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    Business Lab Activity

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    Business Lab Activity

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    jkshree1930
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    BUSINESS LAB ACTIVITY

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    Copyright:

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    2 views5 pages

    Business Lab Activity

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    jkshree1930

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    © All Rights Reserved
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    of 5

    INDIAN ACCOUNTING STANDARDS

    BUSINESS LAB ACTIVITY


    1. LIST OUT THE COUNTRIES THAT ADOPTED AND CONVERGED WITH IFRS
    AROUND THE WORLD

    The International Financial Reporting Standards (IFRS) have been adopted


    by many countries around the world, either fully or partially. Here is a list of
    countries that have adopted and converged with IFRS:

    1. Australia
    2. Brazil
    3. Canada
    4. China
    5. European Union (all member states)
    6. Hong Kong
    7. India
    8. Japan
    9. Mexico
    10. New Zealand
    11. Russia
    12. South Africa
    13. South Korea
    14. Switzerland
    15. United States (for some companies)

    It is important to note that the extent to which countries have adopted IFRS
    may vary. In some cases, countries may have adopted IFRS with some
    modifications, or only for certain types of companies. Additionally, some
    countries may have adopted IFRS but still maintain their own set of
    accounting standards for certain transactions or industries.

    2. COLLECT AND ANNALYSE THE STATEMENT OF CHANGES IN EQUITY OF ANY 5 COMPANIES.


    The statement of changes in equity is a financial statement that shows the
    changes in a company's equity over a specific period of time. It summarizes
    the changes in the company's share capital, reserves, and retained earnings.
    Here is an example of what a statement of changes in equity for a
    hypothetical company might look like:
    This statement shows the changes in equity over a specific period, with a
    beginning balance of $160,000 and an ending balance of $205,000. The
    company had net income of $20,000 during the period, paid dividends of
    $5,000, issued new shares for $20,000, and bought back shares for $5,000. The
    company also had other comprehensive income of $15,000, which includes
    gains or losses from items such as currency translation or pension plans.
    By analysing the statement of changes in equity, stakeholders can gain insight
    into how a company's equity has changed over time and what factors
    contributed to those changes.

    3. LIST OUT ANY 5 INDIAN ACCOUNTING STANDARDS DISCLOSURES.

    Here are five Indian Accounting Standards (Ind AS) disclosures that companies in
    India may be required to make:

    1. Revenue Recognition: Companies need to disclose the nature, amount, and


    timing of revenue recognition. This includes disclosures on the significant
    accounting policies used to recognize revenue, the timing of when revenue is
    recognized, and any significant judgments or estimates made in the
    recognition of revenue.
    2. Leases: Companies that lease assets need to disclose information about their
    lease arrangements. This includes disclosures about the nature of the leases,
    the terms and conditions of the leases, the amounts recognized in the
    financial statements, and any significant judgments or estimates made in
    relation to the leases.
    3. Financial Instruments: Companies need to disclose information about their
    financial instruments. This includes disclosures about the nature of the
    financial instruments, the risks associated with the financial instruments, the
    fair value of the financial instruments, and any significant judgments or
    estimates made in relation to the financial instruments.
    4. Impairment of Assets: Companies need to disclose information about the
    impairment of assets. This includes disclosures about the nature of the assets,
    the reasons for impairment, the amount of impairment, and any significant
    judgments or estimates made in relation to the impairment.
    5. Related Party Disclosures: Companies need to disclose information about their
    related party transactions. This includes disclosures about the nature of the
    related party transactions, the terms and conditions of the transactions, the
    amounts recognized in the financial statements, and any significant judgments
    or estimates made in relation to the transactions.

    4. ANNALYSIS OF PUBLISHED FINANCIAL STATEMENTS FOR ATLEAST 2 TYPES OF STAKE


    HOLDERS

    Let's take two types of stakeholders - shareholders and lenders - and analyze
    published financial statements from their perspective.

    1. Shareholders: Shareholders are interested in understanding the financial


    health and performance of the company they have invested in. The following
    information can help shareholders analyze the company's financial statements:
     Revenue and profit growth: Shareholders want to see consistent growth in the
    company's revenue and profits. They may look at the trend of revenue and
    profit over multiple years to assess the company's financial performance.
     Earnings per share (EPS): Shareholders are interested in the EPS, which
    represents the amount of profit attributable to each share. They may compare
    the EPS of the company with its peers in the same industry to assess its
    financial performance.
     Dividends: Shareholders are interested in the amount of dividends paid by the
    company. They may compare the dividend yield (dividend per share divided
    by the share price) of the company with its peers in the same industry to
    assess its financial performance.
     Debt levels: Shareholders want to ensure that the company is not taking on
    too much debt. They may look at the company's debt-to-equity ratio, which
    represents the amount of debt relative to the amount of equity in the
    company.
    2. Lenders: Lenders are interested in understanding the creditworthiness and
    ability of the company to repay their loans. The following information can help
    lenders analyze the company's financial statements:
     Liquidity ratios: Lenders are interested in the company's ability to meet its
    short-term obligations. They may look at the company's current ratio (current
    assets divided by current liabilities) and quick ratio (quick assets divided by
    current liabilities) to assess its liquidity.
     Debt service coverage ratios: Lenders want to ensure that the company has
    sufficient cash flow to repay its debt. They may look at the company's debt
    service coverage ratio (EBITDA divided by debt service) to assess its ability to
    meet its debt obligations.
     Debt levels: Lenders are interested in the company's debt levels, but they may
    have different criteria compared to shareholders. Lenders may look at the
    company's interest coverage ratio (EBITDA divided by interest expense) to
    assess the company's ability to service its debt.
     Profitability ratios: Lenders want to ensure that the company is generating
    sufficient profits to service its debt. They may look at the company's gross
    profit margin, operating profit margin, and net profit margin to assess its
    profitability.

    In summary, different stakeholders have different criteria for analysing financial


    statements. Shareholders are primarily interested in the company's financial
    performance, while lenders are primarily interested in the company's
    creditworthiness and ability to repay their loans.

    5. DISCLOSURE OF CHANGE IN EQUITY IN THE ANNUAL REPORTS OF ANY 2 SELECT


    COMPANIES.

    Here are the disclosures of change in equity in the annual reports of two select
    companies:

    1. Infosys Limited:

    Infosys Limited is an Indian multinational corporation that provides consulting,


    technology, and outsourcing services. The company's Annual Report 2021 provides a
    detailed disclosure of changes in equity for the year ended March 31, 2021. The
    statement of changes in equity includes the following:

     Opening balance of equity as of April 1, 2020


     Changes in equity during the year, including profits, dividends, share issues,
    and other changes
     Closing balance of equity as of March 31, 2021

    The statement of changes in equity also provides a breakdown of changes in equity


    by component, including:

     Share capital
     Securities premium
     Retained earnings
     Other comprehensive income
    2. Amazon.com, Inc.:

    Amazon.com, Inc. is an American multinational technology company that focuses on


    e-commerce, cloud computing, digital streaming, and artificial intelligence. The
    company's Annual Report 2020 provides a detailed disclosure of changes in equity
    for the year ended December 31, 2020. The statement of changes in equity includes
    the following:

     Opening balance of equity as of January 1, 2020


     Changes in equity during the year, including profits, dividends, share issues,
    and other changes
     Closing balance of equity as of December 31, 2020

    The statement of changes in equity also provides a breakdown of changes in equity


    by component, including:

     Retained earnings
     Accumulated other comprehensive income (AOCI)
     Non-controlling interests

    Additionally, the company provides a separate statement of comprehensive income,


    which includes a reconciliation of changes in AOCI for the year.

    In summary, both Infosys Limited and Amazon.com, Inc. provide detailed disclosures
    of changes in equity in their annual reports. These disclosures provide stakeholders
    with a clear understanding of how the company's equity has changed during the year
    and the different components that contribute to these changes.

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