Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: list of goods taxed at 4% :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: TDS :: cpt :: VAT RATES
 
 
News Headlines »
 Tax Return Preparer (Amendment) Scheme, 2018
 Tax-saving for young earners simplified
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)

ICAI for early adoption of new accounting norms
April, 01st 2008

The country's accounting regulator, Institute of Chartered Accountants of India (ICAI), clarified on Monday that its announcement on derivative accounting was to ensure that companies report their estimated losses from foreign currency derivatives as per already existing norms. The regulator said it has not advanced the compliance date for the new accounting norms on financial instruments, although it would encourage early adoption. ICAI said that it has no problem if other regulators-SEBI or RBI-want an early implementation.

Adopting the new standard on financial instruments-AS 30-would allow companies to provide for future gains as well as losses on foreign currency derivatives as per their fair market value, while following the existing norm of accounting prudence-AS 1-will force them to provide for only losses and not gains. That is if they do not adopt the new standards, they will not have the flexibility to provide for future gains. Therefore, net profit may be lower. Corporate houses are expected to make their balance sheets this way even now, but many had doubts after ICAI recently brought in AS 30.

ICAI officials told reporters on Monday that it received queries from various quarters on whether corporate houses need to disclose their exposure to derivative instruments now since the accounting standard covering them need to be compulsorily followed only three years from now.

"Some even suggested that companies need not disclose them. Our position is that companies have to disclose their exposure to foreign currency derivatives as per the principle of prudence enunciated in accounting standard one, which requires companies to provide for losses in respect of all outstanding derivative contracts at the balance sheet date by marking them to market", ICAI president Ved Jain said here.

This removes the possibility of companies not disclosing derivative losses in the transition period-from now to 2011-under any pretext. Derivative losses may be more for greedy corporate houses that used these instruments to make speculative gains instead of using them merely for hedging risks. Accounting experts said that those who do not adopt AS 30 immediately, will have to assess the losses on those instruments based on their understanding and available information and deduct it from their profits.

"Banks are already doing it, but corporate houses keep them as off-balance sheet items. Many big companies listed in overseas markets using international GAAP do show them in their books, but others including a large number of small and medium enterprises do not. We cannot speculate on its exact magnitude now. For those who used derivatives as a risk mitigating tool, the impact may be less," said E&Y director Viren Mehta, who specialises in financial markets.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

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