Analysis of definition of business as per Ind AS 103- Business combination

Definition of Business A Business Consists of inputs and processes applied to the input to those inputs that have the ability to create output. Three Elements Inputs: Any economic resources…

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Share Based Payment are made to employees without vesting condition under Ind AS 102

S.B.P are made to employees Without vesting condition In such case, entity should recognise employee benefit expenses immediately on the grant date at the fair value of shares on grant…

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Equity Settled Share Based Payments made to external party other than employees by issue of equity shares as per Ind AS 102

1.      Equity Settled- Share Based Payments S.B.P are made to external parties For Goods An entity recognised goods acquired in Share based transaction on the date of goods received. An…

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Purchases of Stock in Trade as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Stock-in-trade refers to goods purchased normally with the intention to resell or trade in. In case, any semi-finished goods/materials are purchased with an intention of doing further processing activities on the…

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Employee benefits expenses disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Employee benefits should be disclosed showing separately salaries and wages, contribution to provident and other funds, share-based payments to employees, staff welfare expenses

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Securities Premium Reserve disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Meaning :The excess of the issue price of shares over their face value It is an integral part of other Equity and shows under the head reserve and surplus after…

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Cash and cash equivalents and bank balances other than cash and cash equivalents as per Division II – Ind AS Schedule III to the Companies Act 2013

(i) Cash and cash equivalents shall be classified as: (a) Balances with banks (of the nature of cash and cash equivalents); (b) Cheques, drafts on hand; (c) Cash on hand;           …

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Inventories Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

i) Inventories shall be classified as: (a) Raw materials; (b) Work-in-progress; (c) Finished goods; (d) Stock-in-trade (in respect of goods acquired for trading); (e) Stores and spares; (f) Loose tools;…

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Application Money Paid Towards Securities Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Any application money paid towards securities, where security has not been allotted on the date of the Balance Sheet, shall be disclosed as a separate line item under ‘other non-current…

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Biological Assets other than Bearer Plants Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

As per Ind AS 41, an entity shall present a reconciliation of changes in the carrying amount of biological assets between the beginning and the end of the current period.…

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Intangible Assets under Development Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Intangible Assets under development should be disclosed under this head provided they can be recognized based on the criteria laid down in Ind AS-38 Intangible Assets.

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Other Intangible Assets Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

The company shall disclose the following in the Notes to Accounts: (i) Classification shall be given as: (a) Brands / trademarks; (b) Computer software; (c) Mastheads and publishing titles; (d)…

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GoodwilL Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Ind AS Schedule III requires a company to present Goodwill as a separate line item on the face of the balance sheet apart from ‘Other Intangible Assets’. Further, it requires…

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Investment Property Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

Ind AS 40, Investment Property defines Investment Property as the property (land or a building—or part of a building—or both) held (by the owner or by the lessee under a…

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Capital work-in-progress Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

As per Ind AS Schedule III, capital advances should be included under other non- current assets and hence, cannot be included under capital work-in-progress.

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Property, Plant, and Equipment Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

i) Classification shall be given as: (a) Land; (b) Buildings; (c) Plant and Equipment; (d) Furniture and Fixtures; (e) Vehicles; (f) Office equipment; (h) Bearer Plants; (g) Others (specify nature).…

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Definition of Current Liability and Non-Current Liability for preparing Financial Statement as Per Ind AS

An entity shall classify a liability as current when: (a) it expects to settle the liability in its normal operating cycle; (b) it holds the liability primarily for the purpose…

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Definition of Current and Non-Current Assets for preparing financials statements as per Ind AS

“An entity shall classify an asset as current when: (a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle; (b) it…

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Ind AS 105:Non-Current Assets held for sale and Discontinued Operations

Out of Scope Deferred tax assets(Ind AS 12);Assets arising from employee benefits(Ind AS 19);Financial assets(Ind As 109);Non-current assets that are measured at fair value less costs(Ind AS 41);Contractual rights under…

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