Errors in disclosure in “other notes forming part of Financial Statements – Financial Risk Management
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 27 June, 2022
Latest from Taxmann
National Financial Reporting Authority (NFRA) raised a few observations vide Report No.NF-20011/47/2021, Financial Reporting Quality Review Report (FRQRR contains instances of non-compliances or errors in Ind AS financial statements.
In this story, we would look into the NFRA observations relating to disclosure in “other notes forming part of Financial Statements- Financial Risk Management”.
1. NFRA Observed that It was not clear from the presentation and disclosures in the financial statements as to which line item of Balance Sheet the financial assets (unrealised gains) or financial liabilities (unrealised losses) relating to these outstanding Fx Forward Contracts, which were Derivative Financial Instruments within the scope of Ind AS 109, were presented. The accounting policy of the sample Company for Fx Forward Contracts was erroneous and it was in non-compliance with the classification and measurement requirements of Ind AS 109.
2. It was also observed that the assumption by the sample company, related to trade receivables supported by Letters of Credit and Bank Guarantees as having negligible credit risk was not justifiable.Also, the same was not in accordance with letter and spirit of principles and concepts of ECL approach for impairment loss recognition and measurement under Ind AS 109, Financial instruments.
To Read The Full Story Click Here
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
