The Tally Accounting software apparently is helping many Small and medium businesses to maintain 2 sets of books - one for Known Sources and another for Unknown sources. The software cannot be faulted, if unscrupulous misuse the software. Apparently Tally knows something that the authorities dont. Perhaps, things dont Tally for the government - Heh,Heh !!
Re: And
by Sheetal Kaur on Feb 20, 2011 03:02 AM
No one is stopping them to get one. They do not have an account is that they do work and do not contribute to the economy. 85% of indians are thieves and beggars. that is why they run on black money.
Though I agree to have a standard reporting guideline across the world, the concept of fair value accounting for everything is sometime insane for certain things. It just distorts the balance sheet and I bet majority of the shareholders have no clue as to what they are reading / looking at. The fair values are notional values. I have cases wherein the fair values given by 3 bankers are different for a hedge entered for the same amount and dates. Whom should we rely on? Everyone has their own assumptions and right in their on way. Based on my experience an average man looking at the balance sheet of his invested company is going to get more confused by this than before.
Re: IFRS
by Ravi on Feb 17, 2011 03:03 PM
I agree. But you are talking about exceptions. We are missing the bigger picture here. You take up any balance sheet of any of the companies listed, all the figures related to assets, investments, cash equivalents, contingencies are all unrealistic. This is precisely the reason why the book value of a company and realised value in teh even of sell off has so much of variance. One rupee invested 20 years back is being reported as one even today. Is that right? Absolutely not. if you see most of the financial services companies listed you will understand what i mean. This is just an example. Lets see the bigger picture. We can resist the inevitable by one year may be. But india has given word to G20 to go for IFRS. All teh companies who are resisting would find their matket value diminishing in terms of valuations if they dont go for IFRS fearing disclosures. Lets not resist the inevitable. Lets accept it and finetune the impending loopholes.
Though I agree to have a standard reporting guideline across the world, the concept of fair value accounting for everything is sometime insane for certain things. It just distorts the balance sheet and I bet majority of the shareholders have no clue as to what they are reading / looking at. The fair values are notional values. I have cases wherein the fair values given by 3 bankers are different for a hedge entered for the same amount and dates. Whom should we rely on? Everyone has their own assumptions and right in their on way. Based on my experience an average man looking at the balance sheet of his invested company is going to get more confused by this than before.
When the inevitable change is going to happen, the elements who get affected will disgruntle. Already more than 110 countries have adopted or converged into IFRS. Why these guys are getting scared of fairvalue and elaborate disclosures? Dont we have right to information? How are we going to be more professional when there si no transperancy. Just accept the Reality and Start learning IFRS norms. ifrsselflearning portal would be ideal for you guys. wwwdotifrsselflearningdotcom
The Author is unnecessarily creating a bogey over IFRS. The whole point of IFRS is that similar reporting standards exist across the world for investors to compare. Secondly, the concept of fair value is nothing new to the world of finance. Infact it forces companies to recognise losses/liabilities due in future.
india does not need new accounting norms Already concept like deferred taxation and notional duty on finished goods lying in factory scandals of Enron and Lehman brothers took place only due to fraud accounting standards of usa
I do not understand what the writer is trying to say. ICAI had given out the standards as early as June 30, 2010. The fact nobody even bothered to respond to that is known to everybody. Why did the so called "Indian CAs" keep quiet? Imagine a scenario, if IFRS comes in all major countries, "Indian CAs" would have the potential to rule accounting across the world. We may become the next KPO of accounting. He has mentioned about IFRS as only equivalent to "fair value" accounting, which is not the fact. When a company pays more than the book value of assets to acquire a company, is the excess amount only to be shown as goodwill or reflect other intangible assets which have been bought. Fair value in many cases is an option and not compulsion. I would strongly suggest the writer to know the ground realities and then refer to such reports, who can be counter argued to say may have their own agenda to delay the process of globalization. If there is genuine growth in Indian economy, trust me no accounting can derail that fact. I strongly believe there is some hidden agenda behind such report. It would be interesting to know the so-called "371" stakeholders interviewed. Believe me, adopting IFRS, would help our companies take away the oft-repeated rhetoric West, you are not transparent. Our banks survived because there were good regulators and not because we do not have fair value.
