CA Shivakumara swamy & associates is a firm of chartered accountants in Bangalore, India. The firm has rich experience in Accounting, Auditing, Direct/Indirect Taxation Laws, Corporate Laws, NGOs, Corporate Advisory and Financial Services, Project consultancy and FEMA.
The Companies and their Auditors shall comply with the Ind AS in preparation of their Financial Statements and Audit respectively, in the following manner:
Any company may comply with the Ind AS for FS for accounting periods beginning on or after 1st April 2015, with the comparatives for the periods ending on 31st March 2015, or thereafter.
a) Listed/in the process of listing or unlisted companies with networth of Rs. 500 crore or more
b) Holding, Subsidiary, Joint Venture/ Associate Companies of the above companies.
(ii) From FY 2017-18:a) Companies whose Equity or Debt Securities are listed or are in the process of being listed on any stock exchange in India or outside India and having net worth of less than Rs 500 crore.
b) Unlisted Companies having net worth of Rs 250 crore or more but less than Rs 500 crore.
c) Holding, Subsidiary, Joint Venture/ Associate Companies of Companies covered in (a) and (b) above.
GST would bring in significant change in doing business in India. Advocacy for best practices, gearing up for changes in processes, training teams and developing IT systems for being GST compliant are the key areas to be assessed.
The Government is committed to introduce GST by April 2017. Tax payers need to be GST compliant to be able to test system changes in time. Depending on the operating geographies, size and sector, the changes would be substantial and may require proactive planning with a time-bound action plan.
In order to prepare for the implementation of GST, companies need to understand GST policy development and its implications for scenario planning and transition roadmap preparation.
IFC, the internal financial controls, is the requirement of the Companies act. Section 143(3)(i) of the Act requires an auditor to state in his report, if the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Internal financial controls means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
IFC is an ongoing activity and not just a one time job. Though it is the requirement of the companies act, it helps an organisation to safeguard its resources. More than the compliance, the IFC should be treated as the culture of an organisation.