FRRB Finds Major Non-Compliances in PPE, Investment Property & Intangibles.
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 6 May, 2023
Latest from Taxmann
The Financial Reporting Review Board (FRRB) of ICAI conducts a review of general purpose financial statements of various enterprises for compliance with generally accepted accounting principles (GAAP), compliance with the reporting obligations of the auditor and compliance with disclosure requirements prescribed by regulatory bodies, statutes and rules and regulations relevant to the enterprise. FRRB was constituted as a proactive mechanism to improve financial reporting practices. This story will take a closer look at some of the key non-compliances and errors observed by the FRRB in relation to Ind AS 16, Property, Plant and Equipment, Ind AS 41, Investment Property & Ind AS 38, Intangible Assets. It will act as a reference point to check compliance with the applicable reporting framework while finalising the annual financial statements of various entities.
I. In-appropriate Reporting
Under a note to the financial statements on Non-Current Assets (Net), the closing balance of the previous year and the opening balance of the current year were different.
II. Relevant Provisions
An entity shall retain the presentation and classification of items in the financial statements from one period to the next unless: (a) It is apparent, following a significant change in the nature of the entity‘s operations or a review of its financial statements, that another presentation or classification would be more appropriate having regard to the criteria for the selection and application of accounting policies in Ind AS 8; or (b) An Ind AS requires a change in presentation
III. FRRB Observation
The closing balance of non-current assets of the previous year was disclosed at Rs. XX and the current year‘s opening balance of non-current assets was stated at Rs. YY. The closing balance of the previous year and the opening balance of the current year of the same item cannot be different.
Click Here To Read The Full Story
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
