COVER STORY
HR Accounting
-- KVV Raju
Man-made accounting is the only way to assess and evaluate the financial performance of an organization.
However, there does not seem to be an accounting procedure or rule for evaluating human resources which is the
principal generator of all the development and growth. In the present day world, Human Resource Accounting (HRA) has
been identified as a necessity and is gaining importance every day in the corporate world. The main objectives of HRA
are: identification and protection of the employees and their skills and motivating them towards the achievement of
goals. Neglected people are hurdles in the process of achievement of organizational goals and so should be given due
importance. This article explains the need and ways of HRA.
© 2009 IUP. All Rights Reserved.
ACCOUNTING
Fair Value Accounting: Enhancing Organizational Performance
-- Padma Srinivasan
Intangible assets lack physical substance and so it is difficult to estimate their value. A few intangible assets
are: patents, copyrights, franchises, goodwill, trademarks, long-term contracts for sourcing raw materials, etc. Methods
of valuation of intangible assets have been modified significantly in the recent times in order to meet the norms of
the accounting standards. In recent years, three factors have changed the way financial statement users view
intangible assets, especially Intellectual Property (IP)newly issued financial accounting standards, the rise (and fall) of
many companies, whose main assets were intangible, and the increase in objective external evidence of the value of IP.
The global business requirement has necessitated, the so far unrecognized but now being valued, intangible assets
as professional and have highlighted them in the accounting and financial statements. This article analyzes the
emerging multiple uses of these assets, their fair valuation to recognize in the financial statements and their role in the
enhancing the organizational values.
© 2009 IUP. All Rights Reserved.
ACCOUNTING
Reclassification of Assets and Liabilities for Fair Value Measurement
-- Palash Goswami
In the present form of Indian Accounting Standards, financial reporting is done through historical cost (carrying
value), revalued historical cost, fair value and impaired costs, but with its convergence to IFRS, its measurements are to
be taken and reported on fair value on each reporting date. The fair value measurement of all assets and liabilities,
in compliance with FAS 157 on each reporting date, is a difficult, complex and challenging task. In this article, an
attempt has been made to simplify the fair valuation process by suggesting the fair valuation of assets and liabilities, based
on this present form and business use thereof, instead of fair valuations of all assets and liabilities, on each reporting
date. Based on the form and business use, thereof, all the business assets and liabilities can be reclassified into four groups.
© 2009 IUP. All Rights Reserved.
ACCOUNTING
Fair Value Accounting: Implications for the Global Financial Community
-- Anurag Singal
In the past year or so, the concept of `fair value accounting' has assumed critical importance. It has transcended
its previous restricted domains of academic discussion and catapulted itself into high- stakes debates amongst
prominent economic and political commentators, politicians, business leaders, industry and professional associations, as they
try to unravel its ramifications and role in precipitating the subprime crisis.
© 2009 IUP. All Rights Reserved.
FINANCIAL REPORTING
Trust but Verify
-- L Shankari
This article discusses the various types of frauds committed in India and abroad. It also details the role played by
the forensic accountant in unfolding the fraud during the investigation process and also outlines the modus operandi
of forensic accountants in case of cyber crimes.
© 2009 IUP. All Rights Reserved.
TAXATION
Financial and Taxation Aspects of Indian Premier League
-- Rashmi Narayanaswamy
Indian Premier League (IPL), an innovative and world class sports entertainment, that involves various accounting
and taxation aspects, in addition to normal business regulations. This article brings
out the concept of IPL, its financial structure, the various accounting and taxation policies related with
the right to play (intangible assets) for franchisees,
and the role of Chartered Accountants in IPL. The Board of Control for Cricket in
India (BCCI) launched the IPL in the lines of English Premium League
(for soccer) and National Basketball league (NBA) of the US. The entire concept of IPL is
based on the hypothesis that the public will take a fancy to different league teams even when compared to national teams,
and come out in large numbers to watch their
favorite players, irrespective of their nationality. The IPL is a professional
T-20 cricket league, created and promoted by the BCCI and supported by the cricket's world governing body, namely
the International Cricket Council (ICC).
© 2009 IUP. All Rights Reserved.
REPORTING
Private Equity: In the Changing World Scenario
-- Suchin Kulshrestha
Private Equity (PE) consists of investors and funds who make investments in private companies or do the buyout
of public companies. The funds used by this investment can be used to strengthen the balance sheet, expand the
business, and make acquisitions. The PE firms can earn huge profits by increasing the valuations of the target company or due
to the revamping of its management. Now, as we are in the process of overcoming the economic slowdown, the
education sector is becoming more promising for PE firms. There are huge investments in this sector as the returns are
also reasonable. Due to this windfall gains, the old business houses of India are also occupying prominent positions in
the PE space.
© 2009 IUP. All Rights Reserved.
FORENSIC ACCOUNTING
Unearthing Accounting Frauds
-- Kiran Bindu
In this article, we examine the various kinds of accounting frauds which can be perpetrated, if the management is
not alert to collusion between employees or if the auditors blindly assume that the management's integrity, ethics
and motives are always aboveboard. We hope that our effort to document frauds will help those in the accounting
profession to build their audit checklists, so that the error of misreporting is minimized and the possibility of poor
financial reporting is reduced.
© 2009 IUP. All Rights Reserved.
TECHNOLOGY
Applying IT Controls
-- Chris Anderson
Organizations need and implement IT applications to meet the changing business and user needs. This
implementation needs IT infrastructure, which consists of operating systems, database management systems, and the requisite
networks. The application needs the overall infrastructure as well as specific applications to function. This includes:
authentication of users, accessing control or privileges management and control over changes. From an auditing perspective, it
is important to evaluate IT application controls as designed effectively.
© 2009 CAMagazine. Originally published in www.CAmagazine.com August 2009. Reprinted with permission.
SPEECH
Speech by SEC Commissioner: In Search of Transparency, Accountability, and Competition -
The Regulation of Credit Rating Agencies
-- Kathleen L Casey
Commissioner,
US Securities and Exchange Commission,
Washington DC.
After the collapse of Enron and WorldCom, there are widespread concerns regarding industry ratings. There is lack
of transparency as to how ratings are determined and virtually, there is absence of accountability of investors,
markets and regulators. Although many ratings have turned misleading, the large-rating agencies enjoyed profits during the
past decade. The basic mission of Credit Rating Agency Reform Act of 2006 is to promote competition in the industry.
© 2009 US Securities and Exchange Commission (www.sec.gov). Speech by Kathleen L Casey, Commissioner, Conference
Co-sponsored by the International Organization of Securities Commissions, Washington, February 6, 2009. Reprinted with permission.
|
