Maithili Nandedkar’s Post

Firms submitting an application for authorisation as an EMI or PI must include the FCA's financial forecast template in addition to their 3 year financial forecast model (+ stress tested scenario modelling). The link to the updated #fca webpage explaining what is required and from from where you can download the template is ... https://lnkd.in/eFTvyQ2x Don't get caught out! #payments #fintech #emoney

𝐃𝐞𝐜𝐨𝐝𝐢𝐧𝐠 𝐈𝐍𝐃 𝐀𝐒: 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐟𝐮𝐥 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞𝐬 𝐨𝐧 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 (𝐏𝐨𝐬𝐭 22) In this continuation of our #INDASseries, we further unravel the complexities surrounding the transfer of financial assets, especially those scenarios that do not meet the criteria for derecognition. 𝑸1: How are transferred financial assets and related obligations treated when the transfer does not qualify for derecognition? (𝑹𝒆𝒇: 𝑰𝑵𝑫 𝑨𝑺 109, 𝑷𝒂𝒓𝒂𝒈𝒓𝒂𝒑𝒉𝒔 𝑩3.2.14 & 𝑩3.2.15) 𝑨1: When a transfer of a financial asset does not qualify for derecognition: Contractual rights or obligations related to the transfer are not accounted for as separate derivatives to avoid double recognition of the same rights or obligations. For instance, a retained call option by the transferor that prevents a transfer from being considered a sale is not recognized as a separate derivative. The transferee does not recognize the transferred asset. Instead, it derecognizes the cash or other consideration paid and recognizes a receivable from the transferor. If the transfer includes a right and obligation for the transferor to reacquire control of the transferred asset for a fixed amount, the receivable may be measured at amortised cost, aligning with the criteria in paragraph 4.1.2. #FinancialInstruments #INDAS109 #AccountingStandards #FinancialAssetTransfers #Derecognition #FABMAVENUpdate

Amortization and Impairment in Intellectual Property (IP) Valuation International Financial Reporting Standards (IFRS) provide a framework for excuting #amortization and #impairments of IP's under IAS 38. 🥢 Amortization - Expensing the cost of an intangible asset with a finite useful life over its estimated useful life. 🥢 Impairment - A situation where the recoverable amount of an asset is less than its carrying amount. For IP with a finite useful life, such as patents, amortization is applied. Amortization reduces the carrying value of the IP on the company's balance sheet over time. ⌛️ Regular assessments are required to identify potential impairment. If the recoverable amount falls below its carrying value, an impairment loss needs to be recognized in the financial statements. #IFRS #IntellectualProperty #Valuation #ADS

Top 5 Advanced Questions for Experienced CAs in Statutory Audit on Ind AS 109 #big4interviewquestions Part-17 1. How does Ind AS 109 classify financial assets, and what are the implications for recognition and measurement? Answer: Financial assets under Ind AS 109 are classified into three categories: - Amortized Cost:Assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows. These are measured at amortized cost using the effective interest method. - Fair Value Through Other Comprehensive Income (FVOCI):Assets held within a business model whose objective is both to collect contractual cash flows and to sell the financial assets. These are measured at fair value, with changes in fair value recognized in OCI. - Fair Value Through Profit or Loss (FVTPL): Assets that do not meet the criteria for either of the other two categories. These are measured at fair value, with changes in fair value recognized in profit or loss. 2. Explain the concept of Expected Credit Loss (ECL) model under Ind AS 109 and its significance in financial reporting. Answer: The ECL model requires entities to account for expected credit losses from the moment financial instruments are recognized. This model is forward-looking and includes: - 12-month ECL: Expected losses resulting from possible default events within 12 months for financial instruments that have not significantly increased in credit risk. - Lifetime ECL: Expected losses resulting from all possible default events over the life of the financial instrument for those with a significant increase in credit risk or those already impaired. This model ensures that credit losses are recognized earlier and more proactively than under the incurred loss model. 3. How does Ind AS 109 address the accounting for hedge effectiveness? Answer: Ind AS 109 requires entities to assess hedge effectiveness on an ongoing basis to ensure that the hedging relationship meets the hedge accounting criteria. The assessment involves: - Prospective Test- Ensuring the hedge is expected to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk. - Retrospective Test: Verifying that the hedge has been highly effective throughout the reporting period. A hedge is considered effective if changes in fair value or cash flows of the hedging instrument offset between 80% to 125% of changes in the hedged item. #CharteredAccountant #StatutoryAudit #IndAS109 #FinancialReporting #CareerGrowth #pankajposts ---

Are you still using spreadsheet-based systems to evidence good governance of your ECL/IFRS 9 environment? We don’t believe that’s a fit-for-purpose solution, so we’ve developed a better approach. Our solution is secure, transparent, auditable, and affordable. Check out our short video to see how it works: https://lnkd.in/e4ZmiGF and contact us for an informal chat. #IFRS9 #ExpectedCreditLoss #RiskManagement #CreditRisk

The revised LCB framework was introduced on October 19, 2023 effective from April 01, 2024. It entrusted the responsibility on the stock exchanges to determine whether an entity is a large corporate or not including the calculation of incentive or disincentive. In this regard, BSE issued a Master Circular for debt-listed entities on April 30, 2024, which requires the listed entities to make following disclosures to the stock exchanges (web form) at the time of submission of annual financial results, effective for FY ending on March 31, 2024/ December 31, 2023 and onwards: - Outstanding Qualified Borrowings at the start and end of the FY; - Highest credit rating of the company relating to the unsupported bank borrowings or plain vanilla bonds, which have no structuring/support built in; - Incremental borrowing done during the year (qualified borrowing); - Borrowings by way of issuance of debt securities during the year. Our FAQs on the topic may be read here: https://lnkd.in/getyV3Sj Our article covering the revised framework can be accessed below: https://lnkd.in/gCNiJ6vx Vinod Kothari Vinita Nair Dedhia Pammy Jaiswal Barsha Dikshit Chatterjee Nitu Poddar CS Palak Jaiswani

Private company financials play an important role in Transfer Pricing by providing the data necessary for comparability studies, documentation, and defending positions in audits. For multinational enterprises, accurate financial data is vital to ensuring transactions are conducted at arm's length. Understanding these financials is key to maintaining transparency and meeting compliance standards in global business operations. Read more: https://lnkd.in/eqd-Z9Ky #RoyaltyRange #TransferPricing

Want to understand Ind AS 32 - Financial Instrument : Presentation ? Here is the short summary of this Ind AS for you. Financial Instrument - Any contract which creates financial asset for an entity and financial liability or equity instrument for another entity in there respective books of accounts. 1. Financial Assets - a. Cash & Bank Balance b. Equity Instrument of Any Other Entity [ Eg. Investment in equity shares of any entity] c. Contractual right to receive cash [ Eg. Debtors, BR, Loan given etc.] d. Contractual right to receive equity instruments of any other entity [ Eg. Investment in convertible debentures/ Pref shares of any entity ] e. Derivative Contracts which are potentially favourable to the entity 2. Financial Liabilities- a. Contractual obligation to deliver cash [Eg. Creditors, BP, loan taken etc. ] b. Contractual obligation to deliver other financial assets c. Derivative contracts which are potentially unfavourable to the entity d. Contract to issue variable no of own equity shares 3. Equity Instruments - a. Which has residual interest in Net Asset of the entity b. Contract to issue fixed no of own equity shares Pls Note - if there is any statutory right to receive cash or statutory obligation to deliver cash, then it will not be classified as financial asset Ôr financial liability #IndAS32 #FinancialReporting #AccountingStandards #CharteredAccountants

share-based payment transaction: a transaction in which the entity 1 receives goods or services as consideration for equity instruments of the entity, or 2acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price of the entity’s shares or other equity instruments of the entity. IFRS 2 requires an entity to reflect the effects of share-based payment transactions in its profit or loss and financial position IFRS 2 applied to all share-based payment transactions. There are three types: 1. Equity-settled share- based payment: The entity received goods or services as consideration for equity instruments of the entity. 2. Cash-settled share-based payment: The entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entity’s shares or other equity instruments. 3. Transactions with a choice of settlement: The entity receives or acquires goods or services and the terms of the arrangements provide either the entity or the supplier with a choice of whether the entity settles the transaction in cash or by issuing equity instruments. 

📐Measuring Intellectual Property Intellectual property (IP) plays a critical role in a company's value. But how do we accurately measure it for financial reporting? International Financial Reporting Standards (IFRS) provide a framework with two key measurement models for IP under IAS 38. 🥢 Cost Less Amortization -This model reflects the historical cost of the IP, minus any accumulated amortization expense. Amortization gradually reduces the IP's value on the balance sheet over its estimated useful life. 🥢 Fair Value - This model reflects the current market value of the IP, typically used for IP acquired through a business combination. Determining fair value often requires professional valuation expertise, as it considers the price a willing buyer would pay in an arm's-length transaction. 🧰 Choosing the right measurement model depends on the specific purpose of valuation. Understanding these options ensures accurate and transparent reporting of your company's valuable IP assets. #IFRS #IntellectualProperty #Valuation #ADS