Not for Profit Organisations (NPOs) in India generally assume various legal forms such as public charitable trust, a society and a Section 8 company under the Companies Act, 2013. A foreign NPO can also open a branch office or a liaison office in India. The NPOs need to adhere to accounting, tax and regulatory requirements in India. In this edition of Accounting and Auditing Update (AAU) we have included an article which provides an overview of the accounting and reporting challenges faced by NPOs.
This edition also carries an article on the accounting for transfer of financial assets. Under Accounting Standards there is limited guidance for measuring and accounting financial instruments, including the accounting for transfer and derecognition of financial assets. While Ind AS 109, Financial Instruments, provides detailed guidelines on accounting for financial instruments, and specifies the principles to be followed while evaluating derecognition of financial assets. An article on this topic demonstrates the accounting for transfer of financial assets (accounts receivable) under Accounting Standards and demonstrates the corresponding accounting consideration under Ind AS 109.
The Institute of Chartered Accountants of India (ICAI) has issued an educational material on Ind AS 28, Investments in Associates and Joint Ventures which explains key requirements of the standard and Frequently Asked Questions (FAQs). The FAQs cover issues which are expected to be encountered frequently while implementing the standard. The article on this topic highlights key issues discussed in the educational material along with the related guidance reiterated by ICAI.
Our publication also carries a regular synopsis of some recent regulatory updates.