Accounting AssumptionsThe International Accounting
Standards Committee (lASC) as well as the Institute of Chartered Accountants of
India (ICAI) treat (vide IAS-I & AS-I) the following as the fundamental
accounting assumptions:
(1) Going concernIn the ordinary course, accounting
assumes that the business will continue to exist and carry on its operations for
an indefinite period in the future. The entity is assumed to remain in operation
sufficiently long to carry out its objects and plans. The values attached to the
assets will be on the basis of its current worth. The assumption is that the
fixed assets are not intended for re-sale. Therefore, it may be contended that a
balance sheet which is prepared on the basis of record of facts on historical
costs cannot show the true or real worth of the concern at a particular date.
The underlying principle there is that the earning power and not the cost is the
basis for valuing a continuing business. The business is to continue
indefinitely and the financial and accounting policies are followed to maintain
the continuity of the business unit.
(2) ConsistencyThere should be uniformity in
accounting processes and policies from one period to another. Material changes,
if any, should be disclosed even though there is improvement in technique. A
change of method from one period to another will affect the result of the
trading materially. Only when the accounting procedures are adhered to
consistently from year to year the results disclosed in the financial
statements will be uniform and comparable.
(3) AccrualAccounting attempts to recognize
non-cash events and circumstances as they occur. Accrual is concerned with
expected future cash receipts and payments: it is the accounting process of
recognizing assets, liabilities or income for amounts expected to be received or
paid in future. Common examples of accruals include purchases and sales of goods
or services on credit, interest, rent (not yet paid), wages and salaries, taxes.
Thus, we make record of all expenses and incomes relating to the accounting
period whether actual cash has been disbursed or received or not. If a
fundamental accounting assumption (i.e. Going concern, consistency and accrual)
is not followed (in the preparation of financial statements) the fact
should be disclosed. [AS-I para 27].
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Note for International VAT USers and GST Users in India
Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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