The Indian Accounting Standards (Ind AS), as notified under section 133 of the Companies Act 2013, were first implemented voluntarily in India on April 1, 2015. They became mandatory for certain companies on April 1, 2016, and were later extended to other companies and sectors. The main objective of Indian accounting standards (Ind-AS) is to…
The balance sheet of an entity may be presented in a few different formats, including: Report form This is the most common format, with assets listed first, then liabilities, and finally equity. The formula for a balance sheet is total assets = total liabilities + total equity. Account form This is a horizontal format that…
A trial balance is a preliminary step in preparing a balance sheet. It summarizes the general ledger account balances. The trial balance taken the first time is called an unadjusted trial balance. Whenever totals of debits and credit side mismatches in the unadjusted trial balance, the major job is to search for and correct the…
A trial balance is an internal financial report that lists all the balances of general ledger accounts of an entity at a specific time. The items reflected in the trial balance include assets, liabilities, equity, revenues, expenses, gains, and losses. It’s usually prepared at the end of the accounting year to ensure the bookkeeping system’s…
A balance sheet is a financial statement of an entity that is prepared for reporting of financial position of the business as of a particular date. The balance sheet is divided into two sides, with assets on one side and liabilities and shareholders’ equity on the other. The left side of the balance sheet outlines…
The Banking Regulation Act, of 1949 empowers the Reserve Bank of India to inspect and supervise commercial banks. These powers are exercised through on-site inspection and off-site surveillance. The Reserve Bank of India (RBI) conducts inspections of commercial banks to ensure that they are adhering to regulations, maintaining financial discipline, and safeguarding depositors’ interests. The…
Audits and inspections are both important activities that help ensure compliance with regulations and protocols, and they can be used in a variety of contexts, including safety, finances, and data security. The difference between Audits and inspections is that auditing is used to methodical examination of a facility’s accurate compliance with procedures and processes, to…
A contingent liability may be defined as a possible obligation that arises from past events and depends on the outcome of an uncertain future event. CONTINGENT LIABILITIES are those liabilities which may arise when certain claims are settled in the near future. So anything that is under litigation or liability is not ascertained as to…
Reconciliation is a financial process that compares internal financial statements with external sources to identify discrepancies and maintain financial reliability. Reconciliation is a financial process that compares transactions and activity to supporting documentation and resolving any discrepancies that may have been discovered. Inter-office adjustments are differences that may occur due to incomplete recording of transactions…
The back office in an organisation exists to finalise the transactions conducted by the front office. This includes confirming transactions and settlement instructions with the back office of the counterparty. The back office is essential for maintaining the integrity of the financial system and ensuring the accurate processing of customer transactions. The back office is…