application of concepts - front pages

8/8/2019 Application of Concepts - Front Pages

1/6

APPLICATION OF CONCEPTS & CONVENTIONS

IN PREPARATION OF FINANCIAL STATEMENTS

Submitted by:

Abhishek Pore 03

Ankita Mendon 20

Arpita Shah 22

Ashish Chaplot 23

Dassler Coutinho 32

A Report submitted to MET Institute in partial fulfillment of the requirement for

the award of eMBA for the year 2010-12

Under the guidance of:

Prof L. N. Chopde

Met Institute of Management


2/6

CERTIFICATE

This is to certify that project titled Application of concepts and conventions inpreparation of financial statements A case study of L&T Co. is based on original

study conducted by:

Abhishek Pore 03

Ankita Mendon 20

Arpita Shah 22

Ashish Chaplot 23

Dassler Coutinho 32

Under the guidance and this had not formed a basis for the award of any other

degree of MET Institute.

Place: - Mumbai

Date: - 30th

October, 2010 Faculty Signature

MET Institute of Management


3/6

PREFACE

The topic chosen by us is Application of concepts and conventions in

preparation of financial statements A case study of L&T Co.

The objective of the study is to get well-versed with the accounting concepts &

conventions. Concepts & conventions would only be understood if one studies a

balance sheet & annual report of a company.

The scope of the study includes studying the balance sheet & annual report of

Larsen & Toubro Ltd. The balance sheet was studied of the year 2009-10. It

provided an in-depth knowledge and helped us in understanding the concepts &

conventions better.

Data was collected from some reference books & also via the internet. Websiteswere referred to study the annual report. Concepts were studied from Prof.

Chopdes notes and also from Fundamentals of Accounting The Institute of

Chartered Accountants of India.


4/6

ACKNOWLEDGEMENT

First and foremost, we would like to thank Prof. L. N. Chopde for the valuableguidance and advice. He inspired us greatly to work on this project. His willingness

to motivate us contributed tremendously to our project. We also would like to

thank him for showing us some example that related to the topic of our project.

Besides, we would like to thank MET Institute of Management for providing us

with a good environment and facilities to complete this project.

Finally, an honorable mention goes to our families and friends for their

understandings and supports on us in completing this project. Without helps of

the particular that mentioned above, we would face many difficulties while doing

this project.


5/6

EXECUTIVE SUMMARY

The project is based on Accounting concepts & conventions used in preparation offinancial statements. We have selected Larsen & Toubro Ltd. as our company of

study. We have studied the annual report of the company to understand the

concepts & conventions followed by the company. After every concept &

convention we have given pointers which will explain the application of that

particular concept or convention in preparation of financial statement.

The project helped us to study the concepts & conventions. Application through

using a Balance Sheet has enabled us to understand the concepts & conventions

properly.


6/6

CONTENTS

Sr. No. Topic Page No.

1 Introduction 1

2 Vision 2

3 Entity Concept 3

4 Monetary Concept 4

5 Going Concern Concept 5

6 Cost Concept 8

7 Realisation Concept 9

8 Matching Concept 12

9 Dual Aspect Concept 14

10 Convention of Consistency 16

11 Convention of Conservatism 18

12 Convention of Materiality 20

13 Convention of Disclosure 22

14 Bibliography 23

application of concepts - front pages

Documents