Difference in caro 2016 vs 2020 Materiality Ind AS 115 - 5 steps Ind AS 116 IFC testing

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The differences between CARO 2016 and CARO 2020, materiality concept, 5 steps of Ind AS 115, Ind AS 116, and IFC testing.

CARO 2016 focused on reporting requirements for companies, while CARO 2020 introduced additional reporting requirements related to fraud and internal controls.
Materiality concept in accounting refers to the significance of an item or event in financial statements. It helps determine what information is important for users of financial statements.
Ind AS 115 outlines a 5-step model for recognizing revenue from contracts with customers, including identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when the performance obligations are satisfied.
Ind AS 116 deals with the accounting treatment of leases, requiring lessees to recognize assets and liabilities for all leases with a term of more than 12 months.
IFC testing refers to the evaluation of a company's internal controls over financial reporting to ensure they are effective in preventing and detecting errors or fraud.

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