CA Final Financial Reporting cheat sheet

Ind AS 1 requires a going concern assessment, accrual basis, materiality, offsetting prohibition, and comparative information; an entity classifies assets and liabilities as current unless it has an unconditional right to defer settlement for at least twelve months after the reporting date.

Ind AS 8: changes in accounting policy are applied retrospectively with restatement of comparatives and adjustment of opening retained earnings unless a transitional provision in the new standard or Ind AS 101 permits otherwise; changes in estimate are applied prospectively.

Prior period errors are corrected retrospectively; material prior period errors require restatement of comparatives and disclosure of the nature and amount of each line item affected.

Ind AS 10: adjusting events provide evidence of conditions existing at the reporting date (e.g., settlement of a court case confirming a present obligation); non-adjusting events (e.g., a fire after year-end) require disclosure only if material.

Dividends declared after the reporting date are non-adjusting events; under Ind AS 10 they are disclosed in the notes and not recognised as a liability at the reporting date.

Ind AS 34: an interim financial report may be a complete set or a condensed set plus selected explanatory notes; it applies the same accounting policies as the annual financial statements, and materiality is assessed against interim, not annual, figures.

Ind AS 101: first-time adoption uses a full retrospective application with mandatory exceptions (e.g., estimates, derecognition of financial assets, hedge accounting) and optional exemptions (e.g., deemed cost for PPE, business combination exemption, cumulative translation differences).

Ind AS 101 requires an opening Ind AS balance sheet at the date of transition, reconciliation of equity and total comprehensive income from previous GAAP to Ind AS, and disclosure of the effect of transition on each financial statement line item.

Ind AS 115 five-step model: identify the contract, identify performance obligations, determine the transaction price, allocate the price to performance obligations based on relative standalone selling prices, and recognise revenue when (or as) each obligation is satisfied.

A performance obligation is satisfied over time if the customer simultaneously receives and consumes benefits, the entity creates or enhances an asset the customer controls, or the asset has no alternative use and the entity has an enforceable right to payment for performance completed to date.

Variable consideration is estimated using the expected value or most likely amount and included only to the extent that a significant revenue reversal is not highly probable; the constraint is reassessed each reporting period.

Contract costs are capitalised only if they are incremental costs of obtaining a contract (and expected to be recovered) or costs to fulfil a contract that are not within the scope of another standard; capitalised costs are amortised on a systematic basis consistent with the transfer of goods or services.

Ind AS 16: cost includes purchase price, directly attributable costs of bringing the asset to working condition, and the initial estimate of dismantling costs; depreciation begins when the asset is available for use, and the residual value and useful life are reviewed at least annually.

Ind AS 36: an impairment loss is the excess of carrying amount over recoverable amount (higher of fair value less costs of disposal and value in use); goodwill impairment cannot be reversed, and reversal of other impairment is limited to the amount that would have been determined had no impairment been recognised.

Ind AS 40: investment property is measured initially at cost and subsequently at cost or fair value; a change from cost to fair value is a change in accounting policy, and transfers to or from investment property occur only on a change in use.

Ind AS 20: government grants are recognised when there is reasonable assurance of compliance with conditions and receipt; grants related to assets may be presented as deferred income or deducted from the asset, and grants related to income are presented in profit or loss or deducted from the related expense.

Ind AS 109 classification of financial assets depends on the business model (hold to collect, hold to collect and sell, or other) and the contractual cash flow characteristics test (solely payments of principal and interest on the principal amount outstanding).

Amortised cost uses the effective interest rate that exactly discounts estimated future cash flows to the gross carrying amount; the effective interest rate includes transaction costs and fees integral to the instrument.

Expected credit losses are recognised at 12-month ECL unless credit risk has increased significantly since initial recognition, in which case lifetime ECL applies; for trade receivables, a simplified approach with a provision matrix is permitted.

A financial liability is measured initially at fair value less transaction costs and subsequently at amortised cost unless designated at fair value through profit or loss; the fair value option is available only if it eliminates an accounting mismatch or the instrument is managed on a fair value basis.

Ind AS 32: a financial instrument is a financial liability if the issuer has an obligation to deliver cash or another financial asset; a puttable instrument or an instrument with contingent settlement features may be classified as equity only if specific conditions are met.

Ind AS 113 fair value hierarchy: Level 1 uses quoted prices in active markets for identical assets; Level 2 uses observable inputs other than quoted prices; Level 3 uses unobservable inputs, and the fair value hierarchy is applied to each class of asset and liability.

Ind AS 107 requires disclosure of the significance of financial instruments, the nature and extent of risks arising from them (credit, liquidity, market risk), and a sensitivity analysis for each type of market risk.

Derecognition of a financial asset occurs when the contractual rights to cash flows expire or the asset is transferred and substantially all risks and rewards are transferred; if risks and rewards are neither transferred nor retained, control determines derecognition.

Ind AS 103: the acquisition method requires identifying the acquirer, determining the acquisition date, recognising and measuring identifiable assets acquired and liabilities assumed at fair value, and recognising goodwill as the excess of consideration transferred plus non-controlling interest over net identifiable assets.

Goodwill is not amortised but tested for impairment annually; a bargain purchase gain is recognised in profit or loss after reassessing the identification and measurement of identifiable assets and liabilities.

Contingent consideration is measured at fair value at the acquisition date and classified as a liability or equity; subsequent changes in a liability are recognised in profit or loss unless they relate to measurement period adjustments.

Ind AS 110: control exists when the investor has power over the investee, exposure to variable returns, and the ability to use its power to affect those returns; consolidation is required for all subsidiaries, including special purpose entities.

Non-controlling interest is measured at fair value or at the proportionate share of the acquiree's identifiable net assets; the choice is made for each business combination.

Ind AS 111: a joint arrangement is classified as a joint operation if the parties have rights to the assets and obligations for the liabilities, and as a joint venture if the parties have rights to the net assets; joint ventures are accounted for using the equity method.

Ind AS 28: the equity method recognises the investment initially at cost, adjusts for the investor's share of post-acquisition profit or loss and other comprehensive income, and reduces the carrying amount for dividends received.

Ind AS 27: separate financial statements measure investments in subsidiaries, joint ventures and associates at cost or in accordance with Ind AS 109; the same accounting policy is applied to each category of investment.

Ind AS 19: defined benefit obligation is measured using the projected unit credit method, with actuarial assumptions including discount rate, salary escalation, mortality and attrition; the discount rate is determined by reference to market yields on high-quality corporate bonds.

Remeasurements of the net defined benefit liability (actuarial gains and losses, return on plan assets excluding interest, and changes in the effect of the asset ceiling) are recognised in other comprehensive income and are not reclassified to profit or loss.

Past service cost is recognised in profit or loss at the earlier of the date of plan amendment or curtailment and the date of recognition of related restructuring costs; net interest is calculated on the net defined benefit liability using the discount rate.

Ind AS 102: equity-settled share-based payments are measured at the fair value of the equity instruments granted at grant date and recognised over the vesting period, with a corresponding increase in equity; the fair value is not subsequently remeasured.

Cash-settled share-based payments are measured at the fair value of the liability at each reporting date and at settlement, with changes recognised in profit or loss; the liability is remeasured until settled.

Ind AS 37: a provision is recognised when there is a present obligation from a past event, a probable outflow of resources, and a reliable estimate; the amount is the best estimate of the expenditure required to settle the obligation at the reporting date.

A contingent liability is disclosed but not recognised; a contingent asset is not recognised and is disclosed only when an inflow of economic benefits is probable.

Ind AS 29: financial statements of an entity whose functional currency is the currency of a hyperinflationary economy are stated in terms of the measuring unit current at the reporting date, with monetary items not restated and non-monetary items restated using a general price index.

Ind AS 12 uses the balance sheet approach: deferred tax is recognised on temporary differences between the carrying amount of an asset or liability and its tax base, using the tax rates expected to apply when the difference reverses.

A deferred tax asset is recognised only to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised; unused tax losses and credits are treated similarly.

Deferred tax is not recognised on the initial recognition of goodwill or on the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit.

Ind AS 116: a lessee recognises a right-of-use asset and a lease liability at the present value of lease payments discounted using the interest rate implicit in the lease or, if not readily determinable, the lessee's incremental borrowing rate.

Lease term includes the non-cancellable period, periods covered by an option to extend if exercise is reasonably certain, and periods covered by an option to terminate if the lessee is reasonably certain not to exercise the option.

Short-term leases (12 months or less) and leases of low-value assets may be expensed on a straight-line basis; the election is made by class of underlying asset.

Ind AS 21: foreign currency transactions are translated at the spot rate at the transaction date; monetary items are retranslated at the closing rate with exchange differences recognised in profit or loss, and non-monetary items measured at historical cost are not retranslated.

Translation of a foreign operation: assets and liabilities at the closing rate, income and expenses at the transaction-date rate (or average rate if exchange rates do not fluctuate significantly), with exchange differences recognised in other comprehensive income and reclassified to profit or loss on disposal.

Banking companies prepare financial statements under the Banking Regulation Act, 1949 and RBI directions, with Ind AS 109 classification of advances and investments; NPAs are classified as substandard, doubtful or loss assets, and provisioning is based on asset classification.

NBFCs follow the RBI scale-based regulation framework (base, middle, upper and top layers) with capital adequacy, asset classification and provisioning norms; systemically important NBFCs apply stricter governance and disclosure requirements.

Insurance companies apply Ind AS 117 (Insurance Contracts) when effective, with a contractual service margin representing unearned profit recognised over the coverage period; premium and claim liabilities are measured using fulfilment cash flows plus the CSM.

Power companies apply Ind AS 115 to tariff-regulated contracts and recognise regulatory deferral account balances under Ind AS 114 where the regulator sets tariffs that recover costs; the deferred balances are presented separately in the balance sheet.

Real estate developers recognise revenue under Ind AS 115 based on transfer of control, which may be over time if the customer controls the asset as it is created or if the asset has no alternative use and there is an enforceable right to payment.

Mutual funds prepare financial statements under SEBI (Mutual Funds) Regulations, 1996, with net asset value per unit calculated as net assets divided by the number of units outstanding; investments are measured at fair value.

Broker-dealers recognise brokerage income on the trade date, segregate client and proprietary assets, and comply with SEBI net worth and margin reporting requirements; securities are measured at fair value through profit or loss.

Insurance and banking entities disclose regulatory capital, liquidity ratios and asset-liability management information in addition to Ind AS 107 disclosures.

Integrated reporting is based on the IIRC framework, with six capitals (financial, manufactured, intellectual, human, social and relationship, and natural), a business model, and the concepts of value creation, connectivity and materiality.

The integrated report's guiding principles include strategic focus and future orientation, connectivity of information, stakeholder relationships, materiality, conciseness, reliability and completeness, and consistency and comparability.

Sustainability reporting under GRI uses universal standards (GRI 1, 2 and 3), sector standards and topic standards; the report covers material topics identified through stakeholder engagement and impact assessment.

The IFRS Sustainability Disclosure Standards IFRS S1 and IFRS S2 address general sustainability-related disclosures and climate-related disclosures, including governance, strategy, risk management and metrics and targets.

CSR reporting under Section 135 of the Companies Act, 2013 applies to companies meeting the prescribed thresholds; the CSR committee formulates policy and the company must spend at least 2% of average net profits of the preceding three financial years.

Unspent CSR amounts relating to ongoing projects are transferred to an unspent CSR account within 30 days of the financial year end; other unspent amounts are transferred to a Schedule VII fund within six months.

The Business Responsibility and Sustainability Report (BRSR) is mandatory for the top 1,000 listed companies by market capitalisation, covering principles on governance, environment, employee welfare and stakeholder engagement.

Assurance on sustainability information may be limited or reasonable; the report should disclose the assurance provider, the scope and the conclusion, along with the basis for preparation.

Government accounting in India follows the cash basis for the Consolidated Fund, Contingency Fund and Public Account, with receipts and payments classified under the major, minor and detailed heads of the budget.

The Comptroller and Auditor General audits government accounts and reports to Parliament; the Finance Accounts and Appropriation Accounts are prepared annually.

Public sector entities applying Ind AS follow the same standards as private entities, with additional disclosures on government grants, subsidies and regulated operations under Ind AS 20.

Not-for-profit entities typically prepare receipts and payments accounts and income and expenditure accounts; contributions are recognised as income when received unless they are for a specific purpose with a matching obligation.

Corpus or endowment funds are recognised as capital and not as income; restricted funds are accounted for separately, with expenditure charged against the relevant fund.

Ind AS 105 applies to non-current assets held for sale and discontinued operations, requiring measurement at the lower of carrying amount and fair value less costs to sell, with no depreciation while classified as held for sale.

Public sector entities disclose budget-to-actual comparisons where the budget is publicly available, and explain material differences between budgeted and actual amounts.

Donations in kind are recognised at fair value when reliably measurable; volunteer services are recognised only when the services would otherwise have been purchased.

Ratio analysis: current ratio = current assets / current liabilities; quick ratio excludes inventory; debt-equity ratio = total debt / shareholders' equity; interest coverage = EBIT / interest expense.

DuPont analysis decomposes return on equity into net profit margin, asset turnover and equity multiplier, isolating profitability, efficiency and leverage effects.

Valuation approaches include income (discounted cash flow), market (comparable companies and transactions) and cost (net asset value); the discounted cash flow method uses free cash flow discounted at the weighted average cost of capital.

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate), where Ke is derived from the capital asset pricing model: risk-free rate plus beta times the market risk premium.

Enterprise value = market capitalisation + debt + minority interest + preferred shares - cash and cash equivalents; EBITDA multiples are applied to enterprise value, and price-earnings multiples to equity value.

Financial restructuring under a scheme of arrangement requires approval of the NCLT under Sections 230-232 of the Companies Act, 2013, with a valuation report and fairness opinion from registered valuers.

Under a debt restructuring, the difference between the carrying amount of the liability and the fair value of the consideration is recognised as a gain or loss in profit or loss; Ind AS 109 applies to modification and derecognition of financial liabilities.

Insolvency resolution under the IBC, 2016 involves a resolution plan approved by the NCLT; the plan is accounted for when approved, with extinguishment of liabilities and recognition of the new consideration.

Consolidation eliminates the parent's investment in the subsidiary against the subsidiary's equity, recognises non-controlling interest, and eliminates intra-group balances, transactions, income and expenses in full.

Intra-group profits in inventory and non-current assets are eliminated to the extent of the group's ownership; the elimination adjusts the carrying amount of the asset and the profit or loss of the selling entity.

Uniform accounting policies and a common reporting date are used across the group; if a subsidiary's reporting date differs by more than three months, additional financial statements are prepared for consolidation.

Goodwill arising on consolidation is tested for impairment as part of the cash-generating unit to which it belongs; the impairment loss is allocated first to goodwill and then to other assets pro rata.

A step acquisition remeasures the previously held interest at fair value at the acquisition date, with the resulting gain or loss recognised in profit or loss.

On loss of control, the parent derecognises the subsidiary's assets and liabilities, recognises any retained interest at fair value, and recognises the resulting gain or loss in profit or loss.

Associates and joint ventures are accounted for using the equity method, with goodwill included in the carrying amount of the investment and not tested separately.

The consolidated statement of cash flows eliminates intra-group cash flows and presents the group as a single economic entity.

Ind AS 109 hedge accounting requires formal designation and documentation at inception, including the risk management objective, the hedging relationship, and the nature of the hedged risk.

Hedge effectiveness is assessed prospectively and retrospectively; a hedge is highly effective if the changes in fair value or cash flows offset within 80% to 125%.

Fair value hedges remeasure the hedged item and the hedging instrument at fair value through profit or loss; cash flow hedges recognise the effective portion in other comprehensive income and reclassify it to profit or loss when the hedged item affects profit or loss.

A hedge of a net investment in a foreign operation recognises the effective portion of the gain or loss in other comprehensive income and reclassifies it to profit or loss on disposal of the foreign operation.

Hedge accounting may be discontinued prospectively when the hedging relationship no longer meets the qualifying criteria; the cumulative gain or loss in other comprehensive income is accounted for separately.

Ind AS 107 requires a maturity analysis for derivative and non-derivative financial liabilities, a description of collateral, and disclosure of the nature and extent of risks.

Fair value disclosures under Ind AS 113 include the level of the fair value hierarchy, valuation techniques and significant unobservable inputs for Level 3 measurements, and a sensitivity analysis of those inputs.

Offsetting of financial assets and liabilities is permitted only when there is a legally enforceable right to set off and an intention to settle net or simultaneously.

Defined contribution plans: the entity's obligation is limited to the contributions it agrees to pay, and the expense is recognised as the contribution falls due; no actuarial valuation is required.

Short-term employee benefits are recognised as an expense when the employee renders service; an accrual is made for accumulated compensated absences that are expected to be settled.

Other long-term employee benefits, such as long-service leave, are measured using the projected unit credit method, with remeasurements recognised in profit or loss rather than other comprehensive income.

Termination benefits are recognised when the entity can no longer withdraw the offer of the benefit or when it recognises restructuring costs, whichever is earlier.

Employee benefit disclosures under Ind AS 19 include the characteristics of the plans, the amounts recognised in the financial statements, and a sensitivity analysis of the defined benefit obligation.

The net defined benefit liability is the present value of the defined benefit obligation less the fair value of plan assets; an asset ceiling limits the recognised surplus to the present value of future economic benefits.

Actuarial gains and losses arise from experience adjustments and changes in actuarial assumptions; they are recognised in other comprehensive income and are not reclassified to profit or loss.

Past service cost is recognised immediately in profit or loss when a plan amendment reduces the benefits for past service or introduces a new benefit.

Temporary differences are either taxable (resulting in a deferred tax liability) or deductible (resulting in a deferred tax asset); the tax base of an asset is the amount deductible for tax purposes in future periods.

A deferred tax liability is recognised for all taxable temporary differences, except those arising from the initial recognition of goodwill or from investments in subsidiaries, branches and associates where the parent controls the timing of reversal and reversal is not probable.

Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted by the reporting date.

Deferred tax is presented as a non-current asset or liability in the balance sheet and is not discounted; current and deferred tax are recognised in profit or loss unless they relate to items recognised in other comprehensive income or equity.

A deferred tax asset is recognised for unused tax losses only if it is probable that future taxable profits will be available; the entity considers the existence of taxable temporary differences, tax planning opportunities and the history of losses.

Uncertain tax positions are assessed under Ind AS 12 by determining whether a tax authority is more likely than not to accept the position; if not, the effect is reflected in the tax expense.

Minimum alternate tax credit is recognised as an asset when it is probable that the credit will be utilised against future normal tax liability.

Deferred tax on undistributed profits of subsidiaries is recognised when the parent expects the subsidiary to distribute profits in the foreseeable future.

A lessor classifies a lease as a finance lease if it transfers substantially all the risks and rewards incidental to ownership; indicators include the lease term covering the major part of the economic life, a bargain purchase option, and the present value of lease payments approximating fair value.

A finance lease recognises a net investment in the lease equal to the gross investment (undiscounted lease payments plus unguaranteed residual value) discounted at the interest rate implicit in the lease.

An operating lease recognises lease income on a straight-line basis over the lease term unless another systematic basis is more representative; initial direct costs are added to the carrying amount of the leased asset.

A sale and leaseback transaction recognises a right-of-use asset and a lease liability; a gain or loss is recognised only to the extent of the rights transferred to the buyer-lessor.

If the sale price is not at fair value, the entity adjusts the sale proceeds to fair value and accounts for the difference as additional financing or prepaid rent.

Sublease classification is based on the right-of-use asset rather than the underlying asset; an intermediate lessor accounts for the head lease and sublease separately.

Ind AS 116 requires a lessee to remeasure the lease liability when there is a change in the lease term, a change in the assessment of a purchase option, or a change in the amounts expected to be payable under a residual value guarantee.

Lease disclosures include a maturity analysis of lease liabilities, variable lease payments, and the nature of the lessee's leasing activities.

Functional currency is the currency of the primary economic environment in which the entity operates; it is determined by the currency that mainly influences sales prices and the currency of the country whose competitive forces and regulations determine the prices.

Presentation currency is the currency in which the financial statements are presented and may differ from the functional currency; translation from functional to presentation currency uses the closing rate for assets and liabilities and the transaction-date rate for income and expenses.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise, except for a monetary item that forms part of a net investment in a foreign operation, which is recognised in other comprehensive income.

Non-monetary items measured at fair value in a foreign currency are translated at the exchange rate at the date the fair value was determined; non-monetary items measured at historical cost are translated at the historical rate.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

On disposal of a foreign operation, the cumulative amount of exchange differences recognised in other comprehensive income is reclassified to profit or loss as part of the gain or loss on disposal.

When the presentation currency differs from the functional currency, exchange differences are recognised in other comprehensive income and presented as a separate component of equity.

Ind AS 21 requires disclosure of the amount of exchange differences recognised in profit or loss and of the net exchange differences recognised in other comprehensive income.

Banks present a balance sheet with capital and liabilities, assets, and contingent liabilities; income is presented as interest earned, other income, interest expended, operating expenses and provisions.

Under Ind AS 109, advances are classified as amortised cost unless they fail the solely payments of principal and interest test or are managed on a fair value basis; expected credit losses are recognised for all advances.

The RBI's prudential norms require classification of advances into standard, substandard, doubtful and loss assets, with provisioning percentages prescribed by the regulator.

Banks disclose capital adequacy under Basel III, comprising common equity tier 1, additional tier 1 and tier 2 capital, with a minimum capital to risk-weighted assets ratio.

NBFCs are classified by the RBI on the basis of their principal business and the scale-based regulation layer; they must maintain a minimum net owned fund and comply with capital adequacy norms.

A bank's net interest margin is net interest income divided by average earning assets; the cost-to-income ratio is operating expenses divided by net income.

Banks disclose the maturity pattern of assets and liabilities, segment reporting and related party transactions in addition to Ind AS 107 disclosures.

Provision for standard assets is a general provision and is not deducted from gross advances; it is presented as a liability or a reduction of the carrying amount depending on the entity's accounting policy.

Insurance contracts under Ind AS 117 are grouped into portfolios and measured using fulfilment cash flows (probability-weighted estimates of future cash flows, discounting and a risk adjustment) plus a contractual service margin.

The contractual service margin is recognised in profit or loss over the coverage period based on the services provided; it cannot be negative.

Power companies with regulated tariffs recognise regulatory deferral account balances for costs that the regulator allows to be recovered in future periods, with a corresponding regulatory asset or liability.

Real estate developers apply the percentage of completion method only when control transfers over time; otherwise revenue is recognised at the point in time when control passes to the buyer.

Mutual fund net asset value per unit is calculated as the fair value of the scheme's assets less liabilities divided by the number of units outstanding at the valuation date.

Broker-dealers recognise brokerage income on the trade date and disclose segment information by business line; client funds are held in separate accounts and are not included in the entity's own assets.

Insurance companies disclose a reconciliation of the opening and closing balances of the contractual service margin and the risk adjustment.

Regulated entities disclose the effect of regulation on their financial statements, including the nature and amount of regulatory deferral balances and the basis of tariff determination.

The integrated report explains how the organisation creates value over time using the six capitals and the business model, with a focus on the organisation's strategy and resource allocation.

Materiality in integrated reporting is determined by the effect of a matter on the organisation's ability to create value, not solely by its financial magnitude.

Connectivity of information requires linking the content elements, the capitals, the past and the future, and the financial and non-financial information.

The content elements are organisational overview and external environment, governance, business model, risks and opportunities, strategy and resource allocation, performance, outlook, and basis of preparation and presentation.

The report should disclose the significant risks and opportunities and how they affect the organisation's ability to create value, together with the related responses.

Assurance on the integrated report is voluntary, but the report should disclose whether it has been assured and the scope of the assurance.

The report should explain the process used to determine materiality and the boundary of the report, including the entities and stakeholders covered.

Value creation is not limited to financial returns; the report explains the effects on the capitals and the trade-offs among them.

GRI 1 sets out the purpose and system of the GRI Standards; GRI 2 covers general disclosures and GRI 3 covers material topics and their management.

GRI topic standards address specific impacts such as emissions, waste, labour practices and human rights; the entity reports on the topics that are material to its impacts.

IFRS S1 requires disclosure of sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects, including governance, strategy, risk management and metrics and targets.

IFRS S2 requires climate-related disclosures, including greenhouse gas emissions in accordance with the GHG Protocol, climate resilience assessment and targets.

The BRSR has three sections: general disclosures, management and process disclosures, and principle-wise performance disclosures covering nine principles.

The BRSR requires disclosure of the percentage of R&D and capital expenditure in technologies that improve environmental and social impacts.

Sustainability reports should disclose the basis of preparation, the reporting period, the boundary and any restatements of prior period information.

Assurance of sustainability information may be limited or reasonable; the assurance provider's conclusion and the criteria used are disclosed.

Section 135 applies to companies with a net worth of at least INR 500 crore, turnover of at least INR 1,000 crore, or net profit of at least INR 5 crore during the immediately preceding financial year.

The CSR obligation is 2% of the average net profits of the company made during the three immediately preceding financial years, computed in accordance with Section 198.

The CSR committee formulates and recommends the CSR policy, recommends the amount to be spent, and monitors the implementation of the CSR projects.

CSR expenditure is recognised as an expense in the statement of profit or loss; it is not treated as a distribution of profits or as an asset unless it creates a capital asset.

Unspent CSR amounts relating to ongoing projects are transferred to an unspent CSR account within 30 days of the end of the financial year and spent within three financial years.

Other unspent amounts are transferred to a fund specified in Schedule VII within six months of the end of the financial year.

The company must disclose the composition of the CSR committee, the CSR policy, the amount spent and the amount unspent in the board's report.

CSR activities must be carried out in India, and administrative overheads cannot exceed 5% of the total CSR expenditure for the financial year.

Government accounting is on a cash basis, recording receipts and payments when cash is received or paid; the budget is the authority for expenditure.

The Consolidated Fund of India receives all revenues and loans, and expenditure from it requires parliamentary appropriation; the Contingency Fund is placed at the disposal of the President.

The Public Account includes provident funds, small savings and other deposits that do not belong to the government.

The CAG conducts the audit of government accounts and reports the results to Parliament through the Finance Accounts and Appropriation Accounts.

Public sector entities applying Ind AS disclose government grants under Ind AS 20, including the nature and amount of grants recognised and any unfulfilled conditions.

Not-for-profit entities recognise contributions as income when received, unless the contribution is subject to a condition that has not been satisfied, in which case it is recognised as a liability.

Restricted funds are presented separately from unrestricted funds, and expenditure is charged against the fund to which it relates.

Public sector entities disclose budget-to-actual comparisons and explain material variances between budgeted and actual amounts.

Liquidity ratios: current ratio = current assets / current liabilities; quick ratio = (current assets - inventory - prepaid expenses) / current liabilities; cash ratio = cash and cash equivalents / current liabilities.

Solvency ratios: debt-equity ratio = total debt / shareholders' equity; interest coverage ratio = EBIT / interest expense; proprietary ratio = shareholders' equity / total assets.

Profitability ratios: gross profit margin = gross profit / revenue; net profit margin = net profit / revenue; return on assets = net profit / average total assets; return on equity = net profit / average shareholders' equity.

Activity ratios: inventory turnover = cost of goods sold / average inventory; receivables turnover = revenue / average trade receivables; asset turnover = revenue / average total assets.

The cash flow statement under Ind AS 7 classifies cash flows into operating, investing and financing activities; interest paid and dividends paid may be classified as operating or financing, applied consistently.

Cash flow from operating activities may be presented using the direct method or the indirect method; the indirect method adjusts net profit for non-cash items and changes in working capital.

Quality of earnings analysis compares accrual-based profit with cash flow from operations; a persistent gap between the two may indicate aggressive revenue recognition or working capital issues.

Common-size analysis expresses each line item as a percentage of revenue or total assets, and trend analysis compares the same item across periods.

Free cash flow to the firm = EBIT x (1 - tax rate) + depreciation and amortisation - capital expenditure - increase in net working capital.

Enterprise value under the DCF method = present value of free cash flow to the firm during the forecast period plus the present value of the terminal value, discounted at the weighted average cost of capital.

Terminal value may be calculated using the Gordon growth model (FCF x (1 + g) / (WACC - g)) or an exit multiple applied to terminal-year EBITDA.

The capital asset pricing model: cost of equity = risk-free rate + beta x market risk premium; beta measures the systematic risk of the equity relative to the market.

WACC = (E/V) x Ke + (D/V) x Kd x (1 - tax rate), where E is the market value of equity, D is the market value of debt and V = E + D.

Market multiples: the price-earnings ratio is applied to earnings to derive equity value; the EV/EBITDA multiple is applied to EBITDA to derive enterprise value, from which net debt is deducted to derive equity value.

The net asset value method values equity as the fair value of assets less liabilities; it is commonly used for asset-heavy businesses and as a floor value.

Control premium and lack of marketability discount are applied to reflect the specific characteristics of the interest being valued.

A scheme of arrangement under Sections 230-232 of the Companies Act, 2013 requires approval by the NCLT, a valuation report from a registered valuer and a fairness opinion.

Under a debt restructuring, the difference between the carrying amount of the financial liability and the fair value of the consideration transferred is recognised as a gain or loss in profit or loss.

A substantial modification of the terms of a financial liability results in derecognition of the original liability and recognition of a new liability at fair value; a non-substantial modification adjusts the carrying amount with a gain or loss in profit or loss.

Under the Insolvency and Bankruptcy Code, 2016, the resolution plan approved by the NCLT is binding on all stakeholders; the corporate debtor's liabilities are extinguished and the new consideration is recognised.

In a slump sale, the excess of consideration over the net assets transferred is recognised as a gain or loss in profit or loss, unless the transaction is a common control transaction.

A common control business combination is accounted for using the pooling of interests method, with assets and liabilities recognised at their carrying amounts and the difference recognised in equity.

Restructuring provisions are recognised when the entity has a detailed formal plan and has raised a valid expectation in those affected that it will carry out the restructuring.

Disclosure of a restructuring includes the nature of the plan, the amount of the provision and the expected timing of the outflow.

A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use, and the sale is highly probable within one year.

A held-for-sale asset is measured at the lower of carrying amount and fair value less costs to sell, and depreciation ceases from the date of classification.

A discontinued operation is a component of the entity that represents a separate major line of business or geographical area of operations, or is part of a single coordinated plan to dispose of such a line.

The results of a discontinued operation are presented separately in the statement of profit or loss, with a single amount comprising the post-tax profit or loss and the post-tax gain or loss on disposal.

An extension of the one-year period for completion of a sale is permitted if the delay is caused by events beyond the entity's control and the entity remains committed to the sale.

Non-current assets held for sale are presented separately in the balance sheet and are not reclassified or offset against other assets.

The gain or loss on disposal of a discontinued operation is measured as the difference between the proceeds and the carrying amount of the net assets disposed of.

Disclosure includes a description of the non-current asset or disposal group, the facts and circumstances of the sale, and the segment in which it is reported.

An interim financial report covers a period shorter than a full financial year; it may be a complete set of financial statements or a condensed set with selected explanatory notes.

Interim financial statements apply the same accounting policies as the annual financial statements, except for changes made after the most recent annual report, which are applied retrospectively.

Materiality for interim reporting is assessed against the interim period figures, not the annual figures; an item that is immaterial annually may be material for the interim period.

Revenue is recognised in the interim period on the same basis as the annual financial statements; seasonal or cyclical revenue is not smoothed or deferred.

Costs incurred unevenly during the year are anticipated or deferred only if it would be appropriate to do so at the end of the reporting period.

Interim financial statements disclose the nature and amount of items affecting assets, liabilities, equity, net income or cash flows that are unusual because of their nature, size or incidence.

The comparative information presented in the interim report is the immediately preceding interim period and the corresponding period of the prior year.

Interim reports disclose changes in accounting policies, changes in estimates, and the effect of changes in the composition of the entity during the period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value is a market-based measurement, not an entity-specific measurement; it uses the assumptions that market participants would use, including assumptions about risk.

The principal market is the market with the greatest volume and level of activity for the asset or liability; if there is no principal market, the most advantageous market is used.

The fair value hierarchy prioritises quoted prices in active markets (Level 1) over observable inputs other than quoted prices (Level 2) and unobservable inputs (Level 3).

Valuation techniques include the market approach, the income approach and the cost approach; the technique used should maximise the use of relevant observable inputs.

The fair value of a non-financial asset considers its highest and best use from the perspective of market participants, even if the entity intends a different use.

Disclosures include the fair value at the reporting date, the level of the hierarchy, the valuation techniques and inputs, and a reconciliation of Level 3 measurements.

For liabilities, fair value reflects the risk of non-performance, including the entity's own credit risk, and is measured as the price to transfer the liability to a market participant.

Equity-settled awards are measured at the fair value of the equity instruments granted at grant date and recognised over the vesting period, with a corresponding credit to equity.

The fair value of share options is determined using an option pricing model such as Black-Scholes-Merton or a binomial model; the inputs include the share price, exercise price, expected volatility, expected dividends, risk-free rate and expected life.

Vesting conditions are either service conditions, performance conditions or market conditions; market conditions are reflected in the fair value at grant date and are not adjusted subsequently.

Non-market performance conditions are not reflected in the grant date fair value but are considered in the number of awards expected to vest.

Cash-settled awards are measured at the fair value of the liability at each reporting date and at settlement, with changes recognised in profit or loss.

A choice of settlement by the entity or the employee may result in a compound instrument, with the debt component measured at fair value and the equity component as the residual.

Modifications to share-based payment arrangements are accounted for by recognising the incremental fair value granted, if any, in addition to the original grant date fair value.

Disclosures include the nature and extent of share-based payment arrangements, the weighted average fair value of options granted and the range of exercise prices.

In a business combination, deferred tax is recognised on temporary differences between the fair value of identifiable assets and liabilities and their tax bases, with the effect adjusting goodwill.

A deferred tax asset of the acquiree that was not recognised before the combination is recognised separately from goodwill if it becomes probable that taxable profit will be available against which the deductible temporary difference can be utilised.

Deferred tax is not recognised on the initial recognition of goodwill; subsequent changes in the carrying amount of goodwill do not give rise to deferred tax.

For investments in subsidiaries, branches and associates, deferred tax is recognised on taxable temporary differences unless the parent controls the timing of reversal and reversal is not probable in the foreseeable future.

Deferred tax on undistributed earnings of a subsidiary is recognised when the parent expects the subsidiary to distribute the earnings in the foreseeable future.

The tax base of an asset or liability is the amount attributed to it for tax purposes; the difference between the carrying amount and the tax base gives rise to a temporary difference.

Deferred tax assets and liabilities are offset when the entity has a legally enforceable right to offset current tax assets and liabilities and they relate to income taxes levied by the same tax authority.

The tax expense is presented in the statement of profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Non-controlling interest is presented in the consolidated balance sheet within equity, separately from the equity of the owners of the parent.

Goodwill is measured as the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and the fair value of any previously held equity interest over the net identifiable assets acquired.

If the non-controlling interest is measured at fair value, the goodwill includes the NCI's share of the acquiree's goodwill; if measured at the proportionate share of net assets, only the parent's share is recognised.

Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interest.

Changes in the parent's ownership interest in a subsidiary that do not result in loss of control are accounted for as equity transactions, with no gain or loss recognised.

When the parent loses control, the retained interest is remeasured at fair value and the gain or loss is recognised in profit or loss.

Intra-group profits are eliminated in full, including the portion attributable to the non-controlling interest, when the subsidiary is a wholly owned entity; for partly owned subsidiaries, the elimination is allocated between the parent and NCI.

The consolidated financial statements include the parent and all subsidiaries, with uniform accounting policies and a common reporting date.

Depreciation is allocated on a systematic basis over the useful life of the asset; the depreciable amount is the cost less residual value, and the residual value and useful life are reviewed at least annually.

The depreciation method reflects the pattern in which the asset's future economic benefits are expected to be consumed; a change in method is a change in accounting estimate applied prospectively.

The cost of an item of property, plant and equipment includes the purchase price, import duties, non-refundable taxes, directly attributable costs and the initial estimate of dismantling and restoration costs.

Subsequent costs are capitalised only if they meet the recognition criteria; day-to-day servicing costs are recognised in profit or loss as incurred.

An impairment loss is recognised when the carrying amount exceeds the recoverable amount, which is the higher of fair value less costs of disposal and value in use.

Value in use is the present value of the future cash flows expected to be derived from the asset, discounted at a pre-tax rate that reflects the current market assessment of the time value of money and the risks specific to the asset.

Impairment of goodwill cannot be reversed; for other assets, a reversal is recognised in profit or loss and is limited to the carrying amount that would have been determined had no impairment loss been recognised.

Assets are grouped into cash-generating units for impairment testing when they do not generate independent cash flows; goodwill is allocated to the CGUs expected to benefit from the synergies of the combination.