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 :: TDS :: ACCOUNTING STANDARDS :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment
« General »
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces
 CAG lens on entities avoiding tax with ‘farm income’ claim

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