We offer specialized services in certain key areas which include:
IFRS:
International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standard Board (IASB).
Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). IAS were issued between 1973 and 2001 by the board of the International Accounting Standards Committee (IASC). In April 2001 the IASB adopted all IAS and continued their development, calling the new standards IFRS
IFRS in its present form was implemented in January 2005. Since 2005, we have been living in the midst of such a contagion - the relentless march of IFRS, the International Financial Reporting Standards. Today, the EU, Australia , Hong Kong , China and West Asia require publicly listed companies to be IFRS compliant. More than 100 countries mandate or permit IFRS, which is now rapidly becoming the common language of business. The United States has indicated acceptance of IFRS without reconciliation to US GAAP for foreign fillers by 2009 and is also considering usage of IFRS by US companies. Today, it is no longer a question of 'Should India convert to IFRS? But rather, a question of 'By when would India fully convert to IFRS?' The ICAI has tried to answer this with a Convergence Declaration for all Public Interest Entities from 1st April 2011 and that will be extended to other entities in a phased manner. The Convergence declaration is a noble intention but its implications have not really been understood. A convergence by 1st April 2011 actually means that comparatives from 1st April 2010 have to necessarily be IFRS compliant; which in turn means that by the end of 2009-10 companies should have an IFRS closing Balance Sheet.
key attribute towards the full conversion to IFRS is the reduction of cost of capital and adoption of a common platform.
SOX:
The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; is a United States federal law enacted on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of the affected companies collapsed, shook public confidence in the nation's securities markets
The legislation establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. It does not apply to privately held companies. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law
The Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. The Act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure.
ESOP:
An employee stock option is a call option on the common stock of a company, issued as a form of non-cash compensation. Restrictions on the option (such as vesting and limited transferability) attempt to align the holder's interest with those of the business' shareholders. If the company's stock rises, holders of options experience a direct financial benefit. This gives employees an incentive to behave in ways that will boost the company's stock price.
Employee stock options are mostly offered to management as part of their executive compensation package. They are also offered to lower staff, especially by businesses that are not yet profitable. They can also be offered to non-employees: suppliers, consultants, lawyers and promoters, and to members of the company's board of directors for services rendered.
Depending on the vesting schedule and the maturity of the options, the employee may elect to exercise the options at some point, obligating the company to sell the employee its stock at whatever stock price was used as the strike price. At that point, the employee may either sell the stock, or hold on to it in the hope of further price appreciation.
3 key uses of ESOP's
The three key uses of ESOP's are:
To buy the shares of a departing owner:
Owners of privately held companies can use an ESOP to create a ready market for their shares. Under this approach, the company can make tax-deductible cash contributions to the ESOP to buy out an owner's shares, or it can have the ESOP borrow money to buy the shares.
To borrow money at a lower after tax cost:
ESOPs are unique among benefit plans in their ability to borrow money. The ESOP borrows cash, which it uses to buy company shares or shares of existing owners. The company then makes tax-deductible contributions to the ESOP to repay the loan, meaning both principal and interest are deductible.
To create an additional employee benefit to retain talent:
A company can simply issue new or treasury shares to an ESOP, deducting their value from taxable income. Or a company can contribute cash, buying shares from existing public or private owners. In public companies, ESOPs are often used in conjunction with employee savings plans. Rather than matching employee savings with cash, the company will match them with stock from an ESOP, often at a higher matching level.
Since attrition remains a key problem area, especially in the knowledge industry, it becomes imperative adopting ESOP's to attract and retain talent simultaneously linking the growth of the company to employee performance as well.
Advantages
The advantages of our specialized service include:
Aiding clients converge to new frameworks.
Revamping the internal control processes to adhere to compliance laws.
Facilitating the transition of standards in an effective and smooth manner.
Streamlining the reporting structure to attain simplicity.
Standardization in processes resulting in cost savings.
Helping clients implement best practices and good governance.
Aiding in the reduction of conflicts attributed to different frameworks.
Implementation of ESOP's to retain talent.
Delivery Mechanism
IFRS
Defining and planning the road map for convergence of existing GAAP to IFRS.
Conversion, Translation and Reconciliation of Financial Statements from existing
GAAP to IFRS.
Customized Training Solutions to move from existing GAAP to IFRS.
Technical consultancy assignments on IFRS - learning new accounting language,
transition, managing change, educating stakeholders, arriving and quantifying
disclosures required.
SOX
Defining a work plan that will use existing risk and process frameworks to assist
in theidentification of internal controls over financial reporting.
Performing an initial high-level assessment of the financial reporting controls in termsof documentation to identify gaps that should be closed.
Considering and evaluating available methodologies (e.g., COSO, COBIT), self
assessment tools and internal control best practices to accelerate and ramp up
its internal control readiness assessment program and perform these activities
in a cost-effective manner.
Considering the development of a go-forward strategy to sustain the benefits
derived from its initial control assessment and documentation activities and sustain its Sarbanes Oxley readiness .
ESOP
Formulation of ESOP scheme
Plan Management
Implementation of scheme
Arranging for share valuation
Consulting - applicability and quantification of FBT on ESOP's.
Consulting on accounting and disclosure requirement.
