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Audit - 2. page

Profit on Exchange Transactions

Profit on Exchange Transactions

Profit on Exchange Transactions This item includes profit (net of loss) on dealings in foreign exchange. All income earned by way of foreign exchange commission and charges on foreign exchange […]

Profit/Loss on Revaluation of Fixed Assets

Profit/Loss on Revaluation of Fixed Assets

Profit/Loss on Revaluation of Fixed Assets According to the Notes and Instructions for compilation of profit and loss account, issued by the RBI, the net profit/loss on revaluation of the […]

Other Income

Other Income

Other Income The following items are included under this head: (i) Commission, Exchange and Brokerage: This item comprises of the following: (a) Commission on bills for collection. (b) Commission/exchange on […]

Income from Investments

Income from Investments

Income from Investments Interest and dividend on investments is usually accounted for at the head office. Such interest and dividend, therefore, may not appear in the profit and loss account […]

Interest Earned

Interest Earned

Interest Earned The following items are included under this head: (a) Interest/Discount on Advances/Bills: This includes interest and discount on all types of loans and advances like cash credit, overdrafts, […]

Applicability of AS 5 and Materiality

Applicability of AS 5 and Materiality

Applicability of AS 5 and Materiality Accounting Standards are intended to apply only to items that are material. Since materiality is not objectively defined, RBI, vide its Circular No. DBOD.No.BP. […]

Disclosures Of Profit and Loss Account 

Disclosures Of Profit and Loss Account 

Disclosures Of Profit and Loss Account  The Profit and Loss Account as set out in Form B has four broad heads:  Income  Expenditure  Profit/ Loss  Appropriations The […]

Profit and Loss Account

Profit and Loss Account

Profit and Loss Account Sub–section (1) of section 29 of the Banking Regulation Act, 1949, requires the preparation of Profit and Loss Account in Form B of Third Schedule to […]

Audit Approach and Procedures

Audit Approach and Procedures

Audit Approach and Procedures The report of the statutory auditors in relation to compliance with SLR requirements has to cover two aspects: (a) correctness of the compilation of DTL position; […]

Computation of SLR

Computation of SLR

Computation of SLR Refer Master circular No. DBR.No.Ret.BC.24/12.01.001/2015-16 on “Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)” dated July 1, 2015, for guidance on computation of SLR. Further, RBI […]