Fair value accounting is the measurement of assets and liabilities of a business based on the estimation of current market values. It means the assets can be sold or a liability settled in an orderly transaction to a third party under current market conditions. Therefore this method of accounting is also known as ‘mark-to-market accounting…
Conservatism Principle also known as the “Prudence Concept” states gains should be recorded if their occurrence is certain but losses with a remote chance are recognized. The conservatism principle in accounting is a guideline that requires accountants to be cautious and conservative when preparing financial statements. As per this guideline, when faced with two options,…
Italian monk Luca Pacioli is known as “the father of accounting”. He published a textbook called “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” in 1494. In the said huge math encyclopedia written by him he included an instructional section on double-entry bookkeeping. The three golden rules of accounting are (1) debit all expenses and losses,…
IFRS Accounting Standards are developed by the International Accounting Standards Board (IASB) an independent, not-for-profit organization that develops and approves International Financial Reporting Standards (IFRSs). The IASB established in 2001 operates under the oversight of the IFRS Foundation. IFRS was created to establish a common accounting language that forms accounting rules for public companies to…
Accounting standards in the USA are a set of accounting guidelines known as Generally Accepted Accounting Principles (GAAP). These standards govern how companies in the United States record and present their financial statements to regulatory authorities, investors, and all stakeholders. The Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) developed and…
Accounting standards in India govern how companies record and present their financial statements to regulatory authorities, investors, and all stakeholders. The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949), to regulate and develop the profession of…
The Italian Luca Pacioli, recognized as The Father of accounting and bookkeeping was the first person to publish a work on double-entry bookkeeping, and introduced the field in Italy. The modern profession of the chartered accountant originated in Scotland in the nineteenth century. The main purpose of accounting principles is to guarantee that a business’s…
The days of manual bookkeeping and ledgers are long gone as emerging technologies in accounting include AI-driven automation, blockchain for secure transactions, cloud-based accounting software, data analytics, and robotic process automation for streamlining repetitive tasks. These emerging technologies have revolutionized traditional accounting practices. Automation is allowing accountants to eliminate or streamline tedious manual tasks like…
Labour Bureau announces CPI (IW) index numbers for July, August, and September 2024. July 2024=142.70 August 2024 =142.60 September 2024=143.30 Average index numbers for the above quarter is =142.86 Therefore DA payable to Officers, of banks for the quarter November 2024 to January 2025 is 19.83% (the average index no. minus 123.03). In the last…
Labour Bureau announces CPI (IW) index numbers for July, August, and September 2024. July 2024=142.70 August 2024 =142.60 September 2024=143.30 Average index numbers for the above quarter is =142.86 Therefore DA payable to Officers, Clerical Staff, and Sub-staff of banks for the quarter November 2024 to January 2025 is 19.83% (the average index no. minus…