Assurance is the process used in the assessment of accounting entries and financial records. Assurance is a process of verifying the records available in the company as per accounting standard and principle, and it also verifies that the accounting records are accurate or not. Assurance specializes in assessing and improving the quality of information in a company. It helps in decision making in an organization. The use of Assurance is to check the accuracy of financial reports. It also assures
Category: Assurance
Financial Guarantee under IND AS: All you need to know for practical implementation
Financial Guarantee: Meaning: A contract that requires the issuer (Guarantor) to make specified payments to reimburse the holder (loan giver) for a loss it incurs because a specified debtor (loan taker) fails to make payment when due in accordance with a debt instrument. Condition for classifying an instrument as financial guarantee: Payment to be made to holder only if: If above both conditions are not satisfied, the instrument is not a financial guarantee. Practical illustration: Let’s understand the accounting of financial
Ind AS 7: Presentation of late payment interest fees as cash flow from investing activity
SEBI revises formats for filing of Financial Information The SEBI has decided to revise the formats for reporting of financial information and limited review report. The new format shall contain the items mentioned in the Statement of Profit and Loss (excluding notes and detailed sub classification) as prescribed in Schedule III of the Companies Act, 2013 and the extent and nature of security created and maintained in case of secured non-convertible debt securities, details of which are required as per
How to Manage Startup Risks
Opportunity and risk work together in a business to chart the path of success (or failure). The markets move on the assumption of a direct relationship between risk and reward – the greater the potential upside, the higher the risks involved. At the same time, the converse may not be true as situations involving higher risk may have little or no upside. Being aware of these intricacies and ability to judiciously pick the risks to take and to avoid differentiates
MCA amends Schedule III of Companies Act on disclosure norms in financial statements
In order to bring in greater transparency in reporting of financial statements, the Ministry of Corporate Affairs (MCA) vide notification dated 24.03.2021 has amended the Schedule III to the Companies Act, 2013 effective from 01st April, 2021 to mandate various disclosures by companies in their financial statements. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha. Two New Disclosure requirements inserted in Schedule-III 1.
Key Highlights on the New Companies (Indian Accounting Standards) Amendment Rules
The Ministry of Corporate Affairs (MCA) vide Notification dated 18 June 2021 has issued new Companies (Indian Accounting Standard) Amendment Rules, 2021 in consultation with the National Financial Reporting Authority (NFRA). The notification states that these rules shall be applicable with immediate effect from the date of the notification. This means that the amendments are effective for the financial year ended 31 March 2022 onwards and also for interim financial periods i.e. quarters ending 30 June 2021, 30 September 2021,
Role of Internal Audit in Blockchain Adoption
Role and responsibilities of internal audit function are likely to expand in important ways with increasing acceptance of blockchain applications in organizations. Internal audit managers need to adopt appropriate methods to validate the functioning of blockchain networks and whether ledger versions are updating properly at all ends with appropriate security consistently.Performing internal audit in blockchain environment will require a good technological expertise of internal auditor.The internal auditor may find challenged to adapt quickly – but seeing the opportunity to take
Common Errors in Ind AS Financial Statements: FRRB Observations related to Presentation of Property, Plant & Equipment
In the Month of February 2021, the FRRB issued Study on Compliance of Financial Reporting Requirements (Ind AS Framework) that contains instances of common non-compliances or errors in Ind AS financial statements. In this article below is FRRB observations relating to presentation and disclosure of property, plant & equipment (PPE) in Ind AS financial statements. Disclosure/ Scenario in the Financial Statements selected by the FRRB Relevant Schedule III/ Ind AS requirement FRRB Observation 1. Subsequent expenditure related to PPE:In one of the
Blockchain Technology and Audit
A blockchain is a digital ledger which is created for capturing transactions conducted among various parties in a network. It is a Distributed Ledger based on Internet which includes all transactions since its creation. All participants (i.e., individuals or businesses) who using the shared database are “nodes” connected to the blockchain, each maintaining an identical copy of the ledger. Every entry into a blockchain is a transaction that represents an exchange of value between participants (i.e., a digital asset that
Revision in Criteria for classifying Non- Corporate entities for applicability of Accounting Standards
For the purpose of applicability of Accounting Standards (“AS”), The Institute of Chartered Accountants of India (“ICAI”) has classified the entities into two segments – company entities and non-company entities. Non-company entities such as sole proprietors, partnership firms, trusts, Hindu Undivided Families, association of persons and co-operative societies are further classified into various levels. Currently, the ICAI has categorized non-company entities into 3 levels. With increasing number of non-company entities, the ICAI has, now, further classified them into 4 levels.