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