Cover Story
Accounting Information System: A Gateway to Success in Business Decisions
-- Anila Chandran V and Vineetha VK
The emergence of Information Technology has changed the way businesses operate today. Traditional paper-based
processes have entirely been replaced with Information System (IS) as it plays a vital role in business transactions in solving all kinds
of business related problems. Accounting Information System (AIS) covers all business functions from basic accounting
processing systems to complex financial management planning and processing systems. It covers all the accounting aspects of
business operations such as recording of enterprise assets or liabilities, purchases and sales which assist in computation of
operational results and preparation of financial reports.
© 2009 IUP. All Rights Reserved.
REVENUE RECOGNITION
Accounting and Revenue Recognition: Concerns of SMEs in India
-- Padma Srinivasan
Small and medium enterprises are one of the major contributors to the Indian economy. They provide huge
employment opportunities and account for nearly 95% of all industrial establishments in India. However they have to adhere to
the accounting conventions, Generally Accepted Accounting Principles (GAAP) and Accounting Standards like any other
company. This article looks into the special concerns especially on the revenue recognition by SMEs while adopting the
accounting standards and Indian GAAP.
© 2009 IUP. All Rights Reserved.
ACCOUNTING STANDARDS
IASB Issues: New Requirements for Changes in Degree of Control
-- Zwi Y Sacho
The International Accounting Standards Board (IASB) completed the second phase of its business combinations project
on January 10, 2008 by issuing a revised version of IFRS 3—Business Combinations and an amended version of IAS
27—Consolidated and Separate Financial Statements (referred to as "IFRS 3R" and "IAS 27R" respectively).
© 2008 This article was first published in November 2008 issue of AccountancySA (www.accountancysa.org.za), a South Africa Institute of Chartered Accountants (SAICA). Reprinted with permission.
ACCOUNTING STANDARDS
Can More … or Less Regulation Fix What's Wrong
-- Cheryl de Mesa Graziano and Ellen M Heffes
Too much, too little, just right? Charles Niemeier has strong opinions on the current push to converge accounting
standards globally—and of the uniqueness of the US markets and their approach to regulation and compliance.
© 2008 Financial Executive. Originally published in www.financialexectives.org, December, 2008.
Reprinted with permission.
TAXATION
Taxation on Agriculture Income in India: A Critical Review
-- Pradeep Kumar Singh
Agriculture is the main part of the Indian economy. 70% of the Indian population is based upon agriculture and derives its
income from agricultural operations. But u/s 10 (I) of the Indian Income Tax Act, 1961, agricultural income is fully exempted from
tax. The basic reason behind exemption is that our economy is agriculture based and if agricultural income is taxed, production
will decline resulting in shortage of food grains. The article tries to evaluate the present taxation policy with reference to
agricultural income and highlights the concept of agricultural income, agricultural taxation policy in India, integration of agricultural
income with other non-agricultural income and its impact on tax liability.
© 2009 IUP. All Rights Reserved.
BUSINESS ENVIRONMENT
Accounting for Forward Contracts: A Primer
-- Kumar Patwardhan
An entity dealing in the international market may purchase or sell goods to foreign entities due to which it is exposed to
foreign exchange risk. Foreign exchange risk is a change in the cash inflow or cash outflow due to change in the exchange rate. This
risk arises because a transaction may be entered into and settled at two different rates. However, it can be managed through the
use of derivatives. Forward contract is one such derivative used extensively by the entities to manage the risk.
© 2009 IUP. All Rights Reserved.
COSTING
Decision-Making with Marginal Cost
-- Vikas Shrotriya
Effective management is nothing but strategic decision-making and timely implementation of decisions. Decisions can be routine
or of strategic nature. Crucial decisions require relevant considerations. Cost is a major factor affecting various
strategic decisions. Same cost figures can be analyzed from many angles. It has been observed that treating cost cumulatively is not
of much help. This article explores the situations where marginal cost can provide better understanding of the cost behavior
while decision-making.
© 2009 IUP. All Rights Reserved.
SPEECH
Speech by SEC Commissioner: Remarks Before the Transatlantic Corporate Governance Dialogue
-- Kathleen L Casey
Good corporate governance underpins market confidence, integrity and efficiency and hence promotes economic growth
and financial stability. The numerous high-profile cases of corporate governance failure have focused the minds of
governments, regulators, companies, investors and the general public on the weaknesses in corporate governance systems and the
associated threat posed to the integrity of financial markets.
© 2008 US Securities Exchange Commision (ww.sec.gov). Speech by Kathleen L Casey, Conference Co-sponsored by the
Committee of European Securities Regulator, Europe, Septmeber 9, 2008. Reprinted with permission.
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