IFRS – Research and Development
Businesses incur research and development costs in order to bring product differentiation, the launch of a new product etc. Such R&D costs have a special treatment and cannot be entirely treated as normal expenses. As per IFRS, research costs are expensed, however, in case of development costs (including internal costs) are capitalized provided certain conditions are met. This gives rise to the importance of differentiating a research cost from a development cost.
Benefits of an Accounting Software
Over the past few years, traditional accounting has witnessed major automation. Accounting software like Tally, SAP, Quick Books, etc are widely used in businesses. Few benefits of accounting software are:
Non-Recoverable Input Tax (Entertainment Services)
There are a number of circumstances in which businesses have sought clarity over the definition of ‘entertainment’ for the purposes of the input tax restriction, and in particular what should constitute entertainment of staff or business contacts as opposed to incidental business-related expenses which would be recoverable under normal VAT rules.
Importance of Accounting Standards
An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. Accounting standards improve the transparency of financial reporting in all countries. It relates to all aspects of an entity’s finances like assets, liabilities, income, expenses and equity. Banks, investors, and regulatory agencies count on accounting standards to ensure information about a given entity is relevant and accurate.
Types of Audit Report
An Audit is an independent examination of the financial statements of an entity irrespective of the size or legal form, whether profit-oriented or not, in order to express an opinion thereon, in the form of an Audit Report. The audit report is used by many stakeholders including the entity’s management, the board of directors, shareholders, investors, government bodies, banks, and many others. Audit reports are divided into 4, which are:
Depreciation methods as per IFRS
Depreciation is the systematic allocation of the depreciable amount of a fixed asset over its useful life. A fixed asset is recognized in the books of accounts when:
Managing Cash Flow for Business
Cash Flow in any business basically means the cash inflow from the revenue minus cash outflow from the expenses. Positive cash flow occurs when the cash receipts in the business from sales, accounts receivable, etc. are more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, salaries, etc. Negative cash flow occurs when the outflow of cash is greater than your incoming cash.
COVID’19 – Tackling the challenges of Business today
With the advancement of COVID’19 the pandemic in the past few months, the commercial industry has seen a variety of challenges. A pandemic cannot be confined to merely a major health crisis, it has had a subsequent effect on businesses across the globe. Not only has it gotten businesses to rethink and restructure their ways of operations, it has made companies with high profits, in the pre-pandemic times, difficult to survive in the current market. It is safe to say almost all industries have taken a hit, but here let us look into some of the worst-hit industries:
Disbursements and Reimbursements – VAT Implications
Every business transaction is involved in recovering the expenses it has incurred. The VAT treatment of such recovery is subject to whether it is a disbursement or a reimbursement.
The statement of Cash flow
The “statement of cash flows” also known as the cash flow statement, is a financial statement that summarizes and gauges the overall financial health of the company.