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2018

Composition Scheme Under GST

GST has brought many compliance requirements with its implementation like return filing, payment of GST on monthly basis etc. Small dealers who operate at relatively lower scale and margins find it difficult to comply with many regulations as dedicated resources and manpower is required for the purpose. In order to provide relief to such small taxpayers, the Government has come up with the concept of "Composition Levy" (aka Composition scheme) under GST. Any dealer registering under GST has two options i.e. Registration as Regular Dealer or under Composition scheme. By opting for composition scheme, the dealer can avail relief from many compliance requirements.

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2018

Inventories Valuation as per Ind AS 2

Valuation of inventories is one of the key areas that require special attention on part of accountants. While determining fair value of inventories multiple factors must be kept in mind like Accounting Standards, Valuation Method, Accounting Concept of Prudence etc. In this article we shall discuss issues related to inventory valuation from the point of view of Indian Accounting Standards (Ind AS).

2018

All you need to know about Micro Small and Medium Enterprises MSMEs

What’s MSME?
MSME stands for Micro, Small and Medium Enterprises. MSME represents a collection of all small to medium sized enterprises in an economy. In a developing economies like India, MSME play a vital role in growth of the economy.
In this article, we shall discuss and understand following points in relation to MSME industries from Indian perspective.

2018

UnderstandingAccounting Cycle

Maintaining Books of accounts of an organisation is a systematic process involving well defined steps. Such process involve recording, classifying and summarizing of economic transactions carried out by a business during a particular accounting period. The ultimate purpose of maintaining books of accounts is to generate useful information about entity's financial position. Hence, the end result of an accounting cycle is generation of Financial Statements like Profit & Loss Account (aka Income Statement) and Balance Sheet. In this article we shall understand each step involved in accounting cycle of an entity.

2018

Frequently Asked QuestionsFAQon Limited Liability Partnership

Introduction:
Limited Liability Partnership (LLP) is a new model of business formation which gives benefits of both world. In other words, LLP is a form of business that combines benefits of both company and partnership firm. LLP is a type of partnership firm where partners have limited liabilities unlike the traditional model of partnership firm where all partners have unlimited liability. In LLP each partner is independent from any liability towards another partner's misconduct or negligence. Moreover, an PPL has less compliance burden as compared to company form of business.
Limited Liability Partnership being a relatively new form of business, many people are unaware of its features, benefits and compliance requirements. Here is a list of FAQs for all matters related to LLPs.

2018

Understanding Provisions and Accounting Treatment of Provisions

At the end of the financial year when books of accounts are closed, certain provisions need to be created. The practice of creating provisions is in line with Matching Principle of Accounting. According to Matching principle, expenses incurred in a financial year must be recorder in the same financial year to which it relates. However, sometimes the exact amount of expense is not known at the end of financial year. Provision is created in order to recognize such accrued expenses for which exact amount is not yet known. Hence, a Provision for expense basically recognizes the liability of an organisation towards expenses related to a financial year. Please refer to the below points to further understand provisions.

Financial Management