Re: Thanks for your inputs Re: Budget 2009 expectations - reg.,

Dear Sri Murali
Only photo is displayed Hence Text of the file is reproduced for easy
reference:
regards.

V. V. Ramagopala Rao.
Manager/Finance (Books & Budget)
Corporate Research & Development unit,
Vikas Nagar, Hyderabad - 500 093

Budget 2009 Expectation: (BUDGET WISH LIST)

A: Convergence of Indian Accounting Standards with IFRS (International
Accounting Reporting Standards and the need for amendments in Income Tax
Laws):(IFRS Reporting date 1-4-2011).

Need for amendments to accounting standards and other reporting requirements
governed by Income Tax Laws, Companies Act, SEBI, RBI and High courts (for
amalgamation etc.,) need to be addressed to in this Budget and also in other
respective forums since the adoption requires comparable previous year
financials as on 01-04-2010 for which assessment year is 2010-11.

For first time adoption we need to understand two key terms:

a: Reporting Date - It is the end of latest period covered by financial
statement.

b: Transition Date - It is beginning of earliest period for which an entity
presents first full IFRS compliant financial statements.

For Indian Companies, the first reporting date will be 31-03-2012 and
transition date will be 01-04-2010. Hence first set of financials shall be
for 01-04-2011 to 31-03-2012 with IFRS comparables for 01-04-2010 to
31-03-2011.

IFRS are largely fair value driven which results in unrealized gain/loss.
How are these gainst/losses are dealt in Income Tax?

In addition to above, fair values can bring a lot of volatility and
subjectivity to the financial statements requiring use of valuation experts.

Further for example, FBT (Fringe Benefit Tax) is disclosed as a separate
item after profit before tax on the face of the Income statement. Where as
in IFRS it is included as part of related expense (fringe benefit) which
gives rise to incurrence of the tax.

B: Other amendment is needed for the increased gratuity (superannuation
benefit) amount of Rs 10.00 lakhs (from Rs 3.50 lakhs to 10.00 lakhs).
Otherwise the difference amount, subject to a maximum of Rs 6.50 lakhs will
get added to the income of assesses.

----- Original Message -----
From: "Murali D" <budgetwishlist2009@gmail.com>
To: <ramgopal@bhelrnd.co.in>
Sent: Monday, June 22, 2009 11:33 AM
Subject: Thanks for your inputs Re: Budget 2009 expectations - reg.,

> Thanks for your inputs.
> D. Murali
> http://budgetwishlist2009.blogspot.com/