Shift from BPLR to Base Rate Recently with release of RBI circular on Base rate implementation, there has been a lot of debate going on regarding BPLR (benchmark prime lending rate). Here is our beginner’s guide to understand the two rates. What is BPLR? BPLR is the reference rate for banks for pricing their loan [...]
Posts Tagged ‘Accounting Standards’
IFRS on Effective Interest Rate
March 25th, 2010 
Shalini Tibe 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 (EIR)use in the [...]
Posted in Accounting 
Tags: Accounting Standards, effective interest rate, IFRS, Indian GAAP, Internal rate of return, IRR, loan, yield, YTM 
No Comments »BGR Energy: Building the Indian Power Story
March 24th, 2010 Praveen Bajaj Last week I heard a very interesting story which eventually gave me the idea of investing in BGR Energy Systems Ltd. Thought of sharing with you. Years back when the South African Government opened their country for outsiders to come and do mining for diamonds, entrepreneurs form all over the world rushed to South Africa [...]
Posted in Equity Tags: Accounting Standards, economic review, exchange rate, IFRS Valuation, indian economy, nifty, sensex, share markets, usd-inr 1 Comment »Currency markets at crucial point….
March 15th, 2010 Praveen Bajaj Markets seem to come out of the consolidation mode and increase in risk appetite saw the US Dollar being sold across the board. Almost all markets closed in the green and all currencies except the JPY saw strength against the greenback. The Dollar index closed below a key support level at 80 before closing 79.83. [...]
Posted in Economy Tags: Accounting Standards, dollar rate, economic review, equity markets, exchange rate, IFRS, india inflation, indian economy, nifty, sensex, share markets, usd-inr No Comments »Treatment Of Tangible Assets Under IFRS
March 10th, 2010 Shalini Tibe Treatment of Property, Plant And Equipment (PPE) under IFRS First time adoption of IFRS for PPE An entity can use fair value as deemed cost on First time adoption of IFRS OR It has to apply Retrospective application which means recalculate carrying amount of each PPE item according to IFRS since its purchase date including [...]
Posted in Accounting Tags: Accounting Standards, economic review, exchange rate, IFRS, IFRS Valuation, indian economy, share markets No Comments »Indian Economy – Review and Analysis, February 2010
March 6th, 2010 Praveen Bajaj Readers, as promised, we have posted the market review for February without delay this time. Month of February witnessed the most important calendar event for Indian economy, the Budget 2010. Our reports on the same would have kept you updated. Hopefully this will update you about its affect on various markets. Equity After correcting for [...]
Posted in Economy Tags: Accounting Standards, dollar rate, economic review, equity markets, exchange rate, indian economy, sensex, share markets 2 Comments »Infosys result analysis
January 13th, 2010 Praveen Bajaj Infosys declared its third quarter result today. The results came better than than the street expectations. The sales were around 3% above the Bloomberg consensus estimate, whereas the net profit was around 12% below, which was boosted on account of higher other income. BSE : INFOSYS NSE : INFOSYSTCH Bloomberg [...]
Posted in Economy Tags: Accounting Standards, analysis, economic review, equity markets, indian economy, nifty, sensex, share markets No Comments »IIP Data: November 2009 -Index for Industrial production
January 13th, 2010 Praveen Bajaj The IIP figure for November stood at 11.7%, taking everybody’s breath away. It stunned everybody since the market’s expected figures was hovering around 10%.The same index registered a growth of 2.4% y-o-y in Nov’08 whereas a growth of 10.3% (revised) y-o-y in the last month It grew at its fastest pace in two years which [...]
Posted in Economy Tags: Accounting Standards, economic review, indian economy, nifty, sensex, share markets No Comments »Fair Value Accounting in IFRS
December 28th, 2009 Shalini Tibe To what extent fair value accounting holds good for valuation in IFRS Significant percentage of the balance sheet would be at Fair Value compared to current practice of carrying at historical cost under IFRS. Use of Fair value: At present Fair Value is limited to impairment of assets, measurement of retirement benefits and mark to [...]
Posted in Accounting Tags: Accounting Standards, Fair Value Concept, IFRS, IFRS Valuation No Comments »Accounting and Business are Interrelated in IFRS
December 10th, 2009 Shalini Tibe There is a feeling that IFRS – rather than business strategy – might actually be driving changes to corporate behavior. In some cases, it may help companies do things better – such as revisit their derivatives strategies – in other cases, it could be changing the way companies work just to get the desired accounting [...]
Posted in Accounting Tags: Accounting Standards, Fair Value Concept, IFRS, IFRS Valuation, Indian GAAP 3 Comments »