In these days and age, it is heretical to assume that significant commitments, potential liabilities or assets can stay off the balance sheet of any corporate. Therefore, the time for Accounting Standard (AS) -30 had come, a standard which deals with Recognition and Measurement of financial instruments was introduced out of necessity
However, to enable AS-30 to become mandatory there need to be certain far reaching changes enacted. Firstly, AS-30 would have to be made mandatory by the Institute of Charted Accountants in India and notified by the National Advisory Committee on Accounting Standards (NACAS) for it to be legally recognised under the Companies Act. It is imperative to make AS-30 mandatory along with AS-31 and AS-32 which govern presentation and disclosure of all the AS-30 measures.
AS-30 scopes out substantial provisions relating to insurance contracts and refers throughout to the
