Starting this month and continuing for the next year, the Accounting and Auditing Update will bring to you recent affairs on accounting, financial reporting and regulatory challenges being faced by sectors in India; each month’s publication focussing on different sector. This month’s updates discuss the automotive sector.
Ind AS is bringing about a paradigm shift in financial reporting which is going to potentially affect many key metrics of performance. We highlight four key areas of impact: revenue recognition, consolidation, moulds and toolings and embedded leases. Our article explains the new accounting requirements in these areas and the expected challenges that are likely to be faced by the sector.
We are also introducing an interview section in our publication where we speak with a CFO/finance director of a leading company from the industry where we explore some of the key accounting and reporting, and topical matters relevant to this industry. This month’s issue features an interview with industry leader Mr. V S Parthasarathy, Group CFO,Group CIO and President (Group Finance and M&A), Mahindra & Mahindra. He shares his perspective and experience on a wide range of issues.
We also cover other key areas this month including the treatment of research and development costs; accounting and reporting challenges associated with product recalls and highlight salient aspects of Goods and Services Tax and transfer pricing as they pertain to the automotive sector. Finally, apart from our regular round up of regulatory updates, this edition of the Accounting and Auditing Update also provides an overview of the Guidance Note on Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India recently.
© 2020 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
KPMG (Registered) (a partnership firm with Registration No. BA- 62445) converted into KPMG Assurance and Consulting Services LLP (a Limited Liability partnership firm) with LLP Registration No. AAT-0367 with effect from July 23, 2020.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.