IT audit techniques in India, like in any other country, involve assessing and evaluating an organization’s information technology infrastructure, systems, and processes to ensure they meet established standards, comply with regulations, and are secure. Here are some common IT audit techniques employed in India: Risk Assessment: Identify and assess potential risks associated with the organization’s… Continue reading Summary of IT audits in India as per Institute of Chartered Accountants of India guidelines
Author: Naveen Kumar
Valuation of Shares
The following are the methods for valuation of shares:- 1. Net Asset Method (Intrinsic value) 2. Yield Method 3. Earning Capacity. Method # 1. Net Asset Method: This is also known as Balance Sheet Method or Intrinsic Method or Break-up Value Method or Valuation of Equity basis or Asset Backing Method. Here the emphasis is on… Continue reading Valuation of Shares
Transfer Pricing – Purpose & Importance
Transfer pricing can be defined as the value which is attached to the goods or services transferred between related parties. In other words, transfer pricing is the price that is paid for goods or services transferred from one unit of an organization to its other units situated in different countries (with exceptions). Purposes of Transfer… Continue reading Transfer Pricing – Purpose & Importance
Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT)
Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT) is a concept of taxation that is appropriate for organizations and individuals paying tax. The standards of MAT are appropriate for organizations and the standards of AMT are relevant for individuals. Mat Vs Amt Minimum Alternate Tax And Alternative Minimum Tax Objective of Levying MAT Certain organizations… Continue reading Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT)
Transfer Pricing – Methods
There are five method, of which ● four methods are considered unilateral (comparable uncontrolled price method, the resale price method, the cost-plus method, the transactional net margin method) because the relevant financial indicator is analysed only for one of the related parties (the tested party) to the transaction; and ● one is considered a combined… Continue reading Transfer Pricing – Methods
Adjustments required to move from previous GAAP to IFRSs at the time of first-time adoption of IFRS.
Derecognition of some previous GAAP assets and liabilities The entity should eliminate previous-GAAP assets and liabilities from the opening statement of financial position if they do not qualify for recognition under IFRSs. [IFRS 1.10(b)] For example: IAS 38 does not permit recognition of expenditure on any of the following as an intangible asset: research start-up,… Continue reading Adjustments required to move from previous GAAP to IFRSs at the time of first-time adoption of IFRS.
Islamic Finance
Islamic finance is a type of financing activity that must comply with Sharia. The common practices of Islamic finance and banking came into existence along with the foundation of Islam. Nowadays, the Islamic finance sector grows at 15%-25% per year, while Islamic financial institutions oversee over $2 trillion. Though only a blooming industry by market terms, representing a 1.5% of the… Continue reading Islamic Finance
Cryptocurrency
Introduction on Cryptocurrency A cryptocurrency is a digital currency created to serve as a medium of exchange and uses cryptography to secure financial transactions. Instead of using a centralised digital currency and central banking system, cryptocurrencies maintain a decentralised control. The decentralised control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. The decentralised structure allows them… Continue reading Cryptocurrency
What is input tax credit
What is input credit? Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Say, you are a manufacturer – tax payable on output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300 You can claim INPUT CREDIT of… Continue reading What is input tax credit