Accounting Standards Board The Institute of Chartered Accountants of India 29th April, 2022 Exposure Draft of Revised Accounting Standard for Comments The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February 2015, and as amended from time to time are applicable to the specified class of companies as per Ind AS Roadmap. Accounting Standards notified under Companies (Accounting Standards) Rules, 2021 and those issued by the ICAI are applicable ..
There was a time when accountants were considered nothing more than number-crunchers. But over the years, their role has evolved and grown. Today, the accountants not only play with numbers but also provide valuable insights and guidance that help businesses thrive. Undoubtedly, accountants are the backbone of every business, ensuring that all financial dealings are efficient and accurate. Without them, companies would be in a mess, and the global economy would halt. From financial planning a..
Accounting Standards Board The Institute of Chartered Accountants of India 8th February, 2022 Exposure Draft of Initial Application of Ind AS 117 and Ind AS 109- Comparative Information - Amendments to Ind AS 117, Insurance Contracts Sub: Exposure Draft of Indian Accounting Standard for Comments As you are kindly aware that the Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB). In this regard, i..
Every ship needs a lighthouse to serve as a beacon for navigation. Similarly, every company needs a well-designed MIS to guide them towards achieving their business objectives. It is the unenviable role of the CFO to design the right MIS for the company. An ill-thought MIS may do more harm than good. With some thought and common sense, every CFO can design an excellent MIS, that if used properly will give wonderful insights, and will be an invaluable tool for the CXO's. In the process of ..
AS 10 is to be applied in accounting for property, P&E (Plant and Equipment) and this standard are not applicable to: (a) Biological Assets which are related to agricultural activities except for bearer plants. The Standard is applicable to bearer plants, however, it doesn’t apply to the produce on bearer plants; and (b) Wasting Assets which include mineral rights, expenses related to exploration for and extraction of oil, minerals, natural gas and other non-regenerative resource..
As Artificial Intelligence works for every industry, it certainly has a significant impact on the accounting and finance industries as well. Ranging from saving time and money and providing insights, AI are professionals for accounting and finance and will attract the next generation of employees and clients. What is Artificial Intelligence in accounting? In the accounting profession, where people deal with route tasks, AI is a better way of substituting human capabilities. Artificial inte..
Introduction International Public Sector Accounting Standards (IPSASs) are a set of accounting standards issued by the IPSAS Board (IPSASB) for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are used by the national governments, regional (e.g., state, provincial, territorial) governments, loca..
Maintenance of accounts by certain persons carrying on profession or business 44AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of..
What is a Hedge? A hedge is an investment that is made with the intention of reducing the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting or opposite positions in a related security. Investments in hedge instruments are not necessarily made to earn profits but are made to curb losses. How hedging takes place? Usually, Hedge are taken on investments via transacting in derivatives. Derivatives are securities that move in correspondence to on..
Accounting Standards Board The Institute of Chartered Accountants of India 5th October, 2021 Request for Information: Post-implementation Review of IFRS 9-Classification and Measurement Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of IFRS Foundation. IASB conducts Post-implementation Review (PIR) of already issued IFRS Standards to identify whether these Standards provide information that is useful to u..
Meanings Current Tax: Tax Payable in Current year as per income tax. Deferred Tax: Temporary Savings/Temporary Additional payment of income tax which arises due to temporary differences between carrying value and tax base. Carrying Values: Account ledger balance as per Books Of Accounts (as per AFRF). Tax Base: Ledger Balance that would appear in Tax Trial Balance if we were to prepare one. Need Let's take an example, there are two entities e..
Background Prior to Ind AS, unrealized gain or loss on few capital incomes which were used to flow through shareholders equity and to reserves and surplus.This used to show incorrect picture to the investors and other stake holders. Especially when company management does not have control over gain or loss made due to these transactions It was noticed that Bank of America posted profit of US $ 1.4 billion when whole world was facing financial crisis in the FY 2007-09. When comprehensive..
Last week India unveiled the Account Aggregator (AA) network, a financial data-sharing system that could revolutionize investing and credit, giving millions of consumers greater access and control over their financial records and expanding the potential pool of customers for lenders and fintech companies. Account Aggregator empowers the individual with control over their personal financial data, which otherwise remains in silos. This is first step towards bringing open banking in India and em..
Summary of IND AS 108 Importance Important to the stakeholders to understand and evaluate the performance of business. Not a part of Schedule III but a part of SEBI disclosure. Guidelines Identify operating segments Aggregation of operating segments based on similar economic characteristics. Identify reportable segments. Preparation of segment reporting. A. Identification of operating segments Identification is based on 3 criterias. That is any o..
Applicability Biological assets relating to agricultural activity Agricultural produce upto the point of harvest Government grants relating to agricultural activity Non-applicability Land relating to agricultural activity Intangible assets Bearer Plants Government grants w.r.t. bearer plants Definitions Agricultural activity It includes management of biological transformation of biological assets For sale or For conversion into additional b..
I. Objective 1. Accounting treatment and disclosure of Non current assets held for sale. Discontinued operations 2. To inform the users of the financial statements Non current assets held for sale. Discontinued operations. II. Discontinued operations Component of entity that has been either disposed off or classified as held for sale. Component includes: A separate major line of business or a geographical segment. A subsidiary acquired exclusi..
Objective Accounting and disclosure of investment property. Meaning of Investment Property 1. Land or building (or part of) or both held for Capital appreciation Rental purpose Both 2. Land held for in-determinable use 3. Entity's business or operating income should not be from rent. Leasing arrangement Ind AS 40 is covered when Investment Property is held under ownership and given on operating lease. Investment Property is held under financ..
Non Applicability Government ownership in the entity Government grants for which value cannot be ascertained Government grants covered under Ind AS 41 Government grants with respect to which infrastructure development for irrirgation, communication or transport for a local community. Government grants for which benefits are available in the form of income tax liability calculation and whose benefits are available in determining taxable profits or taxable losses. Reco..
In continuation with the previous two parts on preparation and presentation of consolidated financial statements (hereinafter referred as 'CFS' in this document') there could be lot of practical issues, which may or may not have been covered under the standard or possibly where there is lot of professional judgements required. The objective of this article is to share scenarios (at time it could be of only academic interest!). This article would also try to explain the differences be..
Accounting Standards Board The Institute of Chartered Accountants of India 9th July, 2021 Sub: Exposure Draft of Revised Accounting Standards for Public Comments The Indian Accounting Standards (Ind AS), as notified by the Ministry of Corporate Affairs in February 2015, and as amended from time to time are applicable to the specified class of companies as per Ind AS Roadmap. Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (replaced by Companies (Accountin..