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...

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 ...

  DipIFR Live Online Weekend batch starting from 15 July 2023 (Saturday – 6 hours, Sunday – 3 hours); Live online batch aims December 2023 and June 2024 examination of ACCA Diploma IFRS Live online training program on Diploma IFRS covers: 1.      78 hours interactive live online sessions 2.      Access to the recorded sessions on mobile app until Dec. 2023 examination 3.      Pen drive for 27 hours of video lectures with 2 views or 06 months validity 4.      Study material (Study text, question bank, training slides handout book) 5.      Ock examination (Self-evaluation; marking scheme will provided separately) 6.      Discount to FinPro students on ACCA registration and examination fees 7.      Study material will be dispatched on the postal address mentioned in registration details   DipIFR Recorded Sessions   ...

  Avail early bird discount of Rs.2000. Join Diploma IFRS weekend Live Batch Starting From 15th Jul'23 Get Certified on ACCA Exam. 78 hours of interactive live online sessions access to the recorded sessions on mobile App. Practical Examples. Robust Study Material. Extensive Study Material. Expert Guidance. Contact us on -  info@finproconsulting.in +91 8421438047 +91 8329119908 +91 7030190888

  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...

  Background: Entity is engaged in the business of development of a special economic zone and industrial park. For development of SEZ, the Entity has purchased, and Government has awarded large parcels of land to the entity. The Company shall develop the land and shall create infrastructure on such land before selling/ leasing the plots to the other businesses. Thus, some portion of land with the entity will be sold in ordinary course of business and some shall be provided on finance lease. Consequently that land shall be classified and presented as “inventory” as per IAS 2 / Ind AS 2 – Inventories in the books of the entity. Due to some legal issues, there are uncertainties regarding the usage of the land and entity is uncertain about the exact usage of the land i.e., whether it will be sold or given on finance lease or operating lease on the date of reporting. Few queries with respect to the accounting of such property have been raised as below. As a part of this blog, we will an...