Goodwill & intangible Assets, Foreign currency translation, Derivative Instruments, Stock Based Compensation, Retiral Of Significant Accounting Policies,” before the footnotes.Įxamples of accounting policies to be disclosed includes revenue recognition, Investments, Fixed Assets, Accounting policies include accounting principles and its application in the preparation of financial statements, AĬompany’s major accounting policies should be disclosed in the first footnote or in a section called “Summary Guidelines for disclosure of accounting policies. Disclosure of Accounting Policies : APB Opinion Number 22 provides Section 906 of the Said Act requires that CEO and CFO should file similar compliance for quarterly statement in form 6-Kģ. That in the Annual Report in form 20-F, the issuing company has to include a statement of Compliance signed by its CEO and its CFO under Section 302 of the Act. With IRS as per Internal revenue Code for taxation purposes. There is no organization like Registrar of Companies (ROC) in US, hence unlistedĬompanies do not have any file their financial statements with any bodies except Auditing from CPA and filing the statements Compliance for Indian Companies : Indian Companies which issue ADR ( American Depository Receipt) or GDR (Global Depository Receipt)Īnd listed on NASDAQ or NYSE, have to submit Quarterly (6-K) and Annual Report (Ģ0-F) with Securities Exchange Commission, Washington EC in accordance with Rule 13a –16 or rule 15d-16 of Securities ![]() Statement of cash flow prepared in accordance with SFAS 95 contains break up of cash from Operating, Financing and InvestingĢ. Income, deferred Stock compensation and retained earnings. The consolidated statement of Stock holders’ Equity and comprehensive Incomes containsĪggregation of Par Value of Common stock along with Additional paid in capital Comprehensive Income, Accumulated Comprehensive The Consolidated statement of Income has to show comparatives for 3 years and also has to contain EPS data ( Basic and/or Diluted EPS) as applicable The Presentation of items in Balance sheet moves from current to Non Current for Assets as well as V Certification by CEO as well as CFO as required u/s 302 of Sarbanes OxleyĪct, 2002 in Annual Report ( 20-F) and also in quarterly report ( 6 K)Īs CFO as required u/s 906 of Sarbanes Oxley Act, 2002 in Annual Report ( 20-F). V Forward looking statement as per section 27A of the Securities Act, 1933 V Summary of Significant Accounting Policies as required by APB 22 V Consolidated statement of Cash flow (showing comparatives for 3 years) V Consolidated statement of Stock holders’ Equity and comprehensive Incomes V Consolidate statement of Income (showing comparatives for 3 years) V Consolidated Balance Sheet (showing comparatives for 2 years) Financial statements : Under US GAAP, the Financial statements include the following:: Infosys, ITC, L&T, MTNL, Ranbaxy Labs, Reliance, Satyam Computers, SBI, VSNL and WIRPO and required to follow US GAAPġ. Some of Indian Companies who have launched GDR/ ADR are Bajaj Auto, Dr Reddy’s Lab, HDFC Bank, Hindalco, ICICI Bank, Require that their Indian Subsidiaries or Associates, should prepare separate sets of Accounts under US GAAP for ease of consolidation. Further many foreign companies whose shares are listed on US Stock Exchanges, To get listed on NYSE or NASDAQ and float GDR, an Indian companyĮither needs to publish accounts under US GAAP or expressly publish the reconciliation of its Financial Results with US GAAP. Globalisation and access to Global CapitalĪnd securities market has enhanced the need to assimilate the principles of US GAAP into national Accounting Standards. Is the new mantra for Accounting and Corporate Finance Professionals world over. ![]() US GAAP (Generally Accepted Accounting Principle)
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |