CIA-III A

FINANCIAL ACCOUNTING

Submitted to: Dr. Sharada N

(Department of Business & Management)

Submitted by:

Aaditya Dotia – 2324401

Sethulakshmi S – 2324453

Tanya Goyal - 2324463

Class : 1 BBA FMA B

Subject name: FINANCIAL ACCOUNTING

SR NO. TITLE

1. BALANCE SHEET

2. STATEMENT OF PROFIT & LOSS

3. IDENTIFICATION OF IAS ITEMS

INDEX
BALANCE SHEET OF NESTLE INDIA
STATEMENT OF PROFIT AND LOSS

IDENTIFICATION OF IAS ITEMS

From the information you provided, it appears to be a financial statement or balance sheet of
a company, and it includes various categories of assets. The International Financial Reporting
Standards (IFRS) are a set of accounting standards used for financial reporting. IFRS is a
global standard, and many companies use it for their financial reporting. In the context of the
information you provided, the assets categories are structured in a way that aligns with IFRS.
Here are the assets and their references in IAS:

(1) PROPERTY, PLANT AND EQUIPMENT: This corresponds to IAS 16 which deals
with accounting for leases, including leased property and equipment. It is a non-
current, tangible capital asset shown on the asset side of the Balance Sheet and it is
also used to generate revenues and profits. Investment in property, plant and equipment
is also called Capital Investment.

(2) CAPITAL WORK-IN-PROGRESS: This relates to expenditures incurred on assets

that are under construction, ant it’s within the scope of IAS for property, plant and
equipment (IAS 16). Capital work-in-progress also known as CWIP, is an important
part of the non-current asset of an entity. CWIP includes building under construction,
machinery etc. to the date of preparation of the Balance Sheet.

(3) INVENTORIES: This corresponds to IAS 2 which refers to accounting of items,

component parts and raw materials that a company either uses in production or sells. It
also helps us keep the track of all our supplies and determine the exact prices. It also
helps us cope up with changes in demand without even sacrificing the product quality
or customer experience.

(4) DEFERRED TAX ASSETS (NET): This corresponds under IAS 12 and is an item of
Balance Sheet that ultimately either reduces the income tax liability of an entity for
future periods or results in a refund of an already paid amount of income tax. Such a
line item asset can be found when a business overpays its taxes. This money will
eventually be returned to the business in the form of tax relief.

(5) RIGHT USE OF ASSET: Right use of asset relates to a class of PPE (property, plant
and equipment) to which the lessee applies IAS 16's revaluation model, in which case
all right-of-use assets relating to that class of PPE can be revalued. The right-of-use
asset is a lessee’s right to use an asset over the life of a lease and the asset is
calculated as the initial amount of the lease liability.
(6) CURRENT TAX ASSETS (NET): This corresponds under IAS 12. The amount
expected to be recovered or paid to the tax authorities at the tax rate and laws that have
been enacted or subsequently enacted by the end of the reporting period is Current Tax
Assets. It is a current asset and is expected to be realised in the year or consumed in
the operating cycle.

(7) PROVISIONS: This corresponds under IAS 37 which represents funds set aside for
future expenses or other losses such as reductions in asset value. Types of provisions
include bad debt, loan losses, tax payments, pensions, warranties, etc. Provisions,
therefore, balance the current year to become more accurate by ensuring expenses are
included along with revenues in the same accounting period.

(8) EMPLOYEE BENEFIT EXPENSES: This corresponds under IAS 19 which refers
to expenses incurred by the company to benefit its employees. These expenses may be
cash or non-cash. They are over and above the basic salary employees receive and can
include anything from health insurance to shopping coupons. It includes expenses
such as Salaries and Wages, Staff Welfare, Provident Fund, etc.

(9) DEPRECIATION AND AMORTISATION: This corresponds under IAS 16 and

IAS 38. IAS 16 i.e. Depreciation is applied on tangible assets i.e. Property, Plant and
Equipment. There are generally two main causes of depreciation, first is normal cause
such as normal wear and tear due to usage or passage of time and second is abnormal
cause such as accidents due to fire, earthquake, floods etc. IAS 38 i.e. Amortisation is
an accounting technique used to periodically reduce the book value of a loan or
intangible asset across a set period. It measures the declining of intangible assets such
as Goodwill, Trademarks, Patents and Copyrights.

(10) IMPAIRMENT LOSS ON PROEPRTY, PLANT AND EQUIPMENT: This

corresponds under IAS 16 which deals with Property, Plant and Equipment
impairment testing and if necessary, recognition for property, plant, and equipment. An
item of property, plant, or equipment shall not be carried at more than recoverable
amount. An impairment loss is the amount by which the carrying amount of an asset
exceeds its recoverable amount.