Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves the systematic collection, recording, and analysis of financial data, such as income, expenses, and assets, in order to produce financial statements, such as balance sheets, income statements, and cash flow statements. These statements provide information on a company's financial performance, liquidity, and solvency. Accou..
Accounting Standards Board The Institute of Chartered Accountants of India 30th December, 2022 Exposure Drafts of Amendments to Ind AS 1 and Ind AS 116 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, it may be noted that IFRS Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Standards, the Ind ..
AS-5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies 1. AS-5 required that All items of income and expense which are recognised in a period should be included in the determination of net profit or loss for the period unless an AS requires or permits otherwise. Liability for leave encashment accrued up to 31st March, is also an item of expense. As per RBI Circular Banks are required to account for the liability arising out of leave encashment on r..
1. Debits and credits are twins of Accounting, On which depend the efficacy of Accounts. 2. 'Debits and credits' are like two genders, The former structure accounts as the latter life. 3. Commercial transactions are reduced in books to figures. On which depend living figures. 4. Audit without assurance is like A heart, that's without beat. 5. What a medical check up to health, Audit is to accounts. 6.' Qualification' is the gradation of acquired knowledge,..
Non-compliance pointed out in the Annual Reports of various companies related to (AS) Accounting standards used in the preparation and presentation of financial statements. AS-3 CASH FLOW STATEMENT 1. Cash flows arising from transactions in a foreign currency should be recorded in reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the cash flow. An exchange rate that approx. the actual ra..
Digital technology has been influencing our world since the 1980s when the internet was introduced to the public. Since then, we've seen mobile phones, game consoles, and thousands of other digital advancements. Now, as we approach the 40th year of the internet in 2023, we're moving into the third generation as blockchain technology changes the world forever. Every industry and area of society will be impacted by blockchain tech somehow, and the accounting profession is no different - continue r..
Non-compliance pointed out in the Annual Reports of various companies related to (AS) Accounting standards used in the preparation and presentation of financial statements. AS-1 Disclosure of Accounting Policies 1. Company Policy regarding timing of recognition of revenue from sales, royalty or dividend have fail to disclosed which is contrary to AS-1 2. Company has included stock of land as an item of closing stock indicates that Land was a significant item of Inventory. Company has no..
The Institute of Chartered Accountants of India ("ICAI") has issued a revised disclosures checklist for Indian Accounting Standards (Ind AS) - November, 2022. Click here to view / download the same ..
1. REVENUE RECOGNITION It was noted from the accounting policy of revenue that the element of financing has not been considered if the credit term is consistent with market practices. As per above-stated paragraph of Ind AS 18, it was viewed that when consideration for sale of goods constitutes financing element, the fair value is determined by discounting all future receipts using the imputed rate of interest. 2. FULLY CONVERTIBLE DEBENTURES It was noted from the notes to the financ..
A. OBSERVATIONS RELATED TO EQUITY 1. BENEFICIAL INTEREST It was viewed that effectively the beneficial interest in Trust which represents investments in company's own shares, is nothing but treasury shares, and hence should not have been recognized as financial asset rather be deducted from equity in line with the requirements of paragraph AG 36 of Ind AS 32. 2. STATEMENT OF CHANGES IN EQUITY It was noted that the company, which is preparing financial statements as per Ind AS, in..
Accounting Standards Board The Institute of Chartered Accountants of India 10th October, 2022 Third edition of the IFRS for SMEs Accounting Standard IFRS for SMEs Accounting Standards are applied for general purpose financial statements of small companies, primarily; small and medium-sized entities (SMEs), private entities and non-publicly accountable entities, which is required or permitted in 86 jurisdictions across the globe. This Standard is based on full IFRS with modifications to r..
FCRA Registration for NGOs The Ministry of Home Affairs grants the FCRA registration as authorization to regulate foreign donations received by Indian nonprofit organisations. You must register with the Foreign Contribution Regulation Act if you are a registered NGO, charitable trust, or section 8 company and want to receive donations from abroad. Charitable trusts and NGOs can receive funds from foreign sources into their FCRA account with the aid of registration under the FCRA. The Forei..
OBSERVATIONS 1. INVESTMENTS IN EQUITY SHARES It was observed from the note to the financial statements on Non-Current Investments that the value of investments in equity shares of a company was same as at the end of reporting year and previous year. It was viewed that such investment increased in terms of number of shares as well as in face value without any change in value of investments and no explanatory note was provided for the same. The requirements of Ind AS 1 have n..
The common non-compliances in reporting requirements of various applicable Statues as observed by the Financial Reporting Review Board (FRRB) constituted by ICAI during the review proceedings. OBSERVATIONS RELATED TO ASSETS 1. SUBSEQUENT EXPENDITURE It would be recognized in the carrying amount of PPE when that cost/ expense would meet the recognition criteria given in paragraph 7 of Ind AS 16. There is no criterion that capitalization should be done only if there is increase of future ..
Accounting Standards Board The Institute of Chartered Accountants of India 19th September, 2022 Exposure Draft of AS 113, Fair Value Measurement 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 t..
Financial Statements provide the information about financial position, performance, and cash flows of an enterprise this helps in various decisions for the users. The Financial Statements are like the Performance Card of the entities. The Institute of Chartered Accountants of India has issued Guidance Note at present recommendatory on the preparation of Financials for Non Corporate Entities like sole proprietorship, Partnership Firms, HUFs, Association of Persons, Trust, Autonomous bodies etc..
When management accounting is implemented to the new vehicle launch, the main idea is to increase the cost consciousness level of engineers and provide cost information that supports decision-making situations during the project execution. The project controller should be considered as a key person in this. The controller should collect financial data from the internal and external reference groups and monitor the committed costs of the future product together with the project manager. Furthermo..
Accountants are in charge of offering their clients or the businesses they work for financial management services and guidance. Even though accounting may not initially appear like the most attractive career option, if you look a little closer, you'll discover a wide choice of options. Here are the top ten qualities an accountant should possess: 1. Innovation Accountancy has been an indispensable tool of business since day one. No project can get off the ground without a tight control ..
Actuarial Valuation is required for Accounting of Gratuity Benefits in compliance of Ind AS 19 & AS 15 (Revised 2005) by Indian Public, Private and Multinational Companies Indian Public Sector, Private Sector and Multinational Companies needs to prepare the Financial Statement such as Balance Sheet & Profit/Loss Accounts at the closure of each financial year as per provisions of Section 129 of the Companies Act 2013. As per provisions of Section 133 of the Companies Act 2013, Financia..
Public Relations Committee The Institute of Chartered Accountants of India June 9, 2022 ICAI issued Technical Guide on Financial Statements of Non-Corporate Entities The Institute of Chartered Accountants of India (ICAI) apart from issuing Accounting Standards for Non-company entities, always takes necessary initiatives to ensure effective and consistent application of these Standards. For the purpose of applicability of Accounting Standards to non-company entities, scheme for classifica..
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