Accounting

Is XBRL implementation justified in India

Firstly one needs to know why XBRL implementation is important in India. Is it only because of statutory requirement or our approach shall be what was the need for such statutory requirement to change the whole of reporting system in India.  Corporate perception has to change in this regard and More >

IFRS for exploration of mineral resources and Oil & Gas industry

What does it mean by Exploration for and evaluation of mineral resources, Oil and Gas?

It is basically search for mineral resources, including minerals, oil, natural gas and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the More >

Phase 2 of IFRS 9: Exposure Draft on Amortised cost and Impairment

Further to our earlier explanation of IFRS 9 (click here to read), our analyst Shalini Tibe comments on the exposure draft of IFRS 9. We hope the information is useful to you.

Exposure Draft (ED) proposes to replace Incurred Loss Model for the assessment of impairment of financial assets measured at amortized cost More >

Depriciation and Impairment – IFRS and Indian GAAP

Link between Depreciation and Impairment under IFRS

When an item of Property, Plant and Equipment (PPE) is impaired i.e. recoverable amount < carrying amount, carrying amount is reduced to the amount of recoverable amount.

Asset should no more be carried more than their Recoverable amount.

Such a decrease in carrying amount is impairment More >

Fixed Assets / Property, Plant & Equipment : Differences between Indian GAAP and IFRS

  1. Under Indian GAAP the terminology used is Fixed Assets  where as under IFRS it is termed as Property, Plant and Equipment
  2. Standard IAS 16 covers Property, Plant and Equipment (PPE) where as there are 2 standards for Fixed Assets under Indian GAAP i.e. AS-10 Fixed Assets and AS-6 Depreciation
  3. As per Indian GAAP subsequent More >

IFRS: an improvement in accounting quality as well as corporate governance

With India going global, corporate management is now feeling the pressure for reforming accounting practices and level of transparency arising from lenders, regulatory agencies, financial analyst and above all board of directors who realize that it is the quality of information which will determine how efficiently they have discharged their More >

MARKET RISK DISCLOSURES UNDER IFRS 7

 An entity possesses the risk if the fair value or cash flow of financial instrument will fluctuate as a result of change in market prices.

Following disclosures need to be shown in financial statement:

  • A sensitivity analysis of each type of market risk to which the entity is exposed showing how profit More >

IFRS on Effective Interest Rate

Effective Interest Rate

Effective Interest Rate (EIR) is a new concept to the existing Indian GAAP.

TheEffective Interest Rate (EIR) method is a method of calculating the amortized cost of a financial asset or a financial liability and of allocating the interest income or interest expense over the relevant period.

TheEffective Interest Rate More >

Comparison of IFRS and Indian Accounting Standards

IFRS is a novel way of looking at accounting. IFRS is a “principle-based” standards rather than “rule-based” standard which are currently followed.

Under IFRS there is need to apply professional judgment consistent with intent and spirit of standards.

Various countries have adapted to IFRS in different ways, often embedding local cultures and More >

Challenges for implementation of IFRS

Key Practical Challenges for implementation of IFRS in India for Banking Industry

No stable Platform: There are many changes / amendment taking place for most of the standards from International Accounting Standard Board there has been no stable platform ready for banks.

Training: All Stakeholders has to be conversant and shall be able More >

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