SOX act or Sarbanes-Oxley Act was introduced in 2002 to encounter certain Corporate Scandals and improve the financial reporting standards of the companies. The name came from its inventors Paul Sarbanes and Michael Oxley. The SOX Act comprises of 11 sections or titles introduced by Security and Exchange Commission which describes the Corporate Responsibilities and […]Continue Reading... No Comments.
IFRS stands for International Financial Reporting Standards which is a globally accepted set of accounting standards presented by IASB (International Accounting Standard Board). Previously it was known as IAS – International Accounting Standards and it is now becoming the mostly used accounting standards by listed public companies across different countries in the world. Though it […]Continue Reading... No Comments.
Sl No. Category Accounting Standards Main Points 1 Accounting Basis IFRS Subsequent to initial recognition most of the assets and liabilities like property, plant, equipment, investment, derivatives etc are based on fair value and not on historical cost basis. Indian GAAP Indian GAAP emphasis on historical cost with an exception to fixed assets which […]Continue Reading... No Comments.
Accounting standards are accounting standards or rules which need to be followed while presenting financial statements so that readers can easily comprehend the statement, compare different company’s financial results and evaluate the performance compared to other companies. Every country has a statutory body responsible for establishing the accounting standard for their publicly listed and private […]Continue Reading... No Comments.
Here we are going to cover the detailed discussion of accounting for foreign subsidiaries and operations of multinational firms. The main issue is how to convert the income and amounts of a foreign subsidiary into the parent’s consolidated financial statements. For this case we have to consider two methods of accounting for foreign operations that […]Continue Reading... No Comments.