Phase 2 of IFRS 9: Exposure Draft on Amortised cost and Impairment
Jul 12th
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 currently included in [...]
Depriciation and Impairment – IFRS and Indian GAAP
May 4th
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 and is booked in [...]
IFRS: an improvement in accounting quality as well as corporate governance
Apr 8th
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 responsibilities towards the good Corporate [...]
MARKET RISK DISCLOSURES UNDER IFRS 7
Apr 5th
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 or loss and equity is [...]
IFRS on Effective Interest Rate
Mar 25th
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 allocation process is [...]
Comparison of IFRS and Indian Accounting Standards
Mar 23rd
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 that is why there are [...]
Challenges for implementation of IFRS
Mar 19th
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 to understand and interpret [...]
