1.What is difference between depreciation, Amortization & depletion. 2.Why we do not depreciate land. 3.How to recognize revenue as per IND AS 115 for service sector/manufacturing sector. 4.IND AS 115 - 5 step model. 5.Why IND AS 116 was introduced. 6.Difference between Operating and Finance Lease. 7.What is NR Indian. 8.What is related parties. Disclosures related to that.

Question

Accepted Answer

Answers to various questions related to finance and accounting topics.

Depreciation is the allocation of the cost of tangible assets over their useful life, amortization is the allocation of the cost of intangible assets, and depletion is the allocation of the cost of natural resources.
Land is not depreciated because it is considered to have an indefinite useful life and its value typically appreciates over time.
Revenue recognition under IND AS 115 for service sector involves identifying performance obligations, determining transaction price, allocating the price to the obligations, and recognizing revenue when the obligations are satisfied.
IND AS 115 follows a 5-step model: identify the contract, identify performance obligations, determine the transaction price, allocate the price to the obligations, and recognize revenue when the obligations are satisfied.
IND AS 116 was introduced to bring transparency to lease accounting by requiring lessees to recognize assets and liabilities for all leases, including operating leases.
Operating leases are off-balance sheet financing where the lessor retains risks and rewards of ownership, while finance leases are on-balance sheet financing where the lessee has substantially all risks and rewards of ownership.
NR Indian refers to Non-Resident Indian, a person of Indian origin living outside India.
Related parties are individuals or entities that are closely related to the reporting entity, such as subsidiaries, associates, key management personnel, and their close family members. Disclosures related to related parties include transactions, outstanding balances, and relationships.

Popular interview questions of Finance Executive