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, due to increased prices of land, very commonly, real estate developer / contractors may not own lands in their own names. Landowners, on the other hand, may not possess the skillset to develop the land. And thus, both parties enter into a Joint Development Agreement (“JDA”) with the landowner for the development of the land and for the construction of commercial, retail, and residential properties on the land owned by the landowner. Pursuant to a JDA, the developer and the landowner enters into an agreement whereby landowner transfers the land to the developer for development in the form of  ‘land development rights’  in return of a consideration in the form of specific constructed portion out of total constructed area on the entire land. To elaborate further, in accordance with the JDA, the developer and landowner agrees that the landowner shall be entitled to a certain percentage of saleable / leasable area of the total constructed area which ...

  Background: Lot of students from a commerce background faces a challenge in WHY and HOW to read an accounting standard or reporting standard under IFRS, IND AS or under any other GAAP (Generally Accepted Accounting Principles). Accounting standard or reporting standard is not a novel or a story which creates interest without relevance. One needs to understand the objective of reporting standards and which principles are enumerated in a reporting standard in order to have interest in the same. In this blog, with respect to a reporting standard, we will understand: Objectives of reading a reporting standard (Why to read a reporting standard?) Contents of a reporting standard Structure of the reporting standard under IFRS How to read it and interpret the same. In this blog, we will evaluate the first two aspects of the above points i.e., why to read a reporting standard and contents of the reporting standard. This will help us to understand the overall content of the reporting stand...