ARTICLES

Lease Accounting

Lease accounting with an interest-free deposit

Lease accounting with an interest-free deposit Details for lease accounting Let us assume the following details for lease accounting: Lease start date: 1-Apr-2019 Lease end date: 31-Mar-2024 Lease payments: Rs. 2,75,000 Lease Deposit: Rs. 3,00,000 Payment frequency: Annual – payable at the end Incremental borrowing rate: 9% Right-of-use Recognition …
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Journal entries for lease accounting

Journal entries for lease accounting Details for lease accounting Let us assume the following details for lease accounting: Lease start date: 1-Apr-2019 Lease end date: 31-Mar-2024 Lease payments: Rs. 2,75,000 Payment frequency: Annual – payable at the end Incremental borrowing rate: 9%   Right-of-use   Recognition of Lease liability Amortisation of …
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Steps in lease accounting

Steps in lease accounting Details for lease accounting Let us assume the following details for lease accounting as per Ind AS 116 Lease start date: 1-Apr-2019 Lease end date: 31-Mar-2024 Lease payments: Rs. 2,75,000 Payment frequency: Annual – payable at the end Incremental borrowing rate: 9% Step …
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Lease modifications

Lease modifications What is meant by lease modification? A lease modification is a change in the scope of a lease, or the consideration for a lease, that was not part of its original terms and conditions. Examples of lease modifications are …
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How to compute right-to-use asset

How to compute right-to-use asset Initial measurement of the right-of-use asset At the commencement date, a lessee should recognise a right-of-use asset and a lease liability. At the commencement date, a lessee should measure the right-of-use asset at cost.The cost of the …
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Hedge Accounting

Discontinuation of hedge accounting

Discontinuation of hedge accounting Only prospective discontinuation Discontinuation of hedge accounting applies prospectively from the date on which the qualifying criteria are no longer met. An entity shall not de-designate and thereby discontinue a hedging relationship that: still meets the risk management objective on …
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Hedging instruments and hedged items

Hedging instruments and hedged items Hedging  instrument A hedging instrument should normally have one or more of the following characteristic features It should help minimise risk.It should protect the profit still unrealised by locking the same.It should not have the effect of realising …
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Qualifying criteria for hedge accounting

Qualifying criteria for hedge accounting Three criteria for hedge accounting A hedging relationship qualifies for hedge accounting only if all of the following criteria are met: Eligible instruments only The hedging relationship consists only of eligible hedging instruments and eligible hedged items. Formal designation and …
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What is meant by Hedging

What is meant by Hedging Requirements for hedging Hedging is a mechanism to either minimise the loss or to protect unrealised profits, if any. Maximising the profit is not an objective of hedging. Hedging is a risk management tool. There has to …
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Publications

Accounting for Investments – Volume 2

Accounting for Investments – Volume 2  Preface to Volume 2 Accounting for Investments – Fixed Income Securities & Interest Rate Derivatives is the second volume of the Accounting for Investments series. This volume covers the financial instruments of fixed income securities and interest …
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Introduction by Shri M P Vijayakumar

Introduction by Shri M P Vijayakumar Almost all business transactions culminate in financial instruments in some form. In the present era of money, money and money, we witness an increasing trend of businesses being done through contractual arrangements which are structured …
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Foreword by Shri T N Manoharan

Foreword by Shri T N Manoharan Mr R. Venkata Subramani, known for his expertise in the field of Financial Instruments accounting, has come up with a new series of books on Financial Instruments as per Ind AS, incorporating all the relevant aspects …
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Expected Credit Loss

Ind AS 109 / IFRS 9

Effective interest Rate

Effective interest Rate Effective interest rate – definition The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the …
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Ind AS 102 / IFRS 2

Main Features of Ind AS 102

Main Features of Ind AS 102 Share based payment transactions Indian Accounting Standard Ind AS 102 deals with Share based payment trans-actions. This is one of the standards announced by MCA IFRS 2 is the corresponding Accounting Standard issued by International Ac-counting Standards …
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Fair Value of Loans

Miscellaneous items – Ind AS 21

Miscellaneous items – Ind AS 21 Intra-group transactions While following the normal consolidation process, intra-group balances and intra-group transactions of a subsidiary are eliminated, thereby incorporating the results and the financial position of the foreign operation with that of the reporting entity. However, …
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Editorial Team

CA Viral Shah

CA Viral Shah He is a fellow Member of ICAI, also holds bachelor’s and Master’s in Commerce from Gujarat University, AhmedabadHe holds a USA CPA license from Arizona State Board of AccountancyHe also has successfully passed the certified course of Ind …
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Dr. Anand Banka

Dr. Anand Banka Dr. Anand Banka is a Fellow Chartered Accountant with PhD in Finance, an Author of 6 best-selling books and a celebrated faculty for courses on International Financial Reporting Standards (IFRS). He started young and always had zeal for …
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Dr. K. Sriram

Dr. K. Sriram Sriram is a Consulting Actuary engaged in Employee Benefits Consulting Practice since 2007 He is also an Actuarial Consultant- Trainer to some of the leading analytics firms in the area of actuarial analytics Sriram has over two decades of experience …
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Mohan R. Lavi

Mohan R. Lavi He has over 25 years of experience in industry across a variety of industries, qualified as Chartered Accountant in 1989 Mohan is the author of books on US GAAP, IFRS and the Sarbanes Oxley Act He writes frequently on IFRS …
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Arunachalam Rajaraman

Arunachalam Rajaraman He is a Consulting Actuary and Cost & Management Accountant from Chennai with about 25+ years of work and consulting experience. His experience is spread across Consulting, Technology, Investments, Pensions, Life Insurance and General Insurance.   He had earlier been elected and served as the …
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CA Sanjay Sisodia

CA Sanjay Sisodia A senior Chartered Accountant professional with broad knowledge of fund accounting, financial business principles of asset management, hedge fund industry including role performed by service providers in middle & back office, fund administration, reconciliation, custodians, prime brokers, broking, …
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Sumit Dhadda

Sumit Dhadda Chartered accountant, member since 2003 & secured gold medal in CA Inter exams (AIR 25th), Diploma in Information System Audit & Risk Management, Certified Anti Money Laundering Specialist, Certified Concurrent Auditor Registered Valuer from Insolvency & Bankruptcy Board of India …
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Yagnesh Mohanlal Desai

Yagnesh Mohanlal Desai Professional Accountant practicing since August 1983 Actively participated in the process of formulation of IFRS in India Advising and implementing Indian Accounting Standards (Ind AS) Imparting training in the field of Accounting and Auditing Standards Helping big corporates select and implement accounting …
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CA Sunitha Suri

CA Sunitha Suri Sunitha is a Chartered Accountant with over 10 years’ experience in international taxation She is also a Cost and Management Accountant (India) and Cost Management Accountant (UK) She has co-authored the chapter ’Dispute Resolution’ in the book ‘Transfer Pricing Law and Practice …
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