GAAP Advisory and Financial Reporting
Generally Accepted Accounting Principles (GAAP) are fundamental accounting principles and guidelines that provide the framework for comprehensive and inclusive accounting rules, standards and other industry-specific accounting practices. Generally GAAP is approved by the Govt. of the country and every business enterprises need to follow such GAAP for their accounting & reporting purposes.
International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB), London, UK is widely accepted as GAAP by governments of various countries.
Few countries (such as USA, India etc.) differ from applying IFRS. They follow their own GAAP for their accounting & reporting purposes.
Currently India follows two different GAAP i.e. Indian Accounting Standards (Ind-AS) for certain classes of companies (such as Listed Entities, Private Entities having requisite net worth & turnover) and Accounting Standards for remaining classes of business enterprises. Ind-ASs have been introduced in FY 2016-17 which are converged standards of IFRS only and drafted purely in line with IFRS in order to create consistency in the financial reporting of large Indian Companies with Global Enterprises.
Financial Reporting includes reporting of financial transactions in the form of financial statements / results in line with the applicable accounting framework (GAAP) as well as the law prevailing in the countries. In India, business enterprises are required to follow not only GAAP but also applicable laws to prepare their financial statements (Eg. Requirements of Schedule-III under the provisions of Companies Act, 2013 for preparation of financial statements, Requirements of SEBI (LODR) Regulations for preparation of financial results etc.).
We, N. B. Kewlani & Co., Chartered Accountants; meet all sort of client’s requirements in respect of GAAP advisory and financial reporting. We provide following services:
GAAP Transition & Accounting Advisory
Our qualified chartered accountants hold not only the expert knowledge of various GAAP (Ind-AS, AS, US GAAP) but also wide-ranging practical experience in this field. We not only provide guidance in respect of accounting during transition phase (i.e. From AS to Ind-AS / IFRS / US GAAP) but also provide guidance in respect of:
- Tax effects under new accounting regime,
- Consolidation,
- Fair valuation of Financial Instruments,
- Preparation of 1stfinancial statements under new accounting regime,
- Hedge accounting and related regulatory documentation,
- Drafting of lease agreements and their accounting under new accounting regime,
- Transaction advisory,
- Drafting of Employee Stock Option Plan (ESOP) and related accounting,
- Adoption of appropriate accounting policies under new accounting regime,
- Reporting to parent companies in MNCs under new accounting regime,
- Training to finance team of the company in respect of various GAAP differences,
- Organizing accounting / financial manuals,
- Impairment Testing in line with new accounting regime,
- Trial balance analysis,
- GAAP Transition entry sheets.
Preparation of Financial Statements
Financial statements are the face of the enterprises before their stake-holders, bankers, investors, government authorities etc. Hence it is very much important to prepare the financial statements with accurate numbers, proper accounting principles and correct presentation.
Preparation of financial statements of various entities require in-depth knowledge of
- GAAP standards (Specifically disclosure requirements)
- Financial Reporting Framework and provisions of law,
- Financial Closing process of the entity,
- Industry norms.
We provide services in respect of
- Preparation of financial statements (Standalone as well as Consolidated) of companies in accordance with applicable GAAP (AS, Ind-AS, IFRS, US GAAP etc.) and requirements of Schedule-III under Companies Act, 2013,
- Preparation of financial results of listed companies under SEBI (LODR) regulations,
- Preparation of restated financial statements (to be included in Draft Offer documents) of the companies which are going for listing and dealing with its IPO,
- Preparation of financial statement of non-corporate entities,
- Review of financial statements prepared by the management and providing guidance to improve financial reporting.
Our firm, N. B. Kewlani & Co., Chartered Accountants is one of the leading firm in Ahmedabad which provides expert advisory & consulting services in this area. We are well equipped with latest tools, formats and calculators for to render services in this field.
Till now, our firm has completed more than 25 GAAP Transition & Consolidation engagements (including preparation of their financial statements) for various big corporate entities. During these engagements our firm has successfully handled various critical & technical issues such as business combinations, accounting & valuation of derivative instruments, ESOPs, multi-locational lease properties, EPCG Government Grants, Valuation of Corporate Guarantees, consolidation of company having various subsidiaries, joint ventures & associates and various other GAAP transitional adjustments.