Accounting Advisory and Financial Reporting

A third-party consultant’s opinion on the standards that must be adhered to for accounting processes is known as accounting advisory. This also entails ensuring compliance and overseeing an organization’s account and audit functions. Specific guidelines are provided in India by the Institute of Chartered Accountants of India (ICAI) for the provision of advice and financial reporting services. The need for expert accounting has arisen as a result of growing international compliance with reporting and accounting standards.

The ICAI, Indian Accounting Standards, International Accounting Standards, and GAAP all demand financial reporting. Organizations need a knowledgeable specialist because of this to make accounting and reporting less difficult.

What are the Different forms of Account Advisory Services?

Policy Accounting

A methodical approach to developing strategies to provide improved financial reports is called policy accounting. These tactics can be recorded and applied in upcoming financial accounting. In order to prevent problems with accounting standards, documentation is crucial in today’s accounting.

The aforementioned techniques will be used by an organisation that uses this policy accounting system to lessen the complexity of accounting. A company can enhance performance through policy accounting. Simple forms can be created to represent complex accounting data, which eases the burden on an organisation. Following are some components of policy accounting:

developed management standards.

Accounting Practices Documented Techniques.

transforming complicated financial data into simple form.

Complex Accounting

Understanding the various standards for applying Indian AS, IAS, and the steps taken by GAAP is necessary for complex accounting. Documentation must be created by the company in order for accounting standards to be integrated smoothly. Reporting on the methods used must be followed. The organisation can adhere to these efficient accounting procedures, which are compliant with GAAP, Indian AS, and international accounting standards.

Financial Accounting

To prepare accounts for an organisation in accordance with ICAI standards is believed to be financial accounting. All organisations are required to prepare accurate accounts. According to the Companies Act of 2013 and the ICAI, chartered accountants must write accounts. It is required to compile consolidated accounts for each subsidiary that an organisation has, whether it be a single subsidiary or a group of subsidiaries. The following are included in financial accounting:

supplying data regarding the group of companies’ accounts and finances.

following and putting into practise accounting procedures that businesses can use.

putting together consolidated financial accounts for a collection of businesses.

combined financial reporting and statements.

choosing the best accounting strategy for the business.

Advice on GAAP

The international accounting standards and regulations that must be followed on a global scale are known as Generally Accepted Accounting Principles (GAAP). If a business uses GAAP, sector-specific regulations must be adhered to. Every nation is free to use its own accounting standards. Therefore, there must not be a conflict in how accounting rules are applied. As a result, any accounting rules that a nation adopts must not conflict with GAAP norms. The Ind AS are the accounting standards used in India. The GAAP regulations must be followed by these criteria. GAAP guidance is also offered under accounting advisory and financial reporting. A few pieces of advice about GAAP are as follows:

Methods for GAAP Conversion Guidance.

assistance in adopting different accounting standards, such as Ind AS and GAAP.

Advisory Support

Accounting advisory services include M&A advising, listing advisory, and other services in addition to accounting assistance. Listing agreements are covered by advisory assistance services when businesses desire to list their securities on stock exchanges. The sorts of advisory services that fall under the category of accounting advisory are as follows:

Tips for listing (IPO).

A securities list.

standards for valuing securities.

Tax planning and counselling services for corporate structures.

Compliance under respective Corporate Governance principles of accounting.

Training Services

Types of Financial Reporting

• Financial Statements reporting

The profit and loss statement and the balance sheet of the company are two examples of the general forms of reporting that are done by a corporation.

• Financial Reports Every Year

The appropriate financial year, from April 1 to March 31, must be audited, according to the Indian calendar. Organizations must file annual financial reporting throughout this fiscal year in accordance with the applicable law.

• Reports on Prospectuses

Companies must create a prospectus before making an initial public offering (IPO) in order to sell shares to the general public. As the corporation must file reports to the Securities and Exchange Board of India, reporting criteria are present here (SEBI).

• Monitoring and Reporting

An essential component of financial reporting is management reporting. Information must be submitted to the appropriate authorities with management approval.

Objectives of Account Advisory and Financial Reporting Services

The aforementioned services will give information on the business’s financial situation.

Using the aforementioned offerings will boost compliance from various firms.

Using good accounting standards will be advantageous to an organisation.

An company can increase returns and maximise value.

Eligibility Criteria 

The following eligibility requirements must be met in order to use accounting advisory and financial reporting services:

a business established in accordance with the 2013 Companies Act or the 1956 Company Act.

a partnership business authorised by the Partnership Act of 1932.

an LLP authorised and recognised by the Limited Liability Partnership Act of 2008.

a sole proprietorship business that has been authorised by the relevant law.

NBFC (Non-Banking Financial Companies) (Non-Banking Financial Companies).

Fintech businesses.

Applicable Law/ Regulatory Body

An organization has to comply with the below regulations:

ICAI 

The regulating authority that oversees the accounting industry in India is the Institute of Chartered Accountants of India.

Corporations Act of 2013 of the Companies Act of 1956

In India, company formation and management are governed by the aforementioned laws. The appointment of auditors (external or internal auditors) to perform audit functions is governed by the following

Section 139 states that an organisation must compel the appointment of an auditor to conduct audits on its behalf.

Section 141: Outline the requirements for an auditor’s education. The auditor needs several years of experience working under a certified accountant and must be qualified as a chartered accountant.

Section 145: Auditors are permitted to affix their signatures to audit reports for a specific company.

Section 146: Auditors are required to attend all board and general meetings of the company. A firm that has a subsidiary is required under the company’s legislation of 2013 to additionally submit consolidated accounts for that subsidiary. This is a condition that must be followed without exception.

Securities Exchange Law (Securities Exchange Board of India Act, 1992)

Compliance with the SEBI Law is required when a company lists its securities on a stock exchange.

When a firm offers its securities in a stock market, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Rules, 2015 must be followed. In addition to this, there are further compliances that the business that intends to list its securities on a stock market must satisfy.

Income Tax Act of 1961

A business that offers accounting advice and financial reporting services must adhere to the relevant income tax legislation.

KRA Paymall Accounting Advisory and Financial Reporting Services

Professionals in KRA have extensive knowledge of how the market functions. To provide value to your firm, we integrate services from several departments like IT, HR, Accounts, and Finance.

We also recognise the complexity of financial data. You can work with KRA experts to simplify your organization’s financial reporting standards. We help our clients adhere to financial reporting requirements.

By our service, we help clients uphold certain standards. These guidelines simplify organisational framework requirements for governance, uniformity, and transparency.

Apart from the above services, we provide the following:

help in putting the essential accounting principles into practise.

compliance with reporting requirements.

developing the organization’s accounting policies.

Advisory services for international accounting standards.

KRA Advantage

In India, KRA is a well-known management consultant.

KRA experts have performed accounting and advisory services with the main goal of enhancing your firm.

Our teams of experts are made up of Chartered Accountants, IT specialists, lawyers, and company secretaries.

We have a great deal of experience with issues with transactions, taxes, and accounting in India.

Our service is reasonably priced.

Frequently Asked Questions

How is Accounting advisory different from reporting?

Accounting advisory services come in a variety of shapes and sizes. This can include tasks related to audits, assurance, general counsel, and accounting standards. Nonetheless, reporting is necessary when it comes to achieving a specific compliance. Reporting is one way to satisfy a certain authority’s relevant compliance requirements. A business that adheres to a certain compliance requirement must report to the relevant government.

What are the objectives of Finance Reporting?

The goals of financial reporting are as follows:

• It guarantees that the business complies with all applicable legislation.

• Reporting assists the company in setting goals and objectives.

• Offers details on where an organisation gets its supplies and other things.

• Financial reporting is required by international accounting standards. Also, the Ind as makes reporting required.

What is the meaning of financial reporting?

Finance reporting is defined by the International Accounting Standards Board (IASB) as giving information about the organization’s current situation. This will incorporate any modifications to the organization’s financial performance.

What is Ind AS?

Indian Accounting Standards, usually referred to as Ind AS, are the accounting principles and standards used by businesses in India. Changes to the Ind AS are implemented by the accounting standards board (ASB), which is responsible for establishing accounting standards in India. A firm that is established in India must adhere to the standards set forth by Ind As.

How many accenting standards are present in India?

Under the Ind AS, there are 32 accounting standards which are amended from time to time.

What is the difference between Ind AS and GAAP?

The accounting standard used in India is called Ind AS. Companies that register and form in India often need to adhere to the Ind AS criteria. International accounting regulations define GAAP as a set of global norms. The GAAP guidelines are not compelled to be adhered to by a nation. Companies are able to create accounting rules that meet their needs. The relevant authority of a particular country can, however, establish and execute their own accounting standards as long as they take GAAP principles into account when they are being written.

Which is the authority that governs accounting practices in India?

The Institute of Chartered Accountants of India governs accounting practices in India. This organisation also controls how chartered accountants in India are educated and certified.

Which international standard does India follow?

India adheres to IFRS principles rather than GAAP, with the exception of Ind AS. The IFRS’s standards and guiding principles serve as the foundation for the accounting standards that are now in use in India.