing Cost 1st April 2015
CAS 23 Overburden Removal Cost 1st April 2017
CAS 24 Treatment of Revenue in Cost Statements 1st April 2017
Guidance Note on Treatment of Costs Relating to Corporate Social Responsibility (CSR) Activities
 


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