Archives: Countly Learning
Motivation in the Fraud Triangle
Organizations face many frauds that cost them millions every year. It is a big trouble for the running businesses as well as for individuals. But the basic question arises: why does fraud happen in the first place? To understand this better, the method of the fraud triangle was established by criminologist Donald Cressey in the […]
Legal and Regulatory Requirements for Addressing Fraud in Businesses
Fraud is a challenge that a business faces that leads to disruption in fiscal soundness, confidence of investors, and market credibility. In India, corporate fraud is made up of various corrupt activities, covering actions like financial inaccuracies, stealing funds, and trading on confidential information. Dealing with these problems demands an all-encompassing structure combining laws with […]
How to Correct Errors in Notes to Financial Statements
Errors or mistakes can happen anytime in the financial statements irrespective of the company’s level of meticulousness took in the event of preparing them. These errors can bring the alteration to the whole financial canvas of the company via miscalculations and misstatements. It is vital to correct them in the required manner. This results in […]
How Notes to Financial Statements Are Used to Disclose Accounting Policies
Financial statements give you a snapshot of a company’s financial health, but the real story lies in the details. That’s where the notes come in. These remarks are not merely a side note. They’re the roadmap that explains how the numbers in the main statements—like the balance sheet or income statement—came to be. They lay […]
Going Concern Assumption
What is the Going Concern Assumption? The Going Concern Assumption is the basic doctrine in accrual accounting, proclaiming that the company will stay persisting into the coming years instead of facing liquidation. What Does Going Concern indicates? In accrual accounting, the going concern assumption is used for formulating the financial statements. That means the company […]
Fraud – Meaning & Effects
Fraud means misleading one of the parties pursuant to the contract intentionally by building false statements and allegations. In the event of the occurrence of the fraud, one party that has all the information misrepresents the counterparty by citing facts that are invalid and making claims without even checking the accuracy, which impacts the unforced […]
Financial Information in Operating Segments in India
Let us directly explore a fundamental concept in financial reporting—operating segments. In the realms of business or finance, segment reporting serves as a magnifying glass that focuses on several components of a corporation. Rather than examining the firm in all of its aspects, it breaks down the business into segments, illustrating the financial performance of […]
Corporate Fraud & Its Types
India’s economy is growing at a fast pace. But this fast pace sometimes comes with the significant fluctuations in the economy with the considerable financial surge in and out of the economy. GDP surely delivers a path for economic rise in our country, but also some people use the loopholes in the system to get […]
Common Financial Fraud Schemes: How to Spot and Avoid Them
Financial fraud is a persistent threat to governments, corporations, and individuals worldwide. These frauds can range from straightforward schemes that target individuals to more complex ones that include substantial corporate influence and dishonesty. The complexity of these frauds has grown as a result of intricate financial system architectures and widespread use of digital technology. Scammers […]
Changes in Accounting Estimates
Accounting estimates are everywhere, even if you don’t notice them. They shape how businesses figure out things like the value of their assets, how much to set aside for bad debts, or how long they expect equipment to last. But these numbers aren’t set in stone. They change. And when they do, there’s a whole […]
Events and Contingencies Following the Balance Sheet Date
This article discusses the following parts about AS 4 contingencies and events that take place after the balance sheet date: elevance of AS 4 Events and Contingencies That Take Place After the Balance Sheet Date Treatment in the financial statements of the following is covered by AS 4: Contingencies Events that occur after the balance […]
What is Revenue Recognition Concept?
The revenue recognition concept can be defined as an essential concept in accounting that instructs when and how an enterprise ought to acknowledge revenue within its financial disclosures. It also lays down the terms and conditions about whether the revenue earned is considered or not in the record. This idea states that revenue is often […]
Valuation of Inventories
Valuation of inventories is carried out to determine the value of excess inventory accumulation at the business site during the preparation of financial statements. Inventory requires having financial substance so that it can be documented in the financial reports of the company. The financial value of inventory aids in knowing about the inventory turnover ratio […]
Understanding the Components of the Statement of Equity
To know about the shift or change throughout a particular duration in the balance sheet of the company, the statement of changes in equity comes into play. Equity shows the ownership interest in a business after the deduction of all the liabilities from assets, and it can vary due to diverse operations in the company. […]
Understanding Credit Risk in India
Credit risk is simple but catastrophic. It is the risk that a borrower would fail to repay the loan, causing the lender to suffer financial consequences. It might imply losing the money given, the interest, or both. Individuals might compare it to failing to repay a credit card or personal loan. For businesses, it is […]