IFRS Convergence
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President
Empowering SMPs We propose to develop software to cater to the documentation needs of all practicing members specially our small and medium practitioners.
Besides empowering them, this software |
President
Dear All, May the Mother Nature come soft and kind on all of us! Amen! For the past two months, we are being hit by intolerably hot winds. Hundreds of people have died of sunstroke in the past |
Legal Decisions1
DIRECT TAXES
Income-tax Act Section 36(1)(vii) of the Income-tax Act, 1961 � Bad Debts It is not imperative for bank to close individual account of each of it's debtors in it's books; a mere reduction in `Loans an |
Capitalisation of expenditures in respect of projects under construction.
The following is the opinion given by the Expert Advisory Committee of the Institute in response to a query sent by a member. This is being published for the information of readers.
A. Facts of the |
CORPORATE LAWS 1. NBFCs and interest rate sensitivity
The RBI has issued Circular No. RBI/200910/417 DNBS.PD.CC. No.169/22.05.02/200910 dated 22.04.2010 whereby it has stated that in terms of the Guidelines for NBFC-ND
SI (non-deposit taking Non-Banking |
Improvements and Developments to IFRSs
Introduction Change is the only thing that is constant. It is this continuity of change -- change with the times that has kept the IFRS in a leading position in world for decades. As said in some |
IFRS 3 - Business Combination: An Overview
The IFRS 3 deals with the accounting of business combination. A business combination transaction is an event in which an acquirer obtains control of one or more businesses. A business is defined as an |
IFRS in Real Estate - A Technical Area More than Just Accounting & Reporting
As the acronym IFRS (International Financial Reporting Standards) appears with increasing frequency in print, on the Web, and in conversation, real estate (RE) executives have begun to take note of it |
Series: Legends in the Accounting Tradition of India
Shri Sorabji S. Engineer
Inherent sincerity and nobility made Shri Sorabji Shapurji Engineer (1883-1973) a tower of inspiration to a generation of accountants of his time. He is also known to the Indian accounting community a |
Government May Scale Down Tax Relief Proposed in DTC Draft
Government May Scale Down Tax Relief Proposed in DTC Draft People with more than Rs. 10 lakh annual income may not get the tax relief originally proposed in the Direct Taxes Code, as the Finance Minis |
: Revised Tax Code Draft in Month or Two
The revised draft of the Direct Tax Code (DTC), that will replace the Income-tax Act, 1961 will be available for comments soon before it is finalised and placed before Parliament for its approval, pos |
: Genuine Business Recasts Can Bring in Tax Benefit: ITAT
In a decision that will help corporates restructure businesses, the Chennai bench of Income-tax Appellate Tribunal (ITAT) has held that tax benefit could not be denied to business restructuring, if th |
ADVISORY FOR MULTIPURPOSE EMPANELMENT FORM (MEF) FOR THE YEAR 2010-11
1. Last date for submission of applications on the website www.meficai.org is 15th June, 2010.(5.30 P .M.) 2. Please ensure that you are using internet explorer 6.0 or above.
3. Members ar |
IMPORTANT ANNOUNCEMENT FOR MEMBERS
No.:29-CA/LAW/NDM-726/Announce/01/10 Sub : Implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967 The provisions of the Unlawful Activities (Prevention) Act,1967 were amended |
Invitation to Join Panel of Examiners/Paper setters
The Institute is in the process of strengthening its panel of examiners and paper setters with professionals/academicians/resource persons for all the papers in CA IPCE and Final (New Course) Examinat |
NEW PUBLICATIONS FROM THE INTERNAL AUDIT STANDARDS BOARD
Technical Guide on Internal Audit of Construction Industry (Pages: 110 + 18 initial pages + 2 cover pages) Price: Rs. 150/- (including CD) Theconstructionindustryhasgrownwitharapidpaceoverthelastfe |
Technical Guide on Internal Audit of Educational Institutions
(Pages: 168 + 11 initial pages + 2 cover pages) Price: Rs. 200/- (including CD) Education plays a vital role in building up a strong nation. From an integrated and synergic viewpoint, educational |
: IFAC Seeks Views to Serve Accountants in Business
IFAC has recently released for comment an exposure draft (ED) setting out its proposed 2010-2012 strategy and work plan prepared by its Professional Accountants in Business (PAIB) Committee. The propo |
: IPSASB Publishes Proposals for Amendments under Annual Improvements Project
The International Public Sector Accounting Standards Board (IPSASB) has recently released for comment exposure draft (ED) 44, Improvements to International Public Sector Accounting Standards (IPSASs). |
: IAASB Proposes to Strengthen Reporting on Pro Forma Financial Information
The International Auditing and Assurance Standards Board (IAASB) has recently released a proposed new assurance standard that addresses the process of compiling pro forma financial information include |
: IFAC and the Prince's Accounting for Sustainability Project Collaborate
The IFAC and The Prince's Accounting for Sustainability (A4S) Project have entered into a MoU (memorandum of understanding) to support the global accountancy profession's role in developing sustainabl |
: IPSASB Publishes 2010 Handbook of Pronouncements
The IPSASB has recently published its 2010 Handbook of International Public Sector Accounting Pronouncements, in two volumes. The handbook contains all current IPSASB pronouncements, including 31 accr |
Invitation for Articles on XBRL
To encourage and promote XBRL, ICAI has established XBRL India, i.e., the local jurisdiction of XBRL. XBRL, i.e., eXtensible Business Reporting Language is a novel platform for electronic communicatio |
Invitation to Join CFO Guild / Members in Industry Guild
The Committee for Members in Industry of ICAI maintains two separate guilds as follows: 1. CFOs GUILD(Corporate Accountants Guild) This guild is for our members who are occupying high positions (C |
Formation of CPE Study Circle for Members in Industry of ICAI
As you are aware that ICAI has achieved recognition as a premier accounting body not only in the country but also globally, for its contribution in the fields of education, professional development, m |
ICAI JOB PORTAL
ICAI Job portal for experienced Chartered Accountants and Accounting Technicians.
Objectives of ICAI Job portal
The ICAI Job Portal is primarily for experienced Chartered Accountants a |
Articles Invited for Students' Journal, Special Issues
The Board of Studies is planning to bring out Special Issues of the Students' Journal in the forthcoming months. The main focus will be on: � IFRS � DirectTaxLaws � IndirectTaxLaws � Corpo |
NEW PUBLICATION FROM THE RESEARCH COMMITTEE
Technical Guide on Accounting for Special Economic Zones (SEZs) Development Activities
Research Committee of the ICAI has brought out a `Technical Guide on Accounting for Special Ec |
GOVERNMENT ACCOUNTING
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President
Students' Initiatives Students are high on the list of our priorities this year and we are constantly working for their all-round development. As part of this drive, it is gratifying to announce that |
Legal Decisions
DIRECT TAXES
Income-tax Act Section 37(1) of Income-tax Act, 1961 � Business Expenditure � When allowable Donation to employees on occasion of festival, unless is a part of settlement, is to be disallowed [Assessm |
CIRCULARS/NOTIFICATIONS
DIRECT TAXES NOTIFICATIONS 1. Notification No.
18/2010 dated 22-032010 A Corrigendum to
notification 09/2010 bearing S.O. 424 (E) dated 18.02.2010 has been made vide this notification.
2 |
Virtual certainty in respect of deferred tax assets.
A.Facts of the Case 1. A public sector company is engaged in construction of ships and ship repair activities. The company has an accumulated loss of Rs.847.42 crore as on 01.04.08 and a deferred tax |
IPSAS: Harmonising Government Accounting with Commercial Accounting
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Reporting and Disclosure of Intangible Assets of Selected IT Companies in India
In the highly competitive world of today, wealth and growth are primarily driven by intangible (intellectual) capital particularly in service industries. Today's much of a new economy company's worth |
Changing over to Accrual System of Accounting by Central Autonomous Bodies & Central Universities
B. S. Ramaswamy (The author is IA&AS (retd.) and consultant.)
A.M.Sherry (The author is Associate Professor, National Institute of Financial Management, Faridabad.)
They can be rea |
Agriculture Industry and IFRS: Application Review of IAS 41�Agriculture (The Fair Value...)
Introduction Agriculture, biological assets accounting around the globe in general and particularly in India is not systematic and consistent. Perhaps, this is because this sector is unorganised a |
Financial Instruments: Recognition & Measurement Under the IFRS Framework
The author is a member of the Institute.He can be reached at eboard@icai.org
The portfolio of financial instruments held by entities has undergone a massive change in composition from merely trad |
Series: Legends in the Accounting Tradition of India
Shri Kalyan Subramani Aiyar (1859-1940), better known as K. S. Aiyar, was a pioneer of commercial and accounting education in India. He started and established educational courses and institutions ded |
Invitation to Join CFO Guild / Members in Industry Guild
The Committee for Members in Industry of ICAI maintains two separate guilds as follows: 1. CFOs GUILD(Corporate Accountants Guild) This guild is for our members who are occupying high positions (CE |
Committee on Public Finance and Government Accounting
Invitation to Contribute Articles
The Committee on Public finance and Government Accounting constituted by the Institute of Chartered Accountants of India desires to have associates on full-time, part-time or honorary basis to work in |
Formation of CPE Study Circle for Members in Industry of ICAI.
As you are aware that ICAI has achieved recognition as a premier accounting body not only in the country but also globally, for its contribution in the fields of education, professional development, m |
Invitation to Send Quotes for Printing Work of ICAI Journal, The Chartered Accountant
The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 for regulating, monitoring and uplift of the Accountancy Profession in |
For The Attention Of Members Membership and Certificate of Practice Fee for the year 2010-2011
Annual Membership and Certificate of Practice fee for the year 2010-2011 became due for payment on 1st April 2010. The schedule of fee is as under:
Individual circulars have been dispatched |
e-Learning - CBT Modules by Committee on Information Technology, ICAI
The Committee has introduced the following e-Learning/ Computer Based Training (CBT) modules to provide good quality standardised leaning content on all India basis such that members can lean and deve |
Corrigendum
Attention of readers is invited to Standard on Auditing (SA) 220 (Revised), "Quality Control for an Audit of Financial Statements", published in the March, 2010 issue of the Journal at page no. 1521. |
ICAI Job Portal (http://jobs4cas.icai.org)
ICAI Job portal for experienced Chartered Accountants and Accounting Technicians.
Objectives of ICAI Job portal The ICAI Job Portal is primarily for experienced Chartered Accountants and Account |
Union Budget 2010-11
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Disclosure in the cash flow statement of borrowings and loan disbursements and related repayments in case of a financial institution.
A.Facts of the Case 1. A Government of India undertaking, incorporated under the Companies Act, 1956 in the year 1987, is a dedicated financial institution engaged in the financing of power sector in |
Legal Decisions1
DIRECT TAXES
Income-tax Act Section 32 of the Income-tax Act, 1961 - Depreciation Use of individual asset for purpose of business can be examined only in first year when asset is purchased and in subsequent years |
Accounting for and Issue related to Preliminary/Share Issue Expenses
This article covers the discussion on accounting treatment of preliminary expenses, share issue and public issue expenses including stamp duty paid on increase in authorised share capital and related |
IMPORTANT ANNOUNCEMENT
The Ministry of Commerce and Industry has invited comments from the ICAI in respect of trade distortive effects encountered by the members of the ICAI (service exporters) because of the subsidies bein |
Additional Disclosures by Banks in Notes to Accounts
RBI/2009-10/347 DBOD.BP .BC.No. 79 /21.04.018/2009-10 The Chairmen/Chief Executives of All Commercial Banks (excluding RRBs) Dear Sir, Additional Disclosures by banks in N |
still expected to grow by 2.9 per cent this year after an
estimated contraction of 2.4 per cent in 2009. The US administration was committed to put public finances on a sustainable track in the years ahead Source: http://economictimes.indiatimes.com/news/ in |
The Trustees reached their conclusions at their meeting in
Brazil on 26 and 27 January 2010. After more than a year of global public consultation, they have agreed to some major changes in the Constitution including introduction of three-yearly public consult |
Secondary Education is in Limelight Finally
Expenditure on health and education remain on marginal
upward trend, both as a percentage of the GDP and in absolute
terms. While spend on education is at 3.23 per cent of
the GDP, that on health i |
ERP Courses
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LEGAL DECISIONS - DIRECT TAXES
Income - tax Act Section 2(42A) of the Income-tax Act, 1961 � Short-term Capital Asset Where (i) company offered share- holder partly convertible debentures on rights basis, but he renounced his right |
Branch Notifications
...cont (TO BE PUBLISHED IN PART III, SECTION 4 OF THE GAZETTE OF INDIA) Notification (Chartered Accountants) February 9, 2010 No.1-CA(7)/(132) 2010 In pursuance of Regulation 159(1) of the |
Campus Placement Programme for Newly Qualified Chartered Accountants � March, 2010
The Committee for Members in Industry of the Institute organises Campus Placement Programme for newly qualified Chartered Accountants at various centres all over India. The scheme has been evolved to |
President
Dealing with Banks Autonomy and New Professional Avenues We have always expressed our reserva- tions in respect of the managerial autonomy granted to Public Sector Banks (PSBs) in respect of appointme |
New Publications ...
Technical Guide on Internal Audit of Treasury Function in Banks Pages: 106 + 20 Initial pages+ 2 cover pages Price: Rs. 150/- (including CD) In this financially globalised volatile times, bank's treas |
President
Dear All, Chinese philosopher Confucius had once said, 'The journey of a thousand miles begins with a single step.' As I take this first step as 58th President of the second largest accoun- tancy body |
New Releases
e-Learning CD on Windows, Network & Wi-Fi Security�An Intro The Committee on Information Technology, ICAI has launched e-Learning CD on Windows, Network & Wi-Fi Security�An Intro. More and more such m |
MEETING THE CHALLENGE OF BANK AUDIT
The Institute of Chartered Accountants of India (Set up by an Act of Parliament) Drive to excel and serve the best interests of the nation coupled with commitment to innovate is the hallmarks of the b |
Chartered Accountants Examinations, May, 2010
21st January, 2010 The next Professional Education�II, Professional Competence Course (PCE), Integrated Professional Competence Course (IPCE) and Final Examinations of the Institute will be held from |
CIRCULARS/NOTIFICATIONS
DIRECT TAXES I. Circulars 1. Circular No. 2/2010, dated 29-1-2010 The CBDT, has, vide its Circular No. 2/2010 dated 29/01/10 clarified that any installment of advance tax paid in respect of fringe ben |
Treatment of preliminary expenses incurred on incorporation of a company
A. Facts of the Case 1. A company was incorporated in May 2008 as a wholly owned subsidiary of a Government of India enterprise under the administrative control of the Ministry of Oil and Natural Gas |
New Publications
Technical Guide on IT Migration Audit Pages 58 | Price: Rs. 70/The Committee on Information Technology has issued Technical Guide on IT Migration Audit.
Salient Features a Introduction a Migration |
DISCIPLINARY CASE
Facts of the case Mrs. Lakshmi Rani Hazra, Kolkata, (hereinafter referred to as the "Complainant") filed a complaint against Shri Deepak Parti, Chartered Accountant (Membership No. 83787), New Delhi, |
Common Proficiency Test, June, 2010
st 21 January, 2010 The next Common Proficiency Test (CPT) (Paper-Pencil Mode) of the Institute will be held on 20th June, 2010 at the following centres: 1) Centres in India: Agra, Ahmedabad, Ahmednag |
INDIAN TRUSTS (AMENDMENT) BILL, 2009
After the establishment of the British Rule in India, it was felt all over that there was no comprehensive enactment in India governing the Private Trusts. The very question of enacting a law relating |
Invitation for Research Proposals
Research Committee invites applications for Research Projects from members and others for carrying out research in the field of accounting and other affiliated fields for eg., accounting for chain dep |
DISCIPLINARY C ASE
Summary of a disciplinary case - Council of the Institute of Chartered Accountants of India vs. Lokesh Dhawan1 (Chartered Accountant Reference No. 2 of 2003) decided on 5.11.2007 by the High Court of |
Accounting for foreign exchange variation prior to commencement of
commercial operation.
A. Facts of the Case 1. A company is in the process of setting up a refinery in the State of Madhya Pradesh. The said refinery will have an installed capacity of 6 million metric tonnes per annum (MMT |
Role of Internal Auditors in Transition to IFRS
Overview of IFRS Companies are becoming increasingly global with expansion of their business operations, overseas capital raising and global investor profile through merger and acquisition. This h |
CIRCULARS/NOTIFICATIONS
DIRECT TAXES I. Circular 1. Circular No. 1/2010, dated 11-1-2010 The CBDT has issued this circular giving guidelines to be followed by employers while deducting tax at source from Salaries under se |
LEGAL DECISIONS'
DIRECT TAXES Income-tax Act Section 14A of the Income-tax Act, 1961 - Read with rule 8D of the Income tax Rule, 1962 - Total income - Expenditure incurred in relation to income not includible in Where |
Breach of Regulation 65 & 78 -� Non submission of Form 112
In partial modification of the guidelines as contained in the Announcement dated 14th September 2009, it is hereby notified for the information of all concerned that the Council, in its 291st meeting |
Announcement for the Attention of the Members
The Council of the Institute of Chartered Accountants of India (ICAI), at its 292nd meeting held on January 13, 2010 has decided to require the members of the Institute of Chartered Accountants of Ind |
Forensic Accounting: Process and Scope
Forensic accounting is not a new concept. It is the fastest growing area of accounting today. It is nothing but gathering, investigation and analysis of accounting information for presentation as evid |
DISCIPLINARY CASE
Summary of a disciplinary case - Council of the Institute of Chartered Accountants of India vs. K.K.Gupta & Anr.1 (Chartered Accountant Reference No. 9 of 2005) decided on 25.09.2007 by the High Court |
President
President Accountants would be eligible to train one articled assistant, on the same lines as in India. This is a positive step forward in promoting the brand image of Indian CAs abroad while at |
CIRCULARS / NOTIFICATIONS
DIRECT TAXES I. CIRCULARS 1. Circular No. 8/2009, dated 24-11-2009 The CBDT has, through this circular, clarified that TPAs (Third Party Administrator's) who are making payment on behalf of insurance |
President
Standards Board has been entrusted with the task of formulating Draft Guidelines proposed to be mandatory for CAs while responding to tenders, advertisements, circulars and various other enquiries for |
L EGAL DECISIONS1 - DIRECT TAXES
Section 9 of the Income-tax Act, 1961 read with Indo-US DTAA Where US Company granted Indian Company a perpetual irrevocable right to use know-how and transferred ownership in tread and sidewalk desig |
EMPOWERING WOMEN �-THE ROAD AHEAD
We are a society on the march. No goal is beyond a person with a resolute will; and, for the person who strides ahead on a path that is righteous and noble. As a nation we are fortunate to have h |
Whether a company registered under section 25 of the Companies Act, 1956, should prepare Income and
A. Facts of the Case 1. A company is a non-profit organisation registered under section 25 of the Companies Act, 1956, with the Central Government holding its 100 per cent shares. It is presently work |
New Publication - COMPENDIUM OF OPINIONS - VOLUME XXVI
The Expert Advisory Committee of the Institute of Chartered Accountants of India has published Compendium of Opinions, Volume XXVI I. This Volume of Compendium of Opinions contains opinions finalised |
Campus Placement Programme for Newly Qualified Chartered Accountants - February-March, 2010
The Committee for Members in Industry of the Institute organises Campus Placement Programme for newly qualified Chartered Accountants at various centres all over India. The scheme has been evolved to |
Invitation for Research Proposals
The Research Committee of the Institute of the Chartered Accountants of India invites applications for Research Projects from members of the Institute and others for carrying out research in the field |
Let us come together to ring in the year 2010
& uphold the principles of Excellence, Independence, Integrity, Objectivity, Transparency, Accountability, Responsiveness |
Invitation for Research Proposals
Research Committee invites applications for Research Projects from members and others for carrying out research in the field of accounting and other affiliated fields for e.g.
accounting for chain |
Determination of current l iabilities
A. Facts of the Case 1. A company is a flagship subsidiary company of another company M/s. XYZ Limited for its energy vertical activities.
The company has diversified interest in energy segment bot |
GOODS AND SERVICES TAX
Economic liberalisation and sectoral reforms have been the chief contributors to India's growth trajectory. Tax reforms too have kept pace and India has moved from the origin based system of taxation |
C IRCULARS / NOTIFICATIONS
DIRECT TAXES 1. Circular No. 7/2009 [F. No.
500/135/2007-FTD-I], dated 22-10-2009 The Central Board of Direct Taxes has, through this circular withdrawn the following circulars with immediate |
Popularizing Brand CA in Gulf Cooperation Council (GCC) Countries MII is organizing the following p
C i n Bahrain and other neighboring GCC Countries for exploring the possibility of enhancing and popularizing Brand CA.
1 HR Meets [Meeting of the HR Executives wherein Roadshow of the Special C |
Invitation for Faculty & Case Studies for Post Qualification Course on Information Systems Audit
T h I e Committee on Information Technology of CAI has been offering the highly popular Post Qualification Course (PQC) on Information Systems Audit (ISA) leading to the designation D.I.S.A. (ICAI) |
IFRS for SMEs in Indian Scenario
The IFRS for small and medium-sized entities (SMEs) is a self-contained standard of less than 255 pages, designed to meet the needs and capabilities of small and medium-sized entities (SMEs). It is bu |
IFRS for SMEs �- Step Towards Simplification of IFRS Application
The International Accounting Standards Board (IASB) has issued International Financial Reporting Standard (IFRS) for use of small and medium-sized entities (SMEs), which are estimated to represent mor |
Registrations for Next Batch of Certificate Course on Valuation at Delhi, Mumbai, Chennai & Kolkata
Crtificate course on valuation was launched by the Corporate Laws Committee in compliance of the decision of the Council of the Institute of the Chartered Accountants of India for its members. In the |
Exposure Draft of XBRL Banking Taxonomy
XX tensible B usiness R eporting BRL (eX L anguage) is an electronic format for communication of business and financial data which is revolutionising business reporting around the world. XBRL is one o |
CFO Guild (Corporate Accountants Guild) and Members in Industry Guild
This Corporate Accountants Guil l d is for the members who are occupying high positions (CEO/CFO/Treasury Head/Head of Analyst, GM or above) in Industry.
The primary ob |
Single Window Help Desk for Chartered Accountants in Service / Industry
As part of its quality service to the Chartered Accountants in Service / Industry, The Committee for Members in Industry of ICAI has started a single window help desk for the Chartered Accountants wit |
OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
Applications are invited online from the firms of Chartered Accountants who intend to be empanelled with this office for the year 20102011 for appointment as auditors of Government Companies/Corporati |
Invitation for Faculty & Case Studies for Certificate Course on Forensic Accounting & Fraud Detectio
The Committee on Information Technology of ICAI has been offering Certificate Course on Forensic Accounting and Fraud Detection using I T & CAAT's. Further details of the course are available at www.i |
DISCIPLINARY C ASE
Facts of the case The Senior Manager, Punjab National Bank, New Delhi (hereinafter referred to as the "Complainant") filed a complaint against Shri Manoj Kumar Sachdeva, Chartered Accountant (here |
LEGAL DECISIONS
DIRECT TAX Section 32 of the Income-tax Act, 1961 - Depreciation No depreciation is allowable on the stock exchange membership card acquired either by nomination or directly through stock exchange on |
