Day: December 29, 2021

The objective of AS-5 on the above subject is to prescribe the classification and disclosure of certain items in the statement of profit and loss so that all enterprises prepare and present such a statement on a uniform basis. This Read More …

Accounting Standard – 4 on “Contingencies and Events occurring after the Balance Sheet Date” deals with the treatment of contingencies and events occurring after the balance sheet date in financial statements. According to it, events occurring after the balance sheet Read More …

Accounting Standard 29 issued by the ICAI deals with the “Provisions, Contingent Liabilities and Contingent Assets”. According to it a contingent liability is  a possible obligation that arises from past events and the existence of which will be confirmed only Read More …

Directors of a company in exercise of the powers vested in them may raise a loan by issue of debentures with or without creating a charge on the assets of the company. Debenture holders do not carry any voting right. Read More …

There are seven clauses under paragraph 4(iii) of the Order. It is clarified that the auditor’s comments on all the seven clauses are to be made with reference to the companies, firms or other parties covered in the register maintained Read More …

In addition to the procedures described above, the auditor· should also employ the following procedures in the case of audit of a company. In determining whether the loans obtained by the company are within its powers, the auditor should scrutinise Read More …

In addition to the audit procedures discussed above, the following analytical review procedures may often be helpful as a means of obtaining audit evidence regarding the various assertions:  comparison of closing balances of loans and borrowings, creditors, etc., with the Read More …

The auditor should satisfy himself that the liabilities have been disclosed properly in the financial statements. Where the relevant statute lays down any disclosure requirements in this behalf, the auditor should examine whether the same have been complied with. In Read More …

The term ‘contingent liabilities’ refers to obligations relating to past transactions or other events or conditions that may arise in consequence of one or more future events which are presently deemed possible but not probable. Contingent liabilities may or may Read More …

The term ‘provision’ means amounts retained by way of providing for depreciation or diminution in value of assets or retained by way of providing for any known liability the amount of which cannot be determined with substantial accuracy. Provisions include Read More …