2 new Cost Accounting Standards

CAS 23 :  Overburden Removal Cost  CAS 24 : treatment of Revenue in Cost Statements. The Institute of Cost Accountants of India (ICAI) has issued two new Cost Accounting Standards (CAS), CAS 23 and CAS 24 The standard (CAS 23) provides guidance on following matters:-   1. Principles of measurement of Overburden Removal Cost;   2. Apportionment of Overburden Removal Cost over various activRead More…

Companies (Indian Accounting Standards) (Amendment) Rules 2016

Companies Act, 2013 NOTIFICATION NO. GSR 365(E) [F.NO.01/01/2009-CL-V (PART)], DATED 30-3-2016 In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the National Advisory Committee on Accounting Standards, heRead More…

Indian Accounting Standards implementation Road Map

Indian Accounting Standards The Road Map for implementation of Indian Accounting Standards (Ind AS) for commercial Banks (Banks), Insurance Companies (Insurers) and Non-Banking Financial Companies (NBFCs) was announced on 18/01/2016 and implementation schedule is drawn as follows: (i) Banks (excluding Urban Cooperative Banks and Regional Rural Banks), All-India Term-lending Refinancing InstituRead More…

Branding

Branding and advertisement Expenses should be expensed off

A company (say Company X) is a key player in media industry. The requirements of media industry is such that the company continuously needs to incur heavy amount on promotions, advertising, internal and external communications and promotions, incurring expenditure on campaigns such as save water, save energy, Green earth, etc. The company incurs substantial expenditure on branding and goodwill buiRead More…

Book value of fixed assets demolished, even if for expansion, should be charged to the statement of profit and loss

Fixed assets demolished  A company (say Company X) is engaged in development, operation and maintenance of a hospital. The company wants to increase the number of beds in the hospital which requires demolition of certain part of the hospital. The demolition shall be that of building structure, furniture and fittings and other assets. The demolition needs to be done so that the existing building Read More…

ICAI proposes to divide Ind AS 115 into two separate standards

ICAI proposes to divide Ind AS 115 into two separate standards     The Institute of Chartered Accountants of India (ICAI) proposes to divide Ind AS 115, “Revenue from Contracts with Customers” into two separate accounting standards, first is Ind AS 11, “Construction Contracts” and second is Ind AS 18, “Revenue”. National Advisory Committee on Accounting Standards (NACAS) has alrRead More…

Mineral Resources Exploration and Evaluation Ind AS 106

Indian Accounting Standard (Ind AS 106) Exploration for and Evaluation of Mineral Resources (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles.) Question : What are the Objectives of standard on “Exploration for and Evaluation of Mineral Resources” ? Objective 1. The objecRead More…

Non-current Assets Held for Sale and Discontinued Operations Ind AS 105

Indian Accounting Standard (Ind AS 105) Non-current Assets Held for Sale and Discontinued Operations (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles.) Question :What are the objectives of standard on Non-current Assets Held for Sale and Discontinued Operations ? ObjRead More…

Insurance Contracts Ind AS 104

Indian Accounting Standard (Ind AS 104) Insurance Contracts (see Note-1) (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles.) Objective 1. The objective of this Indian Accounting Standard (Ind AS) is to specify the financial reporting for insurance contracts by any entity thRead More…

Business Combination Ind AS 103

Indian Accounting Standard (Ind AS 103) Business Combinations (This Indian Accounting Standard includes paragraphs set out in bold type and plain type which have equal authority. Paragraphs in bold type indicate the main principles.) Objective  1. The objective of this Indian Accounting Standard (Ind AS) on Business Combinations is to improve the relevance, reliability and comparability Read More…