Finance : In continuation to our earlier article on ‘Risk Management Strategy vs. Risk Management objectives’, let’s understan...
CA, CS, CMA : Election, election and election…Now a day’s every candidate is trying to lure his/her candidature in such a fashion that he/ s...
CA, CS, CMA : Every business list down its strategy to move forward and for that it gears up its executives by providing them some agreed target...
CA, CS, CMA : When an Entity is being acquired by another Entity, it has two way to look at it, first being 100% acquired where all controlling ...
CA, CS, CMA : Often debts include clauses in which either borrower or an issuer can prepay the debt amount earlier than its contractually agreed...
At present all Investment are being classified between long term and current and are being recognized at cost (subject to some permanent diminution and in case current investment lower of fair value or cost) , hence what are the options available to value Equity Investments under Ind-As?
Acquisition of business is quite common in today’s fast moving dynamics of the world and every such stakeholder of the entity would be interested to know all implications related to its valuation or for reporting purposes.
It is very common to have call, put or prepayment options associated with any debt instrument which talks about the right/ obligations to issuer/ holder for ending this Instrument by settling agreed amount as defined.
Let’s first understand what does CAPS & FLOORS means in Financial Market and why these are being used in various lending arrangements.
All derivatives which are embedded with any host liability are required to be assessed if that derivative part needs to be separated or not as per the below requirement of Ind-As 109 Financial Instruments
There are certain contractual arrangements which actually drive overall activities of an entity comparing to its voting structure where it does not has any power/ significance.
Whenever there is a disposal into a subsidiary Investment, one has to look at whether it is a loss of control or it’s a disposal without losing the existing control by its Parent Company.
Many of our readers requested to share actual calculation and the process to bifurcate any convertible bonds between Equity & Liability and its related Journal Entry.
Current Indian Accounting has below provisions/ requirements related to the Contingent Assets – AS -29 Provisions, Contingent Liabilities and contingent assets Para -30- An enterprise should not recognise a contingent asset.
Once an entity obtains a significant influence (as per Ind-As-28) or Joint control (as per Ind-As-111 to fall under JV) then Equity accounting needs to be applied.
