Lecture Insights on Advanced Accounting Standards

good evening good evening good evening guys let's start today's session for advanced accounting so first I will introduce myself I don't think now you are not knowing my name I am CA sankets and I'm going to teach you Advanced accounting so let's start before starting Advance accounting beta in last session we have finished with uh why there is need of accounting standards what are accounting standards in India and outside India how IFRS and is together you prepare set of global standards okay so IFRS but India is not going to adopt as it is so this is what is called as converge accounting standard adoption means as it uh conversion and adoption adoption means as it is and conversion means in this we are not adopting as it is so it is known as conversions okay so before starting initiation here in after first first Target number one daily Accounting Standards okay daily basis not we will recall all accounting standard names so number one disclosure of accounting policy number two inventory valuation number three cash flow statement number four contingencies and events occurring after balance sheet date fine number net profit or loss for the period prepared items and changes in accounting policy six number no seven number Construction contract eight number no nine number Revenue recognition thus number property plant and Equipment 11 effects of changes in foreign exchange rate 12 accounting for government grant thirteen accounting for investment 14 amalgamation 15 employee benefits 16 borrowing cost 17 segment reporting 18 related party disclosures 19 leases 20 earning per share how many Accounting Standards now you can DJ foreign assets I hope over the period you will recall all these names I want maximum attendance in the winning session yes sessions okay and I don't think you have any class after six o'clock okay so everyone though you have joined any private classes or any classes but you can attend my session anywhere anyhow or you can at least listen to my sessions please I won't prefer recorded lectures because you cannot interact in that or dusra important Point recorded lectures so it will help you out for your development of interest in this subject okay so important okay yes yes very good very good uh 10 Accounting Standards at least you read daily four or five Accounting Standards okay try to recall names of at least four or five accounting standards hello yes in last session in last session beta whatever we have finished we started with the chapter number one introduction okay and chapter name is Introduction to accounting standards introduction to accounting standards what we recall 100 Pages book I told you to write it in the 100 Pages book okay 100 pages yes I will show you the theory by student chapter one what are generally accepted accounting policies common set of accepted accounting principles at International level and at Indian level you can see your IFRS and accounting standards accounting standards are written policy documents issued by government and ICI corporate entities consultation accounting standard deals with rmpd analysis recognition measurement presentation and disclosure after that benefits of accounting standards we have seen standardization of alternative accounting treatment requirement for additional disclosures comparability you already uh written all these how many of you have written in the 100 Pages please be very systematic very punctual okay so AKA your target to clear your exam in May 24 anyhow and you will clear your exam only if there is a consistency if you break your consistency you are not going to pass your exams remember I told this story to all my students when beta there was a death of my grandma still after one day I attended my classes I started my journey and we were very dedicated for our study and that's why we are Chartered Accountants okay so please write it in 100 Pages book yes maintain it carefully 400 Pages book for your illustration part okay might be my strategy might be different from other faculties of POS where you maintain the same strategy okay yes very good very good sir I wrote I wrote I wrote yes but a very good weather very good very good shalom first day pay there were YouTube pay 400 plus students now see only on second day see the consistency now almost one for students they are enjoying their lives now they are not attending they will think yeah I will attending recorded one I will see lecture afterwards and that afterwards never going to come remember like revisions you already attended some classes like revisions study material I am going to take in this patch don't worry Institute has allotted enough number of sessions this time okay foreign ification of area constitution of the study group preparation of draft and its circulation ascertainment of use of different bodies on draft finalization of exposure draft comments installed on exposure drop then modification and issue Accounting Standards the need of conversions yes you can see need of conversion point each country has its own set of rules of accounts for accounting and financial reporting so to raise capital from the international market you can see how she underlined all important points even in the hundred Pages book translation and restatement compare financial statements then multiplicity of Eis there will be confusion then IFRS IFRS is issued by ISC IAC and C here she has written by Red pen is by ISC and IFR is by ISP okay an iPhone is global standards as IFR is purely then as it is and convergence means partly change in the partially changes in the IFRS benefits of convergence cross border flow then Global listing comparability enhance accountability and greater transparency foreign this is the last part of this topic index Journey carobs and carvings I am going to explain it today this is your yes five pages are completed we are starting from sixth page so she has completed till now in only five pages first chapter fully in five pages yes however how many of you have studied it from study material yes beta have you gone through your study material s foreign you can see what efforts I have put for this chapter very good better are you finding study materials simple or difficult study materials okay in this so what is index steps for notification formulation by accounting standard board yes who is a chairman for this accounting standard board yes so tell me the name of that person is okay after attending the class it's very simple yes beta okay for consultation consultation foreign sir and sent to central government for notification cello very good so accounting standard board member formula then consultation and then send to central government for notification okay benefits are very good benefits are globalization and liberalization you can see here globalization and liberalization in desk of either so we are adopting it at Global level and liberalization is possible transparency okay it's possible only due to index next one comparability is also possible transparency is possible comparability this is former question okay okay so you can read your study material and you can take notes for explanation part okay but at least you should remember all these four points you will get four marks enhanced disclosure requirements enhance disclosure requirements okay 100 pages okay you can take a screenshot I will give you a screenshot foreign you can write one by one you can take a screenshot Concept Seven now I will read your queries after 10-15 minutes now I am going to explain you what is carbox and carvings and I will take your queries after 15 minutes so in this over okay and benefits and index names are similar to IFRS index number one is IIs 1 and index car number one zero one is ifrs1 so here I have given these notes okay so screenshots benefits then what we are going to see then beta list of India is better no need to remember this list because this is only for your expression you will see a final beta yeah don't worry we have to buy out this list in the ca final level but at inter level beta there is no need to recall this list okay what is carve outs and carvings so can you give us this screenshot at the end of the class okay beta no problem okay see now what is carabouts and carbons carve outs and carvings is nothing but remember this is a departure from the uh IFRS so what is there in IFRS but we are not falling as it is and whatever the departure departure conversions recall karna so convergence and that difference deviation is called as carve outs okay why there is a difference because of change in the name any accounting policy you removed and there is difference in the economic environment change in terminology example it's a balance sheet in IFRS we called it as comprehensive income but in index it is p Andrew statement of financial position we call it as balance sheet so this is change in terminology removal of options means there is IFRS method this product in index we do not have this provision so whether this is not a deviation so we cannot call it as carve outs okay this is not results in Caravans remember is why because there is a deviation no it is removal so removal means no car mode deviation is called as carbon okay so if you are not adopting any policy which is given in the IFRS okay next and difference in economic environment so there may be difference in the principles and if there is a difference in the principles it is called as curve outs Okay so and what is carbines beta carvings means additional guidance additional guidance foreign there is no merger method but in index there is merger method okay so merger method is next one now we are going to see yes now very important road map of implementation of index sir roadmap s here carvings means additional guidance means additional guidance okay roadmap means how in this are adopted by companies in India what is the roadmap means what see when you start uh you know constructing roads highways so in that way it's not possible you are starting directly highways so six Lanes first you uh constructed four lanes then six Lanes then eight Lanes okay straight away is all different then uh National highways are different so roadmap so roadmap is also there for big companies so you are not going to adopt index immediately so in this when they were applicable yes better for companies other than Banks nbfcs and insurance companies phase one when this started see these slides okay I have taken a lot of efforts on this slides okay so phase one voluntary basis if you want to start voluntarily to apply in this yes Institute is not saying you okay no don't apply okay if you want to apply it voluntarily yes yes I want to follow to 2015 May 2015 may we started to adopt voluntarily and mandatorily okay with comparatives comparatives means what comparison of last year balance sheet okay last year P and L so that is called as comparatives current year and last year current year and last year comparatives okay it is called as comparatives last year and current years and mandatory mandatory is applicable from 1st April 2016. to whom it is mandatory applicable but all companies know sir 2016 May C listed company having net worth greater than 500 crores siveda those students who want it in Hindi yes so I will take you at the end in Hindi okay but I will explain you it in Hindi at the end first I will explain all these Concepts in English listed companies having net worth if greater than C Net worth means what equity share Capital plus resource and surplus we are not going to calculate it see remember the word net worth what is network network means capital what you contributed and what you earned resource and surplus is also owner's contribution okay so this is Network some point zero to deduct beta okay then unlisted companies having net worth greater than 500 crores so listed Matlab which are listed with sebi Stock Exchange okay unlisted which are not listed on Stock Exchange sir they are companies but they are not listed on Stock Exchange so buying and selling of those shares is very difficult okay and holding and subsidiary of the above companies okay so law of Faculty will tell you what is listed company unlisted company so don't worry faculty and phase two now phase two is applicable from 2070. listed companies which are not covered in the phase one every company means every company every Lister company whose Shares are listed on Stock Exchange has to follow mandatory okay if greater than 500 crores first balanced it on 2016 31st March 2017 is the first balance sheet 31st March 2017 is a first balance sheet okay and those companies who are listed but their turnover is less than 500 crores so they will adopt first year in 2017. okay so IDC ITC 2017 unlisted companies here limit is 250 crores 250 crores and holding and subsidiary okay so phase one and phase two okay so is it easy in this is audio is not clear we shall don't worry about a merger method I'm going to explain it in the amalgamation chapter so you have separate chapter amalgamation in which I am going to explain you so some terminologies are very difficult so actually both difficult when we started with the we will start with the amalgamation chapter so don't worry about us okay [Music] foreign so foreign and difference in economic environment economic environment foreign so don't worry yes now in English so till now it's very simple everyone of you competitors and last year figures okay comparatives yes I will show you either helicopter 2016 and 2015. this is called as comparatives okay last year on current year information next so phase one NBA nbfc for them it is applicable from 2018 with comparatives in BFC greater than 500 crores listed or unlisted and holding or subsidiary and listed less than 500 crores 2019 so similarly only two years postponed for nbfc okay in BFC they postponed two years an unlisted company less than 250 crores sorry more than 250 crores and less than 500 crores greater than two people sorry 250 crores greater and 500 crore or less will be applicable from 2019. nbfc voluntary adoption of index is not allowed for nbfcs unlisted ndfcs having net worth less than 250 crores shall not apply in this okay so those whose net worth is less than 250 crore for them it is not applicable schedule commercial Banks excluding rural Banks initially required to apply index from 1st April 2018. okay an insurance company is not yet finalized so insurance companies okay so we have finished with the chapter so we are finished with this chapter yes resource Surplus please watch previous session what is exactly 100 Pages bookend 200 Pages book test your knowledge please please please don't pray for answer how you have to write it in the comment section let's see who is answering fast non-banking financial statements non-banking clearly a finance companies non-banking finance companies for them it is applicable okay from 2018 no need to recall roadmap okay roadmap now index is applicable for Network having 500 corrosive more see accounting standards for non-corporate entities in India are you should buy yes tell me you have to write Answer 1 and option one and option who is answering very fast yes ICI who answered it is [Music] c a i okay so first answer is C roadmap is second one foreign accounting standards why there is a need harmonize accounting policies and eliminate non-comparability improve the reliability both and B what is the answer to second one yes very good beta subiksha very good better subiksha very good please write to an answer three it is essential to standardize the accounting principle and policy in order to ensure transparency consistency or both three and answer three and answer three and answer there is no D option in my case better Divya I know you are following Institute material but in Institute material options are different in my material options are different so don't refer now in sweet material okay so three answer is three answer is go answer very fast three cancer is C who answered very fast hardik hardik wrote very good beta fourth one which committee is responsible for approval of accounting standards and their modification for the purpose of two applicability to companies companies MCA or central government advisory committee fourth answer fourth answer yes fourth cancer who is answering very fast correct answer is which committee MCA Global standards facilitate foreign I will tell you this answer 5 is both A and B cross border and comparability is very simple additional guidance given in index over and above IFR is called as curves carvings and clarification yes additional guidance additional guidance additional guidance yes very good p i a s b stands for iasb stands for IA is this stands for International Accounting standard Bureau ISB International advisory standard board or International Accounting standard board tell me answer foreign stands for IFRS stands for International financial reporting system in international financial reporting standard International financial reporting take the finance reporting standard financial reporting standard IFRS yes who is going to answer it fast C correct answer is C phase one of index applicable to all instead companies companies with turnover greater than 500 crores or company with net worth finder crores or more it consists ninth one correct answer is C companies with net worth more than 500 crores so better thank you here we have finished with chapter one successfully is it difficult or easy foreign theory is very easy now and we are going to start with chapter number two minutes chapter number two yes screenshot benefits very easy easy yes benefits then cardboards and carvings concept date concept 9 roadmap nbfc okay so here we have finished with the chapter five minutes to recall there round no breakup break will be October five minutes for recalling this chapter you go through your study material in study material you have almost how many pages are there in study material yes almost beta 29 pages and we have finished with this in seven to eight pages you can see here you go through this study material I am giving you five minutes and I hope you understood this chapter very well and no one will now left this chapter in option options number one okay so chapter number one how Accounting Standards what is in this what is IFR is New Concepts are there and very you know um enjoying Concepts so 100 you enjoyed in this session you understood many new Concepts what is index what is this what is IFRS what is ISB what is ISC so all these things you understood and now and how index will be applicable is accounting standards are different index are different so what is conversion what is adoption yeah not now five minutes but you know okay welcome back sir so we are going to start with new chapter yes yes lavanya okay we're done yes Divya Kumari I can't take all names so be students and we are going to start with a new chapter now I hope second chapter framework for preparation and presentation of financial statements a new chapter what is framework see the name once again framework for preparation and presentation of financial statements framework financial statements you are going to prepare so first thing what is financial statements balance sheet profit and loss cash flow statements statement of changes in equity notes to accounts framework is now what is framework first thing now see the definition purpose of framework status components fundamental assumptions and all these so first question to you purpose of framework to assist assistance to help Enterprise in preparation of financial statements in compliance with accounting standards so your financial statement it should be prepared using Accounting Standards complying Accounting Standards accounting standards second one accounting standard board in the task of development and review of accounting standard accounting standard board they will develop accounting standards okay next is accounting standard board in promoting harmonization of regulations and accounting standards regulations means law an accounting standard there must be harmonization harmonization means same okay so it is called as harmonization okay Auditors in forming an opinion as to whether financial statements conform to the accounting standards opinion if they know framework and those interested in the work of accounting standard board so all of them using this Frameworks now what is framework sir you told us to whom it is helpful it is helpful for Enterprise it is helpful for accounting standard board it is helpful for lawmaker it is helpful for auditor it is helpful for interpreter in users also but what is framework so for general purpose this Frameworks are for general purpose and spatial purpose for tax purpose okay so Frameworks are used for general purpose and spatial purpose components of financial statements already studied better balance sheet pnl cash flow statement notes to accounts then you have statement of changes in equity so first word what is balance sheet balance sheet is so see better this is a technical definition see this chapter needs technical definitions okay Rancho valley definition okay your definition is a technical definition general definition so now we have to by heart no no need of by hurting these definitions only you should know the definition what is balance sheet balance sheet in which there are assets and what are assets asset shows economic resources controlled by the Enterprise see the difference controlled not ownership okay so assets As Cities demanding only control sir if I'm not a legal owner still I will record the asset yes substance over form sir you bought one car after becoming CA first car in your life now that car you have taken it on loan so is legal owner that bank and who is using that asset you so who will record ownership is Banker no you have to record car in your books why because you are controlling that asset banking Finance so asset control is important not legal owner value of Economics resources economy money controlled by the Enterprise provides the information about liquidity and solvency this balance sheet gives us the information how much cash you have and whether your liabilities are less than your assets then you are in solvency but your liabilities are greater than your assets in solids okay useful in predicting the ability of the Enterprise to meet the financial statements commitments Financial commitments ability foreign sheet one can predict whether we should invest in this company or not and that company also predicts whether they should expand or they should stop so balancer is very important profit and loss account what profit and loss account talks about it gives you results performance for the accounting period pnl is always for first April to 31st March in India sir you might have different period but but in India normally we follow this accounting period it shows the performance of the Enterprise remember performance understood second one is a p-handed third one is a cash flow statement sir what is cash flow statement shows C a cruel concept and cash concepts are different sir I will consider sales credit and cash both credit Matlab and castles I sold Goods but I will get payment after three years or after six months so that is a credit sales pnl consider cash Sales Plus Credit sales but cash considers cash flow statement considers only cash receipts only cash receipts so cash flow is nothing but it's a cash book receipt and payment but activity wise activities are divided in three parts or if o if o for operating I for investing f for financing or if okay o if operating investing financing so this activities we have a separate chapter cash flow statement we studied balance sheet we studied P and L but better we haven't studied yet cash flow and in syllabus you have cash flow statement I am going to explain it don't worry it's very simple exam simple harmonization meaning harmonization okay see I am telling you one fact these chapters are very boring chapters if you study by own from study material normally I have seen such classes in which they keep these chapters in option they started with the first chapter they won't take it in the sequence for example buy back very nice presentation is not at all easy an inter student knows study material they will tell you through your study material but uh study material in your first exam giving you guarantee each and every question will be from study material each and every and your syllabus is so vast so Institute expects small small points from you or better I have made it very simple because I am associated with Institute from last five years now almost four or five years so we are teaching you exactly what I see I want from you or yeah Theory don't waste your mom and dad's money don't waste your time do something which is a different and if you have commitment to do CA out of 100 only 20 students are going to become CA 20 result in first exam fifteen percent ten percent in first exam and think that why I should not be in that 10 um foreign last session on 10 30. meanwhile I type my notes I go to my gmalls 30 minutes 40 minutes one hour I'm doing exercise but you should design your schedule you should focus on your schedule sir if you think key theory is boring it means you are not going to pass your Advance accounting paper because now Advanced accounting is totally theoretical paper not totally but 70 theoretical all accounting standards and I will give my best hundred percent to explain you the concept only one point I want from you foreign that you are not understanding any point you will definitely understand each and every Point explained by me and if you read study material optimization you will find it very simple this is my challenge okay so do only one thing be serious in the class don't think I'm getting bored yes back up the mind okay and I will try my best to keep you alive okay this is our best yes okay so let's move shorts cash in close and outflows ah one of the student he commented because of BOS stations my English is getting improved definitely better when I started my classes with POS at that time I remember I always whenever I uh I have taken my lectures I always he has better taken it in Hindi but now I'm very comfortable in explaining English lectures sometimes I get stuck but don't worry yes this will happen with you I am also from Marathi medium vernacular medium your English will definitely get improved over the period and try to speak everything in English Okay so you will boost your confidence for law subject audit subject you will never find problems in those subject okay try to understand try to listen All sessions of POS and POS faculties I am telling you they are using very simple English yes I have seen your audit sessions also even your tax sessions literally all faculties they are speaking very slowly English language okay actually next so we were on cash flow statement now we are moving to next concept notes to accounts but I will give you break up to this note stop accounts is a finally different Financial items items of financial statement they are presenting in supplementary information additional disclosure means what policy you are following so you have to tell to your uh reader that we are following cost or nrb whichever is lower so you should write this sentence somewhere and where you will present it in notes to accounts in Balance you won't give to this sentence is lower so you want to communicate with your reader and how to communicate with your reader in the simple way it is through notes to accounts notes to accounts got the concept yes saying I took your classes at Foundation level and I scored 93 marks oh my God Rita congratulations beta please contact our team okay we will definitely I will take your interview on my personal Channel okay how you scores 93 marks it will be helpful to other students also okay definitely yes yes much better congratulations yes what are objectives of Accounting Standards what are objectives and users of the standards yes but I will give you a break watch this minute only to provide information about financial position yes already understood balance sheet performance and cash flow statement performance is P and L and cash flow statement for users investors sir we already studied at Foundation level first chapter investor analysis performance and profitability and financial position but an investor means you know we visit moneycontrol.com okay and uh they will tell us all ratios so investor and how they calculate ratios by using financial statements of that entity their team better calculates all these ratios employees knowledge of stability and community and growth so employees believe in that uh organization only if that organization is in profit see okay lenders sir Banks also call for your financial statements so they are also users because they don't want to take risk and that risk how much is the uh credit potential of that borrower that they study it from their financial statements very simple supplier but obvious credit worthiness he will check Market me if I ask for some money to give me credit here I am also running One Restaurant okay so due to my creditability they know supplier also don't ask money for next one month okay my Dairy person he never asked for paneer but he never asked because he has Trust on my credit worthiness okay he knows keep that man is gentleman okay so supplier credit worthiness customers customers also sees your financial statement stability and profitability government they want to decide some taxation so for evaluation performance for social objectives so government are also users of your financial statement yes okay next one yes fundamental assumptions gas going concern accrual and consistency so spilling of gas is different GSC going concerned accrual and consistency so going concern your business will continue for the next few years and that's why better we are not following revaluation model we can follow historical cost concept so going concerned let's understand what is going concerned assumption that Enterprise will continue its operations in the foreseeable future and no need to correct tell the operation business and that's why we are following historical cost concept due to this assumption options you can go with revaluation model but it is not mandatory if you want to go by evaluation model you go with revaluation model if you want to go by historical cost model you go with historical cost model it's your decision your management decision okay it's not Chartered Accountants decision it is company's decision whether they want to go by revaluation model revaluation model will make your balance sheet strong balance revaluation normal balance sheet historical Services okay accrual what is accrual accrual means I have given salary of 11 months I paid a salary of 11 months and March salary is still not paid I will record my expenditure for 12 months okay though I paid only for 11 months this is the actual concept cash concept will write only 11 months only 11 months because we are following a cruel Concepts accrual concept see the beauty of accounting standard assumptions we are assuming that every organization in India they have to follow accrual concept no need to write okay we are following accrual concept yes every company has to follow as per accounting standard one accrual concept they will record expenditure for 12 months and not of only 11 months they will pass entry outstanding entry okay I will always record it by 12 months yes [Music] according to S1 revenue and costs are recognized as they earn or incur and not as much money is received or paid it is called as accrual historical says foreign once you adopted the policy once you adopted the policy you have to consistently better which is normally is lacking in you but accounts in accountancy you have to make sure that your policies for example during the year I followed first in first out policy of inventory second year also first in first out I cannot ship to weighted average I can change if it is required by law or required by Accounting Standards or for better presentation all by competitors they are following weighted average then why should I follow okay first in first out then but I will change the method okay so consistency make sure that every year you are following same policy year after year and that can be changed by Statute yeah for better presentation yes sir understood all these Concepts till now qualitative characteristics we are going to see after break okay so kidney Pages away you can check here framework framework we have finished till uh consistency we have finished till 10 pages and after break I am going to start with 11 page take a proper break of 15 minutes 720 we are going to meet at 7 35 take your dinner because both late dinner minimum one and a half hours you go for bed or morning try to wake up at six o'clock yeah at least five o'clock okay my first session I start at 5 30 so please take a break of 15 minutes have your dinner and let's meet after 15 minutes thank you foreign let's start welcome back once again students till now what we have completed to assist framework applies to balance sheet panel cash flow statement and notes to accounts objective and users going concern accrual consistency and now we are moving to concept number six that is the qualitative characteristics but qualitative characteristics now I am going to take some numericals I know now you are getting more support Theory okay so now let's start with some numericals you will enjoy these numericals okay cello enjoy yes 100 percent I say classes will show you the path and then once you got the concept Clarity you can do your own hard work okay so don't worry okay how many of you are my Foundation students those who attended already my classes of foundation they passed in accounts and can you give me your score those who have cleared with sankets me your comments are definitely visible questions start with the equation number one illustration 59 chandan 60 are very good weather yes on mole 65 I know anmol Rahul Patel 60 then ritika Gupta yes Monday 59 come to question number one illustration one page number 2.7 69 marks Panda 50 five yes beta now you have to solve this in the 400 Pages book 400 pages Sara 62 Prashant 60 9 64. yes see this is your index 400 pages today you solve it on the rough pages and make sure after the class you will write it in 400 Pages book s 73 is 60. feeling very proud don't worry you study from my notes you watch my sessions I have given some Guru Mantra series also I'm going to start it very shortly because I was not in Pune the guru Mantra series and uh if not permitted better then please you watch my channel Guru Mantra series okay so you'll get it and I will try the guru Mantra series as a revision I will take it on YouTube it's a free of cost so now in 400 Pages book what you have to do 400 Pages book is your solving illustration solving book question number page number page number of your study material remarks column fourth column and category so this is your summary book of all illustrations it's a good technique to recall your questions okay now first illustration is going concern concept if followed and not followed again so come to question number one first illustration of your life yes see balance sheet of a Trader on 31st March 2001 is given below see this is a balance sheet Capital Pendle ten percent loan trade payable property plant and equipment then you have stock trade receivable day for expenditure and bank balance so you have all these things yes how many pages for index there one and half page yes whether you have to prepare this column around huh simple balance sheet this is new account for you therefore expenditure therefore expenditure is actually not allowed as per accounting standards fictitious asset so do one thing instead of deferred you write development expenditure over there expenditure development expenditure the remaining life I will be very slow while solving first illustration the remaining life of the property plant and equipment is five years now here you can write please please please have study material as early as possible otherwise take printouts but you must need study material in my session because I take each and every question of study material okay so historical cost cost concept and historical cost and nrb better if your business is not going to continue in the future business what is nrb NRV means net net realizable value understood the concept yes so five years is property plant and equipment so life is five years 65 000 divided by five years means you will deduct 13 000 depreciation so depreciation you can write over here sixty five thousand divided by five thirteen thousand so historical cost fifty two thousand and net realizable value sixty thousand so cost K substance like a fifty two thousand and NRV will give you sixty thousand answers okay so answers are very easy your purchase and sales net realizable value beta when you uh will sell your asset in the market for example now this flat if I sell it in the market I will get 1.6 crores for 1.6 net realizable value 10 lakhs so this is how you will calculate your cost okay so what you have to write it in 400 pages Trader purchase and sales trading and pay handle account okay you will prepare trading and pay handle account and in both 4X is on the debit side purchases and credit side effects sales credit side base sales Credit Credit sales next cost and net realizable value of stock cost and net realizable value of stock is 32 000 and 40 to 40 000. 32 000 and 40 000. account credit side and asset side write down trading account credit side and asset side expenses including interest on 10 percent loan is three thousand five hundred amounted to fourteen nine hundred we handle debit payandl debit okay therefore expenditure Mark INB foreign you will show this asset 0 and as per accounts continuation you will debit 2500 in P and L imp I will show you the answer don't worry 2500 or asset side in case of NRP trade receivables 25 000 of which 2000 is doubtful so 25 000 23 000. because 2000 is doubtful pre-andle debit debit and collection of 4000 depends on successful reinstallation of certain products supplied to customer so whether we are not going to continue this business or four thousand minus So my answer will be nineteen thousand and either in case of NRP nrb cost me zero cosme only so 2000 And nrvk subscribe two thousand plus four thousand six thousand trade payable twelve thousand trade payable 12 000 but if you settle it today you will get five percent discount five percent discount credit it's 600 and as per NRV you have to pay only 11 400. cash balance 37 100. 37 100. and early repayment of the loan 2500 if you do not pay if you continue it will be 35 000 if you don't continue so 35 000 minus 2500 your loan will be 32 500 so 2500 in P handle 2500 you are required to prepare P and L and balance sheet using going concern and not using going concern five marks question write down the answer write down answer yes write down beta we handle account or the year ended 31st March 2002 particulars write down columns particulars case one case two case one is going concern concept is assume Matlab cost no going concern concept case quiz and RB no going concern and going concern so you got the difference beta case one we will follow cost approach case 2 we will follow nrb approach particulars case one case two write down the answer lines 10 lines draw better foreign slightly you will find difficult but once you got the logic it's very simple don't leave this problem in option a problem balance sheet as on 31st March 2002 liabilities case one is two assets is one S2 foreign so let's start yes let's start first one line by line two opening stock to opening stock first item of p and l to opening stock how much thirty thousand in both cases two purchases Buy sales to expenses then you have to depreciation and here by closing stock okay so this is a pro forma we will write first proforma assets May capital p and l after one line ten percent loan and then you have trade payable so how do they solve this question first write the pro forma property plant and equipment stock credit receivable less provision then after two lines development expenditure you can write development expenditure not deferred bank or cash okay okay yes but I will explain it once again don't worry okay over format now line by line remaining life of property plant and equipment okay so depreciation here you can write thirteen thousand how 65 000 divided by four years okay and here 65 minus 60. 5000. 65 minus 60. first adjustment completed second here we'll write property plant and Equipment fifty two thousand and sixty thousand 65 minus 13 and 65 minus 5. so this is property plant and Equipment first adjustment completed purchase sales both my same four legs even in one and even in two sales or like fifty thousand more like fifty thousand over next C NRV 32 000 and 32 000 here and here forty thousand balance sheet me again thirty two thousand forty thousand over expenses fourteen nine hundred this is to confuse us to confuse us okay 14 900 4900 expense is always including interest expenditure great pain prefer expenditure red pen today for expenditure or okay our development expenditure you can write here 10 000 divided by 4. 2500 and here pure 10th house here pure ten thousand here 7500 another zero either zero next predeciable twenty five thousand and two thousand red pen 25 minus 2 3 000. and here 25 minus 2 minus 4 see what is the concept trade receiver twenty five thousand two thousand is doubtful but collection of next 4000 depends on successful reinstallation of certain products supplied to customers we will deduct that 4000 and when we are going to continue so we will reinstall samjha nineteen thousand and here to provision for doubtful dates two thousand and six thousand okay next closing trade payable barahaja okay red pen beta red pen red pen red pay will be twelve thousand and 12 000 minus 12 000 minus five percent eleven four hundred and second effect by discount to creditors discount on creditors buy creditors not two creditors discount by creditors zero six hundred corrective very very important next cash balance 37 100 normal pin and loan penalty red pen to penalty yes 2500 and here 10 percent is 35 000 and you have to pay extra 2.5 2500 penalty will be added so red pen adjustments how many rate adjustments beta therefore expenditure provision for doubtful dates discount to creditors and penalty and same thing you will add it in their liability side also very important okay so yeah now you can calculate net profit imp questionable net profit calculator balancing figure star mark means balancing figure so this is 4 lakh 82 000 this is 4 lakh ninety thousand or like eighty two thousand ninety thousand four eighty two 14.9 minus 13 .5 19600 previous sorry previous panel 25000 25 000 Plus 19600 44 600 year balancing figure 490 minus 30 minus 400 minus 14.9 minus 5 minus 10 minus 6 minus 2.5 21 600 plus 25 000 plus 21 600 46 600 and capital we will keep it as it is capital is sixty thousand Capital sixty thousand side foreign 600 151 600. 150 how much 60 is oh sorry this is 600 I think this is 22. 20 to 200 25 plus 22.2 yes 47 200 yes now 60 plus 47.2 156 100 beta 156 100. yes that is easy question is what you have to do first you will try to pro forma and red pen adjustments here's better this is a difficult one and similar question is there similar question is there in your pyk okay I will show you test your knowledge me this is your homework better so this is your homework same question last question please do it 2.35 page number page number 2.35 question number 10. question number 10. you can do by your own question number 10. okay question number 10. okay one more question beta we are going to take Zips last question of the day AK question I know now it's very difficult question okay please please please where to have finish our syllabus in timer yes example three do you know there is one equation suppose at the beginning of the accounting period aggregate value of assets liabilities and Equity are five two and three do you know the equation asset is equal to liability plus capital liability plus capital so write down so write down beta example three write down hey write down example three liko example three write down serial number transaction then you have asset reliability and then you have capital then you have capital so I set liability and Equity capital so serial number one opening acid is 5 so it's equal to SLX opening acid is 5 as that is 5 what is your liability beta liability liability to and 3 lakhs two and capital three Roman 2. introduce capital introduce Capital are we capitalize cash means asset and Capital increase twenty thousand now rupees in lakhs so twenty thousand means what better it's 0.2 it's 0.2 so write down Capital introduced point two acid increase Capital increase 5.2 it will be 2 and capital B 3.2 for this concept row moment 3 Roman 3 earned income from investment so cash account cash account 0.08 . again foreign okay so remember so your cash increased and your interest increase eight thousand means point zero eight point zero eight and interest means capital so 0.087 interesting 5.28 minus 2 3.28 Roman 4 a liability of 31 000 was finally said total for payment of 30 000. liability may say liability reduced by 0.31 asset reduced by 0.30 why because you settled payment asset means cash and it's your gain because why it is gain better because you are liability you settle at Thirty One Thousand thirty thousand means you are in profit so profit one thousand one thousand means point zero one point zero one Capital increase by point zero one see the equation liability settled liability settled how much 5.28 minus 0.3 so this is four point 95 4.98 sorry 98 2 minus 0.31 liability 2 minus 0.31 so 1.69 and it's your gain or 0.01 .01 beta C whether your equation is telling 4.938 minus 1.69 yes our equation tallies now illustration 5 example five continuation example four sorry example four see this is called as modern approach asset minus liability is equal to Capital wages paid wages paid means cash capital okay so equation approach wages paid how much twenty thousand and three point two nine minus 0.2 so four point zero to two thousand is sorry zero two 1.69 as it is and 3.29 3.27 6. we just paid what two thousand rent outstanding rent means expenses and rent payable liability increase not paid liability increase so expense Matlab capital decrease 1000 say so rent payable rent PayPal rent payable rent payable your asset won't affect so 4.96 here are 1.69 plus 0.01 it will become 1.70 and your 3.27 minus 0.01 so it is 3.26 7. drawings four thousand drawings drawings means cash decrease 4.96 minus 0.04 3.22 see final equation is telling or not 4.92 minus 1.7 P yes 3.22 so this is your answer example 3 and example four two proper practice beta of both examples you have to Fair it is I know difficulty is yes now I am waiting for your comments better I know yes I will take your queries now whatever queries you have you can ask me now expense take expense increase hoga to Capital decrease you can write this and income increase yoga okay expense decrease over capital foreign so expense and capital are indirectly related and income and capital are directly related hanji questions say okay okay I hope you understood it question may slowly slowly please try to understand you have to increase your level I will give my hundred percent at the end after this session if you are not getting any point you have to sit on one place you have to do revisions if you don't understand in next station is how many chapters within eight nine months okay or good doubts therefore expenditure therefore expenditure means what yes I will tell you therefore expenditure means what they've heard means divide divide for example if I incurred ten thousand expenditure every year in piano I will transfer 2500. so in asset side in first year is beta so till that point it is showing on the asset side 7500 next year again 2500 asset Side by 5000. next year again 2500 in asset side you left with 2500 next time again 2500 and in assets at zero so now this is not allowed s26 expenditure is not allowed but there is one expenditure which is development expenditure and development expenditure you can date for or you can defer so that's why I change the name from develop uh day for expenditure to development expenditure I incurred 10 000 development expenditure now what is development expenditure I will teach you in accounting standard 26 have patience is foreign yes any other question so Capital means equity capital and Equity are same capital and Equity are same okay beta only till October syllabus lectures are uploaded better schedule top up to October November schedule will get in the month of October don't worry so till October schedule is there next question screenshots from chapter 2 habitat drawing lines is important acha liability increase is a better decrease settlement of liability settlement of liability 31 000 so liability minus Kia but you paid only cash thirty thousand so your profit is one thousand correctness 0.31 cash means asset reduced by 0.3 and profit capital capital means Equity Equity increased by point zero one by point zero one so this is the transaction any other difficulty foreign take a screenshots better 100 Pages book a screenshots I will count five one two three four five cello concept two take a screenshot write in 100 Pages book one two three four five next concept three next objectives next fundamental assumptions next yes qualitative characters six we have not finished then you have to take index index screenshot asset minus liability is equal to equity you can take a screenshot of index you can write it though you are not getting this at least you finish your copy paste com okay I think here you are getting a wrong total um one minute I'll say one minute 156 100. so you can take a screenshot a Japanese and example three and example four example four thank you foreign we'll meet on Friday till that take care bye bye good night before beta before going to bed please please please revise this topic complete your 100 Pages book and 400 pages today itself okay thank you take care bye bye foreign

good evening good evening good evening guys let's start today's session for advanced accounting so first I will introduce myself I don't think now you are not knowing my name I am CA sankets and I'm going to teach you Advanced accounting so let's start before starting Advance accounting beta in last session we have finished with uh why there is need of accounting standards what are accounting standards in India and outside India how IFRS and is together you prepare set of global standards okay so IFRS but India is not going to adopt as it is so this is what is called as converge accounting standard adoption means as it uh conversion and adoption adoption means as it is and conversion means in this we are not adopting as it is so it is known as conversions okay so before starting initiation here in after first first Target number one daily Accounting Standards okay daily basis not we will recall all accounting standard names so number one disclosure of accounting policy number two inventory valuation number three cash flow statement number four contingencies and events occurring after balance sheet date fine number net profit or loss for the period prepared items and changes in accounting policy six number no seven number Construction contract eight number no nine number Revenue recognition thus number property plant and Equipment 11 effects of changes in foreign exchange rate 12 accounting for government grant thirteen accounting for investment 14 amalgamation 15 employee benefits 16 borrowing cost 17 segment reporting 18 related party disclosures 19 leases 20 earning per share how many Accounting Standards now you can DJ foreign assets I hope over the period you will recall all these names I want maximum attendance in the winning session yes sessions okay and I don't think you have any class after six o'clock okay so everyone though you have joined any private classes or any classes but you can attend my session anywhere anyhow or you can at least listen to my sessions please I won't prefer recorded lectures because you cannot interact in that or dusra important Point recorded lectures so it will help you out for your development of interest in this subject okay so important okay yes yes very good very good uh 10 Accounting Standards at least you read daily four or five Accounting Standards okay try to recall names of at least four or five accounting standards hello yes in last session in last session beta whatever we have finished we started with the chapter number one introduction okay and chapter name is Introduction to accounting standards introduction to accounting standards what we recall 100 Pages book I told you to write it in the 100 Pages book okay 100 pages yes I will show you the theory by student chapter one what are generally accepted accounting policies common set of accepted accounting principles at International level and at Indian level you can see your IFRS and accounting standards accounting standards are written policy documents issued by government and ICI corporate entities consultation accounting standard deals with rmpd analysis recognition measurement presentation and disclosure after that benefits of accounting standards we have seen standardization of alternative accounting treatment requirement for additional disclosures comparability you already uh written all these how many of you have written in the 100 Pages please be very systematic very punctual okay so AKA your target to clear your exam in May 24 anyhow and you will clear your exam only if there is a consistency if you break your consistency you are not going to pass your exams remember I told this story to all my students when beta there was a death of my grandma still after one day I attended my classes I started my journey and we were very dedicated for our study and that's why we are Chartered Accountants okay so please write it in 100 Pages book yes maintain it carefully 400 Pages book for your illustration part okay might be my strategy might be different from other faculties of POS where you maintain the same strategy okay yes very good very good sir I wrote I wrote I wrote yes but a very good weather very good very good shalom first day pay there were YouTube pay 400 plus students now see only on second day see the consistency now almost one for students they are enjoying their lives now they are not attending they will think yeah I will attending recorded one I will see lecture afterwards and that afterwards never going to come remember like revisions you already attended some classes like revisions study material I am going to take in this patch don't worry Institute has allotted enough number of sessions this time okay foreign ification of area constitution of the study group preparation of draft and its circulation ascertainment of use of different bodies on draft finalization of exposure draft comments installed on exposure drop then modification and issue Accounting Standards the need of conversions yes you can see need of conversion point each country has its own set of rules of accounts for accounting and financial reporting so to raise capital from the international market you can see how she underlined all important points even in the hundred Pages book translation and restatement compare financial statements then multiplicity of Eis there will be confusion then IFRS IFRS is issued by ISC IAC and C here she has written by Red pen is by ISC and IFR is by ISP okay an iPhone is global standards as IFR is purely then as it is and convergence means partly change in the partially changes in the IFRS benefits of convergence cross border flow then Global listing comparability enhance accountability and greater transparency foreign this is the last part of this topic index Journey carobs and carvings I am going to explain it today this is your yes five pages are completed we are starting from sixth page so she has completed till now in only five pages first chapter fully in five pages yes however how many of you have studied it from study material yes beta have you gone through your study material s foreign you can see what efforts I have put for this chapter very good better are you finding study materials simple or difficult study materials okay in this so what is index steps for notification formulation by accounting standard board yes who is a chairman for this accounting standard board yes so tell me the name of that person is okay after attending the class it's very simple yes beta okay for consultation consultation foreign sir and sent to central government for notification cello very good so accounting standard board member formula then consultation and then send to central government for notification okay benefits are very good benefits are globalization and liberalization you can see here globalization and liberalization in desk of either so we are adopting it at Global level and liberalization is possible transparency okay it's possible only due to index next one comparability is also possible transparency is possible comparability this is former question okay okay so you can read your study material and you can take notes for explanation part okay but at least you should remember all these four points you will get four marks enhanced disclosure requirements enhance disclosure requirements okay 100 pages okay you can take a screenshot I will give you a screenshot foreign you can write one by one you can take a screenshot Concept Seven now I will read your queries after 10-15 minutes now I am going to explain you what is carbox and carvings and I will take your queries after 15 minutes so in this over okay and benefits and index names are similar to IFRS index number one is IIs 1 and index car number one zero one is ifrs1 so here I have given these notes okay so screenshots benefits then what we are going to see then beta list of India is better no need to remember this list because this is only for your expression you will see a final beta yeah don't worry we have to buy out this list in the ca final level but at inter level beta there is no need to recall this list okay what is carve outs and carvings so can you give us this screenshot at the end of the class okay beta no problem okay see now what is carabouts and carbons carve outs and carvings is nothing but remember this is a departure from the uh IFRS so what is there in IFRS but we are not falling as it is and whatever the departure departure conversions recall karna so convergence and that difference deviation is called as carve outs okay why there is a difference because of change in the name any accounting policy you removed and there is difference in the economic environment change in terminology example it's a balance sheet in IFRS we called it as comprehensive income but in index it is p Andrew statement of financial position we call it as balance sheet so this is change in terminology removal of options means there is IFRS method this product in index we do not have this provision so whether this is not a deviation so we cannot call it as carve outs okay this is not results in Caravans remember is why because there is a deviation no it is removal so removal means no car mode deviation is called as carbon okay so if you are not adopting any policy which is given in the IFRS okay next and difference in economic environment so there may be difference in the principles and if there is a difference in the principles it is called as curve outs Okay so and what is carbines beta carvings means additional guidance additional guidance foreign there is no merger method but in index there is merger method okay so merger method is next one now we are going to see yes now very important road map of implementation of index sir roadmap s here carvings means additional guidance means additional guidance okay roadmap means how in this are adopted by companies in India what is the roadmap means what see when you start uh you know constructing roads highways so in that way it's not possible you are starting directly highways so six Lanes first you uh constructed four lanes then six Lanes then eight Lanes okay straight away is all different then uh National highways are different so roadmap so roadmap is also there for big companies so you are not going to adopt index immediately so in this when they were applicable yes better for companies other than Banks nbfcs and insurance companies phase one when this started see these slides okay I have taken a lot of efforts on this slides okay so phase one voluntary basis if you want to start voluntarily to apply in this yes Institute is not saying you okay no don't apply okay if you want to apply it voluntarily yes yes I want to follow to 2015 May 2015 may we started to adopt voluntarily and mandatorily okay with comparatives comparatives means what comparison of last year balance sheet okay last year P and L so that is called as comparatives current year and last year current year and last year comparatives okay it is called as comparatives last year and current years and mandatory mandatory is applicable from 1st April 2016. to whom it is mandatory applicable but all companies know sir 2016 May C listed company having net worth greater than 500 crores siveda those students who want it in Hindi yes so I will take you at the end in Hindi okay but I will explain you it in Hindi at the end first I will explain all these Concepts in English listed companies having net worth if greater than C Net worth means what equity share Capital plus resource and surplus we are not going to calculate it see remember the word net worth what is network network means capital what you contributed and what you earned resource and surplus is also owner's contribution okay so this is Network some point zero to deduct beta okay then unlisted companies having net worth greater than 500 crores so listed Matlab which are listed with sebi Stock Exchange okay unlisted which are not listed on Stock Exchange sir they are companies but they are not listed on Stock Exchange so buying and selling of those shares is very difficult okay and holding and subsidiary of the above companies okay so law of Faculty will tell you what is listed company unlisted company so don't worry faculty and phase two now phase two is applicable from 2070. listed companies which are not covered in the phase one every company means every company every Lister company whose Shares are listed on Stock Exchange has to follow mandatory okay if greater than 500 crores first balanced it on 2016 31st March 2017 is the first balance sheet 31st March 2017 is a first balance sheet okay and those companies who are listed but their turnover is less than 500 crores so they will adopt first year in 2017. okay so IDC ITC 2017 unlisted companies here limit is 250 crores 250 crores and holding and subsidiary okay so phase one and phase two okay so is it easy in this is audio is not clear we shall don't worry about a merger method I'm going to explain it in the amalgamation chapter so you have separate chapter amalgamation in which I am going to explain you so some terminologies are very difficult so actually both difficult when we started with the we will start with the amalgamation chapter so don't worry about us okay [Music] foreign so foreign and difference in economic environment economic environment foreign so don't worry yes now in English so till now it's very simple everyone of you competitors and last year figures okay comparatives yes I will show you either helicopter 2016 and 2015. this is called as comparatives okay last year on current year information next so phase one NBA nbfc for them it is applicable from 2018 with comparatives in BFC greater than 500 crores listed or unlisted and holding or subsidiary and listed less than 500 crores 2019 so similarly only two years postponed for nbfc okay in BFC they postponed two years an unlisted company less than 250 crores sorry more than 250 crores and less than 500 crores greater than two people sorry 250 crores greater and 500 crore or less will be applicable from 2019. nbfc voluntary adoption of index is not allowed for nbfcs unlisted ndfcs having net worth less than 250 crores shall not apply in this okay so those whose net worth is less than 250 crore for them it is not applicable schedule commercial Banks excluding rural Banks initially required to apply index from 1st April 2018. okay an insurance company is not yet finalized so insurance companies okay so we have finished with the chapter so we are finished with this chapter yes resource Surplus please watch previous session what is exactly 100 Pages bookend 200 Pages book test your knowledge please please please don't pray for answer how you have to write it in the comment section let's see who is answering fast non-banking financial statements non-banking clearly a finance companies non-banking finance companies for them it is applicable okay from 2018 no need to recall roadmap okay roadmap now index is applicable for Network having 500 corrosive more see accounting standards for non-corporate entities in India are you should buy yes tell me you have to write Answer 1 and option one and option who is answering very fast yes ICI who answered it is [Music] c a i okay so first answer is C roadmap is second one foreign accounting standards why there is a need harmonize accounting policies and eliminate non-comparability improve the reliability both and B what is the answer to second one yes very good beta subiksha very good better subiksha very good please write to an answer three it is essential to standardize the accounting principle and policy in order to ensure transparency consistency or both three and answer three and answer three and answer there is no D option in my case better Divya I know you are following Institute material but in Institute material options are different in my material options are different so don't refer now in sweet material okay so three answer is three answer is go answer very fast three cancer is C who answered very fast hardik hardik wrote very good beta fourth one which committee is responsible for approval of accounting standards and their modification for the purpose of two applicability to companies companies MCA or central government advisory committee fourth answer fourth answer yes fourth cancer who is answering very fast correct answer is which committee MCA Global standards facilitate foreign I will tell you this answer 5 is both A and B cross border and comparability is very simple additional guidance given in index over and above IFR is called as curves carvings and clarification yes additional guidance additional guidance additional guidance yes very good p i a s b stands for iasb stands for IA is this stands for International Accounting standard Bureau ISB International advisory standard board or International Accounting standard board tell me answer foreign stands for IFRS stands for International financial reporting system in international financial reporting standard International financial reporting take the finance reporting standard financial reporting standard IFRS yes who is going to answer it fast C correct answer is C phase one of index applicable to all instead companies companies with turnover greater than 500 crores or company with net worth finder crores or more it consists ninth one correct answer is C companies with net worth more than 500 crores so better thank you here we have finished with chapter one successfully is it difficult or easy foreign theory is very easy now and we are going to start with chapter number two minutes chapter number two yes screenshot benefits very easy easy yes benefits then cardboards and carvings concept date concept 9 roadmap nbfc okay so here we have finished with the chapter five minutes to recall there round no breakup break will be October five minutes for recalling this chapter you go through your study material in study material you have almost how many pages are there in study material yes almost beta 29 pages and we have finished with this in seven to eight pages you can see here you go through this study material I am giving you five minutes and I hope you understood this chapter very well and no one will now left this chapter in option options number one okay so chapter number one how Accounting Standards what is in this what is IFR is New Concepts are there and very you know um enjoying Concepts so 100 you enjoyed in this session you understood many new Concepts what is index what is this what is IFRS what is ISB what is ISC so all these things you understood and now and how index will be applicable is accounting standards are different index are different so what is conversion what is adoption yeah not now five minutes but you know okay welcome back sir so we are going to start with new chapter yes yes lavanya okay we're done yes Divya Kumari I can't take all names so be students and we are going to start with a new chapter now I hope second chapter framework for preparation and presentation of financial statements a new chapter what is framework see the name once again framework for preparation and presentation of financial statements framework financial statements you are going to prepare so first thing what is financial statements balance sheet profit and loss cash flow statements statement of changes in equity notes to accounts framework is now what is framework first thing now see the definition purpose of framework status components fundamental assumptions and all these so first question to you purpose of framework to assist assistance to help Enterprise in preparation of financial statements in compliance with accounting standards so your financial statement it should be prepared using Accounting Standards complying Accounting Standards accounting standards second one accounting standard board in the task of development and review of accounting standard accounting standard board they will develop accounting standards okay next is accounting standard board in promoting harmonization of regulations and accounting standards regulations means law an accounting standard there must be harmonization harmonization means same okay so it is called as harmonization okay Auditors in forming an opinion as to whether financial statements conform to the accounting standards opinion if they know framework and those interested in the work of accounting standard board so all of them using this Frameworks now what is framework sir you told us to whom it is helpful it is helpful for Enterprise it is helpful for accounting standard board it is helpful for lawmaker it is helpful for auditor it is helpful for interpreter in users also but what is framework so for general purpose this Frameworks are for general purpose and spatial purpose for tax purpose okay so Frameworks are used for general purpose and spatial purpose components of financial statements already studied better balance sheet pnl cash flow statement notes to accounts then you have statement of changes in equity so first word what is balance sheet balance sheet is so see better this is a technical definition see this chapter needs technical definitions okay Rancho valley definition okay your definition is a technical definition general definition so now we have to by heart no no need of by hurting these definitions only you should know the definition what is balance sheet balance sheet in which there are assets and what are assets asset shows economic resources controlled by the Enterprise see the difference controlled not ownership okay so assets As Cities demanding only control sir if I'm not a legal owner still I will record the asset yes substance over form sir you bought one car after becoming CA first car in your life now that car you have taken it on loan so is legal owner that bank and who is using that asset you so who will record ownership is Banker no you have to record car in your books why because you are controlling that asset banking Finance so asset control is important not legal owner value of Economics resources economy money controlled by the Enterprise provides the information about liquidity and solvency this balance sheet gives us the information how much cash you have and whether your liabilities are less than your assets then you are in solvency but your liabilities are greater than your assets in solids okay useful in predicting the ability of the Enterprise to meet the financial statements commitments Financial commitments ability foreign sheet one can predict whether we should invest in this company or not and that company also predicts whether they should expand or they should stop so balancer is very important profit and loss account what profit and loss account talks about it gives you results performance for the accounting period pnl is always for first April to 31st March in India sir you might have different period but but in India normally we follow this accounting period it shows the performance of the Enterprise remember performance understood second one is a p-handed third one is a cash flow statement sir what is cash flow statement shows C a cruel concept and cash concepts are different sir I will consider sales credit and cash both credit Matlab and castles I sold Goods but I will get payment after three years or after six months so that is a credit sales pnl consider cash Sales Plus Credit sales but cash considers cash flow statement considers only cash receipts only cash receipts so cash flow is nothing but it's a cash book receipt and payment but activity wise activities are divided in three parts or if o if o for operating I for investing f for financing or if okay o if operating investing financing so this activities we have a separate chapter cash flow statement we studied balance sheet we studied P and L but better we haven't studied yet cash flow and in syllabus you have cash flow statement I am going to explain it don't worry it's very simple exam simple harmonization meaning harmonization okay see I am telling you one fact these chapters are very boring chapters if you study by own from study material normally I have seen such classes in which they keep these chapters in option they started with the first chapter they won't take it in the sequence for example buy back very nice presentation is not at all easy an inter student knows study material they will tell you through your study material but uh study material in your first exam giving you guarantee each and every question will be from study material each and every and your syllabus is so vast so Institute expects small small points from you or better I have made it very simple because I am associated with Institute from last five years now almost four or five years so we are teaching you exactly what I see I want from you or yeah Theory don't waste your mom and dad's money don't waste your time do something which is a different and if you have commitment to do CA out of 100 only 20 students are going to become CA 20 result in first exam fifteen percent ten percent in first exam and think that why I should not be in that 10 um foreign last session on 10 30. meanwhile I type my notes I go to my gmalls 30 minutes 40 minutes one hour I'm doing exercise but you should design your schedule you should focus on your schedule sir if you think key theory is boring it means you are not going to pass your Advance accounting paper because now Advanced accounting is totally theoretical paper not totally but 70 theoretical all accounting standards and I will give my best hundred percent to explain you the concept only one point I want from you foreign that you are not understanding any point you will definitely understand each and every Point explained by me and if you read study material optimization you will find it very simple this is my challenge okay so do only one thing be serious in the class don't think I'm getting bored yes back up the mind okay and I will try my best to keep you alive okay this is our best yes okay so let's move shorts cash in close and outflows ah one of the student he commented because of BOS stations my English is getting improved definitely better when I started my classes with POS at that time I remember I always whenever I uh I have taken my lectures I always he has better taken it in Hindi but now I'm very comfortable in explaining English lectures sometimes I get stuck but don't worry yes this will happen with you I am also from Marathi medium vernacular medium your English will definitely get improved over the period and try to speak everything in English Okay so you will boost your confidence for law subject audit subject you will never find problems in those subject okay try to understand try to listen All sessions of POS and POS faculties I am telling you they are using very simple English yes I have seen your audit sessions also even your tax sessions literally all faculties they are speaking very slowly English language okay actually next so we were on cash flow statement now we are moving to next concept notes to accounts but I will give you break up to this note stop accounts is a finally different Financial items items of financial statement they are presenting in supplementary information additional disclosure means what policy you are following so you have to tell to your uh reader that we are following cost or nrb whichever is lower so you should write this sentence somewhere and where you will present it in notes to accounts in Balance you won't give to this sentence is lower so you want to communicate with your reader and how to communicate with your reader in the simple way it is through notes to accounts notes to accounts got the concept yes saying I took your classes at Foundation level and I scored 93 marks oh my God Rita congratulations beta please contact our team okay we will definitely I will take your interview on my personal Channel okay how you scores 93 marks it will be helpful to other students also okay definitely yes yes much better congratulations yes what are objectives of Accounting Standards what are objectives and users of the standards yes but I will give you a break watch this minute only to provide information about financial position yes already understood balance sheet performance and cash flow statement performance is P and L and cash flow statement for users investors sir we already studied at Foundation level first chapter investor analysis performance and profitability and financial position but an investor means you know we visit moneycontrol.com okay and uh they will tell us all ratios so investor and how they calculate ratios by using financial statements of that entity their team better calculates all these ratios employees knowledge of stability and community and growth so employees believe in that uh organization only if that organization is in profit see okay lenders sir Banks also call for your financial statements so they are also users because they don't want to take risk and that risk how much is the uh credit potential of that borrower that they study it from their financial statements very simple supplier but obvious credit worthiness he will check Market me if I ask for some money to give me credit here I am also running One Restaurant okay so due to my creditability they know supplier also don't ask money for next one month okay my Dairy person he never asked for paneer but he never asked because he has Trust on my credit worthiness okay he knows keep that man is gentleman okay so supplier credit worthiness customers customers also sees your financial statement stability and profitability government they want to decide some taxation so for evaluation performance for social objectives so government are also users of your financial statement yes okay next one yes fundamental assumptions gas going concern accrual and consistency so spilling of gas is different GSC going concerned accrual and consistency so going concern your business will continue for the next few years and that's why better we are not following revaluation model we can follow historical cost concept so going concerned let's understand what is going concerned assumption that Enterprise will continue its operations in the foreseeable future and no need to correct tell the operation business and that's why we are following historical cost concept due to this assumption options you can go with revaluation model but it is not mandatory if you want to go by evaluation model you go with revaluation model if you want to go by historical cost model you go with historical cost model it's your decision your management decision okay it's not Chartered Accountants decision it is company's decision whether they want to go by revaluation model revaluation model will make your balance sheet strong balance revaluation normal balance sheet historical Services okay accrual what is accrual accrual means I have given salary of 11 months I paid a salary of 11 months and March salary is still not paid I will record my expenditure for 12 months okay though I paid only for 11 months this is the actual concept cash concept will write only 11 months only 11 months because we are following a cruel Concepts accrual concept see the beauty of accounting standard assumptions we are assuming that every organization in India they have to follow accrual concept no need to write okay we are following accrual concept yes every company has to follow as per accounting standard one accrual concept they will record expenditure for 12 months and not of only 11 months they will pass entry outstanding entry okay I will always record it by 12 months yes [Music] according to S1 revenue and costs are recognized as they earn or incur and not as much money is received or paid it is called as accrual historical says foreign once you adopted the policy once you adopted the policy you have to consistently better which is normally is lacking in you but accounts in accountancy you have to make sure that your policies for example during the year I followed first in first out policy of inventory second year also first in first out I cannot ship to weighted average I can change if it is required by law or required by Accounting Standards or for better presentation all by competitors they are following weighted average then why should I follow okay first in first out then but I will change the method okay so consistency make sure that every year you are following same policy year after year and that can be changed by Statute yeah for better presentation yes sir understood all these Concepts till now qualitative characteristics we are going to see after break okay so kidney Pages away you can check here framework framework we have finished till uh consistency we have finished till 10 pages and after break I am going to start with 11 page take a proper break of 15 minutes 720 we are going to meet at 7 35 take your dinner because both late dinner minimum one and a half hours you go for bed or morning try to wake up at six o'clock yeah at least five o'clock okay my first session I start at 5 30 so please take a break of 15 minutes have your dinner and let's meet after 15 minutes thank you foreign let's start welcome back once again students till now what we have completed to assist framework applies to balance sheet panel cash flow statement and notes to accounts objective and users going concern accrual consistency and now we are moving to concept number six that is the qualitative characteristics but qualitative characteristics now I am going to take some numericals I know now you are getting more support Theory okay so now let's start with some numericals you will enjoy these numericals okay cello enjoy yes 100 percent I say classes will show you the path and then once you got the concept Clarity you can do your own hard work okay so don't worry okay how many of you are my Foundation students those who attended already my classes of foundation they passed in accounts and can you give me your score those who have cleared with sankets me your comments are definitely visible questions start with the equation number one illustration 59 chandan 60 are very good weather yes on mole 65 I know anmol Rahul Patel 60 then ritika Gupta yes Monday 59 come to question number one illustration one page number 2.7 69 marks Panda 50 five yes beta now you have to solve this in the 400 Pages book 400 pages Sara 62 Prashant 60 9 64. yes see this is your index 400 pages today you solve it on the rough pages and make sure after the class you will write it in 400 Pages book s 73 is 60. feeling very proud don't worry you study from my notes you watch my sessions I have given some Guru Mantra series also I'm going to start it very shortly because I was not in Pune the guru Mantra series and uh if not permitted better then please you watch my channel Guru Mantra series okay so you'll get it and I will try the guru Mantra series as a revision I will take it on YouTube it's a free of cost so now in 400 Pages book what you have to do 400 Pages book is your solving illustration solving book question number page number page number of your study material remarks column fourth column and category so this is your summary book of all illustrations it's a good technique to recall your questions okay now first illustration is going concern concept if followed and not followed again so come to question number one first illustration of your life yes see balance sheet of a Trader on 31st March 2001 is given below see this is a balance sheet Capital Pendle ten percent loan trade payable property plant and equipment then you have stock trade receivable day for expenditure and bank balance so you have all these things yes how many pages for index there one and half page yes whether you have to prepare this column around huh simple balance sheet this is new account for you therefore expenditure therefore expenditure is actually not allowed as per accounting standards fictitious asset so do one thing instead of deferred you write development expenditure over there expenditure development expenditure the remaining life I will be very slow while solving first illustration the remaining life of the property plant and equipment is five years now here you can write please please please have study material as early as possible otherwise take printouts but you must need study material in my session because I take each and every question of study material okay so historical cost cost concept and historical cost and nrb better if your business is not going to continue in the future business what is nrb NRV means net net realizable value understood the concept yes so five years is property plant and equipment so life is five years 65 000 divided by five years means you will deduct 13 000 depreciation so depreciation you can write over here sixty five thousand divided by five thirteen thousand so historical cost fifty two thousand and net realizable value sixty thousand so cost K substance like a fifty two thousand and NRV will give you sixty thousand answers okay so answers are very easy your purchase and sales net realizable value beta when you uh will sell your asset in the market for example now this flat if I sell it in the market I will get 1.6 crores for 1.6 net realizable value 10 lakhs so this is how you will calculate your cost okay so what you have to write it in 400 pages Trader purchase and sales trading and pay handle account okay you will prepare trading and pay handle account and in both 4X is on the debit side purchases and credit side effects sales credit side base sales Credit Credit sales next cost and net realizable value of stock cost and net realizable value of stock is 32 000 and 40 to 40 000. 32 000 and 40 000. account credit side and asset side write down trading account credit side and asset side expenses including interest on 10 percent loan is three thousand five hundred amounted to fourteen nine hundred we handle debit payandl debit okay therefore expenditure Mark INB foreign you will show this asset 0 and as per accounts continuation you will debit 2500 in P and L imp I will show you the answer don't worry 2500 or asset side in case of NRP trade receivables 25 000 of which 2000 is doubtful so 25 000 23 000. because 2000 is doubtful pre-andle debit debit and collection of 4000 depends on successful reinstallation of certain products supplied to customer so whether we are not going to continue this business or four thousand minus So my answer will be nineteen thousand and either in case of NRP nrb cost me zero cosme only so 2000 And nrvk subscribe two thousand plus four thousand six thousand trade payable twelve thousand trade payable 12 000 but if you settle it today you will get five percent discount five percent discount credit it's 600 and as per NRV you have to pay only 11 400. cash balance 37 100. 37 100. and early repayment of the loan 2500 if you do not pay if you continue it will be 35 000 if you don't continue so 35 000 minus 2500 your loan will be 32 500 so 2500 in P handle 2500 you are required to prepare P and L and balance sheet using going concern and not using going concern five marks question write down the answer write down answer yes write down beta we handle account or the year ended 31st March 2002 particulars write down columns particulars case one case two case one is going concern concept is assume Matlab cost no going concern concept case quiz and RB no going concern and going concern so you got the difference beta case one we will follow cost approach case 2 we will follow nrb approach particulars case one case two write down the answer lines 10 lines draw better foreign slightly you will find difficult but once you got the logic it's very simple don't leave this problem in option a problem balance sheet as on 31st March 2002 liabilities case one is two assets is one S2 foreign so let's start yes let's start first one line by line two opening stock to opening stock first item of p and l to opening stock how much thirty thousand in both cases two purchases Buy sales to expenses then you have to depreciation and here by closing stock okay so this is a pro forma we will write first proforma assets May capital p and l after one line ten percent loan and then you have trade payable so how do they solve this question first write the pro forma property plant and equipment stock credit receivable less provision then after two lines development expenditure you can write development expenditure not deferred bank or cash okay okay yes but I will explain it once again don't worry okay over format now line by line remaining life of property plant and equipment okay so depreciation here you can write thirteen thousand how 65 000 divided by four years okay and here 65 minus 60. 5000. 65 minus 60. first adjustment completed second here we'll write property plant and Equipment fifty two thousand and sixty thousand 65 minus 13 and 65 minus 5. so this is property plant and Equipment first adjustment completed purchase sales both my same four legs even in one and even in two sales or like fifty thousand more like fifty thousand over next C NRV 32 000 and 32 000 here and here forty thousand balance sheet me again thirty two thousand forty thousand over expenses fourteen nine hundred this is to confuse us to confuse us okay 14 900 4900 expense is always including interest expenditure great pain prefer expenditure red pen today for expenditure or okay our development expenditure you can write here 10 000 divided by 4. 2500 and here pure 10th house here pure ten thousand here 7500 another zero either zero next predeciable twenty five thousand and two thousand red pen 25 minus 2 3 000. and here 25 minus 2 minus 4 see what is the concept trade receiver twenty five thousand two thousand is doubtful but collection of next 4000 depends on successful reinstallation of certain products supplied to customers we will deduct that 4000 and when we are going to continue so we will reinstall samjha nineteen thousand and here to provision for doubtful dates two thousand and six thousand okay next closing trade payable barahaja okay red pen beta red pen red pen red pay will be twelve thousand and 12 000 minus 12 000 minus five percent eleven four hundred and second effect by discount to creditors discount on creditors buy creditors not two creditors discount by creditors zero six hundred corrective very very important next cash balance 37 100 normal pin and loan penalty red pen to penalty yes 2500 and here 10 percent is 35 000 and you have to pay extra 2.5 2500 penalty will be added so red pen adjustments how many rate adjustments beta therefore expenditure provision for doubtful dates discount to creditors and penalty and same thing you will add it in their liability side also very important okay so yeah now you can calculate net profit imp questionable net profit calculator balancing figure star mark means balancing figure so this is 4 lakh 82 000 this is 4 lakh ninety thousand or like eighty two thousand ninety thousand four eighty two 14.9 minus 13 .5 19600 previous sorry previous panel 25000 25 000 Plus 19600 44 600 year balancing figure 490 minus 30 minus 400 minus 14.9 minus 5 minus 10 minus 6 minus 2.5 21 600 plus 25 000 plus 21 600 46 600 and capital we will keep it as it is capital is sixty thousand Capital sixty thousand side foreign 600 151 600. 150 how much 60 is oh sorry this is 600 I think this is 22. 20 to 200 25 plus 22.2 yes 47 200 yes now 60 plus 47.2 156 100 beta 156 100. yes that is easy question is what you have to do first you will try to pro forma and red pen adjustments here's better this is a difficult one and similar question is there similar question is there in your pyk okay I will show you test your knowledge me this is your homework better so this is your homework same question last question please do it 2.35 page number page number 2.35 question number 10. question number 10. you can do by your own question number 10. okay question number 10. okay one more question beta we are going to take Zips last question of the day AK question I know now it's very difficult question okay please please please where to have finish our syllabus in timer yes example three do you know there is one equation suppose at the beginning of the accounting period aggregate value of assets liabilities and Equity are five two and three do you know the equation asset is equal to liability plus capital liability plus capital so write down so write down beta example three write down hey write down example three liko example three write down serial number transaction then you have asset reliability and then you have capital then you have capital so I set liability and Equity capital so serial number one opening acid is 5 so it's equal to SLX opening acid is 5 as that is 5 what is your liability beta liability liability to and 3 lakhs two and capital three Roman 2. introduce capital introduce Capital are we capitalize cash means asset and Capital increase twenty thousand now rupees in lakhs so twenty thousand means what better it's 0.2 it's 0.2 so write down Capital introduced point two acid increase Capital increase 5.2 it will be 2 and capital B 3.2 for this concept row moment 3 Roman 3 earned income from investment so cash account cash account 0.08 . again  foreign okay so remember so your cash increased and your interest increase eight thousand means point zero eight point zero eight and interest means capital so 0.087 interesting 5.28 minus 2 3.28 Roman 4 a liability of 31 000 was finally said total for payment of 30 000. liability may say liability reduced by 0.31 asset reduced by 0.30 why because you settled payment asset means cash and it's your gain because why it is gain better because you are liability you settle at Thirty One Thousand thirty thousand means you are in profit so profit one thousand one thousand means point zero one point zero one Capital increase by point zero one see the equation liability settled liability settled how much 5.28 minus 0.3 so this is four point 95 4.98 sorry 98 2 minus 0.31 liability 2 minus 0.31 so 1.69 and it's your gain or 0.01 .01 beta C whether your equation is telling 4.938 minus 1.69 yes our equation tallies now illustration 5 example five continuation example four sorry example four see this is called as modern approach asset minus liability is equal to Capital wages paid wages paid means cash capital okay so equation approach wages paid how much twenty thousand and three point two nine minus 0.2 so four point zero to two thousand is sorry zero two 1.69 as it is and 3.29 3.27 6. we just paid what two thousand rent outstanding rent means expenses and rent payable liability increase not paid liability increase so expense Matlab capital decrease 1000 say so rent payable rent PayPal rent payable rent payable your asset won't affect so 4.96 here are 1.69 plus 0.01 it will become 1.70 and your 3.27 minus 0.01 so it is 3.26 7. drawings four thousand drawings drawings means cash decrease 4.96 minus 0.04 3.22 see final equation is telling or not 4.92 minus 1.7 P yes 3.22 so this is your answer example 3 and example four two proper practice beta of both examples you have to Fair it is I know difficulty is yes now I am waiting for your comments better I know yes I will take your queries now whatever queries you have you can ask me now expense take expense increase hoga to Capital decrease you can write this and income increase yoga okay expense decrease over capital foreign so expense and capital are indirectly related and income and capital are directly related hanji questions say okay okay I hope you understood it question may slowly slowly please try to understand you have to increase your level I will give my hundred percent at the end after this session if you are not getting any point you have to sit on one place you have to do revisions if you don't understand in next station is how many chapters within eight nine months okay or good doubts therefore expenditure therefore expenditure means what yes I will tell you therefore expenditure means what they've heard means divide divide for example if I incurred ten thousand expenditure every year in piano I will transfer 2500. so in asset side in first year is beta so till that point it is showing on the asset side 7500 next year again 2500 asset Side by 5000. next year again 2500 in asset side you left with 2500 next time again 2500 and in assets at zero so now this is not allowed s26 expenditure is not allowed but there is one expenditure which is development expenditure and development expenditure you can date for or you can defer so that's why I change the name from develop uh day for expenditure to development expenditure I incurred 10 000 development expenditure now what is development expenditure I will teach you in accounting standard 26 have patience is foreign yes any other question so Capital means equity capital and Equity are same capital and Equity are same okay beta only till October syllabus lectures are uploaded better schedule top up to October November schedule will get in the month of October don't worry so till October schedule is there next question screenshots from chapter 2 habitat drawing lines is important acha liability increase is a better decrease settlement of liability settlement of liability 31 000 so liability minus Kia but you paid only cash thirty thousand so your profit is one thousand correctness 0.31 cash means asset reduced by 0.3 and profit capital capital means Equity Equity increased by point zero one by point zero one so this is the transaction any other difficulty foreign take a screenshots better 100 Pages book a screenshots I will count five one two three four five cello concept two take a screenshot write in 100 Pages book one two three four five next concept three next objectives next fundamental assumptions next yes qualitative characters six we have not finished then you have to take index index screenshot asset minus liability is equal to equity you can take a screenshot of index you can write it though you are not getting this at least you finish your copy paste com okay I think here you are getting a wrong total um one minute I'll say one minute 156 100. so you can take a screenshot a Japanese and example three and example four example four thank you foreign we'll meet on Friday till that take care bye bye good night before beta before going to bed please please please revise this topic complete your 100 Pages book and 400 pages today itself okay thank you take care bye bye foreign

Transcript for:Lecture Insights on Advanced Accounting Standards

Transcript for:
Lecture Insights on Advanced Accounting Standards