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1.1 Meaning of Consolidated Financial Statements Consolidated Financial Statements (CFS) are the financial statements of a group presented as those of single economic entity. A group is a parent and all its subsidiaries. A parent is an investor that controls another entity called subsidiary. The parent and subsidiary (ies) constitute a Group. A parent company is required to prepare CFS of the Group as a whole. CFS are: 1. Consolidated Balance Sheet 2. Consolidated Comprehensive Income Statement 3. Consolidated Statement of Changes in Equity 4. Consolidated Statement of Cash Flows 5. Notes and other statements 6. Statement of Restatement Analysis 1.2 Meaning of Control Control: is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Criteria in deciding control over another entity are: i. Majority voting power (more than half of t...

Adopting International Financial Reporting Standards (IFRS) present challenges that many people underestimate. The International Accounting Standards Board (IASB) on November 24, 2008 has issued Reconstructed version of IFRS 1: First Time Adoption of International Financial Reporting Standards applicable to the entities on or after January 1, 2009 although earlier application is permitted. The Institute of Chartered Accountants of India (ICAI) has issued Ind- AS 41 talking about the transition requirements on the lines of IFRS 1 (Revised). When a company prepares its first IFRS financial statements for the year ending 31st March 2012 with one year comparatives, the date of transition to IFRS will be 1st April 2010 and the opening IFRS balance sheet will be prepared at that date. A company required to present two full years of comparative information should prepare an opening balance sheet at 1st April 2009. The opening IFRS balance sheet is the starting point for all subsequent account...

International Financial Reporting Standards will be mandatory for financial statements from April 2011 With the commencement of the next financial year, the Indian Accounting Standards are all set to go global by converging with the International Financial Reporting Standards (IFRS). While it will enable Indian firms to access and understand the balance sheets of firms in the international markets, many chartered accountants (CA) in Pune feel that the country may not be ready for the transition. According to the CAs, for an economy to make the transition, an enormous amount of training is required, not just for the CAs but for a vast group of people likely to be affected by the new accounting norms. Dolphy D’Souza, national leader, IFRS, is of the view that only big accounting firms like KPMC and a few others have the expertise in IFRS as of now. “While Indian Institute of Chartered Accountants (ICAI) is training CAs, we need to train audit committee members, regulators, financial anal...

The International Accounting Standards Board (IASB) today published for public comment an exposure draft of improvements to the accounting for insurance contracts. The exposure draft proposes a single International Financial Reporting Standard (IFRS) that all insurers, in all jurisdictions, could apply to all contract types on a consistent basis. When the IASB was established in 2001 there were no international financial reporting requirements for insurance contracts. In 2004 the IASB introduced IFRS 4 Insurance Contracts as an interim standard that permitted many existing international accounting practices to be retained, whilst beginning a more comprehensive review of insurance accounting as a second phase of the project. The proposals published today are the result of that review. The IASB launched its public consultation when it published a discussion paper, Preliminary Views on Insurance Contracts , in 2007. In developing the proposals released today, the IASB considered more tha...

Historical cost accounting is fading as India Inc marches into a new era. In the “fair value” accounting regime, what is a company’s really worth? This is the central question that accounting attempts to answer, and it is no easy exercise. Every answer invites debate, and that debate has now intensified, thanks to "fair value" accounting. Under fair value, a company values its assets and liabilities based on what they would fetch today, rather than what they originally cost. The concept is not new — accounting has long operated under a "mixed model”, which records many items at historical cost while requiring that companies mark to market certain asset classes (such as securities and derivatives). But a host of factors have suddenly propelled the calculation of fair value from a secondary concern to a dominant theme of corporate accounting, and many companies are just beginning to understand the ramifications. If fair value takes full hold, as some have suggested it shou...

There is going to be a biggest change in accounting standards on convergence with International Financial Reporting Standards (IFRS). Implementation of IFRS cannot be dealt with as a year-end accounting issue. One area where the education is required is ‘derivative accounting’. Derivatives make headlines every other day, and, almost always for the wrong reasons. What are derivative contracts? Where do they trade? Why do they exist? While a seemingly endless number of derivative contract structures will appear, do not be misled. Only two basic contracts exist – a forward and an option. All other product structures are nothing more than portfolio of forwards and options. Similarly, derivative products are offered by an almost endless number of institutions in the market - brokerage houses, banks, investment houses, commodity exchanges, and so on. Again, do not be misled. Fundamentally there are only two types of derivative markets – exchange traded markets and over-the-counter (OTC) mark...

Click here to download: http://www.4shared.com/account/file/I-L0FB1Y/Rupee.html Download and enjoy. Please let us know if you face any problem. IF YOU HAVE ANY DOUBTS IN UNDERSTANDING HOW TO DO THIS CAN ASK US. How to Enter New Rupee Symbol of India On Your PC (MS Word,Note Pad) through Key Board 1)Created by Foradian Technologies .They are first Creators of Indian Currency symbol to get used . 2)How to use on Your system 3)Download the above attached font Rupee_Foradian.ttf 4)Install the font. (It is easy. Just copy the font and paste it in “Fonts” folder in control panel) 5)Start using it. 6)How to type the Rupee symbol ? 7)Rupee symbol mapped the grave acent symbol – ` (the key just above “tab” button in your keyboard) with the new Rupee symbol. Just select “Rupee” font from the drop down list of your fonts in your application and press the key just above your tab button.

How to plan my tax liability? Most of taxpayers wanted to reduce tax they pay to the government. Some people manage to do some adjustment to actual figure and pay lesser tax. But finally they have to pay huge tax with penalty. Making adjustment is risky and unlawful manner. How people reduce tax lawfully. It is one challenge taxpayers have to achieve. Solution is tax planning. Tax planning is the process of organizing the tax affairs by which can minimize the incident of tax in leave of doing fraudulent, fictitious and illegal actions. You can not plan your past transactions. It is involve on future affairs what is to be done. When planning your tax, you should have through knowledge about tax law, especially on tax concessions, exemptions and tax rates. Most people do not think about tax implication on investments and other day to day business activities. As a example as a VAT registered person when you purchase you should buy from VAT registered supplier, even though his price is bit...

With not even a year to go for the April 1, 2011 deadline of International Financial Reporting Standards (IFRS) to be implemented by Indian companies with a net worth of over Rs 1,000 crore, a number of training institutes have sprung all over the country to cater to the demand for trained manpower in the field. Set up by the International Accounting Standards Board (IASB), the London-based independent body of accounting standards, IFRS have been adapted by over 110 countries already. In India, the ministry of corporate affairs has prepared a roadmap for its implementation as per which BSE 30 and Nifty 50 companies as well as those with shares listed overseas and those with a net worth of over Rs 1,000 crore have to implement the standards by April 1 next year. Companies with a net worth of more than Rs 500 crore and less than Rs 1,000 crore have time till April 1, 2013 while by April 1, 2014, all companies whether listed or not and with a net worth of less than Rs 500 crore will have...

IIT graduate gives Indian Rupee its symbol An IIT post-graduate D Udaya Kumar has given the Indian Rupee a symbol of its own (See pic). Information and Broadcasting Minister Ambika Soni announced this, saying the Rupee had now arrived on the international platform in sync with universal standards. The Cabinet approved the design today.(How do you like the symbol?) Soni would not commit to a date by when the symbol would be officially in use but said it would take about six months in India and about two years to make it recognized internationally. The government had organised a symbol design competition with a prize of Rs 2.5 lakh for the winner. Five designs were shortlisted. D Udaya Kumar had submitted more than one design. The contestants were asked to design a symbol that would be the Hindi alphabet Ra with two lines - to "reflect and capture the Indian ethos and culture," in Finance Minister Pranab Mukherjee's words. The growing influence of the Indian economy in th...