Ind AS (Indian Accounting Standard)
Note4students
Mains Paper 3: Economy | Mobilization of resources
From the UPSC perspective, the following things are important:
Prelims level: Ind AS
Mains level: Accounting Standards of RBI
News
The Reserve Bank of India (RBI) has deferred the implementation of the new accounting norms, Ind AS, indefinitely, as necessary amendments to the relevant law are yet to be made.
The move will bring huge relief to the banks which are yet to recognise stressed assets and make necessary provisions as that would require higher capital.
Ind AS
Indian Accounting Standard is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977.
ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.
Ind AS governs the accounting and recording of financial transactions as well as the presentation of statements such as profit and loss account and balance sheet of a company.
Why IndAS?
For long, there has been a heated debate about Indian companies moving to the globally accepted International Financial Reporting Standards (IFRS) for their accounts.
But firms have resisted this shift, stating that this will lead too many changes in the capture and reporting of their numbers.
Ind AS has been evolved as a compromise formula that tries to harmonize Indian accounting rules with the IFRS.
Causes for delay
The implementation of IndAS for public sector banks requires an amendment to the Banking Regulation Act, 1949.
The schedule in Banking Regulation Act relating to financial statement disclosures needs to be changed to the IndAS format.
The other thing is the balance sheet format, for which some changes in the Act are required.
Join🔜 @economyupsc
Also join @civilservicegurukul
Note4students
Mains Paper 3: Economy | Mobilization of resources
From the UPSC perspective, the following things are important:
Prelims level: Ind AS
Mains level: Accounting Standards of RBI
News
The Reserve Bank of India (RBI) has deferred the implementation of the new accounting norms, Ind AS, indefinitely, as necessary amendments to the relevant law are yet to be made.
The move will bring huge relief to the banks which are yet to recognise stressed assets and make necessary provisions as that would require higher capital.
Ind AS
Indian Accounting Standard is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977.
ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.
Ind AS governs the accounting and recording of financial transactions as well as the presentation of statements such as profit and loss account and balance sheet of a company.
Why IndAS?
For long, there has been a heated debate about Indian companies moving to the globally accepted International Financial Reporting Standards (IFRS) for their accounts.
But firms have resisted this shift, stating that this will lead too many changes in the capture and reporting of their numbers.
Ind AS has been evolved as a compromise formula that tries to harmonize Indian accounting rules with the IFRS.
Causes for delay
The implementation of IndAS for public sector banks requires an amendment to the Banking Regulation Act, 1949.
The schedule in Banking Regulation Act relating to financial statement disclosures needs to be changed to the IndAS format.
The other thing is the balance sheet format, for which some changes in the Act are required.
Join🔜 @economyupsc
Also join @civilservicegurukul
Q.1) “Due to the unprecedented transformational change in the world of work, there are several transformational challenges that are bound to occur”
Discuss the persistent and future challenges in the world of work with the advent of the fourth industrial revolution
Answer:
ILO’s report titled ‘Future of Work’ presents the challenges facing the world of work in the future.
Persistent challenges:
1. Job creation has not been sufficient to absorb the growth in the number of people seeking jobs.
2. Working poverty still remains a major concern. In 2016, emerging and developing countries accounted for a total of 783 million working poor.
3. Concerns about job quality have grown in recent years with the advent of gig economy and growing contractual and non-standard forms of employment.
4. The distribution between capital and labour and between individuals has dramatically changed resulting in growing income inequality.
5. In emerging and developing countries, changing population dynamics have led to a bulge in the proportion of the young population entering the labour market; however, job creation has been limited
Future Challenges:
1. New technological innovations underpinning the Fourth Industrial Revolution, such as Big Data, 3-D printing, artificial intelligence and robotics will bring transformative impact on the nature work and result in job destruction.
2. Only 53.6% of all households have internet access. In emerging countries, the share is only 15%. Given the rapid technological advancements, digital divide remains a key challenge for skill development and employment opportunities.
3. Climate change has resulted in the collapse of fisheries, soil degradation, forced migration, atmospheric and water pollution and the loss of biodiversity and decrease in agricultural productivity. This has affected live and livelihoods of millions across globe.
Discuss the persistent and future challenges in the world of work with the advent of the fourth industrial revolution
Answer:
ILO’s report titled ‘Future of Work’ presents the challenges facing the world of work in the future.
Persistent challenges:
1. Job creation has not been sufficient to absorb the growth in the number of people seeking jobs.
2. Working poverty still remains a major concern. In 2016, emerging and developing countries accounted for a total of 783 million working poor.
3. Concerns about job quality have grown in recent years with the advent of gig economy and growing contractual and non-standard forms of employment.
4. The distribution between capital and labour and between individuals has dramatically changed resulting in growing income inequality.
5. In emerging and developing countries, changing population dynamics have led to a bulge in the proportion of the young population entering the labour market; however, job creation has been limited
Future Challenges:
1. New technological innovations underpinning the Fourth Industrial Revolution, such as Big Data, 3-D printing, artificial intelligence and robotics will bring transformative impact on the nature work and result in job destruction.
2. Only 53.6% of all households have internet access. In emerging countries, the share is only 15%. Given the rapid technological advancements, digital divide remains a key challenge for skill development and employment opportunities.
3. Climate change has resulted in the collapse of fisheries, soil degradation, forced migration, atmospheric and water pollution and the loss of biodiversity and decrease in agricultural productivity. This has affected live and livelihoods of millions across globe.
👆🏻Topic related with Industrial Relation of Commerce Optional Paper 2
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Join @commerceoptional
#1 Write the important reforms that have taken place in the following sectors after 1991 the following
(i)Banking Sector
(ii)Primary and Secondary Stock Market
(iii) External Financial Market –15 Marks
#2 Define Credit Rating Agencies and Evaluate the role of Credit Rating Agencies.15 marks
#3 Evaluate the benefits of credit rating and the process involved therein. 15 Marks
#4 Risks associated with variation between loan maturities and liability maturities of commercial banks and minimisation of these risks without affecting profitability.15 Marks
(i)Banking Sector
(ii)Primary and Secondary Stock Market
(iii) External Financial Market –15 Marks
#2 Define Credit Rating Agencies and Evaluate the role of Credit Rating Agencies.15 marks
#3 Evaluate the benefits of credit rating and the process involved therein. 15 Marks
#4 Risks associated with variation between loan maturities and liability maturities of commercial banks and minimisation of these risks without affecting profitability.15 Marks
Hello Aspirant,This is CA Dhananjay Sir from Civil Service Gurukul.
Students are facing difficulty in preparation of IND AS Notes
Prepare notes on only IND AS corresponding to
Accounting Standards e.g., - as mentioned in syllabus of UPSC (IAS)
1. Accounting for Depreciation,
2.-Inventories, -
3.Research and Development Costs, -
4.Long-term Construction Contracts, -
5.Revenue Recognition,
6.-Fixed Assets,
7.-Contingencies,
8.-Foreign Exchange Transactions, -
9.Investments and
10.Government Grants, -
11.Cash Flow Statement,
12.-Earnings Per Share
Accounting Standards e.g., - as mentioned in syllabus of UPSC (IAS)
1. Accounting for Depreciation,
2.-Inventories, -
3.Research and Development Costs, -
4.Long-term Construction Contracts, -
5.Revenue Recognition,
6.-Fixed Assets,
7.-Contingencies,
8.-Foreign Exchange Transactions, -
9.Investments and
10.Government Grants, -
11.Cash Flow Statement,
12.-Earnings Per Share
If any students want to prepare notes on IND AS , I ll guide her/him .Contact @cadhan