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    Accounts CIA 3 Final

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    Tanmay Arora
    MRF, an Indian tyre manufacturer, relies on several International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) to prepare its balance sheet. Key standards include IAS 2 for inventory accounting, IAS 7 for cash flow statements, and IAS 16 for property, plant, and equipment accounting. IFRS like IFRS 12 on disclosure of interests in other entities and IFRS 13 on fair value measurement also guide MRF's financial reporting. Adhering to global standards promotes transparency and comparability.

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    Accounts CIA 3 Final

    Uploaded by

    Tanmay Arora
    31 views6 pages
    MRF, an Indian tyre manufacturer, relies on several International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) to prepare its balance sheet. Key standards include IAS 2 for inventory accounting, IAS 7 for cash flow statements, and IAS 16 for property, plant, and equipment accounting. IFRS like IFRS 12 on disclosure of interests in other entities and IFRS 13 on fair value measurement also guide MRF's financial reporting. Adhering to global standards promotes transparency and comparability.

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    MRF, an Indian tyre manufacturer, relies on several International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) to prepare its balance sheet. Key standards include IAS 2 for inventory accounting, IAS 7 for cash flow statements, and IAS 16 for property, plant, and equipment accounting. IFRS like IFRS 12 on disclosure of interests in other entities and IFRS 13 on fair value measurement also guide MRF's financial reporting. Adhering to global standards promotes transparency and comparability.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    31 views6 pages

    Accounts CIA 3 Final

    Uploaded by

    Tanmay Arora
    MRF, an Indian tyre manufacturer, relies on several International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) to prepare its balance sheet. Key standards include IAS 2 for inventory accounting, IAS 7 for cash flow statements, and IAS 16 for property, plant, and equipment accounting. IFRS like IFRS 12 on disclosure of interests in other entities and IFRS 13 on fair value measurement also guide MRF's financial reporting. Adhering to global standards promotes transparency and comparability.

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    of 6

    FINANCIAL ACCOUNTING

    CIA – 3

    Submitted By- SUBMITTED


    To-
    Tanmay Arora (2324364) Dr. Pradeep Kumar
    Aron Paul (2324316)
    MRF
    ABOUT THE COMPANY
    Madras Rubber Factory, MRF Limited, is an Indian multinational tyre manufacturing
    company. It was founded in 1946 by K.M. Mammen Mappillai. It is headquartered in
    Chennai, Tamil Nadu. MRF Primarily manufactures rubber products like tyres, treads, tubes
    and conveyor belts
    BALANCE SHEET OF MRF
    International Accounting Standards –
    used by MRF
    MRF relies on IAS 2 to ensure uniform
    inventory accounting, provide accurate
    information to stakeholders, and align its
    IAS 2 INVENTORIES financial statements with global accounting
    standards, promoting transparency and ease
    of comparison in financial reporting.

    IAS 7 assists MRF in crafting a precise and


    uniform cash flow statement, promoting
    transparency, facilitating comparisons, and
    IAS 7 STATEMENT OF CASH FLOWS instilling trust among stakeholders,
    ultimately guiding well-informed financial
    choices.

    IAS 12 enables MRF to account for income


    taxes precisely, transparently report them,
    adhere to global standards, employ tax
    IAS 12 INCOME TAXES planning strategies for effective tax
    management, and foster trust among
    stakeholders.

    IAS 16 assists MRF in accurately managing


    and disclosing its property, plant, and
    equipment, including depreciation practices,
    IAS 16 PROPERTY, PLANT, potential revaluations, and the transparent
    EQUIPMENT presentation of information, ensuring
    international compliance and fostering
    stakeholder confidence.

    IAS 19 assists MRF in accurately managing


    and disclosing employee benefits, making
    informed actuarial assumptions, fulfilling
    IAS 19 EMPLOYEE BENEFITS disclosure requirements, maintaining
    consistency, and adhering to international
    standards. This contributes to increased
    transparency and trust among stakeholders

    MRF assesses its assets for impairment at


    the end of each reporting period. If an asset
    is impaired, MRF recognises an impairment
    IAS 36 IMPAIRMENT OF ASSETS loss equal to the difference between its
    carrying value and its recoverable amount.
    MRF recognises provisions when it has a
    legal or constructive obligation to transfer
    an economic benefit as a result of a past
    IAS 37 PROVISION, CONTINGENT event and when it can make a reliable
    LIABILITY AND CONTINGENT ASSET estimate of the amount of the obligation.
    MRF discloses contingent liabilities and
    contingent assets
    IAS 38 is relevant for intangible assets such
    as brand names, patents, and trademarks,
    which MRF may possess.
    IAS 38 – INTANGIBLE ASSETS
    International Financial Reporting System
    – used by MRF
    IFRS is a set of accounting standards developed by the International Accounting Standards
    Board (IASB). IFRS standards are designed to provide a common global language for
    business, making it easier for investors and other stakeholders to compare the financial
    performance of companies from different countries.
    The following are some of the fundamental IFRS accounting principles that MRF Ltd.
    follows in preparing its balance sheet:

    IFRS 12 requires extensive disclosures


    about MRF's interests in subsidiaries, joint
    IFRS 12 - DISCLOSURE OF INTERESTS
    ventures, and associates, providing
    IN OTHER ENTITIES
    transparency about the company's
    involvement with other entities.

    IFRS 13 sets out its measurement and


    disclosure requirements when assets or
    FRS 13 - FAIR VALUE MEASUREMENT
    liabilities are measured at fair value. This
    standard is relevant for assets and liabilities
    on MRF's balance sheet that are measured at
    fair value.

    This standard is relevant if MRF has


    subsidiaries. It outlines the requirements for
    IFRS 10 - CONSOLIDATED FINANCIAL
    consolidating the financial statements of
    STATEMENTS
    subsidiaries and guides how to present
    investments in subsidiaries on the balance
    sheet.

    IFRS 16 introduces a single lessee


    accounting model, which is relevant if MRF
    IFRS 16 - LEASES
    has lease agreements for properties,
    equipment, or vehicles.

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