Know Your Rights!!

Implementation of the International Financial Reporting Standards, seem to have hit a roadblock due to differences between the Finance Ministry and Ministry of Corporate Affairs, reports CNBC-TV18's Aakansha Sethi quoting sources. CNBC TV18 had first broken this story where it was reported that the Ministry Of Corporate Affairs would be passing an ordinance to implement IFRS. The Minister for Corporate Affairs Salman Khurshid had also told CNBC-TV18 in an interview that IFRS would be implemented from the April 1, 2011. However this may not be possible now because of differences between the Finance Ministry and the Ministry of Corporate Affairs. Sources close to the development said there are two key differences. One is that the finance ministry says that implementation from April 1, 2011 is not possible because the accounting norms have not been notified as yet. This will only be done by December and in three months from January to March is too little to educate stakeholders and th...

FAIR VALUE: Fair value for most financial instruments, while it has limitations, is the best available method to reflect market conditions when accompanied by appropriate disclosure. Financial instruments currently reported using fair value includes: • as assets most equity and debt securities held • derivatives Most assets and liabilities While fair value information is generally relevant to investors, it is not always sufficiently reliable or practical to implement. These three criteria—relevance, reliability, and practicality—need to be more fully understood prior to any proposed extension of fair value to assets and liabilities where it is not used today. Examples: Assets trade receivables and most bank loans inventories used in production plant and equipment Liabilities trade payables contingent liabilities company-issued debt insurance and other non-traded liabilities Reporting what most financial instruments can be exchanged f...