Accounts Articles

Introduction: Before going into 'Financial Guarantee' and further deep into 'Corporate Guarantee', it is better to dive into what is the difference between 'a warranty and guarantee for a product sale' for better understanding. Under IGAAP, issuer needs to just disclose the fact by way of note..

Posted in Accounts  2 comments |   717 Views

When a company acquires certain types of Tangible Asset under Ind AS 16, it sometimes has an obligation to remove these assets after the end of their useful lives and restore the site or sometimes, the legislation requires a company to remove the plant and restore the site after the end of its usefu..

Posted in Accounts  1 comments |   841 Views

For any organisation, accurate computation of liability towards employee benefit is critical to ensure they are sufficient to pay them off as they fall due. This blog focuses on Gratuity and the importance of an expert actuary in valuing it appropriately. What is Gratuity? Gratuity i..

Posted in Accounts  3 comments |   929 Views

Ind AS 116 - Leases

  CA Ankit Jain    24 June 2019 at 11:22

This article aims at covering most of the concepts of recently issued Ind AS 116 by the ICAI and MCA which will supersede the earlier issued standard Ind AS 17 on leases w.e.f. 01st April 2019. 1. Introduction Ind-AS 116 Leases brings significant changes in accounting requirements for lease a..

Posted in Accounts |   1739 Views

Para 8 of Ind AS 38 specifies that 'An intangible asset is an identifiable non-monetary asset without physical substance.' Also as per para 8 "An asset is a resource: (a) controlled by an entity as a result of past events; and (b) from which future economic benefits are expected to f..

Posted in Accounts  4 comments |   2216 Views

Hedge accounting as covered under Para 6 of Ind AS 109 needs to determine the TYPE of hedge relationship that an entity is dealing with because the type of hedge determines accounting entries. If incorrectly identified the type of the hedge, then accounting will be totally wrong. All types of hed..

Posted in Accounts |   1015 Views

.style1 { color: #1A1A1A; } The Ministry of Corporate affairs has notified the new Indian Accounting Standard (Ind AS) 116 Leases on March 30, 2019. As per the notification, this new Ind AS 116 – Leases is applicable on companies from April 01, 2019 (financial year 2019-2020). ..

Posted in Accounts  2 comments |   1199 Views

IFRS Convergence

  Sanyam@1    13 April 2019 at 13:06

1. What is GAAP Conversion? Converting from one GAAP to another GAAP. It often means changing more than just the numbers; there are often wider business or reporting implications to manage. It also requires change in strategic and operational procedures or policies. 2. Why is GAAP Conversion r..

Posted in Accounts |   1104 Views

Under the new Ind AS 115, construction contract is treated exactly the same way as any other contract with customers. As per Para 9 of Ind AS 115 ‘An entity shall account for a contract with a customer that is within the scope of this Standard only when all of the following criteria are ..

Posted in Accounts  1 comments |   1016 Views

Mandatory application of IFRS

  CA Sumit Sarda    10 April 2019 at 11:13

.style1 { text-decoration: underline; } With the applicability of Ind AS to all listed companies and unlisted with net worth more than 250 Crores w.e.f. 1.4.2018, there has been a lot of confusion with regard to measurement criteria specifically with respect to assets and liabilities which mee..

Posted in Accounts  3 comments |   1336 Views

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