Biological assets are dealt with in International Accounting standards 41 (IAS 41). As per IAS 41, biological assets are any living plant or animal owned by the business. These are typically measured at fair values minus the selling costs. Recognition of Biological assets as per IFRS: An entity recognizes a biological asset when the entity… Continue reading Biological Assets – IAS 41
Author: Antony Jose Manjaly
Recognition and Measurement of Guarantees
The process of recognizing and measuring guarantees in accounting is a nuanced task that requires careful consideration of various factors. Initially, when a guarantee is issued, it must be recognized as a liability on the balance sheet. This initial recognition is typically at fair value, which represents the amount that would be paid to transfer… Continue reading Recognition and Measurement of Guarantees
Edit access for Exchange Rate in Bill Payments
Full or Edit access to Currency permission is essential for different roles to modify the exchange rate during bill payments and invoice processing.
5 step model for revenue recognition (IFRS 15)
Step 1: Identify the contract with the customer Step 2: Identify the performance Obligations within the contract Step 3: Determine the transaction price Step4: Allocate the transaction price to the performance obligation in the contract Step 5: identify the revenue when (or as) the performance obligation is being satisfied. A simple example which elaborates this… Continue reading 5 step model for revenue recognition (IFRS 15)
Section 43B(h) of Income Tax Act
The Finance Act 2023 inserted Section 43B(h), which stipulates that any sum owed to Micro and Small enterprises for goods supplied or services given may be deducted in the same year if it is paid within the deadline stipulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. This amendment aims to address the issue of working capital scarcity in… Continue reading Section 43B(h) of Income Tax Act