Electronic audit files

Audit files must be produced in electronic formats for both auditors and governments. The data set includes this information:
  • Company
  • GL accounts
  • Customers
  • Vendors
  • Tax codes
  • Document totals
  • Journals
  • Vouchers
  • Voucher lines
  • Sales invoices
  • Purchase invoices
  • Payments
  • Inventory items
  • Inventory movements

India specific

Cost Audit Report

Companies must file a Cost Audit Report and a Compliance Report. Companies meeting the threshold limits as prescribed in the relevant Cost Accounting Records Rules are required to file Compliance Report in XBRL format.

The report shows the net sales amounts for all manufactured and traded materials, and services for a selected company. The report is part of legal reporting requirements specific to India. In effect, this is an Income Statement by function of expense, classifying product type/material as:

•Manufactured products

•Traded products

•Manufactured and Traded products

•Services

The government will amend the cost audit rules during 2017 under the companies’ law to ensure parity between financial and cost records.

The amendments are due to the implementation of the Indian Accounting Standards (Ind AS), which are being converged with global accounting norms.

Various existing provisions under the Cost Records and Audit rules, including some related to intangible assets, will be discontinued, and Ind AS compliance would be required for certain other aspects.

Ind AS is applicable for certain classes of company from the financial year (2017-18).

Employee cost

With respect to employee cost, this should be ascertained after taking into consideration the cost of retirement benefits charged in the financial statements in an accounting period.

Under the current rules, employee cost is ascertained by considering the gross pay including all allowances payable along with the cost to the employer of all the benefits.

For companies where Ind AS is applicable, any re-measurement of employee costs recognized in other comprehensive income shall not form part of the employee cost.

Depreciation

One of the current requirements that the useful life of an intangible asset, in any situation, shall not exceed 10 years from the date it is available for use, is removed. Also removed is the provision that the method used for calculating depreciation should reflect the pattern in which the asset's future economic benefits are expected to be consumed by the entity.

How Infor meets the requirement

This requirement is not currently supported by this ERP for this country.