Introduction: Accounting is the backbone of the business financial world. The aim of financial reporting is to understand the business through the numbers and facts. Worldwide accounting practice was highly diverse and meaningfully comparing financial statements of entities located in different countries was very difficult. Considering the increasing trend of globalisation across the world, harmonisation in the accounting was necessary. International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board. In simple words IFRS are a set of accounting rules for how information should be gathered and presented in financial reports. They constitute a standardised way of describing the company's financial performance and position so that company  financial statements  are understandable and comparable across international boundaries. They are particularly relevant f...

A. Background: In recent times, many companies have chosen to raise money by issuing convertible instruments. A convertible instrument is a hybrid instrument that offers investors the option to  redeem the security for cash  at the end of (or during) its term  or convert it to equity shares  of the entity. Convertible instruments generally offer lower interest rates (because of the additional consideration by way of conversion option) than comparable conventional instruments, making them a cost-effective way for the entity to raise money. Convertible instruments are typically issued by companies that have high growth expectations and relatively lower credit ratings. The companies get access to money for expansion at a lower cost than they would have to pay for conventional instruments. Investors, in turn, get the flexibility of turning their convertible instruments into cash or equity shares of the entity. Examples of convertible instruments are optionally convertibl...

  Executive Summary Since April 2019, due to the introduction of  IFRS 16 / Ind AS 116  – Leases, there has been a significant change in how leases are accounted for, especially by the lessees. As per the earlier leasing standard, lessees were required to account for lease transactions as operating or finance leases depending on the rules and tests of classification. As per the new leasing standard, this classification is done away with, and lessees are now required to recognize nearly all leases (except short-term and low-value leases) on the Balance Sheet which will reflect their Right-to-use an asset for a period of time and the associated lease liability for rent payments. The accounting of operating leases as per the earlier standard was relatively straightforward, which required lessees to recognize lease payments as operating lease expenses on a straight-line basis over the lease term. The accounting of operating leases as per the earlier standard was relatively st...