This is the twenty third compilation of opinions issued by the Institute’s Accounting Standards Board (the Board) and the Auditing Standards & Ethics Committee (the Committee) on the enquiries raised by members, entities and regulators during the period from July 2017 to June 2018. This compilation of opinions is termed as “Selected Opinions”.
These selected opinions are issued for the general guidance of the members of the Institute. In this document, the accounting opinions represent the opinions of the Board and opinions related to auditing and ethical matters represent the opinions of the Committee. These are not the official opinions of the Council of the Institute. The opinions are operational in nature and not on issues on which relevant laws and rules are not explicit. These selected opinions are not a compendium of “legal advice”.
The opinions are based on the accounting and auditing principles on the date the Board and the Committee finalises the particular opinion. The date of finalisation of each opinion is indicated along with the opinion. Since an opinion is arrived at on the basis of the facts and circumstances of each individual query provided by the enquirer, it may change if the facts and the circumstances change. An opinion may also change due to subsequent developments in law, pronouncements made by the Institute and other relevant changes. The Institute, the Board and the Committee will have no liability in connection with such opinion.
In every case the members have to take their own decisions in the light of facts and circumstances in accordance with related laws and rules applicable on the issue at that point in time.
Accounting
1.3 Complete set of financial statements for small-sized companies
1.4 Deferred tax liability arising on revaluation of fixed assets
1.5 Presentation of surplus on revaluation of fixed assets
1.6 Definition of ‘executives’
1.7 Classification of companies under the third schedule of the Companies Act, 2017
1.8 Filing of financial statements with the registrar of companies
1.9 Reconciliation of property, plant and equipment
1.10 Presentation of investment property
1.11 Transition to the Revised AFRS for SSEs and IFRS for SMEs
1.12 Definition of associated company
1.13 Applicability of two options for the medium sized companies
1.14 Guidance on presentation of discount to customers in financial statements
1.15 Revenue recognition from insurance brokerage
1.16 Accounting for financial assets at fair value through profit or loss in accordance with IAS 39
1.17 Capitalization of exchange differences on recent acquisition of inventories
1.18 Accounting of promotional/ marketing items
Auditing
2.1 Query on statutory positions
2.2 Suggestion by professional firm
2.4 Signature of auditor’s report
2.5 Record of direct dispatch and direct receipt of third party confirmations
2.6 Public Sector bidding for auditors