TAXpert

Showing posts with label Blog in English. Show all posts
Showing posts with label Blog in English. Show all posts

Saturday, April 18, 2015

Auditor is a Watchdog in the Business Organization

Background
At one time the audit was conducted primarily to inform management of irregularities and inefficiencies in the business. Due to which the world’s conception for the auditor was developed as bloodhound who is responsible to detect and prevent fraud and irregularities. Later on the concept was gradually changed as the auditor’s role as a watchdog more than the bloodhound due to inherent limitations of audit. The audit was intended only for a limited number of business which gradually was broadened to a wide range of business. The need for independent audits was generated by public ownership of business enterprises and by the requirements of the investors, investment specialists, stockholders and lenders demanded more reliable information. It is now well recognized that the audited financial statements are even intended for the use of third parties who have no contractual relationship with the auditor. The auditor's function has expanded from that of a watchdog for management to an independent evaluator of the adequacy of disclosures and fairness of results depicted by the financial statements issued by management to stockholders, creditors and others.
It is the responsibility of auditor to provide independent opinion on the truthfulness and fairness of the financial statements during the course of audit, the auditor may also provide the details (error and irregularities either intentional or unintentional). In case of any abnormal situation, the remedial action has to come from the owner of the entity. He has to discharge his responsibility by informing about the irregularity found in the normal course of audit.

Tuesday, December 23, 2014

Wrong application of Depreciation Policy in Nepal

What is Depreciation?
Depreciation is the systematic allocation of the depreciable amount of an assets over its useful life. The depreciable amount is determined after deducting its residual value. The following four factors are considered in determining the useful life of an assets:
  • Expected use of assets.
  • Expected physical wear and tear.
  • Technical or commercial obsolescence arising from changes or improvements in production or from a change in the market demand for the product or service output of the assets.
  • Legal or similar limit on the use of assets, such as the expiry dates of related leases.
To calculate the depreciation amount, we shall select correct depreciation method based on the nature of an organization. Expected future economic benefit of the assets used by entity should be reflected by the depreciation method used by the entity. Different depreciation methods can be used to allocate the depreciable amount of an assets on a systematic basis over its useful life. However, Nepal Accounting Standard (NAS) suggests three method to depreciate assets on systematic basis namely: Straight Line Method, Diminishing Balance Method and Units of Production Method. The entity shall select the method that most closely reflects, the expected pattern of consumption of the asset embodying economic benefit. [Source: Nepal Accounting Standard (NAS)]

Saturday, September 13, 2014

Impossible Friendship is also Possible

This is one of the most beautiful video I have ever seen. Few have touched my heart the way this one has. It is wonderful. You can enjoy this friendship story of Dolphin and Dog.


This is the story of true love and friendship. Though, One can not stay in water and other cannot stay outside of water, they show their true friendship. They want to stay together and pass their time with each other, but nature do not allow them to cheer their love and friendship. It means that, to become a good friends, it is not necessary to pass their time with each other. We can be a good friend, even though our surroundings and your time does not allowed to pass your time with each other. To become a good friend, YOU MUST HAVE A GOOD HEART ONLY like Dog and Dolphin :) :) :) .

♥♥♥♥♥!!! If dogs and dolphins can be friends and take care of each other, so can we?

Friday, June 20, 2014

What is "Dahal" as per Internet Research ?

What means Dahal?
The meaning of Dahal is unknown.

Dahal spelled backwards is Lahad.
This name has 5 letters: 2 vowels (40.00%) and 3 consonants (60.00%).

The name Dahal has a web popularity of 3,800,000 pages.

Wednesday, August 21, 2013

Why Nepal Has A Better Investment Future than Europe and United States?

"Rogers famously said, “If you were smart in 1807 you moved to London, if you were smart in 1907 you moved to New York City, and if you are smart in 2007 you move to Asia.”


Most people in Nepal want to move to the United States and Europe. They believe that you will get instantly rich if you go to the US. While dreaming about earning crazy amount of dollars, they miss the number of opportunities that exist in Nepal and our neighboring countries.

Instead of the US and Europe, experienced investors believe attractive investment returns exist in Asia.

Sunday, July 7, 2013

Chetan Bhagat: I could not get what I expect

Mr. Chetan Bhagat, the name is itself sufficient to introduce a renowned international image from India. Mr. Bhagat who have more than 3.2 million facebook fans and more than 1.7 million followers in twitter gave his lecture on 6th July, 2013 in Kathmandu for the successful career of the young and energetic youth. When I heard that Mr. Bhagat is attending a career workshop in capital, I really got excited to meet him and get ready to take the motivational tips for my life from the renowned writer and motivational speaker of South Asia. Last year, I had read his book “Revolution 2020” after then, I became the fan of Mr. Bhagat. I was eager to participate that workshop at any cost, however, the organizer did not have policy to sell the ticket to the public to participate in that workshop. They gave the passes of workshop to their nearest and dearest ones only. So, I started to search the pass for the workshop. Fortunately, Rakesh Shrestha, my senior dai,  gave me the great opportunity to participate in the workshop. I am really thankful to Rakesh dai for providing me the great opportunity.

Saturday, June 29, 2013

Why Go Abroad When You Can Create Jobs In Nepal?

"If you had access to Rs 10 lakhs, couldn’t you start a business, live a decent life and create jobs in Nepal instead? Is starting a business in Nepal so risky that you would rather go abroad? Or are there no opportunities to start a business in Nepal?"


Officially, unemployment rate in Nepal lingers well above 40%. There is also significant underemployment, especially among the youth. Thus it comes as no surprise that many of the nation’s youth choose to go abroad to find employment.

But in recent months, news media has reported several cases where Nepali youths have been duped out of millions of rupees by overseas employment agencies.

Friday, April 5, 2013

Central Depository System (CDS) and Nepalese Capital Market

Introduction
Today’s business is the paperless business. In the paperless business, the businessman can do any kind of transaction without any lengthy paper work. But till date, no any investor can transact securities in the Nepalese Capital Market without extensive paper work. Nepal is also moving its steps towards the paperless business; one of the emerging steps of Nepal for this is the process of establishment of Central Depository System (CDS) in the Nepalese Capital Market. Central Depository System (CDS) is the buzzword in Nepalese Capital Market since last 4 to 5 years. The Securities Board of Nepal (SEBON) granted the license to the CDS and Clearing Ltd. on 25th August 2011 for the operation of central depository system in Nepal.

Thursday, April 4, 2013

Documents Required for Company Audit

   Documents Required for Company Audit
  
Information Required

1.      Details of Board of directors including their shareholdings.
2.      Composition of share capital ( promoters and public shares bifurcated into individual and institutional)
3.      Details of changes in share capital since last five years including issue of right and bonus shares or fresh public issues)
4.      Agreement with ministry of finance ( youth and small business employee fund)
5.      Special resolution by AGM regarding merger.
6.      Final Audit Report.
7.      Investment Details ( copy of share certificates, treasury bills and development bond)
8.      Risk weighted exposure and capital fund for the last five years.
9.      Top ten borrowers as on Paush end 2069.
10.  Loan concentration as per Sector.
11.  Details of Fixed Assets.
12.   Depreciation Policy ( for the purpose of accounting rates)
13.  Details of Non Banking Assets including Branch wise.
14.  List of other assets and sundry debtors details.
15.  Details of staff loans and advances.
16.  Advance payment details.
17.  Details of Expense not written off.
18.  Status of deferred tax assets or liabilities.
19.  Advance tax payment and TDS deposition and reconciliation thereon.
20.  Cash and valuables verification sheets as on Paush End 2069.
21.  Changes in reserve and surplus since five years.
22.  Deposit Details ( Including Depositors wise, Amount wise and Product wise)
23.  Top 25 Deposit concentrations as on Paush end 2069.
24.  Latest tax clearance certificate.
25.  Details of inter bank borrowings.
26.  Dividend details of last 5 years.
27.   Details of other liabilities and sundry creditors details.
28.  Details of gratuity and leave provision.
29.  List of pending court cases.
30.  List of Top 10 Bank Guarantee with branch code.
31.  Salary structure according to Level of Employee as on Paush end 2069.
32.  Salary tax calculation sheet as on Asadh end 2069.
33.  Board meeting minutes.
34.  Details of facility and allowances to Directors.
35.  Details of deposition of provident  fund.
36.  Details of Bonus distribution and staff welfare fund.
37.  Insurance policy of assets.
38.  Details of assets purchased at cost less than 5000.

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