Accounting Standards

PROF. NAVEEN BHATIA NLDIMSR

ACCOUNTING STANDARDS

IAS ;US GAAP; UK GAAPAND INDIAN GAAP CONCEPTUAL FRAMEWORK:

IAS : TWO YEARS BALANCE SHEETS, INCOME , RECOGNISED GAINS AND LOSSES AND CASH FLOW STATEMENTS, CHANGES IN EQUITY , ACCOUNTING POLICY AND NOTES US GAAP: SAME AS IAS EXCEPT THREE YEARS REQUIRED BY SEC FOR ALL STATEMENTS EXCEPT FOR BALANCE SHEET. UK GAAP : SIMILAR TO IAS INDIAN GAAP: SAME AS IAS EXCEPT THAT CASHFLOWS ARE REQUIRED FOR COMPANIES LISTED ON THE STOCK EXCHANGES AND FOR UNLISTE COMPANIES WHENEVER THE TURNOVER EXCEEDS 50 CRORES. ACCOUNTING CONVENTION: IAS: HISTORICAL COSTS, BUT SOME ASSETS MAY BE REVALUED US GAAP: NO REVALUATION EXEPT FOR SECURITIES AND DERIVATIVES AT FAIR VALUE: UK GAAP : COMPARABLE TO IAS INDIAN GAAP: HISTORICAL COSTS, BUT FIXED ASSETS OTHER THAN INTANGIBLES MAY BE REVALUED

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK:

BALANCE SHEET FORMAT: IAS: CURRENT/NON CURRENT DISTINCTION IS OPTIONAL. WHEN AN ENTERPRISE CHOOSES NOT MAKE THE CLASSIFICATION, THE ASSETS AND LIABILITIES MUST BE PRESENTED IN ORDER OF LIQUIDITY. BOTH ASSETS AND LIABILITIES ARE CLASSIFIED AS CURRENT WHEN THEY ARE HELD FOR TRADING OR EXPECTED TO BE REALISED BETWEEN 12 MONTHS OF BALANCE SHEET DATE. US GAAP: SIMILAR TO IAS. THE SEC PROVIDES GUIDELINES FOR MINIMUM INFORMATION TO BE INCLUDED IF A CLASSFIED BALANCE SHEET IS PRESENTED. UK GAAP: SEPARATE PRESENTATION OF FIXED ASSETS AND CURRENT ASSET REQUIRED. THE CLASSIFICATION DIFFERS FROM IAS. FIXED ASSETS ARE THOSE INTENDED FOR USE ON A CONTINUING BASIS. ALSO IT REQUIRES SEPARATE PRESENTATION OF LIABILITIES INTO AMOUNTS DUE WITHIN ONE YEAR OR AFTER ONE YEAR INDIAN GAAP: SEPARATE PRESENTATION OF FIXED ASSETS AND CURRENT ASSETS. FIXED ASSETS ARE THOSE INTENDED FOR USE ON A CONTINUING BASIS.

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: INCOME STATEMENT:
IAS DOESNT SPECIFY A STANDARD FORMAT FOR THE INCOME STATEMENT.THE ENTITY MUST ANALYSE ITS EXPENDITURE BY FUNCTION OR TYPE. AS A MINIMUM IAS REQUIRES: REVENUES RESULTS OF OPERATING ACTIVITIES FINANCING COSTS SHARE OF RESULTS OF ASSOCIATES AND JVS ACCOUNTED FOR USING EQUITY METHOD TAX EXPENSE PROFIT OR LOSS FROM ORDINARY ACTIVITIES EXTRAORDINARY ITEMS ( IF ANY) MINORITY INTEREST NET PROFIT OR LOSS FOR THE PERIOD.

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: INCOME STATEMENT: US GAAP: PRESENTED IN OF THE FOLLOWING TWO FORMATS
A SINGLE STEP FORMAT WHERE ALL EXPENSES ARE CLASSIFIED BY FUNCTION AND ARE DEDUCTED FROM TOTAL INCOME TO GIVE INCOME BEFORE TAX. IN A MULTIPLE STEP FORMAT WHERE COST OF SALES IS DEDUCTED FROM SALES TO SHOW GROSS PROFIT, THEN OTHER INCOME AND EXPENSES ARE PRESENTED TO GIVE INCOME BEFORE TAX. UK GAAP:COMPANY LAW PERMITS FOUR FORMATS. TWO FORMATS ARE USED GENERALLY. ONE PRESENTS TURNOVER LESS EXPENSES BY FUNCTION AND REQUIRES DISCLOSURE OF GROSS PROFIT. THE SECOND PRESENT EXPENSES BY TYPE AND DOESNT SHOW GROSS PROFIT. INDIAN GAAP: THE INDIAN COMPANIES ACT DOESNT PRESCRIBE A FORMAT, HOWEVER THE ENTITY MUST ANALYZE THE EXPENDITURE BY FUNCTION OR TYPE.

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: EXTRAORDINARY ITEMS:
IAS: VERY RARE LIMITED TO THOSE FROM NATURAL DISASTERS OR EXPROPRIATION OF ASSETS. DISCLOSURE EITHER ON THE FACE OF INCOME STATEMENTS OR IN THE NOTES. US GAAP: MUST ALSO INCLUDE GAINS/LOSSES FROM THE EARLY EXTINGUISHMENT OF DEBT IF MATERIAL. UK GAAP: EFFECTIVELY PROHIBITED. INDIAN GAAP: SIMILAR TO IAS

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: STATEMENT OF RECOGNISED GAINS OR LOSSES: IAS: EITHER AS A SEPARATE PRIMARY STATEMENT OR SEPARATELY HIGHLIGHTED WITHIN
THE PRIMARY STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FORMAT: THE TOTAL GAIN AND LOSSES RECOGNISED IN THE PERIOD COMPRISES NET INCOME AND THE FOLLOWING GAINS AND LOSSES RECOGNISED DIRECTLY IN EQUITY. FAIR VALUE GAINS/LOSSES ON LAND AND BUILDINGS, INVESTMENTS AND CERTAIN FINANCIAL INSTRUMENTS. FOREIGN EXCHANGE TRANSLATION DIFFERENCES THE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING POLICY CHANGES IN FAIR VALUE ON CERTAIN FINANCIAL INSTRUMENTS IF DESIGNATED AS CASHFLOW HEDGES

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IAS ;US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: STATEMENT OF RECOGNISED GAINS OR LOSSES: US GAAP: A SINGLE PRIMARY STATEMENT OF INCOME CONTAINING BOTH NET INCOME AND
OTHER COMPREHENSIVE INCOME. A TWO STATEMENT APPROACH AS UNDER IAS A SEPARATE CATEGORY HIGHLIGHTED WITHIN THE PRIMARY STATEMENT OF CHANGES IN EQUITY. IN ADDITION REQUIRES THE CUMULATIVE AMOUNTS FOR EACH ITEM OF COMPREHENSIVE INCOME. UK GAAP: REQUIRES A SEPARATE PRIMARY STATEMENT INDIAN GAAP: THE SCHEDULE FORMING PART OF BALANCE SHEET DISCLOSES THE CHANGES IN THE RETAINED EARNINGS AND RESERVES BALANCES.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: ITEM IAS US GAAP UK GAAP INDIAN GAAP INTEREST PAID OP./FIN OP INVEST/FIN FIN. INT RECEIVED OP/INV OP INVEST/FIN INVEST DIVIDENDS PAID OP/FIN FIN EQUITY DIV FIN DIV RECEIVED OP/INV OP INVMT. AND FIN INVESTING UK GAAP: MORE DETAILED AND REQUIRES SEPARATE CLASSIFICATION OF CASHFLOWS FROM THE FOLLOWING ACTIVITIES. . OPERATING RETURNS ON INVESTMENT AND SERVICING OF FINANCE ( INVESTMENT AND FINANCE) TAXATION CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT ACQUISITIONS AND DISPOSAL EQUITY DIVIDENDS PAID MANAGEMENT OF LIQUID RESOURCES AND FINANCING

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: DEFINITION OF CASH AND CASH EQUIVALENTS IAS: INCLUDES OVERDRAFTS REPAYABLE ON DEMAND BUT NOT SHORT TERM BANK BORROWINGS. CASH EQUIVALENTS ARE SHORT TERM HIGHLY LIQUID INVESTMENTS THAT ARE READILY CONVERTIBLE TO KNOWN AMOUNTS OF CASH WHICH ARE SUBJECT TO AN INSIGNIFICANT RISK OF CHANGES IN VALUE. AN INVESTMENT NORMALLY QUALIFIES AS CASH EQUIVALENT ONLY WHEN IT HAS A MATURITY OF THREE MONTHS OR LESS FROM ITS ACQUISITON DATE. US GAAP: SAME AS IAS, BYT CHANGES IN THE BALANCES OF OVERDRAFTS ARE CLASSIFIED AS FINANCING CASHFLOWS. UK GAAP: CASH IS DEFINED AS CASH IN HAND AND DEPOSITS RECEIVABLE ON DEMAND, LESS OVERDRAFTS REPAYABLE ON DEMAND. CASH EQUIVALENT ARE NOT INCLUDED IN CASH BUT ARE DEALT WITH IN THE MANAGEMENT OF LIQUID RESOURCES SECTION. INDIAN GAAP: CASH INCLUDES CASH IN HAND AND DEPOSITS REPAYABLE ON DEMAND. CASH EQUIVALENTS ARE SHORT-TERM, HIGHLY LIQUID INVESTMENTS THAT ARE READILY CONVERTIBLE TO CASH ( NORMALLY THREE MONTHS OR LESS)

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: CHANGES IN ACCOUNTING POLICIES: IAS: PERMITS TWO APPROACHES: 1. CHANGES IN ACCOUNTING POLICIES MAY BE ACCOUNTED FOR RETROSPECTIVELY WITH COMPARATIVE INFORMATION RESTATED AND THE AMOUNT OF ADJUSTMENT RELATING TO PRIOR PERIOD ADJUSTED AGAINST THE OPENING BALANCE OF RETAINED EARNINGS OF THE EARLIEST YEAR PRESENTED. ALTERNATIVELY, THE ADJUSTMENT MAY BE RECOGNISED IN THE INCOME STATEMENT WITH PRO-FORMA COMPARATIVE INFORMATION PRESENTED. US GAAP: REQUIRES DISCLOSURE OF CUMULATIVE AMOUNT OF CHANGE IN THE INCOME STATEMENT FOR THE PERIOD OF CHANGE. THE ENTITY DISCLOSES PRO-FORMA COMPARATIVES AS IF THE CHANGE HAD BEEN APPLIED TO THOSE PERIODS, HOWEVER, RETROSPECTIVE ADJUSTMENTS AR REQUIRED IN CASES SUCH AS CHANGES IN THE METHOD OF INVENTORY VALUATION, DEPRECIATION. CONSTRUCTION CONTRACTS. UK GAAP:ALL CHANGES IN POLICY DEALT WITH RETROSPECTIVELY BY WAY OF A PRIOR YEAR ADJUSTMENT. ALSO REQUIRES THE EFFECT OF CHANGE ON THE CURRENT YEAR AND PRIOR YEAR INCOME TO BE DISCLOSED. INDIAN GAAP: THE IMPACT OF, AND THE ADJUSTMENTS RESULTING FROM SUCH CHANGE SHOULD BE SHOWN IN THE FINANCIAL STATEMENTS OF THE PERIOD IN WHICH SUCH CHANGE IS MADE.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION: DEFINITION IAS: INCOME IS DEFINED IN IAS TO INCLUDE REVENUE AND GAINS.DEFINES REVENUE AS THE GROSS INFLOW OF ECONOMIC BENEFITS DURING THE PERIOD ARISING FROM THE ORDINARY ACTIVITIES OF AN ENTERPRISE WHEN THE INFLOWS RESULT IN AN IN INCREASE IN EQUITY. US GAAP:ACTUAL OR EXPECTED CASH FLOWS THAT HAVE OCCURRED OR WILL EVENTUATE. UK GAAP: DEFINES GAINS WHICH INCLUDE REVENUES, AS INCREASE IN OWNERSHIP INTEREST NOT RESULTING FROM CONTRIBUTIONS FROM OWNERS. INDIAN GAAP: REVENUE IS DEFINED AS THE GROSS INFLOW OF CASH, RECEIVABLES OR OTHER CONSIDERATION ARISING IN THE COURSE OF THE ORDINARY ACTIVITIES OF AN ENTERPRISE FROM THE SALE OF GOODS, FROM THE RENDERING OF SERVICES AND FROM THE USE BY OTHERS OF ENTERPRISE RESOURCES YEILDING INTEREST, ROYALITIES AND DIVIDENDS.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION: IAS : THE STANDARD DESCRIBES SPECIFIC REVENUE RECOGNITION CRITERION FOR EACH OF I) SALE OF GOODS II) RENDERING OF SERVICES AND INTEREST III) ROYALATIES AND DIVIDENDS THE REVENUE RECOGNITION CRITERION COMMON TO EACH OF THESE ARE I) PROBABILITY THAT ECONOMIC BENEFITS ASSOCIATED WITH THE TRANSACTION WILL FLOW TO THE ENTITY AND THE REVENUE AND THE COSTS CAN BE MEASURED RELIABLY. II) FOR SALE OF GOODS IAS FURTHER REQUIRES THAT THE SELLER HAS TRANSFERRED THE SIGNIFICANT RISKS AND REWARDS OF OWNERSHIP TO THE BUYER AND RETAINS NEITHER MANAGEMENT INVOLVEMENT IN , NOR CONTROL OVER GOODS. III) REVENUE FROM RENDERING OF SERVICES MUST BE RECOGNISED BY REFERENCE TO STATE OF COMPLETION OF THE TRANSACTION AT THE BALANCE SHEET DATE. IV) INTEREST REVENUES MUST BE RECOGNISED ON A BASIS THAT TAKE INTO ACCOUNT THE YIELD ON ASSET. V) ROYALITIES ARE RECOGNISED ON ACCCRUAL BASIS AND DIVIDENDS WHEN THE SHAREHOLDERS RIGHT TO RECEIVE PAYMENT IS ESTABLISHED.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION: US GAAP: REVENUES BEING REALISED OR THE LIKELIHOOD OF RECEIPT BEING REASONABLY CERTAIN. FURTHER US GAAP REQUIRES THAT THERE IS PERSUASIVE EVIDENCE OF AN ARRANGEMENT AND DELIVERY HAS OCCURRED OR SERVICES HAVE BEEN RENDERED. VENDORS PRICE TO THE BUYER IS FIXED OR DETERMINABLE AND COLLECTABILITY IS REASONABLY ENSURED. UK GAAP: ITS NOT SPECIFICALLY DEFINED. ASBS STATEMENT OF PRINCIPLES REQUIRES THAT A GAIN MUST BE RECOGNISED IF THERE IS SUFFICIENT EVIDENCE THAT AN ASSET HAS BEEN CREATED AND THE ASSET CAN BE MEASURED WITH SUFFICIENT RELIABILITY.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION: WARRANTY AND PRODUCT MAINTENANCE CONTRACTS: IAS: WHEN THE SELLING PRICE OF A PRODUCT INCLUDES AN IDENTIFIABLE COMPONENT FOR SUBSEQUENT SERVICING, THE LATTER IS DEFERRED AND RECOGNISED OVER THE WARRANTY PERIOD. US GAAP: REVENUE MUST BE RECOGNISED ON STRAIGHT LINE BASIS UNLESS THE PATTERN OF COST INDICATE OTHERWISE. A LOSS MUST BE RECOGNISED IMMEDIATELY IF THE EXPECTED COST TO PROVIDE SERVICE DURING THE WARRANTY PERIOD EXCEEDS UNEARNED REVENUE. UK GAAP: SIMILAR TO IAS INDIAN GAAP: NO SPECIFIC GUIDANCE

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION: SOFTWARE REVENUE RECOGNITION: IAS: NO SPECIFIC REVENUE RECOGNITION GUIDANCE EXISTS. FEES FROM THE DEVELOPMENT OF CUSTOMISED SOFTWAREWOULD USUALLY BE RECOGNISED BY REFERENCE TO THE STAGE OF COMPLETION OF A PROJECT. US GAAP: PROVIDES SPECIFIC GUIDANCE ON SOFTWARE REVENUE RECOGNITION FOR SOFTWARE VENDORS AND IN PARTICULAR FOR MULTIPLE-ELEMENT ARRANGEMENTS. FOR THESE ARRANGEMENTS, A VALUE IS ESTABLISHED FOR EACH ELEMENT BASED ONLY ON VENDOR-SPECIFIC-OBJECTIVE EVIDENCE(VSOE) OF FAIR VALUE.VSOE IS GENERALLY LIMITED TO THE PRICE CHARGED WHEN ELEMENTS ARE SOLD SEPERATELY. REVENUE IS RECOGNISED AS EACH ELEMENT IS DELIVERED. UK GAAP: NO SPECIFIC GUIDANCE INDIAN GAAP: NO SPECIFIC GUIDANCE

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION CONSTRUCTION CONTRACTS: IAS: APPLIES TO FIXED PRICE AND COST PLUS CONSTRUCTION CONTRACTS OF CONTRACTORS, FOR THE CONSTRUCTION OF A SINGLE ASSET OR COMBINATION OF ASSETS. US GAAP: GUIDANCE IS DEFINED FROM THE PERSPECTIVE OF THE CONTRACTOR RATHER THAN THE CONTRACT.GUIDANCE IS ALSO APPLCABLE TO UNIT-PRICE AND TIME AND MATERIAL CONTRACTS. UK GAAP: SIMILAR TO IAS INDIAN GAAP: SIMILAR TO IAS. RECOGNITION METHOD: IAS: PERCENTAGE OF COMPLETION METHOD TO RECOGNISE REVENUE AND EXPENSES IF THE OUTCOME CAN BE MEASURED RELIABLY. US GAAP: ENTITIES USUALLY ADOPT THE PERCENTAGE OF COMPLETION METHOD.HOWEVER, WHEN THE EXTENT OF PROGRESS TOWARDS COMPLETION IS NOT REASONABLY MEASURABLE, THE COMPLETED CONTRACT METHOD IS USED. UK GAAP: PRESCRIBES TO A METHOD SIMILAR TO THE PERCENTAGE OF COMPLETION METHOD.

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IAS ; US GAAP; UK GAAP AND INDIAN GAAP CONCEPTUAL FRAMEWORK: REVENUE RECOGNITION CONSTRUCTION CONTRACTS: APPLYING THE PERCENTAGE OF COMPLETION METHOD: IAS: WHEN THE OUTCOME OF THE CONTRACT CAN BE ESTIMATED RELIABLY, REVENUE AND COSTS MUST BE RECOGNISED BY REFERENCE TO THE STAGE OF COMPLETION OF THE CONTRACT ACTIVITY AT THE BALANCE SHEET DATE. US GAAP: MULTIPLIES THE ESTIMATED PERCENTAGE OF COMPLETION BY THE ESTIMATED TOTAL REVENUES TO DETERMINE EARNED REVENUE AND MULTIPLIES THE ESTIMATED PERCENTAGE OF COMPLETION BY THE ESTIMATED TOTAL CONTRACT COST TO DETERMINE THE COST OF EARNED REVENUE. UK GAAP: SIMILAR TO IAS INDIAN GAAP: SIMILAR TO IAS.

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SUBSIDIARIES EXCLUDED FROM CONSOLIDATION: IAS: PARENT ACQUIRES THE SUBSIDIARY ONLY FOR RESALE IN THE NEAR FUTURE US GAAP: SIMILAR TO IAS. SUBSIDIARIES ARE EXCLUDED FROM CONSOLIDATION IF IT OPERATES UNDER LONG TERM RESTRICTIONS WHICH IMPAIRS THE PARENTS ABILITY TO CONTROL THE SUBSIDIARY. UK GAAP SAME AS IAS. IF HELD FOR RESALE ITS VALUED AS A CURRENT ASSET AT THE LOWER OF COST AND NET REALISABLE VALUE. REDUCTION OF AN INTEREST IN A SUBSIDIARY: IAS: THE GAIN OR LOSS MUST BE CALCULATED BY COMPARING THE REDUCTION IN THE GROUPS INTEREST IN THE CARRYING AMOUNT OF SUBSIDIARYS NET ASSETS BEFORE AND AFTER THE SALE WITH THE PROCEEDS RECEIEVD US AND UK GAAP: SIMILAR TO IAS UNIFORM ACOUNTING POLICIES: IAS:CONSOLIDATED FINANCIAL STATEMENTS USING UNIFORM ACCOUNTING POLICIES FOR ALL ENTITIES IN A GROUP. DISCLOSURES WHERE ADOPTION OF UNIFORM ACOUNTING POLICIES IS NOT PRACTICABLE. US GAAP: REQUIRES UNIFORM ACCOUNT POLICIES. UK GAAP: SIMLAR TO IAS

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INVESTMENTS IN ASSOCIATES: AN ASSOCIATE IS DEFINED AS AN ENTITY WHERE THE INVESTOR HAS SIGNIFICANT INFLUENCE, POWER TO PARTICIPATE BUT NOT CONTROL THE FINANCIAL AND OPERATING DECISIONS. A 20% OR MORE INTEREST BY AN INVESTOR IN THE VOTING RIGHTS LEADS TO A PRESUMPTION OF SIGNIFICANT INFLUENCE. US GAAP : SIMILAR TO IAS UK GAAP: 20% AND INVESTOR MUST EXERCISE SIGNIFICANT INFLUENCE. MUST BE ACCOUNTED BY EQUITY METHOD. THE EQUITY METHOD IS A METHOD OF ACCOUNTING WHERE THE INVESTMENT IS INITIALLY RECORDED AT COST, IDENTIFYING ANY GOODWILL/ CAPITAL RESERVE ARISING OUT AT THE TIME OF ACQUISITION. THE CARRYING AMOUNT OF THE INVESTMENT IS ADJUSTED THEREAFTER FOR THE POST ACQUISITION CHANGE IN THE INVESTORS SHARE OF NET ASSETS OF THE INVESTEE. THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS REFLECTS THE INVESTORS SHARE OF THE RESULTS OF THE INVESTEE. US GAAP: SIMILAR TO IAS. INVESTORS SHARE OF ASSOCIATE PROFITS AND LOSSES IS PRESENTED AT APOST TAX LEVEL. REQUIRES DISCLOSURES OF INFORMATION ABOUT THE RESULTS, ASSETS AND LIABILITIES OF SIGNIFICANT ASSOCIATE. UK GAAP SIMILAR TO IAS. THE INVESTORS SHARE OF ASSOCIATE OPERATING PROFIT, EXCEPTIONAL ITEMS, INTEREST AND TAX ARE ALL PRESENTED SEPERATELY. ALSO REQUIRES SEPARATE DISCLOSURE OF THE GOODWILL. IMPAIRMENT: THE CARRYING AMOUNT OF INVESTMENT IN AN ASSOCIATE SHOULD BE REDUCED TO RECOGNISE A DECLINE , OTHER THAN TEMPORARY IN THE VALUE OF INVESTMENT, INDIVIDUALLY FOR EACH INVESTMENT.
US GAAP: APPLY FAIR VALUE IMPAIRMENT TESTING OF GOODWILL ACQUIRED IN CONNECTION WITH AN EQUITY METHOD INVESTMENT. UK GAAP: CASH FLOWS ARE THE NET CASH FLOWS AND NOT THE DIVIDENDS IN DETERMINIG THE FAIR VALUE.

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INVESTMENT IN A JOINT VENTURE:

A JOINT VENTURE IS A CONTRACTUAL ARRANGEMENT WHERE BY TWO OR MORE PARTIES UNDERTAKE AN ECONOMIC ACTIVITY, WHICH IS SUBJECT TO JOINT CONTROL.. FOR JOINTLY CONTROLLED ENTITIES, USE EITHER THE PROPORTIONATE CONSOLIDATION METHOD OR EQUITY METHOD. IAS US GAAP. DOESNT NOR PERMIT PROPORTIONATE CONSOLIDATION. VENTURERS APPLY THE EQUITY METHOD . UK GAAP:DOES NOT PERMIT CONSOLIDATION . THE INVESTOR APPLIES THE GROSS EQUITY METHOD. THIS METHOD REQUIRES THE PRESENTATION OF TH INVESTORS SHARE OF GROSS ASSETS AND LIABILITIES AND TURNOVER ON THE FACE OF BALANCE SHEET AND INCOME STATEMENT.

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EMPLOYEE SHARE OPTION PLANS:

IAS : NO SPECIFIC GUIDANCE. HOWEVER THE GUIDANCE GIVEN FOR US GAAP WOULD APPLY IN PRACTICE. US GAAP: ESPOS ARE OFTEN COMBINED WITH TRUSTS. AN ESOPS TRUSTS ASSET AND LIABILITIES ARE INCLUDED IN THE BALANCE SHEET OF THE SPONSORING ENTITYS BALANCE SHEET WITH RELATED INTEREST COST RECOGNISED IN THE INCOME STATEMENT OF THE SPONSORING ENTITY. UK GAAP AIMLAR TO US GAAP,

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EMPLOYEE SHARE OPTION PLANS:

NO SPECIFIC PRONOUNCEMENT. HOWEVER, SEBI REQUIRES THE EXCESS OF MARKET PRICE OF THE UNDERLYING EQUITY SHARES AS OF THE DATE OF GRANT OF OPTIONS, INCLUDING UP-FRONT PAYMENTS, IF ANY TO BE RECOGNISED AND AMORTISED ON A STRAIGHT LINE BASIS OVER THE VESTING PEIROD.

FOREIGN CURRENCY TRANSLATION: TRANSLATION OF TRANSACTIONS DENOMINATED IN FOREIGN EXCHANGE IS AT THEE XCHANGE RATE IN OPERATION ON DATE OF TRANSACTION. EXCHANGE GAINS OR LOSSES ARISING ON A ENTITYS OWN FOREIGN CURRENCY TRANSACTIONS ARE REPORTED AS PART OF THE PROFIT OR LOSS FOR THE YEAR.

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DEFINITION OF CASH CASH INCLUDES CASH IN HAND AND DEPOSITS REPAYABLE ON DEMAND. CASH EUIVALENTS INCLUDE HIGHLY LIQUID SECURITIES DEFINITION OF SUBSIDIARY:
US : CONTROLLING INTEREST THROUGH MAJORITY OWNERSHIP OF VOTING SHARES. CONTROLLING INTEREST THROUGH MAJORITY OF VOTING SHARES OR CONTROL OF BOARD OF DIRECTORS. DEFINITION OF AN ASSOCIATE AN ASSOCIATE IS AN ENTERPRISE IN WHICH THE INVESTOR HAS A SIGNIFICANT INFLUENCE AND WHICH IS NEITHER A SUBSIDIARY NOR A JOINT VENTURE OF THE INVESTOR. INVESTOR USUALLY DIRECTLY OR INDIRECTLY HOLDS 20% OR MORE OF THE VOTING POWER. PRESENTATION OF ASSOCIATE RESULTS: USE EQUITY METHOD. SHOW SHARE OF PROFIT OR LOSSES.

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PURCHASE METHOD FAIR VALUES ON ACQUISITION: IAS: FAIR VALUE OF ASSETS AND LIABILITIES OF ACQUIRED ENTITY.
SOME LIABILITIES RELATING TO THE ACQUIRED ENTITY MAY BE RECOGNISED US GAAP: SIMILAR TO IAS , BUT SPECIFIC RULES FOR ACQUIRED IN-PROCESS R& D GENERALLY EXPENSED. UK GAAP: SIMILAR TO IAS BUT VERY FEW PROVISIONS ALOWED. INDIAN GAAP: SIMILAR TO IAS BUT NO SEPARATE ACQUISITION PROVISIONS ALLOWED. PURCHASE METHOD GOODWILL: IAS : CAPITALISE AND AMORTISE OVER USEFUL LIFE NORMALLY NOT MORE THAN 20 YEARS. US GAAP: CAPITALISE BUT DO NOT AMORTISE. GOODWILL SHOULD BE TESTED FOR IMPAIRMENT ATLEAST ANNUALLY AT THE REPORTING LEVEL UNIT. UK GAAP: SIMILAR TO IAS ALTHOUGH INDEFINITE LIFE MAY BE USED IN CERTAIN CIRCUMSTANCES. INDIAN GAAP:CAPITALISE AND AMORTISE OVER USEFUL LIFE NOT EXCEEDING 5 YEARS.

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PURCHASE METHOD FAIR VALUES ON ACQUISITION:

PURCHASE METHOD NEGATIVE GOODWILL: IAS: IT RELATES TO EXPECTED FUTURE COSTS/LOSSES RECOGNISE IN INCOME WHEN THEY OCCUR. OTHERWISE RECORD AS NEGATIVE ASSET AND RECOGNISE OVER USEFUL LIFE OF NON MONETARY ASSETS. ANY EXCESS OVER THE FAIR VALUE OF ASSETS IS RECOGNISED IN INCOME STATEMENT IMMEDIATELY. US GAAP: REDUCE PROPROTIONATELY THE FAIR VALUE ASSIGNED TO NON CURRENT ASSETS. ANY EXCESS IS RECOGNISED IN INCOME STATEMENT AS AN EXTRAORDINARY GAIN UK GAAP: RECOGNISE AS NEGATIVE ASSET AND RECOGNISE IN INCOME STATEMENT TO MATCH DEPRECIATION OF NON MONETARY ASSETS. . ANY EXCESS OVER THE FAIR VALUE OF SUCH ASSETS IS RECOGNISED IN INCOME STATEMENT OVER THE PRIOD LIKELY TO BENEFIT. INDIAN GAAP: TREAT IT AS CAPITAL RESERVE WHICH IS NOT AMORTISED.

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PURCHASE METHOD FAIR VALUES ON ACQUISITION:

INTANGIBLE ASSETS:. IAS: CAPITALISE IF RECOGNITION CRITERION MET. AMORTISE OVER USEFUL LIFE NOT EXCEEDING 20 YEARS. US GAAP: CAPITALISE PRUCHASED INANGIBLE ASSETS. GOODWILL IS NOT ASSUMED TO BE WASTING ASSET. ALL INTANGIBLES THAT HAVE INDEFINITE USEFUL LIFE ARE REQUIRED TO BE TESTED , ATLEAST ANNUALLY FOR IMPAIRMENT. UK GAAP: BROADLY SIMILAR TO IAS, ALTHOUGH MAY USE INDEFINITE LIFE IN CERTAIN CIRCUMSTANCES. INDIAN GAAP: CAPITALISE INTANGIBLE ASSETS IF SPECIFIC CRITEION ARE MET AND AMORTISE OVER USEFUL LIFE.

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POOLING METHOD:.
IAS: SEVERLY RESTRICTED TO TRUE MERGERS OF EQUALS US GAAP: PROHIBITED UK GAAP: QUITE RESTRICTED. CRITERION INCLUDES SIZE OF ENTITIES AND LOW LEVEL LIMITS ON NON SHARE CONSIDERATION.. INDIAN GAAP: RESTRICTED TO AMALGATION IN NATURE OF MERGER ONLY. ALLOWED ONLY WHEN CERTAIN CONDITIONS ARE MET, MAINLY WHEN ALL ASSETS AND LIABILITIES AND90% SHAREHOLDERS OF TRANFEROR COMPANY BECOME PART OF TRANSFERE COMPANY. FURTHER BOTH THE IAS AND UK GAAP REQUIRE: ALL PARTIES TO THE COMBINATION PARTICIPATE IN MANAGEMENT APPOINTMENT PROCESS. EFFECETD IN A SHARE FOR SHARE EXCHANGE WITH RIGHTS. NO PARTY CONTRIBUTE CASH. IAS AND INDIAN GAAP REQUIRE, THE SHAREHOLDERS OF EACH PARTY MAINTAIN SUBSTANTIALLY THE SAME VOTING RIGHTS IN THE COMBINED ENTITY RELATIVE TO EACH OTHER.

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INTERNALLY GENERATED INTANGIBLES: IAS DEFINITION: NON MONETARY ASSET WITHOUT PHYSICAL SUBSTANCE HELD FOR USE IN
PRODUCTION OR FORR ENTALS TO OTHERS AND MAY BE ACQUIRED OR INTERNALLY GENERATED. RECOGNITION CRITERION FOR INTERNALLY GENERATED INTANGIBLES: IAS : REQUIRES CLASSIFICATION OF THE COSTS ASSOCIATED WITH THE CREATION OF INTANGIBLE ASSETS BY RESEARCH PHASE AND DEVELOPMENT PHASE. COSTS IN THE RESEARCH PHASE MUST BE EXPENSED. COSTS IN THE DEVELOPMENT PHASE ARE EXPENSED UNLESS THE ENTITY CAN ESTABLISH THE FOLLOWING: THE TECHNICAL FEASIBILITY AND INTENTION OF COMPLETING THE INTANGIBLE ASSET. THE ABILITY TO USE OR SELL IT. HOW THE INTANGIBLE ASSET WILL GENERATE FUTURE ECONOMIC BENEFITS. THE ENTITY MUST DEMONSTRATE THE EXISTENCE OF A MARKET OR IF DEVELOPED FOR INTERNAL USE THE SUEFULNESS OF INTANGIBLE ASSET. THE AVAILABILITY OF ADEQUATE RESOURCES TO COMPLETE THE DEVELOPMENT. THE ABILITY TO MEASURE RELIABLY THE EXPENDITURE ATTRIBUTABLE TO THE INTANGIBLE ASSET DURING ITS DEVELOPMENT. DEVELOPMENT COST INITIALY RECOGNISED AS AN EXPENSE CANT BE CAPITALISED SUBSEQUENTLY.

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INTERNALLY GENERATED INTANGIBLES:

US GAAP: US GAAP REQUIRES R&D COST BE EXPENSED AS INCURRED, MAKING THE RECOGNITION OF INTERNALLY GENERATED INTANGIBLE RARE. A SEPARATE RULE APPLIES TO DEVELOPMENT COSTS FOR SOFTWARE THAT IS TO BE SOLD.HERE CAPITALISATION AND AMORTISTION APPLIES ONCE TECHNOLOGICAL FEASIBILITY IS ESTABLISHED. CAPITALISATION CEASES WHEN THE PRODUCT IS AVAILABLE FOR GENERAL RELEASE TO USTOMERS. SIMILR RULES APPLY TO CERTAIN ELEMENTS OF DEVELOPMENT COSTS FOR COMPUTER SOFTWARE FOR INTERNAL USE. UK GAAP: INTERNALLY DEVELOPED INTANGIBLE ASSET ( EXCLUDING R&D) MAY ONLY BE CAPITALISED WHEN THERE IS AN ACTIVE MARKET FOR THE ASSET. THE RECOGNITION CRITERION FOR R& D IS SIMILAR TO IAS EXCEPT UNDER UK GAAP AN ENTITY CAN CHOOSE NOT TO CAPITALISE DEVELOPMENT COSTS. WHEN CAPITALISATION IS SELECTED, THE RECOGNITION CRITERION ARE LESS STRICT THAN IAS . REASONABLE EXPECTATION OF FUTURE BEENFITS RATHER THAN DEMONSTARTION OF THEM INDIAN GAAP: SIMILAR TO IAS

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INTERNALLY GENERATED INTANGIBLES:

RECOGNITION WEBSITE DEVELOPMENT COSTS: US GAAP: COSTS INCURRED DURING THE PLANNING STAGE MUST BE EXPENSED. COSTS INCURRED DURING THE WEBSITE APPLICATION AND INFRASTRUCTURE DEVELOPMENT STAGES MUST BE CAPIALISED. COST INCURRED DURING THE OPERATION STAGE MUST BE EXPENSED AS INCURED. UK GAAP: COSTS INCURRED TO DEVELOP CAN BE CAPITALISED IF CERTAIN CRITERION IS MET.IN PARTICULAR, UK GAAP REQUIRES A DISCRETE FLOW OF REVENUE TO RESULT FROM THE DEVELOPMENT OF WEBSITE. THIS PRECLUDES THE CAPITALISATION OF DEVELOPMENT COSTS FOR WEBSITES USEDONLY FOR ADVERTISING. INDIAN GAAP: EXPENDITURES INCURRED IN THE PLANNING STAGE OF A WEBSITE ARE RECOGNISED AS AN EXPENSE WHEN INCURRED. EXPENDITURE INCURRED IN THE DEVELOPMENT STAGES SHOULD BE RECOGNISED AS AN INTANGIBLE ASSET IF CRITERION SPECIFIED FOR RECOGNITION ARE MET.

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INTERNALLY GENERATED INTANGIBLES:

SUBSEQUENT MEASUREMENT: IAS:REVALUATION OF INTANGIBLE ASSET MUST BE ON THEIR FAIR VALUE BASED UPON PRICES IN THE ACTIVE MARKET.. (VERY RARE) UK GAAP: SIMILAR TO IAS US GAAP AND INDIAN GAAP:REVALUATIONS ARE NOT PERMITTED AS PER US GAAP INTANGIBLE ASSETS SUBJECT TO AMORTISATION ARE CARRIED AT AMORTISE COST UNLESS IMPAIRED. INTANGIBLE ASSETS NOT SUBJECT TO AMORTISATION ARE CARRIED AT HISTORICAL COST UNLESS IMPAIRED.

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TRANSFER BETWEEN CATEGORIES OF FINANCIAL ASSETS:

HEDL TO MATURITY: AN ENTITY MUST CLASSIFY A CHANGE IN INTENT OR ABILITY. WHEN RECLASSIFICATION IS TO HLED FOR TRADING THE ASSET MUST BE REMEASURED TO ITS FAIR VALUE WITH THE DIFFERENCE RECOGNISED IN THE INCOME STATEMENT. WHEN THE ASSET IS RECLASSIFIED FROM HTM TO AVAILABLE FOR SALE THEN ASSET MUST BE REMEASURED TO FAIR VALUE AND DIFFEENCE RECOGNISED EITHER IN INCOME STATEMENT OR IN EQUITY. AN ENTITY MUST RECLASSIFY AN ASSET TO A HELD TILL MATURITY CATEGORY, WHEN THERE IS A CHANGE IN INTENT OR WHEN A FAIR VALUE IS NO LONGER AVAILABLE FOR TW YEARS. IN SUCH A CASE THE FINANCIAL ASSET MUST NO LONGER BE CARRIED AT FAIR VALUE; THE ASSETS FAIR VALUE AT THE DATE OF RECLASSIFICATION BECMOES ITS AMORTISED COST. ANY PREVIOUS GAIN OR LOSS RECOGNISED IN EQUITY MUST BE AMORTISED OVER THE REMAINING LIFE OF THE HTM INVESTMENT. ANY DIFFERENCE BETWEEN THE NEW AMORTISED COST AND AMOUNT DUE AT MATURITY MUST BE TREATED AS ADJUSTMENT OF YIELD.

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TRANSFER BETWEEN CATEGORIES OF FINANCIAL ASSETS:

AVAILABLE FOR SALE: TRANSFERS FROM AVAILABLE FOR SALE INTO TRADING ONLY ARISE IF AN ASSET IS SUBSEQUENTLY INCLUDED IN THE PORTFOLIO WITH A APATTERN OF SHORT TERM PROFIT TAKING. THE FINANCIAL ASSET WILL ALREADY BE CARRIED AT FAIR VALUE AND ANY PREVIOUS GAIN OR LOSS THAT HAS BEEN RECOGNISED IN EQUITY MUST BE RECOGNISED IN INCOME STATEMENT WHEN REALISED OR IMPAIRED. INDIAN GAAP: WHEN LONG TERM INVESTMENTS ARE RECLASSIFIED AS CURRENT INVESTMENTS, TRANSFERS ARE MADE AT LOWER OF THE COST AND CARRYING AMOUNT ON THE DATE OF TRANSFER. WHEN INVESTMENTS ARE RECLASSIFIED FROM CURRENT TO LONG TERM, TRANSFERS ARE MADE AT LOWER OF COST AND FAIR VALUE AT THE DATE OF TRANSFER.

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IMPAIRMENT OF FINANCIAL ASSETS: BOTH IAS AND US GAAP HAVE SIMILAR REQUIREMENT FOR IMPAIRMENT OF FINANCIAL ASSETS. IAS REQUIRES THAT NY ENTITY CONSIDER IMPAIRMENT WHEN THERE IS AN INDICATOR OF IMPAIRMENT SUCH AS THE DETERIORATION OF CREDITWORTHINESS OF A COUNTERPARTY; AN ACTUAL BREACH OF CONTRACT; A HIGH PROBABILITY OF BANKRUPTCY OR THE DISAPPEARANCE OF AN ACTIVE MARKET FOR AN ASSET. US GAAP: REQUIRES THE WRITE DOWN OF FINANCIAL ASSETS WHEN AN ENTITY CONSIDERS A DECLINE IN FAIR VALUE TO BE OTHER THAN TEMPORARY. BOTH IAS AND US GAAP REQUIRE THAT FOR FINANCIAL ASSETS CARRIED AT AMORTISED COSTS THE IMPAIRMENT LOSS IS THE DIFFERENCE BETWEEN THE ASSETS CARRYING AMOUNT AND ITS ESTIMATED RECOVERABLE AMOUNT. FOR FINANCIAL ASSETS CARRIED AT FAIR VALUES, THE RECOVERABLE AMOUNT IS THE PV OF THE EXPECTED FUTURE CASHFLOWS DISCOUNTED AT THE CURRENT AMRKET RATE. IF A LOSS HAS BEEN DEFERRED IN EQUITY, IT MUST BE RECYCLED TO THE INCOME STATEMENT ON IMPAIRMENT.

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FOREIGN CURRENCY TRANSLATION:

TRANSLATE AT THE RATE ON DATE OF TRANSACTION.

CONSOLIDATION OF FOREIGN SUBSIDIARIES:

EVEN THOUGH CONSOLOIDATION IS REUIRED,, THE ACCOUNTING TREATMENT HAS NOT BEEN SPECIFICALLY ADDRESSED. THE CLOSING FOREX RATE FOR BALANCE SHET AND THE AVERAGE RATE FOR INCOME STATEMENT.

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PURCHASE ACCOUNTING: IN US GOODWILL AND OTHER INTANIBLES ARE NOT PRESUMED TO BE WASTING ASSETS IN INDIA INTNGIBLES ARE CAPITALISED AND AMORTISED OVER USEFUL LIFE. THE AMORTISATION PERIOD AHOULD BE REVIWED. INTERNALLY GENERATED INTANGIBLE ASSETS: IN INDIA INTERNALLY GENERATED GOODWILL IS NOT RCOGNISED. IN US AND IN INDIA R&D COSTS ARE EXPENSED WHEN INCURED. IN US SOME SOFTWARE AND WEBSITE DEVELOPMENT COSTS ARE CAPITALISED. IN INDIA EXPENDITURE INCURRED IN THE DEVELOPMENT STAGES SHOULD BE RECOGNISED AS AN INTANGIBLE ASSET IF CRITERION SPECIFIED FOR RECOGNITION IS MET. IN INDIA INTANGIBLE ASSETS ARISING FROM DEVELOPMENT ARE RECOGNISED IF SPECIFIC CRITERION IS MET. NEGATIVE GOODWILL: IN INDIA THE TERM NEGATIVE GOODWILL IS NOT USED. IF THE CONSIDERATION IS LESS THAN THE VALUE OF NET ASSETS ACQUIRED THE DIFFERENCE IS TERMED AS CAPITAL RESERVE.

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PROPERTY PLANT AND EQUIPMENT:

IN US REVALUATION IS NOT PERMITTED. IN INDIA IT IS HISTORICAL COSTS OR REVALUED. FURTHER IN INDIA THERE IS NO RESTRICTION ON FREQUENCY OF REVALUATION.

COSTS INCLUDE COSTS DIRECTLY ATTRIBUTABLE TO ACQUIRING THE ASSET AND THE COST NECESSARY TO BRING SUCH AN ASET TO WORKING CONDITION FOR ITS INTENDED USE. AS PER IAS ( INDIAN GAAP SAME AS IAS) START-UP AND PRE=PRODUCTION COSTS MUST NOT BE CAPITALISED.
SUBSEQUENT EXPENDITURE: SUBSEQUENT EXPENDITURE RELATING TO AN ITEM OF PPE MUST BE ADED TO THE CARRYING AMOUNT OF THE ASSET WHEN ITS PROBABLE THAT FUTURE ECONOMIC BENEFITS,EXCEEDING THE ORIGINAL STANDARD OF PERFORMANCE WILL FLOW TO ENTITY.

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DEPRECIATION:

IAS: THE DEPRECIABLE AMOUNT OF AN ITEM OF PPE MUST BE ALLOCATED ON A SYSTEMATIC BASIS OVER THE USEFUL LIFE. ANY CHANGES IN THE DEPRECIATION METHOD IS TREATED AS CHANGE IN ACCOUNTING ESTIMATE AND REFLECTED IN THE DEPRECIATION CHARGE FOR THE CURRENT AND PROSPECTIVE PERIODS US GAAP: IT CLASSIFIES A CHANGE IN DEPRECIATION METHOD AS CHANGE IN THE ACOUNTING POLICY. THE CUMULTIVE EFFECT OF THE CHANGE IS THEN REFLECTED IN THE CURENT YEARS INCOME STAEMENT. UK GAAP: SIMILAR TO IAS INDIAN GAAP: IT ALSO CLASSIFIES CHANGE AS CHANGE IN AC. POLICY. ALSO, THE COMPANIES ACT SPECIFIES THE MINIMUM RATE TO BE CHARGED FOR DEPRECIATION.

ACCOUNTING PRINCIPLES

DEPRECIATION: IAS : AN ASSET TO BE CARRIED AT COST LESS ACC DEP. AND IMPAIRMENT. REVALUATION AND REVALUATION SURPLUS( DIRECTLY CREDITED TO EQUITY). A REVALUATION DECREASE MUST BE CHARGED DIRECTLY AGAINST ANY RELATED REVALUATION SURPLUS ( FOR THE SAME ASSET) , WITH THE EXCESS BEING RECOGNISED AS EXPENSE.

US GAAP:COST LESS ACCUMULATED DEPRECIATION LESS IMPAIRMENT LOSSES. UK GAAP: REVALUATION RECOGNISED AS PER IAS. HOWEVER, THE FAIR VALUE IS DEFINED AS LOWER OF THE RECOVERABLE AMOUNT AND THE REPLACEMENT COST OF THE ASSET.RECOVERABLE AMOUNT IS HIGHER OF THE VALUE IN USE AND NET REALISABLE VALUE. INDIAN GAAP: REVALUATION RECOGNISED . THE REVALUED ASSETS ARE SHOWN IN THE FINANCIAL STATEMENTS EITHER BY RESTATING BOTH GROSS VALUE AND ACC DEPN OR B RSTATING THE NET BOOK VALUE BY ADDING THE NET INCREASE ON ACCOUNT OF REVALUATION

ACCOUNTING PRINCIPLES

DEPRECIATION: IAS : AN ASSET TO BE CARRIED AT COST LESS ACC DEP. AND IMPAIRMENT. REVALUATION AND REVALUATION SURPLUS( DIRECTLY CREDITED TO EQUITY). A REVALUATION DECREASE MUST BE CHARGED DIRECTLY AGAINST ANY RELATED REVALUATION SURPLUS ( FOR THE SAME ASSET) , WITH THE EXCESS BEING RECOGNISED AS EXPENSE.

US GAAP:COST LESS ACCUMULATED DEPRECIATION LESS IMPAIRMENT LOSSES. UK GAAP: REVALUATION RECOGNISED AS PER IAS. HOWEVER, THE FAIR VALUE IS DEFINED AS LOWER OF THE RECOVERABLE AMOUNT AND THE REPLACEMENT COST OF THE ASSET.RECOVERABLE AMOUNT IS HIGHER OF THE VALUE IN USE AND NET REALISABLE VALUE. INDIAN GAAP: REVALUATION RECOGNISED . THE REVALUED ASSETS ARE SHOWN IN THE FINANCIAL STATEMENTS EITHER BY RESTATING BOTH GROSS VALUE AND ACC DEPN OR B RSTATING THE NET BOOK VALUE BY ADDING THE NET INCREASE ON ACCOUNT OF REVALUATION

ACCOUNTING PRINCIPLES

IMPAIRMENT: IAS : AN IMPAIRMENT LOSS MAY BE OFFSET AGAINST REVALUATION . SURPLUSES TO THE EXTENT THAT IT RELATES TO THE SAME ASSET. ANY UNCOVERED DEFICIT MUST BE ACOUNTED FOR IN THE INCOME STATEMENT. US GAAP: ALL IMPAIRMENTS RECOGNISED IN THE INCOME STATEMENT. UK GAAP: IMPAIRMENT LOSSES ON REVALUED ASSETS ARE RECOGNISED IN THE INCOME STATEMENT IF THEY ARE CAUSED BY A CLEAR CONSUMPTION OF ECONOMIC BENEFITS. OTHERWISE, THEY ARE RECOGNISED IN THE STATEMENT OF RECOGNISED GAIN AND LOSSES UNTIL THE CARRYING AMOUNT OF ASSET REACHES ITS DEPRECIATED HISTORICAL COST AND IN THE INCOME STATEMENT THEREAFTER.

INDIAN GAAP: NO SPECIFIC PRONOUNCEMENT ON IMPAIRMENT

ACCOUNTING PRINCIPLES

IMPAIRMENT OF ASSETS:

IAS: THE IMPAIRMENT LOSS IS THE DIFFERENCE BETWEEN THE ASSETS CARRYING AMOUNT AND RECOVERABLE AMOUNT.THE RECOVERABLE AMOUNT IS THE HIGHER OF THE ASSETS NET SELLING PRICE AND ITS VALUE IN USE. VALUE IN USE IS DERIVED BY DISCOUNTING THE FUTURE CASHFLOWS USING A PER-TAXED RATE THAT REFLECTS THE RISKINESS OF THE CASHFLOWS. US GAAP: THE IMPAIRMENT LOSS IS BASED ON THE ASSETS FAIR VALUE , BEING EITHER THE MARKET VALUE OR SUM OF DISCOUNTED FUTURE CASHFLOWS.

UK GAAP: SIMILAR TO IAS

INDIAN GAAP: THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA HS ISSUED AN EXPOSURE DRAFT ON IMPAIRMENT OF ASSETS.
.

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CAPITALISATION OF BORROWING COSTS

IAS:
CAN CAPITALISE BORROWING COSTS WHERE THEY ARE DIRECTLY ATTRIBUTABLE TO THE ACQUISITION, CONSTRUCTION OR PRODUCTION OF A QUALIFYING ASSET. US GAAP: SIMILAR TO IAS. SAME WITH UK GAAP AND INDIAN GAAP.

ACCOUNTING PRINCIPLES

FINANCIAL LEASE CLASSIFICATION: DEFINED AS FINANCIAL LEASE IF SUBSTANTIALLY ALL RISKS AND REWARDS OF OWNERSHIP TRANSFERRED. SUBSTANCE OVER FORM IS IMPORTANT.THIS IS THE IAS STANDARD AND INDIAN GAAP IS SAME. LEASES-LESSEE ACCOUNTING: RECORD FINANCIAL LEASE AS AN ASSET.NORMALLY DEPRECIATE OVER USEFUL LIFE. APPROPRIATE RENTAL PAYMENTS TO GIVE CONSTANT INTEREST RATE ON OUTSTANDING OBLIGATION. GENERALLY CHARGE OPERATING LEASE RENTALS ON STRAIGHT LINE BASIS. LEASES LESSOR ACCOUNTING: RECORD AMOUNTS DUE UNDER FINANCE LEASES AS RECEVABLES. ALLOCATE GROSS EARNINGS TO GIVE CONSTANT RATE OF RETURN BASED ON NET INVESTMENT METHOD.

ACCOUNTING PRINCIPLES

INVESTMENTS. UNDER INDIAN GAAP INVESTMENTS ARE CLASSIFIED AS CURRENT OR LONG TERM. A CURENT INVESTMENT BY ITS DEFINITION IS NOT INTENDED TO BE HELD FOR MORE THAN A YEAR.INVESTMENT PROP[ERTY IS AN INVESTMENT IN PROPERTY NOT INTENDED TO BE OCCUPIED. CURRENT INVESTMENTS: ARE CARRIED AT ARE CARRIED AT LOWER OF COST OR FAIR VALUE. CARRY LONG TERM INVESTMENTS AT COST WITH PROVISION FOR PERMANENT DIMINUTION IN VALUE. CURRENT INVESTMENTS AT LOWER OF COST OR FAIR VALUE ON INDIVIDUAL BASIS OR BY CATEGORY BASIS. UNDER INDIAN GAAP WHEN INVESTMENTS ARE TRANSFERRED FROM CURRENT TO LONG TERM TRANSFERS MUST BE MADE AT LOWER OF COST AND THE FAIR VALUE AT THE DATE OF TRANSFER. INVENTORIES AND LONG TERM CONTRACT: CARRY AT LOWER OF COST OR NET REALISABLE VALUE. IN INDIA COST IS NORMALLY DETERMINED BY FIFO OR WEIGHTED AVERAGE CSOT METHOD.FOR LONG TERM CONTRACTS EITHER PERCENTAGE COMPLETION METHOD IS USD. IN USE LIFO IS COMMONLY USED. IAS SEPCIFIES WHICHEVER METHOD ADOPTED CONSISTENCEY MUST BE FOLLOWED. REVENUE RECOGNITION: SAME AS PER IAS: PROVISIONS: RECORD PROVISIONS RELATING TO PRESENT OBLIGATIONS FROM PAST EVENTS IF PROBABLE OUTFLOW OF RESOURCES CAN BE RELIABLY ESTIMATED.

ACCOUNTING PRINCIPLES

CONTINGENCIES:

CONTINGENT GAINS ARE NIT RECOGNISED. CONTINGENT LOSS IS PROVIDED IN P&L IF A REASONABLE ESTIMATE OF THE LOSS DUE TO ASSET IMPAIRMENT OR ANY OTHER ILABILITY CAN BE MADE ON THE DATE OF THE BALANCE SHEET. OTHERWISE CONTINGENT LOSSES ARE TO BE DISCLOSED. CONTINGENT LIABILITY: DEFINED AS A POTENTIAL OBLIGATION WHOSE OUTCOME WILL BE CONFIRMED ONLY ON THE OCCURRENCE OR NON-OCCURRENCE OF CERTAIN FUTURE EVENTS OUTSIDE THE ENTITYS CONTROL. A PRESENT OBLIGATION THAT IS NOT RECOGNISED BECAUSE IT IS NOT PROBABLE THAT THERE WILL BE AN OUTFLOW OF ECONOMIC BENEFIT OR THE AMOUNT OF ECONOMIC OUTFLOW CANT BE MEASURED.

EMPLOYEE BENEFITS: DEFINED BENEFITS PLAN: ANNUAL CONTRIBUTIONS ARE BASED ON ACTURIAL VALUATION. IN CASE THE LIABILITY IS FUNDED THROUGH A SCHEME ADMINISTERED BY AN INSURER, AN ACTURIAL CERTIFICATE OR CONTRIBUTIUONS PAYABLE IS OBTAINED. DEFERRED INCOME TAXES: DEFERRED LIABILITIES SHOULD BE RECOGNISED FOR ALL TIMING DIFFERENCES SUBJECT TO PRUDENCE IN RESPECT OF DEFERRED TAX ASSETS.

ACCOUNTING PRINCIPLES

DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS:

UNDER US GAAP AND IAS ALL DERIVATIVES ARE RECOGNISED ON THE BALANCE SHEET AS EITHER FINANCIAL ASSETS OR LIABILITIES. INITIALLY MEASURED AT COST. IAS AND US GAAP REQUIRES SUBSEQUENT MEASURE AT FAIR VALUE, REGARDLESS OF ANY HEDG RELATIONSHIP THAT MIGHT EXIST. CHANGES IN THE VALUE OF DERIVATIVE ARE RECOGNISED IN THE INCOME STATEMENT UNLESS THEY SATISFY THE CRITERION OF HEDGE ACCOUNTING. US GAAP AND IAS HEDGE ACCOUNTING: AS PER IAS A HEDGE QUALIFIES FOR HEDGE ACCOUNTING IF THE EXPECTATION IS THAT CHANGE IN THE FAIR VALUE ORACTUAL RESULTS CASHFLOWS ALMOST FULLY OFFSET AND THE ACTUAL RESULTS ARE WITHIN A RANGE OF 80 TO 125%.

ACCOUNTING PRINCIPLES

ACCOUNTING FOR HEDGING:

HEDGING INSTRUMENTS ARE MEASURED AT FAIR VALUE. THE HEDGED ITEM IS ADJUSTED FOR CHANGES IN ITS FAIR VALUE BUT ONLY DUE TO THE RISKS BEING HEDGED.GAINS AND LOSSES FOR BOTH THE HEDGING AND THE ITEM BEING HEDGED ARE RECOGNISED IN THE INCOME STATEMENT. A WRITTEN OPTION UNLESS COMBINED WITH A LONG OPTION IS NOT CONSIDERED AS A HEDGING INSTRUMENT. CASH FLOW HEDGES: HEDGING INSTRUMENTS ARE MEASURED AT FAIR VALUE. GAINS AND LOSSES ON HEDGES WHEN THEY ARE EFFECTIVE ARE INIYIALLY DEFERRED IN EQUITY AND SUBSEQUENTLY RELEASED TO THE INCOME STATEMENT CONCURRENT WITH THE EARNINGS RECOGNITION PATTERN OF THE HEDGED ITEM. GAINS AND LOSSES ON THE FINANCIAL INSTRUMENTS USED TO HEDGE FORECASTED ASSET AND LIABILITY ACQUISITIONS ARE INCLUDED IN THE COST OF ASSET OR LIABILITY.

ACCOUNTING PRINCIPLES

ACCOUNTING FOR HEDGING: LETS LOOK AT AN EXAMPLE:

AN OIL COMPANY REPORTS THE FOLLOWING INVENTORY ON 31ST DECEMBER 2001 IN ITS BALANCE SHEET. 10,000 GALLONS OF OIL $ 10,000 ON THAT DATE THE COMPANY SELLS A FUTURE CONTRACT MATURING DEC 31ST 2002 AT A PRICE OF $ 12. I.E NOTONIALVALUE : 12,000$. ON MARCH 31ST 2002, THE FUTURE PRICE IS $1.30 GIVING THE CONTRACT A FAIR VALUE OF $13,000. WHEN DOING ACCOUNTING FOR HEDGES THE INVENTORY NOW WILL BE SHOWN AT 11,000 (RISE OF $1000) IN SPOT I.E AT THE MARKET VALUE. SIMULATANEOUSLY, THE COMPANY WILL SHOW A LOSS OF $ 1000 ON THE FORWARD CONTRACT. NOW IF THE COMPANY SELLS THE INVENTORY IN JUNE AND ASSUMING THE PRICE REMAINS THE SAME, THE COMPANY WILL SELL THE INVENTORY AT 13,000 , A GAIN OF 2,000$ . IN EFFFECT BY SELLING IN FORWARD THE COMPANY HAS LOCKED IN A VALUE OF 12,000$.

ACCOUNTING PRINCIPLES

ACCOUNTING FOR HEDGING: LETS LOOK AT AN EXAMPLE:

A COMPANY EXPECTS TO GET A PAYMENT OF I MN $ ON JUNE 30 TH 2006. ON JANUARY 2006, IT SELLS A FORWARD CONTRACT, MATURING JUNE 2002 AT AN EXCHANGE RATE OF RS. 47/$. THE COMPANY HAS LOCKED IN A RE VALUE OF 47 PER DOLLAR. ON MARCH 31ST THE FORWARD EXCHANGE RATE WAS 46.75/$. AS THE DOLLAR HAS DECLINED, THERE IS A GAIN ON FORWARD CONTRACT OF .25*1000000=250,000. IN THE BALANCE SHEET THE FORWARD CONTRACT IS CARRIED AT 2,50,000 AND THE COMPREHENSIVE INCOME IN THE EQUITY SECTION OF THE BALANCE SHEET IS SHOWN AT 2,50,000 NOW SUPPOSE THE EXCHANGE RATE IN JUNE IS RS.48. THERE IS LOSS ON FORWARD CONTRACT IS 1000,000 (48-47)*1000000).THE COMPREHENSIVE INCOME WILL NOW SHOW A LOSS OF 12,50,000 (46.75-48)*1MN (CUMULATIVE LOSS 1MN) AND SIMILARILY THE FORWARD CONTRACT WILL BE A LIABILITY OF 1 MN $. SIMULTANEOUSLY THE IMN DOLLARS CA NOW BE SOLD AT 48 IN THE SPOT.THE LOSS ON SETTLEMENT OF FORWARD CONTRACT IS 1MN (THIS WILL BE REFLECTED IN THE INCOME STATEMENT) EFFECTIVELY THE COMPANY HAS LOCKED IN A RATE OF 47RS/$. THE RELEVANT ENTRIES ARE SHOWN IN THE NEXT SLIDE THE ACCOUNTING STANDARD IS AS LONG AS THE HEDGE IS EFFECTIVE THE LOSS IS NOT CARROED ON THE BALANCE SHEET. THIS IS KNOWN AS FAIR VALUE HEDGE.

ACCOUNTING PRINCIPLES

ACCOUNTING FOR HEDGING:

DR FORWARD CONTRACT : 2,50,000 CR COMPREHENSIVE INCOME : 2,50,000 CR FORWARD CONTRACT: 12,50,000 DR COMPREHENSIVE INCOME : 12,50,000 WHEN THE FORWARD CONTRACT IS SETTLED, THE FOLLOWING WILL BE REPORTED IN THE INCOME STATEMENT DB: LOSS ON SETTLEMENT OF FORWARD CONTRACT : 10,00000; CR RECLASIFICATION FROM COMPREHENSIVE INCOME : 10,00000 THE NET EFFECT IN THE INCOME WILL BE ACTUAL SALE OF $ AT 48MN LESS LOSS ON FORWARD OF 1MN RESULTING IN NET SALE AT LOCKED IN VALUE OF 47 RS/DOLLAR.

ACCOUNTING PRINCIPLES

RELATED PARTY TRANSACTION: DETERMINED BY ABILITY TO CONTROL OR TO EXERCISE SIGNIFICANT INFLUENCE OVER THE OTHER PARTY. EPS: USE WEIGHTED AVERAGE POTENTIAL DILUTIVE SHARES AS DENOMINATOR FOR DILUTED EPS. WHEN BONUS ISSUE IS MADE DURING THE YEAR ITS TREATED AS IF IN ISSUE FOR THE WHOLE YEAR. FOR RIGHTS ISSUE A THEORITICAL EX-RIGHRS FORMULA IS USED TO CALCULATE THE BONUS ELEMENT.COMPARATIVE EPS IS ADJUSTED FOR BONUS ISSUE AND RIGHTS ISSUE.

ACCOUNTING PRINCIPLES

RELATED PARTY TRANSACTION: DETERMINED BY ABILITY TO CONTROL OR TO EXERCISE SIGNIFICANT INFLUENCE OVER THE OTHER PARTY. EPS: USE WEIGHTED AVERAGE POTENTIAL DILUTIVE SHARES AS DENOMINATOR FOR DILUTED EPS. WHEN BONUS ISSUE IS MADE DURING THE YEAR ITS TREATED AS IF IN ISSUE FOR THE WHOLE YEAR. FOR RIGHTS ISSUE A THEORITICAL EX-RIGHRS FORMULA IS USED TO CALCULATE THE BONUS ELEMENT.COMPARATIVE EPS IS ADJUSTED FOR BONUS ISSUE AND RIGHTS ISSUE.

ACCOUNTING PRINCIPLES

INVENTORY CONVENTIONALLY INVENTORY IS CARRIED AT LOWER OF COST AND NET REALISABLE VALUE. COSTS MAY BE DETERMINE DON A FULL ABSORPTION BASIS OR DIRECT ABSORPTION BASIS. OTHERS: COMPANIES LISTED ON INDIAN STOCK EXCHANGES AND NON LISTED ENTERPRISES WHOSE TURNOVER EXCEEDS RS. 500 MN ARE REQUIRED TO FURNISHED CASHFLOW SSTATEMENT. DEFERRED TAX ACCOUNTING IS FOLLOWED. DISCLOSURE OF SEGMENTED INFORMATION FOR DIVERSE ACTIVITIES, PARTICULARLY WITH RESPECT TO PROFIT CONTRIBUTION FOR EACH SEGMENT IS NOT CUSTOMARY. CONSOLIDATED STAEMENTS AND BOTH BASIC EPS AND FULLY DILUTED EPS HAVE TO SHOWN NOW.

ACCOUNTING PRINCIPLES

COMPANY ACCOUNTS MUST BE PREPARED ACCORDING TO THE ACCUAL BASIS OF ACCOUNTING AND ON A HISTORICAL BASIS, BUT REVALUATION OF CAPITAL ASSETS IS PERMISSIBLE THE COMPANIES ACT PRESCRIVES THE FORM AND CONTENT OF BALANCE SHEET AND THE INFORMATION TO BE DISCLOSED IN THE INCOME STATEMENT. MOST COMPANIES HAVE VOLUNTARILY ADOPTED MARCH 31 AS THE DATE OF PREPARING THEIR FINANCIAL STATEMENTS BECAUSE A UNIFORM ACCOUNTING YEAR ENDING ON MARCH 31 IS REQUIRED FOR TAX PUTPOSES.

NOW THERE IS A STAUTORY REQUIREMENT FOR DEFERRED TAX ACCOUNTING OR TO PREPARE CONSOLIDATED BALANCE SHHETS.

ACCOUNTING PRINCIPLES

DILUTED EPS SHARE OPTION:

THE DIFFERENCE IN THE NUMBER OF SHARES ISSUED AND THAT WOULD HAVE BEEN ISSUED AT THE FAIR VALUE FOR THE SAME PROCEEDS IS TAKEN AS BONUS ISSUE AND THE NUMBER OF SHARES FOR DILUTED EPS IS CALCULATED TAKING THIS BONUS ISSUE INTO ACCOUNT. THE EARNING FIGURE IS NOT ADJUSTED FOR THE EFFECT OF SHARE OPTOINS OR WARRANTS. SEGMENT REPORTING: GENERAL APPROACH: BASED ON THE PROFILE OF RISKS AND RETURN AND INTERNAL NREPORTING STRUCTURE. AGGREGATION OF SIMILAR GEOGRAPHIC SEGMENTS: THRESHHOLD FOR REPRTABLE SEGMENTS IS REVENUE , RESULT OR ASSETS ARE 10% OR MORE. CAPITAL EXPENDITURE

ACCOUNTING PRINCIPLES

EXTRAORDINARY AND EXCEPTIONAL ITEMS:

EXTRAORDINARY ITEMS LIMITED TO FEW EVENTS OUTSDIE CONTROL OF COMPANY. SEPARATE DISCLOSURES OF ITEMS THAT ARE OF SUCH SIZE AND NATURE THAT REQUIRES SPECIAL DISCLOSURE TO BE MADE.

SEGMENT REPORTING:
SEGMENT INFORMATION SHOULD CONFIRM TO ACCOUNTING POLICIES USED FOR PREPARING FINANCIAL STATEMENTS FOR ENTERPRISE AS A WHOLE. A DETAILED CALCULATION FOR APPLYING AN ENTERPRISE WIDE ACCOUNTING POLICY MAY BE ALLOCATED TO SEGMENTS. SEGMENT FORMAT INCLUDE SALES, PROFITS, CAPEX , ASSETS AND LIABILITIES IAS INDIAN GAAP: ADDITIONAL DISCLOSURE WITH RESPECT TO DEPRECIATION AND OTHER NON CASH EXPENSE, BASIS OF PRICING INTER SEGMENT TRANSFERS, TYPES OF PRODUCTS AND SERVICES AND COMPOSITION OF EACH GEOGRAPHIC SEGMENT.

ACCOUNTING PRINCIPLES

INTERIM FINANCIAL REPORTING:

QUARTERLY INTERIM FINANCIAL REPORTING MANDATORY FOR LISTED ENTITIES .MINIMUM CONTENTS SPECIFIED BY SEBI.MINIMUM REQUIREMENTS INCLUDE BALANCE SHEET, P& L A/C AND CASHFLOW STATEMENT IN CONDENSED FORM. DISCONTINUED OPERATIONS: ASSETS ARE STATED AT LOWER OF NET BOOK VALUE AND NET REALISABLE VALUE. PROVIDE FOR ALL FORSEEABLE LOSSES THAT ARE PROBABLE AND MEASUREABLE. CONSTRUCTION CONTRACTS: REQUIRES THE PERCENTAGE OF COMPLETION METHOD TO RECOGNISE REVENUE AND EXPENSES IF THE OUTCOME CAN BE MEASURED RELIABLY.THE CRITERION NECESSARY FOR A COST PLUS CONTRACT TO SATISFY RELIABLE MEASUREMNET IS LESS RESTRICTIVE THAN FOR A FIXED PRICE CONTRACT. COMPLETE CONTRACT METHOD: UNDER THIS METHOD REVENUE ON A CONTRACT IS RECOGNISED ONLY WHEN THE CONTRACT IS COMPLETE OR SUBSTANTIALLY COMPLETE RATHER THAN ON ESTIMATES.

ACCOUNTING PRINCIPLES

THE DEVELOPMENT OF ACCOUNTING PRACTICE IN INDIA HAS LARGELY BEEN INFLUENCED BY THE PRATICE IN UNITED KINGDOM. IN INDIA NO REGULATORY BODY IS SPECIFICALLY RESPONSIBLE FOR ESTABLISHMENT OF ACCOUNTING PRINCIPLES. IN INDIA THE INSTITUTE OF CHARTERED ACCOUNTANTS HAS DURING THE LAST FEW YEARS ISSUED THE FOLLOWING ACCOUNTING STANDARDS AND GUIDANCE NOTES. LETS DISCUSS SOME OF THE IMPORTANT PRINCIPLES AND WHERE WE DIVERGE FROM US OR UK.

ACCOUNTING PRINCIPLES

REVALUATION OF FIXED ASSETS : CORPORATE MANAGEMENT IN INDIA MAY AT ITS DISCRETION REVALUE THE FIXED ASSETS AND STATE SUCH ASSETS IN THE BALANCE SHEET AT REVALUED AMOUNTS INSTEAD OF THEIR HISTORICAL COSTS. THE REVALUATION SURPLUS IS REGARDED AS NOT AVAILABLE FOR DISTRIBUTION, BUT ITS PERMISSIBLE TO UTILISE THE REVALUATION SURPLUS TO OFFSET THE INCREMENTAL DEPRECIATION ARISING OUT OF REVALUATION. INTEREST ON MONEY BORROWED TO FINANCE FIXED ASSETS ADDITIONS IS INCLUDED IN THEIR COSTS UNTIL THE COMMISSIONING OF THE ASSETS AND NOT CHARGED OFF TO INCOME. EXCHANGE GAIN AND LOSSES RELATED TO BORROWINGS MEANT FOR CAPITAL ADDITIONS ARE INCLUDED IN THE ORIGINAL COST OF THE CAPITAL ASSET AND NOT INCLUDED IN THE INCOME FOR THE YEAR. CORPORATE LAW IN INDIA RECOGNISES THE STRAIGHT LINE AS WELL AS WDV METHODS OF DEPRECCIATION.

ACCOUNTING PRINCIPLES

DEPRECIATION: EVRY COMPANY IN INDIA MUST PROVIDE FOR DEPRECIATION AT THE STAUTORY PRESCRIBED MINIMUM RATES BEFORE DECLARING ANY DIVIDENDS. HOWEVR, MANAGEMENT CAN INCREASE THE DEPRECIATION RATE WHENEVER IT CONSIDERS SUCH DEPRECIATION TO BE INADEQUATE. INVESTMENTS: INVESTMENTS CLASSIFED AS CURRENT SHOULD BE CARIED AT LOWER OF COST AND FAIR VALUE. INVESTMENTS CLASSIFIED AS LONG TERM SHOULD BE CARRIED AT COAST ADJUSTED FOR PERMANENT DIMINUTION IN VALUE. MARKET VALUE OF QUOTED INVESTMENTS MUST BE DISCLOSED. INVESTMENTS IN ASSOCIATE COMPANIES HAVE NO DISCLOSUR REQUIREMENTS. HOWER LOANS AND ADVANCES TO COMPANIES UNDER THE SAME MANAGEMENT MUST BE DISCLOSED.