A leaseback is an arrangement in which the company that sells an asset can lease back that same asset from the purchaser. With a leaseback—also called a sale-leaseback—the details of the arrangement, such as the lease payments and lease duration, are made immediately after the sale of the asset. In a sale-leaseback transaction, the seller… Continue reading Sale and Lease Back
Category: Finance
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
Government grants are transfers of resources to an entity by government in return for past or future compliance with certain conditions relating to the operating activities of the entity. Government assistance is action by government designed to provide an economic benefit that is specific to an entity or range of entities qualifying under certain criteria.… Continue reading IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
Lower Deduction Certificate
A Lower Deduction Certificate is a document issued by the Income Tax Department that authorizes a deductor (in the case of TDS) or a collector (in the case of TCS) to deduct or collect tax at a rate lower than the prescribed statutory rate or even at zero, based on the taxpayer’s actual tax liability.… Continue reading Lower Deduction Certificate
Biological Assets – IAS 41
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
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
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
HSN/SAC CODES
HSN & SAC Codes in GST In India’s Goods and Services Tax (GST) system, HSN and SAC codes are classification systems used to identify goods and services for taxation purposes. 1. HSN (Harmonized System of Nomenclature) Code Used for goods (physical products). A globally accepted classification system developed by the World Customs Organization (WCO). In… Continue reading HSN/SAC CODES
Inaccurate Inventory Tracking Across Multiple Locations
Solution in NetSuite: Real-Time Inventory Management: Use NetSuite’s Inventory Management module to track stock levels across all locations in real time. Enable the “Multi-Location Inventory” feature by navigating to Setup > Company > Enable Features > Items & Inventory and checking “Multi-Location Inventory.” Automated Replenishment: Set up demand-based replenishment rules under Lists > Supply Chain… Continue reading Inaccurate Inventory Tracking Across Multiple Locations
Discount Configuration Scenarios in NetSuite
Step 1: Custom Fields with Dropdowns for Discount Method NetSuite allows you to create custom fields that can be used for flexible user input. These fields will control the business logic you implement via scripting. Custom Fields: Discount Calculation Method (Dropdown): Add a dropdown field to the Purchase Order and Invoice records, which will allow users to select between… Continue reading Discount Configuration Scenarios in NetSuite