Whitepaper - Depreciation under New Companies Act 2013
|
|
- Jayson Gray
- 8 years ago
- Views:
Transcription
1 Whitepaper - Depreciation under New Companies Act 2013 Anirban Chakraborty This document contains a detailed explanation on depreciation calculation under New Companies Act 2013 Udyog Software (India) Ltd. Hyderabad, Telangana, India 12/8/2014
2 The new enactment on Companies Act, 2013 (the New Act) has brought in significant changes on various aspects of financial statements to make it more contemporary and relevant, to corporates, regulators and other stakeholders in India. Section 123(2) of the New Act states that, depreciation shall be provided in accordance with the provisions of schedule II. Schedule II Part C, provides the useful lives of tangible assets as against the minimum depreciation rates specified in Schedule XIV of Companies Act, Depreciation: Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is systematically allocated so as to charge a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation is a non-cash item and change in depreciation charge will not result in inflow or outflow of cash. However, it can alter the shape of the Profit and Loss Account (P&L). To arrive at the true operational performance of companies in the current fiscal, attention should be given to the depreciation charge, extraordinary items and transfer to reserves done under transitional provisions of New Act. Applicability of depreciation provisions as per New Act All provisions with respect to financial statements shall be applicable only in respect of financial years commencing on or after 1 April Schedule II Part C: Regulatory entities Not Applicable. Useful life and residual value shall be as notified by relevant authority. Intangible assets Not Applicable. Provisions of accounting standards shall apply (except in case of toll roads created under BOT (Build, Own & Transfer) or BOOT (Build, Own, Operate & Transfer); or any road projects with public private partnership shall be amortised as per Companies Act Other Companies Applicable. Useful life and residual value can be different from those specified in Schedule II, if justified in financial statements Carrying value of Assets as on effective date: From the effective date of the New Act, carrying value is the depreciable amount of the asset should be depreciated over the remaining useful life of the asset as per Schedule II. The Schedule clarifies that depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. In case any asset is revalued, the new revalued value shall be considered in arriving at carrying value. Udyog Software (India) Ltd. Monday, 08 December 2014 Page 1
3 Assets Useful Life: The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. The New Act provides useful life as the basis of systemic allocation of asset cost instead of depreciation rates. Net depreciable amount is to be amortised to P&L over the estimated useful life of the asset. The useful lives specified in Schedule II of the New Act for different assets will result in change in depreciation charge over different period. For example, a company using the Straight-Line Method (SLM) under the New Act, the useful life has declined from 21 years to 15 years for general plant and machinery, from 15 years to 10 years for general furniture and fittings, and from 6 years to 3 years for computers. Further, the useful life of buildings other than factory buildings and other-than-rcc frame structure, prescribed under Schedule XIV, is around 58 years as compared to 30 years under the New Act. Residual Value: Ordinarily, the residual value is often insignificant, but it should generally not be more than 5% of the original cost of the asset. However, it can be higher, if appropriate justification is disclosed in financial statements. Shifts: The New Act has not prescribed any specific rates/lives for depreciation of assets used under extra shifts. Rather, it states that for the period of time, an asset is used in double shift; depreciation will increase by 50%; and by 100% in case of triple shift working. Shift depreciation is primarily applicable for plant & machinery category with minimum asset life of 15 years, not marked as NESD assets in Schedule II. For example, a company has purchased one general plant and machinery costing INR 10 Lacs three years prior to the commencement of New Act with no residual value. Under Schedule XIV for SLM basis, single, double and triple shift depreciation rates applicable to the asset are 4.75%, 7.42% and 10.34%, respectively. Under Schedule II, its life is 15 years. For all three years, the company has used the asset on a triple shift basis and therefore, depreciated 31.02% of its cost over three years i.e. INR 3.1 Lacs and carrying value of INR 6.9 Lacs. On transition to Schedule II, the asset has a remaining useful life 12 years (15-3). From the date of transition ( ) the company will depreciate carrying amount of INR 6.9 Lacs over 12 years on SLM basis for single shift. If the company uses the asset on triple shift basis during any subsequent year, depreciation so computed will be increased by 100%. In case of double shift, depreciation will be increased by 50%. Udyog Software (India) Ltd. Monday, 08 December 2014 Page 2
4 Componentization of assets: The New Act, mandates componentization of assets. Useful life in Schedule II is applicable to the whole of asset, however component accounting requires a company to identify and depreciate significant components with different useful lives separately. Assets costing less than 5000: Unlike Companies Act 1956, there is no specific requirement of 100% depreciation on assets whose actual cost does not exceed INR The Company can use a consistant company wide policy to either expense out such assets without forming part of Gross Block and Fixed Assets Register (FAR); or charge 100% depreciation in the year of acquisition in which case it will form part of the Gross Block as well as Accumulated Depreciation. Application of AS 6 (notified): Financial statements of company have to be prepared in congruence with AS 6 as notified by MCA. AS 6 states that depreciation rates prescribed under the statute are minimum. If management s estimate of the useful life of an asset is shorter (or depreciation rate should be higher) than that envisaged under the statute, depreciation is computed by applying the higher rate. In other words, if useful life is lower than as prescribed by Schedule II, the companies have to use lower life for depreciation. Transitional Provisions: If company follows AS 6 useful life, there is no need to change the depreciation charge on transition, however an appropriate justification is required to be provided in the financial statements. In this case transitional provisions will not apply. If the company follows Schedule XIV rates then transitional provisions will apply to change to Schedule II useful life or to apply AS6. With regard to the adjustment of impact arising on the first- time application, the transitional provisions to Schedule II of the New Act provides that the carrying value of the asset on the date of transition (as discussed above): In case asset has remaining useful life as per Schedule II Carrying value shall be depreciated over the remaining useful life of the asset as per this schedule. In case asset does not have remaining useful life after retaining the residual value, balance shall be recognized in the opening balance of retained earnings. Udyog Software (India) Ltd. Monday, 08 December 2014 Page 3
5 Impact: Depreciation under New Act has impacted companies significantly. In conflict with AS6, Schedule II states that useful life and residual value can lower or higher that those specified, if appropriate justification can be provided in financial statements. Additional efforts have to be put in by the management to rework each of the asset s useful life and residual value. If useful life of asset as per management is higher than that prescribed by Schedule II, the higher rate may be applied at the option of the company, by providing a proper justification. If useful life of the asset as per the management is lower than that prescribed by Schedule II, AS 6 requires the company to mandatorily depreciate the asset using lower life only and provide with appropriate justification. This reworking may be complex for few a companies and may require system-level changes. Componentization being mandatory is yet another important exercise for asset intensive companies to identify components having value significant to total asset value; estimate their remaining useful life and residual value to depreciate them separately. Further, component accounting is required to be done for the entire block of assets as on April It cannot be restricted to only new assets acquired after 1 April This would result in maintaining detailed records of each component of main asset resulting in increased size of FAR and maintaining independent and dependent child relationships. It is also expected to change the measurement of depreciation and accounting for replacement costs. Currently, companies expense the replacement cost of parts in the year of incurrence. However, as per component accounting, the companies will have to capitalize these costs (significant parts) as a separate component of the asset, with consequent charging of net carrying value of the part to profit and loss account at the time of replacement. To align themselves with New Act provisions, some companies have reassessed the useful life of assets and estimated residual value for Quarter end results (June 14 / Sep 14). While some others like IDFC have retrospectively changed the method of deprecation from WDV to SLM resulting in write back of depreciation and a major boost to the bottom line. Udyog Software (India) Ltd. Monday, 08 December 2014 Page 4
Schedule II to the Companies Act, 2013
Schedule II to the Companies Act, 2013 Aditi Chandak, Chartered Accountant With the introduction of the revamped Company Law, changes have been brought about in quite a few areas of interest. We re focusing
More informationGN (A) 35 Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013
GN (A) 35 Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013 The Institute of Chartered Accountants of India (Set up by an Act of Parliament)
More informationDepreciation Accounting
56 Accounting Standard (AS) 6 Depreciation Accounting Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-19 Disclosure 17-19 MAIN PRINCIPLES 20-29 94 AS 6 (issued 1982) Accounting Standard
More informationAS 6: Depreciation Accounting
AS 6: Depreciation Accounting IPCC Paper 1: Accounting Chapter 1 Unit 2 Depreciation - AS 6 CA. Yagnesh Desai 1 Introduction This statement deals with depreciation accounting and applies to all depreciable
More informationDepreciation under Companies Act -2013 Provisions and Case Studies
Depreciation under Companies Act -2013 Provisions and Case Studies April 23, 2015 Page 1 CA Santosh Aggarwal Agenda Overview of key developments Depreciation: Overview and key changes Method of depreciation
More informationFixed Assets. Name: SudhirJain M. No.: 213157
Fixed Assets Name: SudhirJain M. No.: 213157 Agenda AS- 10 Accounting for Fixed Assets Introduction & Scope Definitions and other relevant provisions Relevant provisions of other Accounting Standards applicable
More informationAccounting and Reporting Policy FRS 102. Staff Education Note 5 Property, plant and equipment
Accounting and Reporting Policy FRS 102 Staff Education Note 5 Property, plant and equipment Disclaimer This Education Note has been prepared by FRC staff for the convenience of users of FRS 102 The Financial
More informationTechnical Factsheet 189 Intangible Fixed Assets
Technical Factsheet 189 Intangible Fixed Assets CONTENTS Page 1 Introduction 1 2 Legislative requirement 1 3 Accounting standards 2 4 Example 9 5 Checklist 10 6 Sources of information 12 This technical
More informationProperty, Plant and Equipment
STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 16 Property, Plant and Equipment SB-FRS 16 Property, Plant and Equipment applies to Statutory Boards for annual periods beginning on or after 1 January
More informationWIPRO DOHA LLC FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2016
WIPRO DOHA LLC FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2016 WIPRO DOHA LLC BALANCE SHEET (Amount in ` except share and per share data, unless otherwise stated) As at March 31, 2016
More informationACCOUNTING AND AUDITING UPDATE
ACCOUNTING AND AUDITING UPDATE May 2015 In this issue The ICAI provides guidance on provisions relating to depreciation under the Companies Act, 2013 p1 Accounting of investment property p5 Share application
More informationAccounting Building Business Skills. Learning Objectives. Learning Objectives. Paul D. Kimmel
Accounting Building Business Skills Paul D. Kimmel Chapter Eight: Reporting and Analysing Non-current assets PowerPoint presentation by Christine Langridge Swinburne University of Technology, Lilydale
More informationAccounting for Fixed Assets
96 Accounting Standard (AS) 10 Accounting for Fixed Assets Contents INTRODUCTION Paragraphs 1-6 Definitions 6 EXPLANATION 7-17 Identification of Fixed Assets 8 Components of Cost 9 Self-constructed Fixed
More informationHow To Account For Property, Plant And Equipment
International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of
More informationIAS 38 Intangible Assets
2012 Technical Summary IAS 38 Intangible Assets as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared
More informationImpairment of Assets
Compiled AASB Standard AASB 136 Impairment of Assets This compiled Standard applies to annual reporting periods beginning on or after 1 January 2010. Early application is permitted. It incorporates relevant
More informationPOLICY MANUAL. Financial Management Significant Accounting Policies (July 2015)
POLICY 1. Objective To adopt Full Accrual Accounting and all other applicable Accounting Standards. 2. Local Government Reference Local Government Act 1995 Local Government (Financial Management) Regulations
More informationAccounting Technician Examination
14 Feature Article: Consolidation Procedures Intra-group Transactions Between Parent and Subsidiary (relevant to ATE Paper 7 Advanced Accounting) Teresa M H Ho Introduction This article describes and illustrates
More information1 Accounting Standards
1 Accounting Standards Accounting Standards (ASs) BASIC CONCEPTS Accounting Standards (ASs) are written policy documents issued by expert accounting body or by government or other regulatory body covering
More informationSri Lanka Accounting Standard LKAS 16. Property, Plant and Equipment
Sri Lanka Accounting Standard LKAS 16 Property, Plant and Equipment CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 16 PROPERTY, PLANT AND EQUIPMENT OBJECTIVE 1 SCOPE 2 DEFINITIONS 6 RECOGNITION
More informationIncome Computation and Disclosure Standard V Tangible Fixed Assets
CA. Zubin F. Billimoria and CA. Harsha Rawal Income Computation and Disclosure Standard V Tangible Fixed Assets Introduction This Income Computation and Disclosure Standard (ICDS) deals with the treatment
More informationSri Lanka Accounting Standard for Smaller Enterprises
Sri Lanka Accounting Standard for Smaller Enterprises The Sri Lanka Accounting Standards for Smaller Enterprises (SLASSE) was published in Year 2003. This needs to be revised to be in line with the revisions
More information4.1 PROPERTY, PLANT AND EQUIPMENT
4.1 PROPERTY, PLANT AND EQUIPMENT 4.1.1 Introduction 4.1.1.1 Authorities shall account for tangible fixed assets in accordance with IAS 16 Property, Plant and Equipment, except where interpretations or
More informationThe early part of the article explains in detail the nature and purpose of Depreciation as a book-keeping and accounting concept.
Depreciation Editorial This months students' newsletter focuses on the concept of Depreciation a knowledge of which is essential to those studying Manual Book-Keeping Level 3 and the Level 3 Computerised
More informationOpening doors to new ideas. Interim Report 2007/08
Opening doors to new ideas Interim Report 2007/08 SPG Media Group Plc Interim Report 2007/08 Contents 2 Chairman s Statement 4 Consolidated Interim Income Statement 5 Consolidated Interim Balance Sheet
More informationEUROPEAN UNION ACCOUNTING RULE 6 INTANGIBLE ASSETS
EUROPEAN UNION ACCOUNTING RULE 6 INTANGIBLE ASSETS Page 2 of 17 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Definition of intangible assets... 4 5. Recognition and Measurement... 5
More informationInternational Accounting Standard 36 Impairment of Assets
International Accounting Standard 36 Impairment of Assets Objective 1 The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more
More informationHow To Account For An Amalgamation
144 Accounting Standard (AS) 14 Accounting for Amalgamations Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-27 Types of Amalgamations 4-6 Methods of Accounting for Amalgamations 7-13
More informationAccounting standard. Intangible Assets. Vinod Kothari. Vinod Kothari http://www.vinodkothari.com 1012 Krishna 224 AJC Bose Road
Accounting standard no 26 Intangible Assets Vinod Kothari Vinod Kothari http://www.vinodkothari.com h i 1012 Krishna 224 AJC Bose Road Kolkata - 700 017. India E-mail: vinod@vinodkothari.com Phone 91-33-22817715/
More informationHow To Write A Budget For The Council
FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET Adopted: Audit Committee 20 June 2013 Committee Decision No. 10 Audit Committee Minutes endorsed by Council OMC 18 July 2013 Council Decision No. 2753 AASB
More informationRELATE ACCOUNTS PRODUCTION
RELATE ACCOUNTS PRODUCTION GUIDE TO CASH FLOW STATEMENTS Contents SUPPORT SERVICES...3 COPYRIGHT...3 BACKROUND TO DOCUMENT...4 CUSTOMER SUPPORT... 4 IMPORTANT NOTICE... 4 HELP... 4 CASH FLOW STATEMENT...5
More informationINTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
More informationCASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes
MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size
More informationHKAS 36 Revised June November 2014. Hong Kong Accounting Standard 36. Impairment of Assets
HKAS 36 Revised June November 2014 Hong Kong Accounting Standard 36 Impairment of Assets HKAS 36 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting
More informationINDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS
STATEMENT OF SFAS No. FINANCIAL ACCOUNTING STANDARD 16 INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS Statement of Financial Accounting Standard (SFAS) No.16, Fixed Assets and Other
More information3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS
3. CONSOLIDATED QUARTERLY FINANCIAL STATEMENTS (1) Consolidated Quarterly Balance Sheets September 30, 2014 and March 31, 2014 Supplementary Information 2Q FY March 2015 March 31, 2014 September 30, 2014
More informationLocal Government Operational Guidelines. Number 18 June 2013. Financial Ratios
Local Government Operational Guidelines Number 18 June 2013 Page 2 of 20 1. Introduction This guideline is intended to provide a clear explanation of each ratio required to be included in the annual financial
More informationIntangible assets other than Goodwill, Business combinations and Goodwill
Intangible assets other than Goodwill, Business combinations and Goodwill 1.1. Recognition An entity shall apply the recognition criteria stated in Section Concepts and Principles of IFRS for SMEs for
More informationBackground Material. Half Day Seminar on. Changes in Law Tighten your belt
Background Material Half Day Seminar on Changes in Law Tighten your belt Topic: Nitty-Gritty of Depreciation provisions under CA2013 - Case Studies & Use of MS-EXCEL for computation Sessions by: CA. Kuntal
More information16 BUSINESS ACCOUNTING STANDARD CONSOLIDATED FINANCIAL STATEMENTS AND INVESTMENTS IN SUBSIDIARIES I. GENERAL PROVISIONS
APPROVED by Resolution No. 10 of 10 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 16 BUSINESS ACCOUNTING STANDARD CONSOLIDATED
More informationNAS 09 NEPAL ACCOUNTING STANDARDS ON INCOME TAXES
NAS 09 NEPAL ACCOUNTING STANDARDS ON INCOME TAXES CONTENTS Paragraphs OBJECTIVE SCOPE 1-4 DEFINITIONS 5-11 Tax Base 7-11 RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS 12-14 RECOGNITION
More informationTREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.3 : Depreciation and Amortisation
TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.3 : Depreciation and Amortisation STATEMENT OF INTENT The objective in depreciating assets is to allocate the value of non-current assets over their
More informationProperty, Plant and Equipment
HKAS 16 Revised JuneAugust 2014 Hong Kong Accounting Standard 16 Property, Plant and Equipment HKAS 16 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial
More informationAccounting and Reporting Policy FRS 102. Staff Education Note 1 Cash flow statements
Staff Education Note 1: Cash flow Statements Accounting and Reporting Policy FRS 102 Staff Education Note 1 Cash flow statements Disclaimer This Education Note has been prepared by FRC staff for the convenience
More information5 BUSINESS ACCOUNTING STANDARD CASH FLOW STATEMENT I. GENERAL PROVISIONS II. KEY DEFINITIONS
APPROVED by Resolution No. 1 of 18 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 5 BUSINESS ACCOUNTING STANDARD CASH FLOW STATEMENT
More informationProperty, Plant and Equipment
Compiled AASB Standard AASB 116 Property, Plant and Equipment This compiled Standard applies to annual reporting periods beginning on or after 1 July 2009. Early application is permitted. It incorporates
More informationaccounting for property, plant and equipment
01 technical accounting for property, plant and equipment RELEVANT TO ACCA QUALIFICATION PAPER F7 The accounting for IAS 16, Property, Plant and Equipment is a particularly important area of the Paper
More informationChapter. Statement of Cash Flows For Single Company
Chapter 4 Statement of Cash Flows For Single Company 4.1 Single company statement of cash flows Statement of cash flows are primary financial statements and are required along side the income statement
More informationCollege Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles
College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles 1. HOW DOES A BUSINESS MEASURE THE COST OF A PLANT ASSET? Plant assets are long-lived, tangible assets used in the operation
More informationConsolidated Financial Results. for the First Quarter of the Fiscal Year Ending September 30, 2015
Jan 29, 2015 SHOEI CO., LTD. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending September 30, 2015 Name of Registrant SHOEI CO., LTD. Code No: 7839 Securities Traded Tokyo Stock
More informationStatutory Financial Reporting Policy
Statutory Financial Reporting Policy Reference Number: 3.15 12/270185 Type: Council Category: Corporate Services Relevant Community Plan Outcome: Demonstrate effective leadership with strong community
More informationImpairment of Assets
Compiled Accounting Standard AASB 136 Impairment of Assets This compiled Standard applies to annual reporting periods beginning on or after 1 July 2007. Early application is permitted. It incorporates
More informationInternational Financial Accounting (IFA)
International Financial Accounting (IFA) Preparation and presentation of Financial Statements DEPARTMENT OF BUSINESS AND LAW ROBERTO DI PIETRA SIENA, NOVEMBER 4, 2013 1 INTERNATIONAL FINANCIAL ACCOUNTING
More informationAccounting Guideline
Accounting Guideline GAP 3 Accounting Policies, Changes in Accounting Estimates and Errors All rights reserved. No part of this publication may be reproduced, stored in retrieval system, or transmitted,
More informationICDS, Indian GAAP and Ind AS Comparison. May 2015
ICDS, Indian GAAP and Ind AS Comparison May 2015 Contents Introduction to Income Computation and Disclosure Standards Introduction to Indian Accounting Standards Comparison of ICDS, Indian GAAP and Ind
More informationIFRS for SMEs IFRS Swiss GAAP FER
IFRS for SMEs IFRS Swiss GAAP FER Similarities and differences 2009 Edition IFRS for SMEs IFRS Swiss GAAP FER Similarities and differences 2009 Edition This PricewaterhouseCoopers publication is for those
More informationEXERCISES. Testing Equipment Vehicle Estimated average annual income: $24,300/6... $4,050 $15,000/8... $1,875
Ex. 25 1 (FIN MAN); Ex. 10 1 (MAN) EXERCISES Testing Equipment Vehicle Estimated average annual income: $24,300/6... $4,050 $15,000/8... $1,875 Average investment: ($90,000 + 0)/2... $45,000 ($25,000 +
More informationPART 5. External Reporting and Performance Evaluation. Statements of financial performance and position. Statement of cash flows 19
PART 5 External Reporting and Performance Evaluation Statements of financial performance and position 18 Statement of cash flows 19 Analysis and interpretation of financial statements 20 CHAPTER 18 Statements
More informationInternational Accounting Standard 17 Leases
International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation
More informationAccounting for Investments in Associates in Consolidated Financial Statements
371 Accounting Standard (AS) 23 Accounting for Investments in Associates in Consolidated Financial Statements Contents OBJECTIVE SCOPE Paragraphs 1-2 DEFINITIONS 3-6 ACCOUNTING FOR INVESTMENTS EQUITY METHOD
More informationResidual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.
87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company
More informationKhâi-Ma Municipality NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013
1. ACCOUNTING PRINCIPLES AND POLICIES APPLIED IN THE FINANCIAL STATEMENTS 1.1 BASIS OF PREPARATION The financial statements have been prepared on an accrual basis of accounting and are in accordance with
More informationBrief Report on Closing of Accounts (connection) for the Term Ended March 31, 2007
MARUHAN Co., Ltd. Brief Report on Closing of (connection) for the Term Ended March 31, 2007 (Amounts less than 1 million yen omitted) 1.Business Results for the term ended on March, 2007 (From April 1,
More informationDESIGNIT OSLO A/S STANDALONE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED MARCH 31, 2016
DESIGNIT OSLO A/S STANDALONE FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED MARCH 31, 2016 Payables include balances due to Micro & Small Enterprises ` NIL as on 31 st March 2016. *Trade 1. Company
More informationACCOUNTING STANDARD 23 (AS - 23) Accounting for Investments in Associates in Consolidated Financial Statements
ACCOUNTING STANDARD 23 (AS - 23) Accounting for Investments in Associates in Consolidated Financial Statements Commencement AS - 23 comes into effect from April 1,2002. Objective The standard explains
More informationIPSAS 7 ACCOUNTING FOR INVESTMENTS IN ASSOCIATES
IPSAS 7 ACCOUNTING FOR INVESTMENTS IN ASSOCIATES Acknowledgment This International Public Sector Accounting Standard is drawn primarily from International Accounting Standard (IAS) 28, Accounting for Investments
More informationArticle by Martin Kelly, BSc (Econ) Hons, DIP. Acc, FCA, MBA, MCMI. Examiner in Professional 2 Advanced Corporate Reporting
IMPAIRMENT - IAS 36 Article by Martin Kelly, BSc (Econ) Hons, DIP. Acc, FCA, MBA, MCMI. Examiner in Professional 2 Advanced Corporate Reporting Introduction Intangible assets, particularly goodwill, have
More informationAccounting for Taxes on Income
347 Accounting Standard (AS) 22 Accounting for Taxes on Income Contents OBJECTIVE SCOPE Paragraphs 1-3 DEFINITIONS 4-8 RECOGNITION 9-19 Re-assessment of Unrecognised Deferred Tax Assets 19 MEASUREMENT
More informationThe following Accounting Standards Interpretations (ASIs) relate to AS 23:
438 Accounting Standard (AS) 23 (issued 2001) Accounting for Investments in Associates in Consolidated Financial Statements Contents OBJECTIVE SCOPE Paragraphs 1-2 DEFINITIONS 3-6 ACCOUNTING FOR INVESTMENTS
More informationBusiness financial terms and ratios definitions
Business financial terms and ratios definitions Certain financial terms often mean different things to different organisations depending on their own particular accounting policies. Financial terms will
More informationProperty, Plant and Equipment
Indian Accounting Standard (Ind AS) 16 Property, Plant and Equipment Property, Plant and Equipment Contents Paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7 14 Initial costs 11 Subsequent costs
More informationSimilarities and differences
www.pwc.ch Similarities and differences IFRS for SMEs IFRS SWISS GAAP FER 2010/11 Edition Some practical examples IFRS for SMEs IFRS SWISS GAAP FER Similarities and differences 2010/11 Edition This PwC
More informationMuhammad Asif Iqbal Technical Advisor, SOCPA. March 7, 2012
Saudi Accounting Framework in comparison with Framework Muhammad Asif Iqbal Technical Advisor, SOCPA ICAP KSA Chapter, Khobar March 7, 2012 Agenda Status of Accounting Standards in Saudi Arabia SOCPA Convergence
More informationFirstsource Process Management Services Limited
Firstsource Process Management Services Limited (Formerly known as Anunta Tech Infrastructure Services Limited) Financial Statements for the financial year ended March 31, 2016 (formerly known as
More informationRegulations of the University of North Texas System Chapter 08. Fiscal Management. 08.9000 Asset Capitalization
Regulations of the University of North Texas System Chapter 08 08.9000 Asset Capitalization Fiscal Management 08.9001 Regulation Statement. The University of North Texas System shall identify, measure,
More informationAS 10 : Accounting for Fixed Assets
AS 10 : Accounting for Fixed Assets IPCC Paper 1: Accounting Chapter 1 Unit 2 Fixed Assets - AS 10 Related ASI is 2 CA. Yagnesh Desai 1 Applicability This standards was introduced in 1985 It is applicable
More informationInternational Accounting Standard 38 Intangible Assets. Objective. Scope IAS 38
International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in
More informationNEPAL ACCOUNTING STANDARDS ON BUSINESS COMBINATIONS
NAS 21 NEPAL ACCOUNTING STANDARDS ON BUSINESS COMBINATIONS CONTENTS Paragraphs OBJECTIVE 1 SCOPE 2-14 Identifying a business combination 5-10 Business combinations involving entities under common control
More informationG8 Education Limited ABN: 95 123 828 553. Accounting Policies
G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3
More informationProperty, Plant and Equipment
International Accounting Standard 16 Property, Plant and Equipment This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 16 Property, Plant and Equipment was issued by
More informationAvivaSA Emeklilik ve Hayat Anonim Şirketi
BALANCE SHEET AS OF 31 DECEMBER 2015 ASSETS I- CURRENT ASSETS Notes 31 December 2015 31 December 2014 A- Cash and Cash Equivalents 14 447.814.449 394.414.565 1- Cash 14-142 2- Cheques Received 3- Banks
More informationAustralian Accounting Standards Board (AASB)
Standards Board () FACT SHEET September 2011 1038 Life Insurance Contracts (This fact sheet is based on the standard as at 1 January 2011.) Important note: This standard is an Australian specific standard
More informationChapter 6. Revaluations and impairment testing of non-current assets. Objectives of this lecture. Objectives (cont.)
Chapter 6 Revaluations and impairment testing of non-current assets PPTs to accompany Deegan, Australian Financial Accounting 7e 6-1 Objectives of this lecture Understand the meaning of fair value Understand
More informationMASB Standard 12. Investments in Associates
LEMBAGA PIAWAIAN PERAKAUNAN MALAYSIA MALAYSIAN ACCOUNTING STANDARDS BOARD MASB Standard 12 Investments in Associates Any correspondence regarding this Standard should be addressed to: The Chairman Malaysian
More informationForecast Financial Statements. Crown Law Office. JUSTICE SECTOR - INFORMATION SUPPORTING THE ESTIMATES 2008/09 B.5A Vol.7 211
Forecast Financial Statements Crown Law Office JUSTICE SECTOR - INFORMATION SUPPORTING THE ESTIMATES B.5A Vol.7 211 Statement of Forecast Financial Performance for the year ending 30 June 2009 Note Income
More informationNovember 4, 2015 Consolidated Financial Results for the Second Quarter of Fiscal Year 2015 (From April 1, 2015 to September 30, 2015) [Japan GAAP]
November 4, 2015 Consolidated Financial Results for the Second Quarter of Fiscal Year 2015 (From April 1, 2015 to September 30, 2015) [Japan GAAP] Company Name: Idemitsu Kosan Co., Ltd. (URL http://www.idemitsu.com)
More informationAccounting Changes and Error Corrections
ACCOUNTING CHANGES Types of Accounting Changes 1. Change in accounting principle-change from one generally accepted accounting principle to another. 2. Change in accounting estimate-revision of an estimate
More informationUnderstanding Annual Reports and Company Accounts
Understanding Annual Reports and Company Accounts A Guide to Financial Statements Ian McIsaac www.mcisaac.co.uk 14/04/04 Page 1 of 27 Welcome to this guide to financial statements and company accounts.
More informationFINANCE POLICY POLICY NO F.6 SIGNIFICANT ACCOUNTING POLICIES. FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002
POLICY NO F.6 POLICY SUBJECT FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002 Shire of Toodyay Policy Manual FINANCE POLICY SIGNIFICANT ACCOUNTING POLICIES LAST REVIEW 22 July 2014 (Council Resolution No 201/07/14)
More informationConsolidated Balance Sheet
Consolidated Balance Sheet (As of March 31, 2010) Item Amount Item Amount [Assets] million yen [Liabilities] million yen Current assets 12,277Current liabilities 7,388 Notes payable and accounts 2,449
More informationModule 2: Preparing for Capital Venture Financing Financial Forecasting Methods TABLE OF CONTENTS
Module 2: Preparing for Capital Venture Financing Financial Forecasting Methods Module 2: Preparing for Capital Venture Financing Financial Forecasting Methods 1.0 FINANCIAL FORECASTING METHODS 1.01 Introduction
More informationHow To Recognise An Intangible Asset
Accounting Guideline GAP 31 Intangible Assets All rights reserved. No part of this publication may be reproduced, stored in retrieval system, or transmitted, in any form or by any means, electronic, mechanical,
More information1. The purpose of this paper is to discuss disclosure requirements for a lessor in the final leases standard.
IASB Agenda ref 3B STAFF PAPER July 2014 REG FASB IASB Meeting Project Paper topic Leases Lessor disclosure requirements CONTACT(S) Roberta Ravelli rravelli@ifrs.org +44 (0) 20 7246 6935 Scott A. Muir
More informationNational and International Methods of Fixed Assets Depreciation
National and International Methods of Fixed Assets Depreciation Silvia Samara Ph. D student Valahia University Faculty of Economics Târgovişte, Romania samara_vet@yahoo.com Abstract: Depreciation is an
More informationOverview of Business Results for the 2nd Quarter of Fiscal Year Ending March 31, 2012 (2Q FY2011)
November 8, 2011 Overview of Business Results for the 2nd Quarter of Fiscal Year Ending March 31, 2012 () Name of the company: Iwatani Corporation Share traded: TSE, OSE, and NSE first sections Company
More informationIpx!up!hfu!uif Dsfeju!zpv!Eftfswf
Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,
More informationRECOGNITION AND INITIAL MEASUREMENT OF AN INTANGIBLE ASSET
430 AS 26 430 Accounting Standard (AS) 26 Intangible Assets Contents OBJECTIVE SCOPE Paragraphs 1-5 DEFINITIONS 6-18 Intangible Assets 7-18 Identifiability 11-13 Control 14-17 Future Economic Benefits
More information(Relevant to AAT Examination Paper 4 Business Economics and Financial Mathematics)
Capital Budgeting: Net Present Value vs Internal Rate of Return (Relevant to AAT Examination Paper 4 Business Economics and Financial Mathematics) Y O Lam Capital budgeting assists decision makers in a
More informationLeases: Practical implications of the new Leases Standard
March 2015 Project Update Leases: Practical implications of the new Leases Standard Leases What is the purpose of this document? This document describes the IASB s lessee accounting model and compares
More informationConsolidated Financial Statements
Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016
More information