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: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARD :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT Audit :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES :: cpt
 
 
General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

No International Financial Reporting Standards, but strict norms take over
March, 29th 2011

The implementation of the International Financial Reporting Standards , or IFRS , has been put off for now, but the government is pressing ahead with the reforms in the way companies present their financials.

The Corporate Affairs Ministry has made it mandatory for large companies to prepare their financials as per a revised format that is expected to provide greater clarity about their finances and liquidity position. For companies, it will mean that the annual accounts filed for the fiscal 2011-12 will be under the revised format.

The schedule VI, which is a part of the present company law, lays down the rules for presenting profit and loss statement and balance sheet. The revised schedule requires companies to separate assets and liabilities into current and non-current categories, a classification missing from financials as of now.

"The revised schedule that calls for classification of a company's assets and liabilities as current and non-current will give a better picture of a company's liquidity position," said Dolphy D' Souza, partner, Ernst & Young, a consulting firm.

The schedule is a format of presenting financial information by companies and not an accounting standard.

The ministry is looking to implement it in a phased manner starting April 1, 2011. In the first phase, companies with a paid up capital of over 5 crore will be required to prepare their income statement and balance sheet as per the revised schedule, said AK Srivastava, joint secretary in the Ministry Of Corporate Affairs. Around 20,000 companies are likely to be covered in the first phase.

The ministry has also asked companies to report their accounts as per a computer-readable reporting language called XBRL (extensible business reporting language) from the next fiscal. XBRL will facilitate better analysis of a company's financial information while also ensuring that there are no reporting lapses.

The ministry on Monday also announced measures to ensure discipline among companies. It has directed its field officers to track companies which have not been filing their balance sheets on time, a mandatory requirement under the law.

Among the companies being closely looked for these defaults are listed companies, subsidiaries of listed companies, companies that have created charge on their assets and companies that have borrowed money from lenders, said Srivastava.

He said once the ministry uncovers the companies defaulting in filing their balance sheets, a process of 'qualitative examination' of their financials may be started to see if there is any default.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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