ChartAcc

Statutory Audit is...

• legally required
• review
• of the accuracy of financial records
• of an organisation

Purpose of a statutory audit is...

• to determine fair and accurate representation
• of financial position
• of an organization.

.....Continued from previous post Angel Investor, who is?

Budget 2012 (India) proposes to tax;
amount of Investment;
in excess of fair value of Shares;
as "Income from other sources";
received by a Closely held company;
from Angel Investor .

Now following questions arise:

• Purpose of taxing such investments;
• Exceptions to type investments which will not be taxed;
• Method of measuring the Fair Market Value of shares.

which will be addressed in next post...

Before analysing why angel investments are being taxed, let's know definitions bit by bit... (continued from Budget '12 - Angel tax, a burden on young entrepreneurs)

Who is Angel Investor (AI)?

Simply, an Investor who proves an Angel to Business at financing needs.

Definition:
An investor;
of finance and/or business know-how;
at Startup or Business expansion or downturn;
not only for monetary returns but personal stake in success of business of investee.

AI may be from family or friends who invests in the Investee's business for more than monetary interests.

continued at Budget '12 - How Angel Investments (AI) will be taxed?...

Direct Taxes proposals:

• Limits:
• Exemption limit for individual taxpayers to be enhanced from Rs 1,80k to Rs 2,00k;
• Upper limit of 20% tax slab proposed to be raised from Rs 8,00k to Rs 10,00k.
• Deduction: 
• A deduction of upto Rs 10k to individual tax payers for interest from savings bank accounts.
• Advance Tax:
• Senior citizens not having income from business proposed to be exempted from payment of advance tax.

Indirect Taxes:

• Standard rate of excise duty to be raised from 10% to 12%, merit rate from 5% to 6% and the lower merit rate from 1% to 2% with few exemptions;
• Excise duty on large cars also proposed to be enhanced.

Let's not talk about Technical terms for now.
Let's talk about some Interesting terms.
"Kolaveri Di", The world famous song, all are aware of...
So Simple, So Easy, So Interesting...

It has broken:

• Barrier of Languages;
• Boundaries of Nations and
• Limits of Music...

It's anatomy represents acceptance in Local, National and International market...

Now let's be technical and back to our term "XBRL"...

Purpose of XBRL is same as of "Kolaveri Di".
It is meant to make Financial Reports acceptable Locally, Nationally and Internationally, if required...


XBRL can be interpreted as:

• Predefined Coding (Recording, in case of the song);
• to incorporate Laws / Taxonomies (Local language in the song);
• in acceptable form of Financial Reports (Music in case of song);
• which is easy for stakeholders to interpret (Simplicity of song).