accounting outsourcing
Books of Accounts and Audit Requirements
The Income Tax Act has specified the books of accounts that are required to be maintained for the purpose of Income Tax. These have been prescribed under section 44AA and Rule 6F. Who is required to maintain books of account? Books of ...
Deferred Tax Asset Meaning & Examples in Income Tax Law
What is deferred tax Deferred tax is the tax for those items which are accounted in Profit & Loss A/c but not accounted in taxable income which may be accounted in future taxable income & vice versa. The deferred tax may be a liability or assets as ...
Generally Accepted Accounting Principles (GAAP)
What Are Generally Accepted Accounting Principles (GAAP)? Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public ...
Capital Budgeting Concepts & Factors to Consider?
Financial plans are guides that allow you to navigate the financial capabilities of an enterprise and choose effective actions. Budget planning of income and expenses, for instance, is needed to save money, to be efficient in financial management, to ...
Absorption Costing in Accounting Concepts
Absorption Costing in Accounting Definition Absorption costing is a costing method that does not just account for the direct costs in the calculation of the cost of goods. In other words, the cost of each unit of a product with this method includes ...
Accounting Concepts & Principles Definition & Introduction
Definition and introduction “Accounting is the language of business efficiently communicated by well-organised and honest professionals called accountants.” Accounting not only records financial transactions and conveys the financial position of a ...
What Is the Difference Between Bookkeeping and Accounting?
What Is the Difference Between Bookkeeping and Accounting? Bookkeeping and accounting are two functions which are extremely important for every business organization. In the simplest of terms, bookkeeping is responsible for the recording of ...
Book-keeping & Accounts Preparation
What is Bookkeeping? Keeping records of all financial transactions Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business and other organizations. It involves preparing source ...
Recent Amendment in IFRS 16 and Proposed amendment in Ind AS 116
The pandemics of coronavirus, or COVID-19 has been here for a while and after the first shock of its quick spread and effect on people's health, we are all seeing its economic consequences. In order to stop the spread, governments in many countries ...
Fixed Asset Accounting under IFRS
Meaning Fixed assets can be classified basically in to two categories i.e tangible & intangible, Under IFRS , IAS-16 –Property, Plant & Equipment deals with tangible fixed asset except the assets held for capital appreciation. In case asset held for ...
Non-Banking Financial Company(NBFC)
What is a Non-Banking Financial Company? A Non-Banking Financial Company (NBFC) is a company a) registered under the Companies Act, 1956, b) its principal business is lending, investments in various types of shares/stocks/bonds/debentures/securities, ...
Accounting treatment of spare parts- Capital Spares
Spare Parts 'Spare', as the name suggests, refers to additional or extra to what is required for ordinary use. That purely means an item kept as standby, in case another item of the same type is lost, broken, or worn out. These are purchased for the ...
Accounting for E-commerce Business
Growth of e-commerce has revolutionized the way of conducting the business. The buyer and the sellers are the mere click of the mouse away. The Indian e-commerce industry has been an upward growth trajectory and is expected to surpass the US to ...
Effective measures to avoid financial frauds
Fraud typically involves misrepresentation of facts, either by withholding critical information or providing false statements to another party for the specific purpose of gaining something. Although fraud comes in different forms, it can be ...
How cloud accounting solutions are becoming more beneficial for small businesses?
Cloud computing is a concept that has been commonly used over the last few years. With its exponential growth in data use, it has transformed society into the digital 21st century. Now maintaining all of the sensitive information, systems, and ...
International Financial Reporting Standards (IFRS)
The International Accounting Standards Board (IASB) is an independent and privately funded body that develops and approves IFRS standards. Prior to 2003, standards were issued as International Accounting Standards (IASs). In 2003, IFRS 1 was issued ...
What is the impact of COVID-19 on financial statements?
The world has turned upside down in the last few weeks with the impact of COVID-19 spreading to businesses and people globally. Who would have imagined this at outset of the decade? Bill Gates said in his 2015-TED talk "If anything kills over 10 ...
Will technology replace accountants in the near future?
In recent years technology has evolved at a much rapid pace, so fast that it has almost gained a life of its own. Technology has been making continuous advancements in each & every field including our very own Profession of Accounting. During its ...
COVID-19 Impact on Newspaper Industry
Facts about Indian Newspaper Industry The first newspaper in the country was started in 1780 by the British and was known as Hicky's Bengal Gazette. From a little over 200 dailies published in the post-independence India, to over 100,000 registered ...
What are Bonds Payable in India?
What are bonds payable? Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments. The issuer of bonds makes a formal promise/agreement to pay interest usually every six months (semiannually) and to pay ...
What is manufacturing overhead and what does it include?
What is manufacturing overhead and what does it include? Manufacturing overhead (also known as factory overhead, factory burden, production overhead) involves a company's manufacturing operations. It includes the costs incurred in the manufacturing ...
What is Activity Based Costing?
What is Cost Accounting? Cost accounting is involved with the following: Determining the costs of products, processes, projects, etc. in order to report the correct amounts on a company's financial statements, and Assisting management in the planning ...
What is the Cash Flow Statement?
What is the cash flow statement? The cash flow statement is one of the main financial statements of a business or a nonprofit entity. (It is also known as the statement of cash flows.) The cash flow statement reports a company's major sources and ...
What are Adjusting Entries in Accounts?
What are adjusting entries? Adjusting entries are usually made on the last day of an accounting period (year, quarter, month) so that a company's financial statements comply with the accrual method of accounting. In other words, the adjusting entries ...
What is a balance sheet and why is it prepared?
What is a balance sheet, and why is it prepared? The balance sheet is prepared to report an organization's financial position at the end of an accounting period. A corporation's balance sheet says its: Assets (resources that were acquired in past ...
How the Income Statement Amounts are Calculated
What is income statement? The income statement is also known as the statement of operations, profit and loss statement, and statement of earnings. It is one of a company's main financial statements. The purpose of the income statement is to report a ...
What is bank reconciliation & how is it made?
What is bank reconciliation? A bank reconciliation is a process performed by a company to ensure that its records (check register, general ledger account, balance sheet, etc.) are correct. This is done by comparing the company's recorded amounts with ...
Difference between a Book-Keeper & an Accountant
What is Bookkeeping? Bookkeeping includes the recording, storing and retrieving of financial transactions for a business, nonprofit organization, individual, etc. Example: Typical financial transactions and tasks that are involved in bookkeeping ...