Finance Guru, Vishal Thakkar, in this video, explains income computation & disclosure standards in an amazingly manner, So, grab the most out of it by watching it.
Ladies and gentlemen boys and girls welcome back to finance tube your friend and finance guru vishal thakur is back again with one of the most comprehensive freshly-baked hot topic on your table called income computation and disclosure standards yes ladies and gentlemen the institute of chartered accountants of india the body of ifrs in uk were not sufficient to
Issue accounting standards now our own homegrown income tax department has joined the bandwagon and congratulations they have issued us ten new accounting standards hey what are you talking about ten your accounting standards we already have 41 to comply with technically yes there are 10 new accounting standards and surprisingly these 10 new accounting standards
Are issued not by the accounts department of the government but the tax department can you imagine the tax guys have left packs behind and now they are moving into accounting and all they are saying is that hey if you do your accounting properly we can do our tax properly so in effect what is happening is that while we are supposed to follow india soar ifrs or
Whatever the case may be when we are complying with let’s say companies act or any other regulation which forces us to report our financial statements but now the income tax department is telling us that we need to follow tax accounting standards when we filed computation of income or our tax returns so what does it mean it means that you once you finish your
Accounting auditing once your auditor certifies your books of accounts you are done with one set of regulations but the moment you go on to filing your tax returns you will have to do the accounting of all your financial directions again in the format prescribed by the 10 key icds issued by income tax department that’s bad news worse news worse news i don’t know
But let me give you silver lining to this grey cow the silver lining of this grey or black cloud ladies and gentlemen is that these ten standards are very simple these ten standards are almost 100% similar to the standards which we are used to follow since the year 2000 which are now popularly known as previous indian gaap or indian accounting standards which were
Issued by icai back then so this is the first step of income tax department to streamline their computation of incomes from a rule based system to a principle based system and that they have come up with ten new accounting standards let’s not take this as a bad news but let’s take it as a positive step positive first step by indian government to rationalize the tax
Provisions in line with accounting provisions we are hoping for more positive changes coming our way for now please remember icds which stands for income computation and disclosure standards are mandatory from this financial year and they are very easy to learn there are only ten of them and most accountants are already aware of what these standards are so all it
Takes is one plain reading of the bare standards for you to upgrade to icds not very in-depth training is required however for more details on icbs india’s frs and many such topics stay tuned to our channel and if you have still not subscribed our channel subscribe now financed you accounting rate of return yes this is one of the methods of evaluating projects
Now what is target rate target rate or cutoff rate could be your cost of capital or could be a desired minimum rate which the management would like to achieve
Transcribed from video
Income Computation & Disclosure Standards | Vishal Thakkar By Finance Tube