Accounting
Explore preserved RVSBELL Analytics articles by accounting standard, regulatory topic, service area, and search-priority content.
Roadmap for implementing Ind AS
The roadmap for implementing Ind AS in a phased manner is given below.
Key takeaways from the RBI notification dated 12th Nov 2021
The Reserve Bank of India vide its notification dated 12th Nov 2021 regarding Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances have provided clarifications which is likely to have a significant impact on the provisioning for all financial institutions including Banks and NBFCs.
Fair value hierarchy mentioned as per Ind AS 113
Ind AS 113 establishes a fair value hierarchy that categorises into three levels the inputs to valuation techniques used to measure fair value. The fair value
Objective of the fair value as per Ind AS 113
Ind AS 113 sets out a framework for measuring fair value including the definition of the fair value and the necessary disclosures about fair value
Difference between mandatory exceptions and optional exemptions
Whenever an entity follows an accounting standard as prescribed by Ind AS, then the entity is required to comply with the standard from the inception of the
Classification of Foreign Currency Convertible Bond (FCCB)
Contracts that will be settled by an entity delivering a fixed number of its own equity instruments in exchange for a fixed amount of foreign currency are treated as a liability as per IFRS 9. Accordingly, contracts which include a conversion option in a foreign currency denominated convertible bond are liabilities.
Guiding principle in guidance note on accounting for derivatives?
The main accounting principle enshrined in this guidance note is that all derivative contracts should be accounted for in the books of accounts and the same
Everything You Need to Know About Ind AS Accounting Standards 2023
Ind AS (Indian Accounting Standards) are a set of accounting standards that have been adopted from IFRS (International Financial Reporting Standards). Ind AS is designed to meet the needs of Indian companies by helping them to manage their financial reporting obligations in a fair and transparent manner.
What are Ind AS accounting standards?
The Ministry of Corporate Affairs (MCA) on 16th February 2015 notified the Companies (Indian Accounting Standards) Rules, 2015 containing 39 Indian Accounting
Understanding Ind AS Accounting Standards 2023
Ind AS are the Indian version of International Financial Reporting Standards (IFRS). The standards were developed by the Ministry of Corporate Affairs (MCA) as a way to bring India’s financial reporting in line with global best practices. They are meant to provide more consistency, transparency, and accuracy when it comes to financial statements.
Bifurcation of compound financial instruments
A compound financial instrument should be evaluated for the terms of the financial instrument to determine whether it contains both a liability and an equity
What is the significance of Ind AS 32?
Ind AS 32 deals with financial instruments from the perspective of an issuer and provides guidance as to how an entity should present a financial instrument
Fair value and how it is defined
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
Importance of functional currency?
The determination of functional currency is extremely important as incorrectly determining the same will affect the financial statements in a big way, causing
Definition of derivative instruments
A derivative instrument is a subset of financial instrument with mainly three characteristics, viz, its value changes in response to a change in the
Main Features of Ind AS 102
Indian Accounting Standard Ind AS 102 deals with Share based payment trans-actions. This is one of the standards announced by MCA
Guidelines on implementation of Ind AS by NBFCs
The Reserve Bank of India has released guidelines for the implementation of Indian Accounting Standards (Ind AS) by Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs).
Objective behind the valuation techniques Ind AS 113
The objective is to maximise the use of relevant observable inputs and minimise the use of unobservable inputs. Exchange markets, dealer markets, brokered
Treatment of embedded derivatives on first-time adoption?
As per Ind AS 101, the assessment of embedded derivative that requires to be separated from the host contract and accounted for as a derivative should be
Relevance of fair value for non-financial assets
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its
Transaction not representing the fair value
If at initial recognition the transaction value is different from the fair value, then the difference between the fair value at initial recognition and the
Is the bitcoin worth ZERO?
There is an article by Nassim Nicholas Taleb who is a distinguished Professor of Risk Engineering at NYU's Tandon School of Engineering.
Consequences of treating equity vs liability
The consequences of treating particular contract as equity are as follows:
Designate a previously recognised financial instrument
A financial liability may be designated as a liability measured at fair value through profit or loss provided it eliminates or significantly reduces the
Criteria for classifying as either financial liability or equity
The core criteria while classifying a financial instrument is to examine whether there exists a future obligation on the part of the entity to part with
Need for the guidance note on accounting for derivatives
Currently, none of the notified accounting standards prescribe the proper accounting treatment for derivative contracts. Foreign exchange forward contracts,
Scopes of the three standards for financial instruments
Ind AS 32 is the converged standard of IAS 32. Ind AS 109 is the converged Ind AS of IFRS 9. Ind AS 107 is the converged Ind AS of IFRS 7. While the scope of
Transactions within the scope of this guidance note
All transactions covered by AS 11, accounting for embedded derivative contracts and accounting for non-derivative financial assets/liabilities designated as
Entities that are required to follow the guidance note
Banking, non-banking finance companies (NBFCs), housing finance companies and insurance entities follow derivative accounting promulgated by the respective
Key accounting principles in the guidance note?
All derivatives should be accounted for at the inception and measured at fair value too at the inception as well as at every reporting period. If hedge accounting is not applied, then the derivatives should be measured at fair value. Fair value changes should be recognised in P&L.