'Students do not get an economic perspective of accounting principles and practices'

Good financial reporting cannot be achieved by box-ticking
We are currently talking of the IFRS (International Financial Reporting Standards) convergence by 2011. Are we just in time, or are we the Johnny-come-lately? "India is the last among the major countries to accept IFRS," observes Mr R. Narayanaswamy, Professor of Finance and Control at Indian Institute of Management, Bangalore. "Much of the world already follows IFRS or is committed to doing so. Australia and Canada punch above their economic weight in the international accounting arena. So we are eventually doing the right thing."

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'When the grant is measured at nominal amount, revenue is recognised only on actual sale of the CERs.'

Accounting debates on carbon credits

While there can be no two opinions on whether carbon emissions should be reduced, there appears however to be a continuing debate among companies on how to appropriately account for carbon credits. "At present there is no authoritative literature under the generally accepted accounting principles (GAAP) in India or the US, or the International Financial Reporting Standards (IFRS) on CER (certified emission reduction) accounting," says Mr Rahul Chattopadhyay, Associate Director, PricewaterhouseCoopers, IFRS practice.

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Sub-prime losses have been alarmingly ballooning!

PE returns to realty financing

Already there were some signs of a slowdown in the realty price spiral; and now the Indian realty sector has begun witnessing the impact of the sub-prime crisis, says Mr Rajiv Sahni, Partner, Ernst & Young, New Delhi. "Recently one of the largest and high-profile IPOs had to be pulled out because of the market jitters," he reminds. "Overseas listings have been deferred due to similar factors."
Mr Sahni, a fellow member of the Institute of Chartered Accountants of India, heads Ernst & Young's Transaction Advisory Services with respect to the real estate and hospitality sector in India. He also heads the debt and corporate recovery practice.

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