Introduction
Applicability
Meaning of the term “Employee Benefits”
Short-term Employee Benefits
All Short-term employee benefits
Short-term compensated absences
Profit-sharing and Bonus plans
Post employment benefits: Defined Contribution vs Defined Benefits
Is the gratuity scheme a defined contribution
or defined benefit scheme?
Other long term employee benefits
Termination Benefits
Accounting Treatment
Disclosures
Actuarial Assumptions
Actuarial Gains and Losses
Unit 2: AS 25: Interim Financial Reporting
Introduction
Definitions of the terms used under the Accounting Standard
Content of an Interim Financial Repot
Form and content of Interim Financial Statements
Selected explanatory notes
Periods for which Interim Financial Statementsare required to be presented
Materiality
Disclosure in Annual Financial Statements
Accounting Policies
Same Accounting Policies as annual financial statements
Changes in Accounting Policies
Revenue received seasonally or occasionally
Cost incurred unevenly during the financial year
Use of estimates
Restatement of previously reported interim periods
Applicability of AS 25 to Interim Financial Results
Illustrations
Unit 3- AS 28: Impairment of Assets
Introduction
Scope
Assessment
Measurement of recoverable amount
Basis for estimates of Future Cash Flows
Composition of estimates of future cash flows
Recognition and measurement of an Impairment Loss
Identification of the cash-generating unit to which
an assets belongs
Recoverable amount and carrying amount of a cash-generating unit
Goodwill
Corporate Assets
Impairment loss for a cash generating unit
Reversal of an impairment loss
Reversal of an impairment loss for an individual asset
Reversal of an impairment loss for a cash-generating unit
Reversal of an impairment loss for goodwill
Impairment in cash of discontinuing operations
Disclosure
Unit 4- AS 21: Consolidated Financial Statements
Introduction
Objective
Scope
Definitions of the terms used in the Accounting Standard
Circumstances under which Consolidated Financial Statements are prepared
Exclusion from consolidation
Consolidation of its subsidiary which is a Limited Liability Partnership (LLP) or a partnership firm
Consolidated of Limited Liability Partnership (LLP) which is an associate or joint venture
Subsidiaries with dissimilar activities
Loss of Control
Existence of Control
Consolidation Procedures
Cost of control
Minority interest
Other Points
Elimination of effect of transactions between group enterprises
Elimination of unrealized profit
Different reporting dates
Uniform Accounting Policies
Acquisition of interest in Subsidiary on Different Dates
Disposal of holding
Full disposal
Partial disposal
Disclosure
Accounting for taxes on income in the consolidated financial statements
Unit 5- AS 23: Accounting for Investments in Associates in Consolidated Financial Statements
Introduction
Objective
Definitions of the terms used in the accounting standard
Associates Accounted for using the equity method
Circumstances under which equity method is followed
Application of the equity method
Contingencies
Disclosure
Relevant explanations to AS 23
Treatment of proposed dividend in Associates in Consolidated Financial Statements
Consideration of potential equity shares for determining whether an investee is an Associate
Unit 6- AS 27: Financial Reporting of Interests in Joint Ventures
Introduction
Scope
Definitions
Contractual Arrangement
Forms of Joint Ventures
Joint Controlled Operations (JCO)
Jointly Controlled Assets (JCA)
Jointly Controlled Entities (JCE)
Consolidated Financial Statements of a Venturer
Transactions between a Venturer and Joint Venture
Reporting interests in joint ventures in the
financial statements of an investor
Operators of Joint Ventures
CHAPTER 2- GUIDANCE NOTES
Introduction
Nature of Guidance Notes
Status of Guidance Notes
Accounting Standards vis-à-vis Guidance Notes
Guidance notes on Accounting aspects
Guidance note on measurement of income tax expense for interim financial reporting in the context of AS 25
General principles for recognition and measurement as per AS 25
Measurement of income tax expense
Guidance Note on applicability of AS 25 to Interim financial results
Applicability of AS 25 to Interim Financial Statements
Guidance note on Accounting for real estate Transactions (for entities to whom Ind AS is applicable)
Objective and Scope
Definitions
Accounting for Real Estate Transactions
Disclosure
Guidance Note on Combined and Carve-Out Financial Statements
Applicability of the Guidance Note
Applicability of the Guidance Note
Circumstances in which Combined/ Carve-out Financial Statements are prepared
Carve out and Combined Financial Statements
Preparation of Combined Financial Statements
Procedure for preparation of Carve-Out Financial Statements
Aspects common to Combined/Carve-out Financial Statements
Disclosures required in the Combined/ Carve-out Financial Statements Guidance Note on Accounting for Derivative Contracts
Introduction
Objective and Scope of the Guidance Note
Definitions
Key Accounting Principles
Synthetic Accounting not permitted
Recognition of derivatives on the balance sheet date
Hedge Accounting
Types of hedge accounting
CHAPTER 9: IND AS ON ASSETS OF THE FINANCIAL STATEMENTS
Unit 1: Indian Accounting Standard 2: Inventories
Measurement of Inventories
Recognition as an expense
Disclosure
Significant differences in Ind AS 2 Vis-à-vis AS 2
Unit 2: Indian Accounting Standard 16: Property, Plant and Equipment
General recognition criteria
Spare parts, stand-by equipment and servicing equipment
Aggregation of individually insignificant items
Initial cost
Subsequent Costs
Measurement at Recognition
Measurement at cost
Element of cost
Measurement of cost
Measurement after Recognition
Alternative base available for measurement after recognition
Cost Model
Revaluation model
Depreciation
Impairment
Derecognition
Derecognition-general
Disclosure
Disclosure-general
Items stated at revalued amounts
Additional recommended disclosure
Significant differences in Ind AS 16 vis-à-vis AS 10
Unit 3: Indian Accounting Standard 17: Leases
Classification of Lease
Criteria for classification of lease
Lease classification is made at the inception of the lease
Characteristics of a finance lease
Leases of land and buildings
Leases in the financial statements of lessees
Accounting and Disclosure by lessees in case of Finance Leases
Accounting and Disclosure by lessees in case of Operating Leases
Leases in the financial statements of lessors
Accounting and Disclosure by Lessors in case of Finance Leases
Accounting and Disclosure by Lessors in case of Operating Leases
Sale and leaseback transactions
Finance Leasebacks
Operating leasebacks
Disclosure
Significant differences in Ind AS 17 vis-à-vis AS 19
Unit 4: Indian Accounting Standard 23: Borrowing Costs
Exchange difference to be included in borrowing costs
Key note on qualifying assets
Recognition
Borrowing costs eligible for capitalisation
Calculation of capitalisation rate
Expenditure to which capitalisation rate is applied
Excess of the carrying amount over recoverable amount
Period of capitalisation
Commencement of capitalisation
Suspension of capitalisation
Cessation of capitalisation
Disclosure
Significant differences in Ind AS 23 vis-à-vis AS 16
Unit 5: Indian Accounting Standard 36: Impairment of Assets
Identifying an asset that may be impaired-General
Indications of impairment
Requirement for Annual Review
Items required to be tested for impairment at least annually
Intangible assets required to be tested for impairment at least annually
Goodwill
Measurement of recoverable amount
Recoverable amount
Circumstances in which it is not necessary to calculate both an Asset’s fair value less costs of disposal and its value in use
Circumstances in which recoverable amount is determined in the Context of CGU
Fair Value less Costs of Disposal
Fair value and costs of disposal-definition
Cost of disposal to be deducted
Contrasting fair value and value in use
Value in Use
Value in use-general
Estimation of expected future cash flows
Discount rate
Recognising and measuring an Impairment loss
Recognition and measurement of an impairment loss-Individual Asset
Recognition and measurement of an impairment loss – For a cash generating unit and goodwill
Two-step approach for goodwill allocated to a group of CGUs
Reversing an impairment loss
Reversals of impairment losses-general
Indications of reversals of impairment loss
Reversing an impairment loss for an individual asset
Reversing an impairment loss for a cash-generating unit
Reversing an impairment loss for goodwill not permitted
Disclosure
Disclosure-general
Entities reporting segment information
Impairment losses recognized or reversed in the period
Other impairment losses/reversals material in aggregate to the financial statements
Unlocated goodwill
Information to be disclosed for CGUs to which significant goodwill or indefinite-life intangible assets have been allocated
Information to be disclosed for CGUs to which insignificant goodwill or indefinite-life intangible assets have been allocated
Significant differences in Ind AS 36 vis-a-vis AS 28
Unit 6: Indian Accounting Standard 38: Intangible Assets
Intangible assets contained in or on a physical substance
Intangible assets on leases
Intangible assets used in the extractive and insurance industries
Amortisation method specified in this standard not to
apply to intangible assets arising from service concession
arrangements in respect of toll roads
Relevant definitions
Identification of intangible assets
Meaning of intangible asset
Identifiability
Asset
Recognition of intangible asset
Recognition of Intangible assetsgeneral principles
Measurement of intangible asset
Separate acquisition
Acquisition as part of a business combination
Acquisition by way of a government grant
Exchange of assets
Internally generated goodwill
Internally generated intangible assets
Recognition of an expense
Measurement after recognition
Cost model
Revaluation model
Useful life
Intangible assets with finite useful lives
Depreciable amount to be amortised over the asset’s useful life
Residual value
Amortisation period
Amortisation method
Intangible assets with indefinite useful lives
Impairment
Retirements and disposals
Disclosure
Significant differences in Ind AS 38 vis-à-vis AS 26
Unit 7: Indian Accounting Standard 40: Investment Property
Classification of property as investment property or owner-occupied property
Recognition
Measurement at recognition
Measurement after recognition
Transfers
Disposals
Disclosure
Unit 8: Indian Accounting Standard 105: Non-Current Assets held for Sale and Discontinued Operations
Classification of non-current assets (or disposal groups) as held for sale or as held for distribution to owners 841 Available for immediate sale
Sale must be highly probable
Other key points
Measurement of non-current assets (or disposal groups) classified as held for sale 851 Measurement at the lower of carrying amount and fair value value less cost to sell 852 Recognition of impairment losses and reversals
Changes to a plan of sale
Presentation and disclosures of a non-current asset (or disposal group) classified as held for sale
Non-current assets and disposal groups classified as held for sale
Presentation
Disclosures
Discontinued operations
Discontinued operation-definition
Separate presentation of discontinued operations
Presentation in the statement of profit and loss
Disclosures in the statement of cash flows
Adjustment to prior period disposals
Change to a plan of sale
Loss of Control in subsidiary
Significant differences in Ind AS 105 vis-a-vis AS 24
CHAPTER 10- IND AS ON LIABILITIES OF THE FINANCIAL STATEMENTS
Unit 1: Indian Accounting Standard 19: Employee Benefits
Employee Benefits
Definitions
Definitions of employee benefits
Definitions relating to classification of plans
Definitions relating to the net defined benefit liability (assets)
Definitions relating to defined benefit cost
Short term employee benefits
Recognition and Measurement of short term benefits
Short term paid absences
Profit sharing and Bonus plans
Disclosure
Post employment benefits
Classification of post-employment benefit plans into Defined Contribution Plan vs Defined Benefit Plans
Multi-employer plans
Defined benefits plans that share risks between various entities under common control
State plans
Insured benefits
Accounting for defined contribution plans
Recognition and Measurement
Disclosure
Accounting for defined benefit plans
Recognition and Measurement
Accounting for the constructive obligation
Balance sheet
Recognition and measurement: Present value of Defined benefit obligations and Current service cost
Actuarial valuation method
Attributing benefit to period of service
Actuarial assumptions
Recognition and Measurement : Plan Assets
Fair value of plan assets
Reimbursements
Components of defined benefit cost
Net interest on the net defined benefit liability (asset)
Re measurements of the net defined benefit liability (asset)
Presentation
Offset
Current/non current distinction
Components of defined benefit costs
Disclosure
General
Characteristics of defined benefit plans and risks associated with them
Explanation of amounts in the financial statements
Amount, timing and uncertainty of future cash flows
Multi-employer plans
Disclosure requirements in other Ind AS
Other long term employee benefits
Recognition and Measurement
Termination benefits
Recognition
Measurement
Disclosure
Ind AS 19-The limit on a defined benefits asset, minimum funding requirements and their interaction
Background
Scope
Issues
Principles
Significant differences in Ind AS 19 vis-à-vis AS 15
Unit 2 ; INDIAN ACCOUNTING STANDARD 37
Provisions when relate to the recognition of revenue or expense/losses
Definitions
Provisions and other liabilities
Relationship between provisions and contingent liabilities
Recognition
Provisions
Contingent liabilities
Contingent assets
Measurement
Best estimate
Risks and uncertainties
Present value
Future Events
Expected disposal of assets
Reimbursements
Change in provisions
Use of provisions
Application of the recognition and measurement rules
Future operating losses
Onerous contracts
Restructuring
Disclosure
Levies (Appendix C of Ind AS 37)
Appendix C deals with
Appendix C does not deal with
What is a levy?
Accounting principles
Significant differences in Ind AS 37 and AS 29
CHAPTER 11- IND AS ON ITEMS IMPACTING THE FINANCIAL STATEMENTS
Unit 1: Indian Accounting Standard 12: Income Taxes
Part A: Tax expense (Tax Income)
Part B: Current tax, its recognition, measurement and presentation
Current tax
Recognition
Measurement
Accounting of current tax effects
Offsetting current tax assets and current tax liabilities
Part C: Deferred tax, its recognition, Measurement and Presentation
Step 1: Compute carrying amount
Step 2: Compute tax base
Step 3: Compute temporary differences
Step 4: Classify temporary differences
Step 5: Identity exceptions
166 Step 6: Assess (also reassess) deductible temporary
differences, tax losses and tax credits
Step 7: Determine the tax rate (law)
Step 8: Calculate and recognize deferred tax
Step 9: Accounting of deferred tax
Step 10: Offsetting deferred tax assets and deferred tax liabilities
Part D: Practical application
Deferred tax arising from a business combination
Current and deferred tax arising from Share based payment transactions
Change in tax status of an entity or its shareholders
Part E: Disclosures
Disclosure 1: Disclose components of tax expenses (Income)
Disclosure 2: Tax related to items charged directly to equity
Disclosure 3: Tax related to items recognized in statement of other comprehensive income
Disclosure 4: Explanation of the relationship between Tax expense (income) and accounting profit
Disclosure 5: Change in tax rates
Disclosure 6: Unrecognized deductible temporary differences, unused tax losses and unused tax credits
Disclosure 7: Temporary differences associated with investments in subsidiaries etc
Disclosure 8: Amount of deferred tax liabilities (assets) or income (expenses)
Disclosure 9: Discontinued operations
Disclosure 10: Dividend tax
Disclosure 11: In case of business combination
Disclosure 12: Deferred tax asset and evidence thereto where based on future taxable profits
Disclosure 13: Tax consequences of distribution of dividend
Disclosure 14: Tax related contingencies
Disclosure 15: Change in tax rates or tax laws
Significant changes in Ind AS 12 vis-à-vis AS 22
Unit 2: Indian Accounting Standard 21: The Effects of changes in Foreign Exchange Rates
Functional currency
Currency of a Hyperinflationary Economy as a functional currency
Monetary Vs Non- Monetary items
Brief approach under the standard
Accounting for foreign currency transactions
Initial recognition at the transaction date
Subsequent recognition at the end of each Reporting period
Recognition of foreign exchange gains and losses
Change in functional currency
Use of presentation currency other than the Functional currency
Translation to the presentation currency
Translation of foreign operations
Difference in the reporting dates
Intra – group transactions
Goodwill and fair value adjustments arising from a business combination Disposal or partial disposal of foreign operations
Full disposal
Partial disposal
Tax effect of all exchange differences
Disclosures
Significant differences in Ind AS 21 vis-à-vis AS 11
CHAPTER 12-IND AS ON DISCLOSURES IN THE FINANCIAL STATEMENTS
Unit 1: Indian Accounting Standard 24: Related Party Disclosures
Definitions
Understanding relationship between the reporting entity and a person(s)
Understanding relationship between the reporting entity and another entity/entities
Understanding who are not related parties
Understanding related party transactions
Other important definitions
Disclosures
Disclosure-Relationships between parent and subsidiaries
Category 2 Disclosure
Exemption to government-related entities
Significant differences in Ind AS 24 vis-à-vis AS 18
Unit 2: Indian Accounting Standard 33: Earnings Per Share
Introduction
Objective
Limitation of EPS
Focus of the standard
Scope
Definitions
Definition of dilution and antidilution
Definitions related to shares
Definitions related to options, warrants and equivalents
Definitions related to contingency
Measurement
Measurement of basic earnings per share
Meaning and formula
Measurement of earnings
Shares
Diluted earnings per share
Scope, meaning and formula
Earnings
Shares
Retrospective adjustments
Presentation
Disclosure
Appendix A-Additional Clarifications
Rights issues
Participating equity instruments and two-class ordinary shares
Partly paid shares
Significant differences in Ind AS 33 vis-a-vis AS 20
Unit 3: Indian Accounting Standard 108: Operating Segments
Scope
Operating segments
Reportable segments
Aggregation criteria
Quantitative thresholds
Disclosure
General information
Information about profit or loss, assets and liabilities
Measurement
Reconciliations
Restatement of previously reported information
Entity – wide disclosures
Information about products and services
information about geographical areas
Information about major customers
Significant differences in Ind AS 108 vis-a-vis AS 17
CHAPTER 13 –CONSOLIDATED FINANCIAL STATEMENTS
Unit 1: Introduction to Consolidated Financial Statements
Introduction
Purpose
From AS to Ind AS 136
Significant differences in Ind AS vis-à-vis existing AS 132
Ind AS 27 on ‘Separate Financial Statements’ vs AS 133
Ind AS 110 on ‘Consolidated Financial Statements’ vs AS 21 on ‘Consolidated Financial Statements’
Ind AS 28 on ‘Investments in Associates and Joint Ventures’Vs AS 23 on ‘Accounting for Investment
in Associates in Consolidated Financial Statements’
Ind AS 111 on ‘Joint Arrangements’ Vs AS 27 on ‘Financial Reporting of Interests in Joint Ventures
Unit 2: Important definitions
Unit 3: Separate Financial Statements
Introduction
Preparation of Separate Financial Statements
Unit 4: Consolidated Financial Statements
Objective
Scope
Concept of Control
Assessment of Control
Step 1: Purpose of the Investee
Step 2: Design of the Investee
Step 3: Relevant activities of the Investee that significantly affect its returns
Step 4: Examining the decision making process for the relevant activities
Step 5: Whether the decision maker is empowered and has the right to take those decisions?
Step 6: Whether investor has exposure, or rights, to variable returns from an investee?
Step 7: Is there a link between power & returns?
Comparison of Ind AS with the Companies Act, 2013
Consolidated Financial Statements-Investment Entities
Identification
Reassessing Status of an Entity (investment entity or not)
Consolidation not required
Unit 5: Consolidated Financial Statements: Accounting of Subsidiaries
Statutory Requirement
The Companies Act, 2013 requirements
The Companies (Accounts) Rules, 2014
Components of Consolidated Financial Statements
Consolidation procedures
Process
Calculation of Goodwill/Capital Reserve
Acquisition of interest in subsidiaries at different dates
Acquisition of interest in subsidiaries without consideration
Uniform Accounting Policies
Measurement
Profit or loss of subsidiary companies
Potential voting rights
Dividend received from subsidiary companies
Preparation of Consolidated Balance Sheet
Elimination of intra-group transactions
Preparation of consolidated profit & loss
Preparation of consolidated cash flows
Chain holdings
Reporting date
Non controlling interests
Loss of control
Unit 6- Joint Arrangements
Introduction
Scope
Concept of Joint Control
Features of Joint Arrangements
Contractual Arrangement
Joint Control
Types of Joint Arrangements
Joint Operations
Joint Ventures
Classification of Joint Arrangements
Structure of the Joint Arrangement
Assessing the terms of the Contractual Arrangement
Assessing other facts and circumstances
Financial Statement of parties to a Joint Arrangement
Joint Operations
Joint Venture
Unit 7: Investment in Associates & Joint Ventures
Introduction
Scope
Significant influence
Potential voting rights
Equity Method
Application of Equity Method
Exemption from applying the Equity Method
Discontinuing of Equity Method
Equity Method Procedures
Impairment Losses
Unit 8: Disclosures
In Separate Financial Statements
In Consolidated Financial Statement
CHAPTER 14- INDUSTRY SPECIFIC IND AS
UNIT 1: Indian Accounting Standard 41: Agriculture
Scope
Relevant definitions
Recognition of assets
Measurement
Gains and Losses
Government Grants
Disclosure
Unit 2: Indian Accounting Standard 104: Insurance Contract
Objective
Scope
Definitions
Definition of an insurance contract
Embedded derivatives
Unbundling of deposit components
Recognition and measurement
Temporary exemptions from Ind AS 8
No exemption from Ind AS 8
Liquidity adequacy test
Impairment of reinsurance assets
Changes in accounting policies
Insurance contracts acquired in a business Combination or portfolio transfer
Discretionary participation features
Disclosure requirements
Explanation of recognized amounts
Nature and extent of risks arising from insurance contacts
Unit 3: Indian Accounting Standard 106: Exploration for and Evaluation of Mineral Resources Learning Outcomes
Objective
Scope
Exclusions from other standards
Initial recognition and measurement of E&E assets
Expenses that can be included in E&E assets
Specific cost
Administrative and other general overhead costs
License acquisition costs
Borrowing costs
Decommissioning/Site restoration liability
Classification of E&E assets
Measurement after recognition
Changes in accounting policies
Reclassification of exploration and evaluation assets
Impairment
Level at which impairment is assessed
Disclosure
CHAPTER 15-BUSINESS COMBINATION AND CORPORATE RESTRUCTURING
Introduction
Mergers and Demergers
Mergers
Demergers
Business combination as per Ind AS 103 ‘Business Combination’
Scope under Ind AS 103
Definition of business combination
Definition and elements of business
Definition of business
Elements of business
The Acquisition method
Identifying Acquiring Enterprise
The Acquiring Enterprises
Acquisitions through payment of cash or incurring of liability
Acquisitions through issue of equity instrument
Acquisition involving Shell Comany and Reserve Acquisition
Determining the acquisition date
Step acquisitions
Determination of the purchase consideration
A Business combination achieved in stages (Step Acquisition)
A Business combination achieved without the Transfer of consideration
Direct cost of Acquisition
Contingent consideration
Purchase Price Allocation
Recognition of Assets and Liabilities of the Acquired Entity
Measurement principle
Intangible assets
Reacquired Rights
Goodwill-Recognition and Measurement
Bargain Purchases
Measurement Period
Determining what is part of the Business Combination Transaction
Contingent payments to employee shareholders
Acquirer share based payment awards exchanged for awards held by the Acquiree’s Employees
Non-Replacement Awards
Non-controlling interest in an Acquiree
Subsequent measurement and accounting
Required Rights
Contingent Liabilities
Indemnification Assets
Contingent Consideration
Disclosures
Common Control transactions including Merger and Demerger
Definitions
Common control Business combinations
Method of Accounting for Common control Business Combinations
Significant differences between Ind AS 103 and 14
CHAPTER 16 – ACCOUNTING AND REPORTING OF FINANCIAL INSTRUMENT
Unit 1 – Financial Instruments: Scope and Definitions
Introduction
What are financial instruments?
What is a Financial Asset?
What is a Financial Liability?
What is an Equity Instrument?
Scope of Financial Instruments
Contracts to buy or sell non-financial items (‘own use exemption’)
Unit 2 – Financial Instruments: Equity and Financial Liabilities
Introduction
Definitions-Financial liability and equity
Obligation to deliver cash
Obligation to purchase own equity instruments
Contingent settlement provisions
Written put options over non-controlling interests
Settlement in entity’s own equity instruments
Settlement options
Compound financial instruments
Split accounting for compound financial instruments
Separation of non-equity embedded derivatives
Conversion or early settlement of compound financial Instruments
Treasury shares
Interest, dividends, losses and gains
Offsetting a financial asset and a financial liability
Unit 3 – Classification and Measurement of Financial Assets and Financial Liabilities
Introduction
Financial Assets: Classification-Overall concept
Financial assets: Key elements to determine classification
Financial assets: Measurement
Financial assets: Initial measurement
Financial assets: Subsequent measurement
Financial liabilities: classification
Financial Liabilities: Measurement
Reclassification of financial assets and financial liabilities
Impairment
Unit 4: Recognition and Derecognition of Financial Instruments
Initial recognition
Regular way purchase or sale of financial assets
Derecognition of financial assets
Accounting treatment of transfers
Derecognition of financial liabilities
General Principles
Exchange of Financial Liability Instruments
Debt for equity swaps
Unit 5: Derivatives and Embedded Derivatives
Introduction
Definition
Derivatives
Embedded derivatives
Unit 6: Disclosure
Introduction
Significance of Financial Instruments
Balance Sheet
Statement of Profit and Loss
Other disclosures
Unit 7: Hedge Accounting
Introduction
Identifying the hedged item and designation of hedged items
Qualifying instruments for hedge accounting and designation of hedging instruments
Qualifying criteria for hedge accounting
Accounting for qualifying hedging relationships
CHAPTER 17- ACCOUNTING FOR SHARE BASED PAYMENT
Introduction
Definition
Shared-based payment arrangement
Share based payment transaction
Scope
What is covered within Ind AS 102?
What is not covered in Ind AS 102?
Recognition
Type of share based payments
Equity settled share based payment
Cash settled share based payments
Share based payment with cash alternatives
Determining types of conditions
Vesting conditions
Non-vesting conditions
Determining impact of conditions on share based valuation
Grant Date
Subsequent Measurement
Equity settled share based payment
Cash settled share based payment
Modification, cancellation and settlements
Fair Value calculation
Group share based payment plan
Disclosure
CHAPTER 18 – ANALYSIS OF FINANCIAL STATEMENTS
Introduction
Financial Statements of Corporate Entities
Characteristics of Good Financial Statements
Best Practices-Applicable to all Companies
Common Defects in Financial Statements of Corporate Entities
General Observations on Schedule III Disclosure
Observations on Disclosure of Balance Sheet Items
Observations on Disclosure of Statement of Profit and Loss Items
Observations on Other Components of Financial Statements
Observations on Disclosure of Other Items of Financial Statements
Observations on Consolidated Financial Statements
CHAPTER 19 – ACCOUNTING OF CARBON CREDITS
Kyoto Protocol
Market Based Mechanism
Joint Implementation (JI)
Clean Development Mechanism (CDM)
International Emission Trading (IET)
Carbon Credits and Certified Emission Reductions
Benefits of Carbon Credits
Carbon Trade
Pricing of CERS
Verified Emission Reduction (VER)
Calculation of CERS
Clean Development Mechanism Project Registration Process/Cycle
Stage I: Project Design Document and Monitoring Plan Preparation
Stage II: Host Country Approval
Stage III: Validation
Stage IV: Approval of Baseline Methodology by CDM-EB/Methodology Panel
Stage V: Project Registration
Stage VI: Monitoring and Verification
Stage VII: Certification
Stage VIII: Issuance of CERS
What is Additionality?
What is a Baseline?
Benefits for India
Trading Platform for CER in India
Accounting treatment as per Accounting Standards
Whether CER is an Asset?
Recognition of CERs
What type of an asset is a CER?
Measurement of CERs
Income Recognition
Measurement of Underlying Assets related to CERs
Presentation
Disclosure
Accounting Treatment under IND AS
CHAPTER 20 – ACCOUNTING FOR E-COMMERCE BUSINESS
Introduction
Definition of E-commerce
Advantages of E-commerce Business
Elements of E-commerce Transaction
Challenges in E-commerce Business
Various Business Models for E-commerce
Pictorial view of various E-commerce Models
Pictorial view of various Principal to Agent E-commerce Models
Classification of E-commerce Websites
Business to Business (B2B) E-commerce sites
Business to Consumer (B2C) E-commerce sites
Consumer to Consumer (C2C) E-commerce sites
Consumer to Business (C2B) E-commerce sites
Terms of agreement between the Vendors and the E-commerce Operators
Revenue Recognition for E-Commerce Companies
Transaction involving Sale of Goods
Transaction involving Provision of Services
When does the ‘risk and rewards’ get transferred to the customers?
Accounting principles applicable to specific
Sources of Revenue of E-commerce Companies
Accounting for Membership and Subscription Fee
Merchandising Services
Advertising Services
Measurement of Consideration in Advertising Barter Transactions
Other Services
Recognition and Measurement of Costs
Rebates, Discounts and Other Sales Incentives
Points and Loyalty Programme
Equity Based Consideration
Accounting for GST in E-commerce Companies
Accounting under Three Models of E-Commerce Business
Debit Note by E-commerce Companies 2
Indian Accounting Standard and its implication on E-Commerce companies
CHAPTER 21-INTEGRATED REPORTING
Introduction
Organizational Structure/Issuing Authority
What is Integrated Reporting <IR>?
Purpose of Integrated Reporting
Salient Features of Integrated Reporting Framework
Principle Based Approach
Targets the Private Sector or Profit Making Companies
Identifiable Communication
Financial and Non-financial Items
Value Creation
The Capitals
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Natural Capital
Contribution of Capitals in Value Creation
Guiding Principles for Preparation and Presentation of Integrated Report
Strategic Focus and Future Orientation
Connectivity of Information
Stakeholder Relationships
Materiality
Conciseness
86 Reliability and Completeness
87 Consistency and Comparability
9 Contents of Integrated Reporting
91 Organisational Overview and External Environment
92 Governance
93 Business Model
94 Risks and Opportunities
95 Strategy and Resource Allocation
96 Performance
Outlook
98 Basic of Preparation and Presentation
99 General Reporting Guidance
10 International Accounting Standards Board looking at the Role of Wider Reporting
11 Securities and Exchange Board of India (SEBI)
CHAPTER 22- CORPORATE SOCIAL RESPONSIBILITY
Introduction
Corporate Social Responsibility (CSR)
Which company to perform Corporate Social Responsibility?
Statutory Provisions
Important Definitions
The Companies Act, 2013
Calculation of ‘Net Profit’ as per Section 198
Important points on CSR activities
Permissible Activities under Corporate Social Responsibility Policies: Schedule VII 5 Accounting for CSR Transactions
Revenue Expenditure made in the Current Financial Year
CSR Expenditure made towards a Capital Asset
53 Whether any Unspent Amount of CSR Expenditure is to be provided for?
Whether the excess amount can be carry forward to set off against Future CSR Expenditure?
Supply of Manufactured Goods /Services by an Entity
Recognition of Income Earned from CSR Projects/ Programmes or During the Course of Conduct of CSR Activities
CSR Expenditure in the Income-tax Scenario
Reporting of CSR: Presentation and Disclosure in Financial Statements
Cessation from Compliance of CSR
CHAPTER 23- HUMAN RESOURCE REPORTING
Introduction
Models of HRR
Implications of Human Capital Reporting
Limitations of Human Resource Reporting (HRR)
HRR in India
CHAPTER 24- VALUE ADDED STATEMENT
Historical Background
Definitions
Value Added (VA)
Gross Value Added (GVA)
Net Value Added (NVA)
Reporting Value Added
Necessity of Preparing VA Statements
Value Added Statement (VA Statement)
Limitation of Value Added Statement
Interpretation of VA