Accrual-based accounting system on cards
Our Bureau NEW DELHI INWHAT could be a step towards ensuring a transparent accounting system that would reflect the true position of the country’s financial health, the government has accepted, in principle, a gradual move from cash-based to accrual-based accounting. Acknowledging the essential benefits of the accrual-based accounting pattern, under which revenues and expenditure are shown in the books even when they are realised later, controller general of accounts V N Kaila on Thursday said that the government was positive towards changing the old accounting method. “There are definite benefits of accrual accounting that cannot be ignored. The decision makers can know the full cost of services they are providing, and this would result in better resource allocation, better management of assets and liabilities,” said Mr Kaila, speaking at the diamond jubilee function of accounting body ICAI. Speaking on issues involved in transitioning to the accrual system of accounting, Mr Kaila said that there are various factors that have created a demand for a transition to accrual system of accounting, such as the changing information needs of the decision makers, the implications of the Fiscal Responsibility and Budget Management Act and outcome-oriented budgeting. Cash-based accounting is a method of book keeping that records financial events based on cash flows and cash position. Revenue is shown in the books when cash is received and expense is recognised when cash is paid. On the other hand, under accrual accounting, revenue is shown in the balance sheet when it is earned and realised, regardless of when actual payment is received. Overall, accrual-based accounting would create a desirable measure of the complete financial health of the government, he added.
Publication:Economic Times Delhi;
Date:Jul 4, 2008;
Section:Economy & Corporate;
Page Number:22
Wednesday, July 9, 2008
US under pressure to agree to 2050 emission target
US under pressure to agree to 2050 emission target
The European Union and green groups piled pressure on the United States on Monday to agree to a target to halve global greenhouse gas emissions by mid-century and back the need for rich countries to set 2020 goals as well.
The European Union and green groups piled pressure on the United States on Monday to agree to a target to halve global greenhouse gas emissions by mid-century and back the need for rich countries to set 2020 goals as well.
Cut wasteful spend & manpower cost, improve supply chain
Cut wasteful spend & manpower cost, improve supply chain
India Inc is looking to generate more bang from the available resources to tide over a high inflation regime. The corporate sector, which is facing a cost-push inflation largely stoked by global factors, has realised that inflation is here to stay. The overwhelming consensus during the ET CEO Roundtable on inflation was that Indian companies would need to focus on productivity to stay afloat
India Inc is looking to generate more bang from the available resources to tide over a high inflation regime. The corporate sector, which is facing a cost-push inflation largely stoked by global factors, has realised that inflation is here to stay. The overwhelming consensus during the ET CEO Roundtable on inflation was that Indian companies would need to focus on productivity to stay afloat
Competition in public-pvt projects: Finance Ministry mulls two options
Competition in public-pvt projects: Finance Ministry mulls two options
One option is to adopt the threshold qualification parameters and the other is to increase the number of players in bidding for a project.
One option is to adopt the threshold qualification parameters and the other is to increase the number of players in bidding for a project.
Govt makes overseas call for Hutch-Voda details
Govt makes overseas call for Hutch-Voda details
Sources close to the development said that the Indian government had sought the ‘sale and purchase’ agreement that Vodafone International Holdings had entered into with Hong Kong’s Hutchison. This comes even as the tax authorities and the company battle out their dispute on payment of capital gains tax in the Bombay High Court.
Sources close to the development said that the Indian government had sought the ‘sale and purchase’ agreement that Vodafone International Holdings had entered into with Hong Kong’s Hutchison. This comes even as the tax authorities and the company battle out their dispute on payment of capital gains tax in the Bombay High Court.
Volatile markets leave future IPOs in limbo
Volatile markets leave future IPOs in limbo
Volatile markets are giving the heebie-jeebies to promoters looking to raise funds through initial public offerings (IPOs). The fate of several proposed public issues looking to collectively raise Rs 10,000 crore is in limbo. Among large companies, UTI MF is reported to have deferred its plans to go public.
Volatile markets are giving the heebie-jeebies to promoters looking to raise funds through initial public offerings (IPOs). The fate of several proposed public issues looking to collectively raise Rs 10,000 crore is in limbo. Among large companies, UTI MF is reported to have deferred its plans to go public.
Kingfisher may buy SpiceJet in all cash deal
Kingfisher may buy SpiceJet in all cash deal
Another round of consolidation in the domestic skies seems imminent with UB Group chairman Vijay Mallya engaging in talks with two major shareholders of SpiceJet to buy the budget carrier in an all-cash deal
Another round of consolidation in the domestic skies seems imminent with UB Group chairman Vijay Mallya engaging in talks with two major shareholders of SpiceJet to buy the budget carrier in an all-cash deal
Google wants logins cut from YouTube data
Google Inc., the owner of YouTube, said it's seeking to remove users' login information from a database of all videos viewed on YouTube that it must turn over to Viacom Inc.
A federal judge in New York presiding over Viacom's copyright infringement lawsuit against Google told the search-engine company this week to give Viacom its "logging database" containing records of every video viewed, the login name of the person who watched it, and the Internet address of the viewer's computer.
Viacom, owner of Comedy Central and MTV Networks, wants the information to find out if YouTube viewers watch more copyrighted shows such as "South Park" and "The Colbert Report" than other videos in an effort to strengthen its $1 billion lawsuit against Google.
"We are disappointed the court granted Viacom's overreaching demand for viewing history," Catherine Lacavera, Google's senior litigation counsel, said yesterday. "We will ask Viacom to respect users' privacy and allow us to anonymize the logs before producing them under the court's order."
A Viacom spokesman didn't return a call seeking comment after business hours.
Viacom sued YouTube last year, claiming it allows users to post clips from its copyrighted shows without permission.
Google, based in Mountain View, Calif., has denied Viacom's claims in the lawsuit, saying YouTube follows the law by removing copyrighted material when it becomes aware of it.
US District Judge Louis L. Stanton authorized full access to the YouTube logs after Viacom and other copyright holders argued that they needed the data to show whether their copyright-protected videos are more heavily watched than amateur clips.
The data would be disclosed only to the plaintiffs
A federal judge in New York presiding over Viacom's copyright infringement lawsuit against Google told the search-engine company this week to give Viacom its "logging database" containing records of every video viewed, the login name of the person who watched it, and the Internet address of the viewer's computer.
Viacom, owner of Comedy Central and MTV Networks, wants the information to find out if YouTube viewers watch more copyrighted shows such as "South Park" and "The Colbert Report" than other videos in an effort to strengthen its $1 billion lawsuit against Google.
"We are disappointed the court granted Viacom's overreaching demand for viewing history," Catherine Lacavera, Google's senior litigation counsel, said yesterday. "We will ask Viacom to respect users' privacy and allow us to anonymize the logs before producing them under the court's order."
A Viacom spokesman didn't return a call seeking comment after business hours.
Viacom sued YouTube last year, claiming it allows users to post clips from its copyrighted shows without permission.
Google, based in Mountain View, Calif., has denied Viacom's claims in the lawsuit, saying YouTube follows the law by removing copyrighted material when it becomes aware of it.
US District Judge Louis L. Stanton authorized full access to the YouTube logs after Viacom and other copyright holders argued that they needed the data to show whether their copyright-protected videos are more heavily watched than amateur clips.
The data would be disclosed only to the plaintiffs
SBI to raise processing fee on loans
SBI to raise processing fee on loans
As part of its strategy to enhance the non-interest income, State Bank of India plans to increase the processing fee on loans, both for corporate and retail.
While the bank may still offer some concessions on a case-to-case basis, it will increase the card rates, said Mr Ashok Mukand, Deputy Managing Director, State Bank of India.
With the cost of funds going up, any additional income will enable the bank to maintain its bottomline. Other public sector banks may also take a cue from SBI to increase their non-interest income. As fees from sale of bank drafts are seeing a slowdown due to increasing online transactions, the processing fees on loans are an important source of revenue, said some bankers.
For 2007-08, SBI saw its fee income increase by 23 per cent. The fee income for large corporates grew by 61 per cent growth and for mid corporates by 43 per cent.
According to SBI’s Web Site, the current processing fee, for home loans, is 0.25 per cent of the loan amount, with a cap of Rs 5,000, which includes the service tax.
Its biggest competitor, ICICI Bank, charges 0.5 per cent of the loan amount as administrative fee or Rs 2,000, whichever is higher, on home loans, according to its Web Site. Lower charges
Mr Mukand said, “Our processing fees are rather low now. We are looking to raise processing fees on corporate loans and retail loans, though there could be some concessions, on a case-to-case basis. As our prime lending rate and home loan rates are the lowest in the market, our charges will be lower than that of other banks, despite the increase in processing fees.”
The rise in interest rates is unlikely to affect margins, Mr Mukand said.
“We have raised the interest rates on deposits only in certain bands, but in the case of loans, the increase will be across the board. So, profits should improve because of better returns on loans and margins should also improve,” he said.
As part of its strategy to enhance the non-interest income, State Bank of India plans to increase the processing fee on loans, both for corporate and retail.
While the bank may still offer some concessions on a case-to-case basis, it will increase the card rates, said Mr Ashok Mukand, Deputy Managing Director, State Bank of India.
With the cost of funds going up, any additional income will enable the bank to maintain its bottomline. Other public sector banks may also take a cue from SBI to increase their non-interest income. As fees from sale of bank drafts are seeing a slowdown due to increasing online transactions, the processing fees on loans are an important source of revenue, said some bankers.
For 2007-08, SBI saw its fee income increase by 23 per cent. The fee income for large corporates grew by 61 per cent growth and for mid corporates by 43 per cent.
According to SBI’s Web Site, the current processing fee, for home loans, is 0.25 per cent of the loan amount, with a cap of Rs 5,000, which includes the service tax.
Its biggest competitor, ICICI Bank, charges 0.5 per cent of the loan amount as administrative fee or Rs 2,000, whichever is higher, on home loans, according to its Web Site. Lower charges
Mr Mukand said, “Our processing fees are rather low now. We are looking to raise processing fees on corporate loans and retail loans, though there could be some concessions, on a case-to-case basis. As our prime lending rate and home loan rates are the lowest in the market, our charges will be lower than that of other banks, despite the increase in processing fees.”
The rise in interest rates is unlikely to affect margins, Mr Mukand said.
“We have raised the interest rates on deposits only in certain bands, but in the case of loans, the increase will be across the board. So, profits should improve because of better returns on loans and margins should also improve,” he said.
SAARC countries may open doors for CAs
SAARC countries may open doors for CAs
Indian chartered accountants may be seen practising in Pakistan as well as other SAARC countries and vice-versa in two to three years. A proposal to give mutual recognition to CAs in one another's nation was mooted by South Asian Federation of Accountants (SAFA), a body of SAARC.
The SAARC body has already developed a common course for the purpose called minimum common sallybus, President SAFA Syed Shabbar Zaidi said.
"At the moment, there is no exchange of CAs between the SAARC countries. But we are developing a common course for it. We have already developed a minimum common sallybus and by 2011-12 we hope that the exchange would materialise," Zaidi said.
He added that all the SAARC countries, which include Sri Lanka, Pakistan, Bangladesh, Nepal, Bhutan, Maldives and India, would then be asked to adopt the minimum common syllabus. The basic framework of the course will be same and the countries can then shape it as per their regional need, he said.
"This is what we foresee today. We are trying hard to achieve mutual exchange and within 3-4 years we are hopeful to enter into Mutual Recognition Agreement (MRA)," Zaidi said. At present, no country recognises chartered accountants of other countries.
When contacted, ICAI Secretary Ashok Haldia said, "With the growing cross-border trade, the demand for chartered accountants has increased. With SAARC countries having same culture and ethos, it would help CAs to grow professionally."
Indian chartered accountants may be seen practising in Pakistan as well as other SAARC countries and vice-versa in two to three years. A proposal to give mutual recognition to CAs in one another's nation was mooted by South Asian Federation of Accountants (SAFA), a body of SAARC.
The SAARC body has already developed a common course for the purpose called minimum common sallybus, President SAFA Syed Shabbar Zaidi said.
"At the moment, there is no exchange of CAs between the SAARC countries. But we are developing a common course for it. We have already developed a minimum common sallybus and by 2011-12 we hope that the exchange would materialise," Zaidi said.
He added that all the SAARC countries, which include Sri Lanka, Pakistan, Bangladesh, Nepal, Bhutan, Maldives and India, would then be asked to adopt the minimum common syllabus. The basic framework of the course will be same and the countries can then shape it as per their regional need, he said.
"This is what we foresee today. We are trying hard to achieve mutual exchange and within 3-4 years we are hopeful to enter into Mutual Recognition Agreement (MRA)," Zaidi said. At present, no country recognises chartered accountants of other countries.
When contacted, ICAI Secretary Ashok Haldia said, "With the growing cross-border trade, the demand for chartered accountants has increased. With SAARC countries having same culture and ethos, it would help CAs to grow professionally."
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