Corporate financial reporting in india a study of disclosure practices regarding property plant and equipment

Abstract

Corporate financial reporting is the communication of financial information of a corporate enterprise to the external world. The ultimate success of corporate financial reporting depends on the attainment of its basic objective of providing useful information for decision making by external users, which in turn depends on the nature and extent of information actually disclosed by corporate entities. newlineAccounting Standards play an important role in enhancing usefulness of information contained in corporate financial reports by providing different types of accounting principles and policies of how a particular type of economic transaction should be measured, recognized, presented and disclosed in the financial statements. newlineOut of 41 Indian Accounting Standards, Indian Accounting Standards (IND AS) 16 on Property, Plant and Equipment is one of the important accounting standards. IND AS 16 deals with recognition, measurement and disclosure of property, plant and equipment (PPandE) and related depreciation and impairment on such assets. The property, plant and equipment (PPandE) constitute a significant proportion of total assets of an enterprise, particularly, in case of manufacturing companies. That is why users of the financial statements are very much interested in information about an entity s investment in its property, plant and equipment and the changes in such investment. newline