CAduniya.com : CA India Blog

By P. S. Kumar - Source : Sify

Accounting is a means to an end and not an end in itself. Accounting follows business. The function of accounting is to ensure that business transactions are recorded in a transparent manner reflecting the economic substance of them. As business transactions get more and more complicated and as newer business models are invented, sometimes it does look as though the existing accounting standards and the accounting theory are not adequate to record those transactions.

In fact, anyone with an accounting bent of mind who reads business journals and newspapers, on coming across these new ventures would immediately think of an accounting framework and its adequacies or otherwise. In the wake of this, it is not uncommon to find that the standards do not address some specific and unique issues related to these ventures and their business models.

(more…)

In view of the increasing volume of work and financial activities, the state government is considering to hire the services of chartered accountants (CAs).

This was announced by CM Nitish Kumar on Sunday at the inaugural session of the two-day National Conference on Internal Audit organised by Institute of Chartered Accountants of India (ICAI).

“It is a must to check financial irregularities and stop occurrence of scams originating from state treasury. One such scandal is known as fodder scam that started from treasuries through unchecked financial embezzlement,” said Nitish while inaugurating the conference.

(more…)

MUMBAI: As a first move towards making India the first country to adopt accounting standards on carbon emissions, the board of ICAI (The Institute of Chartered Accountants of India) has constituted a group which will come up with the draft guidelines before March 31, 2008.

The group, set up on December 11, will be headed by ICAI accounting standards board chairman, Amarjit Chopra. When contacted, Chopra said the group will look into development of accounting and disclosure practices on emissions trading. The group will study the full scope and relevance of the carbon market from India’s point of view.

ICAI president Sunil Talati said, the group will seek clarity on how corporates need to treat the income earned from carbon credits. “There is a view that carbon credits should be recognised for the purpose of accounting after they have been traded. The group is likely to seek views of corporates like SRF and Coal India.” 

Source: TOI 

NEW DELHI: The Supreme Court said on Tuesday professionals cannot claim depreciation under Section 32 of the Income Tax Act. The Section is applicable to an assessee carrying on business and not to a professional, the apex court said, dismissing an appeal of a chartered accountants firm which had sought deduction under this provision.

The appellant, GK Choksi & Company, an Ahmedabad-based chartered accountants firm, had claimed depreciation for the assessment year 1984-85. During the year, the appellant constructed a residential building for its low-paid employees and claimed initial depreciation of 40% under Section 32(1)(iv) of the Act, amounting to Rs 43,505, on the actual cost of the building that stood at Rs 1,08,757.

(more…)

The Government of India has notified December 1, 2007 as the appointed date on which the Government Securities Act, 2006 will come into force. Government Securities Regulations, 2007 will also come into effect from the same date, i.e., December 1, 2007.

It may be recalled that with a view to consolidating and amending the law relating to Government securities and its management by the Reserve Bank of India, the Parliament had enacted the Government Securities Act, 2006 (the Act). The Act received the assent of President of India on August 30, 2006 and was published in the Gazette of India, Extraordinary, Part II – Section I on August 31, 2006 for general information.

(more…)