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Accounting System Under GST Regime: A Prologue
--Anup Kumar Ghosh and Siddhartha Swroop Ray
In 2011, introduction of Goods and Services Tax (GST) was mentioned by the Union Finance Minister in his budget speech, but its implementation was delayed due to lack of consensus among the states and center on aspects relating to limiting fiscal autonomy of the states. However, it is expected to be implemented most probably by 2016. As soon as it is implemented, there would be a requirement of proper accounting system. But how far are we prepared towards that end from an accounting point of view? This paper focuses on those aspects. In short, GST becomes payable as soon as there is a transaction of goods or services. But how it can be recorded precisely without the help of any prescribed register is to be carefully examined. Moreover, the idea of reverse taxation further adds to the complication. As GST has not yet been introduced, it is not clear what would be the exact nuances of law in this regard. However, in this paper, the service tax rules and central excise rules have been taken as the base for depicting the transaction.
© 2016 IUP. All Rights Reserved.
Factors Influencing Environmental Accounting and Disclosure
Practices in India: Empirical Evidence from NIFTY Companies --B Omnamasivaya and M S V Prasad
The study examines the factors determining the level of environmental disclosure information by taking a sample of NIFTY 50 companies from National Stock Exchange (NSE). The environmental information disclosure is measured by using an Environmental Accounting Disclosure Index (EADI) and the variables used in the study are profitability, corporate size, age, financial leverage, industry type, legal ownership and foreign operations. The relationship is tested using multiple regression analysis. The results show that there is a positive relationship between EADI and profitability, financial leverage, industry type and legal ownership, and a negative relationship between EADI and corporate size, age and foreign operations.
© 2016 IUP. All Rights Reserved.
A Comparative Study of Segment Reporting Under
AS-17 and IFRS 8: Empirical Evidence from India
--D D Bedia and Kshema Patodi
This paper examines the benefits of adopting International Financial Reporting Standards (IFRS) by Indian entities and further examines the effect of adoption of IFRS on companies’ segment reporting as compared to segment reporting under Indian GAAP (IGAAP). It studies the impact of adoption of IFRS 8 by taking the case of M/s Sify Technologies Ltd., an Indian listed entity and presents a detailed analysis of differences in the segment disclosures data under the new standard IFRS 8 vis-ŕ-vis the Indian Accounting Standard, AS-17. It is observed from the study that there are certain marked deviations in the segment profit and loss as disclosed by the financial statements of M/s Sify Technologies Ltd. as reported under IGAAP and those reported under IFRS. The major difference between the two reporting is the information given and the presentation requirement. Further, under IFRS 8, the disclosure requirements related to geographical segments are significantly reduced or in most of the cases completely lost, which is a major concern to stakeholders. Further, there will be lack of comparability of segment information between companies as IFRS provides discretion to the Chief Operating Decision Maker to choose what to disclose and the manner in which the information can be disclosed.
© 2016 IUP. All Rights Reserved.
Investigation on the Presence of Income Smoothing
Among NSE-Listed Companies
--Jutimala Bora and Ashit Saha
In today’s economic system, due to the development of information technology, transmission and accurate reporting of related financial information on which financial decision making is based has particular importance. Investors who make investment in companies do not have tools as well as expertise to know the workings of the company and to ensure the accuracy of the financial reporting. The government also, due to different reasons, requires an accurate and reliable financial reporting. Moreover, accurate information regarding the economic activities of the business, certitude in the application of accounting principles and standards, and proper information transmission in the form of financial reporting are considered effective factors in realizing the basic objective of financial reporting. But due to the application of creative accounting practices, the quality of financial reporting gets affected. The present study investigates income smoothing, one of the techniques of creative accounting, with reference to the companies listed in the National Stock Exchange (NSE) of India. Apart from studying the existence of income smoothing practice among the NSE-listed companies, effort has also been made to study the factors that may affect income smoothing.
© 2016 IUP. All Rights Reserved.
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