Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: VAT Audit :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARD :: cpt :: due date for vat payment
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

`Accounting excites me'
November, 09th 2006

To most people, accounting stirs up images that are far from exciting. Ashish K. Bhattacharyya may be an exception. "Accounting excites me," he writes in the preface to Indian Accounting Standards, from Tata McGraw-Hill (www.tatamcgrawhill.com). The tome, though daunting in size, is not cluttered with the text of Accounting Standards (ASs). A conscious decision to exclude material available in the public domain, says Bhattacharyya.

"Of late, the Indian GAAP (generally accepted accounting principles) has been converging to IFRS (International Financial Reporting Standard)," he writes. As a result of the convergence, there are `enormous challenges and opportunities'. To help the young professional keep pace with the global march of accounting, the author explains in detail IFRS where it corresponds to the Indian AS, as pronounced by the ICAI (Institute of Chartered Accountants of India). He also provides `a comparison between AS, IFRS and the US GAAP'.

For instance, in the chapter on `balance sheet presentation', one learns the varied approaches to `treasury stock'. Indian companies are not allowed to hold their own shares as investment, explains Bhattacharyya. "Therefore, the question of presentation of treasury stock in the balance sheet usually does not arise," he adds. International Accounting Standard (IAS) makes no specific mention of treasury stock, while the US GAAP requires companies to show treasury stock as `a deduction in the shareholder equity section'.

You can consider your knowledge of `income' to be anything but comprehensive, unless you know what `comprehensive income' is. This is a concept in the US GAAP, not Indian accounting. Comprehensive income or `clean surplus' reflects the changes in shareholders' equity arising from all transactions and events other than those with owners," elucidates the author. "Usually the `bottom line' of the income statement does not represent the clean surplus, because certain components of the comprehensive income bypass the income statement. Items that bypass the income statement are called `dirty surplus'."

Appendices at the end of chapters are of great value, and they contain audit checklists, and excerpts from published accounts (of both Indian and foreign companies). Tyson Food, for example, uses FIFO (first-in-first-out) to value `processed products, livestock and supplies', while Wal-Mart uses LIFO (last-in-first-out) to value inventories. Sears, Roebuck makes use of RIM (retail inventory margin) method `under LIFO cost flow assumption inherent in the RIM calculation'.

The final chapter on `financial instruments' instructs that the following minimum disclosure is required for periods ending on or after March 31, 2006: one, category-wise quantitative data about derivative instruments that are outstanding at the balance-sheet date; two, the purpose, viz. hedging or speculation, for which such derivative instruments have been acquired; and, three, forex exposures that are not hedged by a derivative.

Indispensable read for the Indian CA.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions