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...

  Thousands of accounting, audit and finance professionals apply for diploma in IFRS every year, and the biggest intimidation that a majority of them face is the preparation of June 2024  DipIFR examination  to crack it in the very first attempt. While lack of time for preparation and inability to focus on studies at a stretch are generally behind this pre-examination stress, the right guidance may help them determine their course of preparation and experience a surprising outcome. DipIFR students typically come up with questions like how much time does it take to complete DipIFR syllabus before the examination, is it possible for non-CA professionals to get well versed with IFRS (International Financial Reporting Standards) within such a short time span and how many hours should be dedicated to  DipIFR study on a daily basis . Aspirants are often concerned about the magnitude and complexity of syllabus. Despite being professionals in the field of accounting, finance...

  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 ...