The Government is committed to implement GST . It is hereby noted that both centre and state to pass necessary legislation to implement GST . The enactment legislations, framing rules, appointing officers to implement the GST and procedure to be notified. As of now only 5 months are available for enacting required legislations and procedural formalities. Let us hope that government will implement GST from 1st April 2010.
Regards
A.Rengarajan
New Delhi: The empowered group of state finance ministers will come out with a draft paper on goods and services tax (GST) within a month to facilitate implementation of the new tax regime by the 1 April 2010.
“The responses of the states will be obtained (on the discussion paper) and the draft will be finalized for discussion. We are trying to do that within the end of this month,” empowered group chairman Asim Dasgupta told reporters after a meeting here.
The Group will hold discussions with the stakeholders, including trade and industry, after finalization of the draft, he added.
The draft, for which a joint working group was constituted last month, would deal with important issues like legislation, rules and procedures of the GST.
The group for preparing the draft comprises officials from the Finance Ministry and state revenue officials.
The proposed indirect tax regime will do away with most of the indirect taxes like excise and services levied by the Centre and subsume state levies like VAT and Octroi
Saturday, October 10, 2009
understanding IFRS
The Institute of Chartered Accountants of India planning to introduce International Financial Reporting Standards from 1st April 2011. Before going in details of IFRS, the following other legislation also proposed by Government
Goods and Service Tax - From April 2010
Direct Tax code - From April 2011 ( Financial year)
Companies Bill 2009 - introduced and referred to standing committee for review hope to pass
the bill at the earliest
The Direct tax code, Companies bill 2009 and IFRS are inter connected and the Government make necessary changes in the respective laws before passing .
IFRS: Nowdays the buzz word is IFRS ( Internatinational Financil Reporting Standards) . Big Five chartered Accountant firms are already gear up to ready for IFRS adoption. A lot of ground work to be done before moving into IFRS regime.
For implementation of IFRS a major break through came from European Union (EU) adopted legislation in the year 2002, that requires listed companies in Europe to apply IFRS in their Consolidated financial statements.
The legislation came into effect inm 2005 and applies to more than 8000 companies in 30 countries, including countries such as France, Germany, Itlay, Spain and the United Kingdom. The adoption of IFRS in Europe replaced national accounting standards and requirements as the basis for preparing and presenting group financial statements for listed companies in Europe.
Countries that have Adopted IFRS
Countries in which some or all companies are required to apply IFRS or IFRS-based standards are listed below.
Africa:
Botswana, Egypt, Ghana, Kenya, Malawi, Mauritius, Mozambique, Namibia, South Africa, Tanzania
Americas:
Bahamas, Barbados, Brazil (2010), Canada (2011), Chile (2009), Costa Rica, Dominican Republic, Ecuador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama,Peru, Trinidad and Tobago, Uruguay, Venezuela
Asia:
Armenia, Bahrain, Bangladesh, Georgia, Hong Kong, India (2011), Israel, Jordan,
Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Nepal, Oman, Philippines, Qatar, Singapore, South Korea (2011), Sri Lanka (2011), Tajikistan, United Arab irates
Europe:
Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Turkey, Ukraine, United Kingdom
Oceania:
Australia, Fiji, New Zealand, Papua New Guinea
Objectives: By implementing IFRS, the use of single set of accounting reporting enable to facilitate speedier investment as well as reduce the cost of raising capital. It facilitates to compare the financial statements prepared by entities situated in different parts of the world. The income recognition , method of depreciation, value of investments and all other reporting standards. In case of depreciation, the charge of depreciation based on the life of the asset i.e. each and every component of the asset. The depreciation is based on component based. For example, if car is bought by the entity, then life of the tyre is different from life of the engine of the car.
IFRS is based on the following four qualitative charateristics.
(1) Understandability
(2) Relevance
(3) Reliability
(4) Comparability
The understandability refers to the information is easily understandable by the users who have reasonable knowledge business and economic activities and willing to study the information with reasonable diligence.
The concept of relevance mainly based on materiality. The information is relevant to decision making needs of the users and it will influences the users to evaluate the present, past and future events and anlayse the impact of the decisions.
The concept of reliability denotes the reporting standards are free from material error and also free from bias. The method of reporting to be reliable information and it gives true picture of the financial reporting
Comparability means if financial information of similar entity in any parts of the world. Now each country is adopting their own accounting standards and some countries are adopting IFRS. It is difficult to compare the profits, expenses and other items. IFRS allows them to compare the transactions of similiar entity across the globe.
.
Goods and Service Tax - From April 2010
Direct Tax code - From April 2011 ( Financial year)
Companies Bill 2009 - introduced and referred to standing committee for review hope to pass
the bill at the earliest
The Direct tax code, Companies bill 2009 and IFRS are inter connected and the Government make necessary changes in the respective laws before passing .
IFRS: Nowdays the buzz word is IFRS ( Internatinational Financil Reporting Standards) . Big Five chartered Accountant firms are already gear up to ready for IFRS adoption. A lot of ground work to be done before moving into IFRS regime.
For implementation of IFRS a major break through came from European Union (EU) adopted legislation in the year 2002, that requires listed companies in Europe to apply IFRS in their Consolidated financial statements.
The legislation came into effect inm 2005 and applies to more than 8000 companies in 30 countries, including countries such as France, Germany, Itlay, Spain and the United Kingdom. The adoption of IFRS in Europe replaced national accounting standards and requirements as the basis for preparing and presenting group financial statements for listed companies in Europe.
Countries that have Adopted IFRS
Countries in which some or all companies are required to apply IFRS or IFRS-based standards are listed below.
Africa:
Botswana, Egypt, Ghana, Kenya, Malawi, Mauritius, Mozambique, Namibia, South Africa, Tanzania
Americas:
Bahamas, Barbados, Brazil (2010), Canada (2011), Chile (2009), Costa Rica, Dominican Republic, Ecuador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama,Peru, Trinidad and Tobago, Uruguay, Venezuela
Asia:
Armenia, Bahrain, Bangladesh, Georgia, Hong Kong, India (2011), Israel, Jordan,
Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Nepal, Oman, Philippines, Qatar, Singapore, South Korea (2011), Sri Lanka (2011), Tajikistan, United Arab irates
Europe:
Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Turkey, Ukraine, United Kingdom
Oceania:
Australia, Fiji, New Zealand, Papua New Guinea
Objectives: By implementing IFRS, the use of single set of accounting reporting enable to facilitate speedier investment as well as reduce the cost of raising capital. It facilitates to compare the financial statements prepared by entities situated in different parts of the world. The income recognition , method of depreciation, value of investments and all other reporting standards. In case of depreciation, the charge of depreciation based on the life of the asset i.e. each and every component of the asset. The depreciation is based on component based. For example, if car is bought by the entity, then life of the tyre is different from life of the engine of the car.
IFRS is based on the following four qualitative charateristics.
(1) Understandability
(2) Relevance
(3) Reliability
(4) Comparability
The understandability refers to the information is easily understandable by the users who have reasonable knowledge business and economic activities and willing to study the information with reasonable diligence.
The concept of relevance mainly based on materiality. The information is relevant to decision making needs of the users and it will influences the users to evaluate the present, past and future events and anlayse the impact of the decisions.
The concept of reliability denotes the reporting standards are free from material error and also free from bias. The method of reporting to be reliable information and it gives true picture of the financial reporting
Comparability means if financial information of similar entity in any parts of the world. Now each country is adopting their own accounting standards and some countries are adopting IFRS. It is difficult to compare the profits, expenses and other items. IFRS allows them to compare the transactions of similiar entity across the globe.
.
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