Accounting For Investments » Indian Standards (AS)

Direct Tax issues on convergence of IFRS with Indian Accounting Standards

R. Venkata Subramani — Mon, 11 Jan 2010 04:43:27 +0000

Central Board of Direct Taxes (CBDT) and accounting rule-maker Institute of Chartered Accountants of India (ICAI) have jointly constituted a study group to identify and address direct tax issues that will affect convergence of India’s accounting standards with International Financial Reporting Standards (IFRS).With IFRS convergence due for April 2011 and the government coming up with the new Direct Taxes Code (DTC), the suggestions of the study group finds relevance.

Source: Economic Times

Online Courses on Accounting for Investments, Financial Instruments, Accounting Standards

R. Venkata Subramani — Sat, 04 Jul 2009 11:46:00 +0000

We have now started the online resources for Accounting Studies.

Visit: Online Courses on Accounting Studies

What topics are covered here?

Online courses are available on several topics of professional interest in the Accounting and Finance area
- Accounting Standards as per US GAAP, IFRS, etc.
- Financial Instruments like equity derivatives, Interest Rate Derivatives, Credit Derivatives, Foreign Exchange Instruments,
- Hedge Accounting

How much does it cost me?

Online courses provided here are absolutely free.

AS 30 – Treatment for different categories of financial instruments

R. Venkata Subramani — Fri, 03 Apr 2009 08:09:50 +0000

Category	Measured at	Changes in carrying amount (other than a designated hedge)	Impairment test required?
Financial assets and liabilities at fair value through profit or loss	Fair value	Income statement	No
Loans and receivables	Amortized cost	Income statement	Yes
Held-to-maturity investments	Amortized cost	Income statement	Yes
Available-for-sale	Fair value	Equity	Yes
Other financial liabilities	Amortized cost	Income statement	N/A

Definition of Financial assets and financial liabilities

R. Venkata Subramani — Tue, 02 Sep 2008 08:08:55 +0000

Financial Asset

A financial asset is defined as one of the following type of asset as per the Accounting Standards:

Cash
Equity instrument of another entity
A contractual right
To receive cash or another financial asset from another entity
To exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity
A contract that will/may be settled in the entity’s own equity instruments and is
A non-derivative resulting in receiving a variable number of the entity’s own equity instruments
A derivative that will/may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of entity’s own equity instruments

Financial Liability

A financial liability is defined as one of the following type of liabilities as per the Accounting Standards:

A contractual obligation
To deliver cash or another financial asset to another entity
To exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity
A contract that will/may be settled in the entity’s own equity instruments and is

A non-derivative resulting in delivering a variable number of the entity’s own equity instruments
A derivative that will/may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of entity’s own equity instruments