Financial Reporting Like Never Before 🚀Something BIG is Being Cooked 🔥by CA Ravi Teja|

Añadido: 2026-05-17

[00:00:01]Hi guys, welcome to BCC. This is CA Ravi Teja and I'm your faculty for financial reporting at CA and CMA final levels.

[00:00:09]First of all, I just wanted to congratulate all the CA final students who have given their attempt in May 2026.

[00:00:17]Guys, hats off to you who have given your attempt in May 2026.

[00:00:23]AFM paper have become the one of the toughest papers in the history of ICAI.

[00:00:30]I have specially spoken up with CA CMA Ravi Kumar sir regarding the difficulty of that paper and he have said that this is the toughest paper in the history of the institute.

[00:00:41]Those students who have survived that paper who have not given up who have given all other papers also, guys, hats off to you. You are not less than that of a warrior.

[00:00:55]You have did great thing.

[00:00:58]Done is done. So, ICAI has decided to communicate with its students regarding the levels which it have been increasing. So, whoever students who are writing their attempts in the upcoming attempts you have to gear up your preparation.

[00:01:14]And me and CA CMA Ravi Kumar sir have decided to come up with something very useful for CA final students.

[00:01:21]I want you students to guess what it is.

[00:01:23]Uh of course, you will be guessing in the comments.

[00:01:26]But, yes, that is fine.

[00:01:29]So, in this video, what I explain you is sir considering the standards which are set by the institute in the last attempt, recent attempt May 2026 I wanted to clarify you one thing that if you are mugging the things, if you are just solving some questions like study mat and past questions just if you mug those questions, it is not going to help you at any cost. Not even AFM this time. ICAI has cooked with AFM. Next time they may repeat with direct taxes.

[00:02:03]Or it may even repeat with FR as well.

[00:02:06]Okay? So, in this video, what I have decided is you have to understand complete conceptually. There is no second thought about it.

[00:02:16]And moreover, ICAI wants to provide best qualified chartered accountants to the society.

[00:02:23]Because the standards which are set by institute is clearly reflecting what ICAI is exactly thinking.

[00:02:31]So, I just wanted to give some What should I say? Some rare kind of a picture uh with respect to the financial reporting is concerned.

[00:02:40]Of course, if you know about financial reporting, still you just have to understand the different angle of this.

[00:02:47]Even if you are a new student who doesn't know anything about financial reporting, still you will understand why financial reporting has given that much importance. Okay? So, without making any further delay, let us directly start with the video.

[00:03:01]So, yes, guys. First of all, our financial reporting syllabus is comprising of something which is called as Ind AS.

[00:03:09]You have to understand the purpose of this Ind AS. Because see, every Ind AS was created because somewhere in the world businesses are being manipulated, misunderstood, or complicated financial reality.

[00:03:23]Because of which what I have decided is I will be taking some standards, and I will be explaining sir, why these standards have come into picture. And after introduction of these standards, what exactly is the impact which is created?

[00:03:38]I will be explaining. I will be taking few standards, and I will be giving you a different kind of a picture.

[00:03:44]The first thing which I have selected is Ind AS 116 Leases. This is a trending topic, and this is a favorite topic of our institute ICAI.

[00:03:52]Because most of the businesses, if you observe big big companies, they will not purchase huge assets because investment amount is blocked.

[00:04:01]That much investment the companies will not afford.

[00:04:04]So, many companies, for example, Indigo leases aircrafts.

[00:04:08]Reliance Retail leases hundreds of stores because in every city Reliance is having its stores.

[00:04:14]Guys, it will not make purchases. It will leases. Many restaurants will lease the buildings.

[00:04:20]IT companies, very big big companies, you can say legendary companies, everything is based on this lease.

[00:04:26]Earlier, many companies will keep this leasing transaction off balance sheet.

[00:04:32]After introduction of a separate standard Ind AS 116, suddenly ratios have changed. Debt equity ratios got changed. Liabilities have increased.

[00:04:40]Assets also have increased.

[00:04:43]Strictly speaking, one accounting standard have changed how the entire world is looking at a company in debt.

[00:04:50]This is a short intro as to this Ind AS 116 and what exactly is the impact which is created by that Ind AS 116.

[00:04:57]Sir, my favorite, acquisitions and mergers, consolidation and business combination. These are heart of financial reporting.

[00:05:07]See, sir, if Tata Sons acquired Air India, accountants and finance teams had to value all their assets, liabilities, goodwill, consolidated financial statements. Guys, this consolidation and business combination will not be coming in small small companies. Think big, billion dollar companies. If those are acquiring some another companies, in this case, consolidation and business combination are actually working.

[00:05:35]See, every acquisition you hear, some way you you a chartered accountant is preparing consolidated financial statements. Guys, this is the range of chartered accountants.

[00:05:47]You are not working in small small things. With this financial reporting, you are exposed to something new.

[00:05:52]You are exposed to total world, total global.

[00:05:57]You are a bigger than biggest. Okay, so you just have to understand this consolidations and mergers have created, what should I say?

[00:06:06]So, what's impact in the financial reporting thing?

[00:06:09]And third thing, most of trending, startup funding and investor reporting.

[00:06:14]Nowadays, many companies, many startups, in order to get their funding now.

[00:06:20]Guys, they are not raising traditional equity share capital, not debentures, not preference share capital.

[00:06:27]If any startup needs funds, it will be raising different kind of an instruments, which are having special rights.

[00:06:35]Sometimes, they will be giving convertible debentures.

[00:06:38]Sometimes, they will be giving complicated derivatives.

[00:06:41]Sometimes, they will be raising global depositary receipts. Even from foreign country also, they are raising the funds.

[00:06:47]Which means too much complications.

[00:06:49]Valuations will change every year. And everything is handled through our financial reporting concepts. When startup becomes unicorns, FR professionals will decide how these investments are actually reported.

[00:07:02]Because for the investors, based on the financial results of the company, will decide whether to invest in that or not.

[00:07:08]And I think you guys have know about this which is called Shark Tank.

[00:07:13]How the valuations are done will be explained through the concepts of financial reporting.

[00:07:20]And one more thing, guys, fraud detection and corporate scandals. Many corporate frauds. Sir, frauds will happen obviously with financials involved in it. The company may inflate revenue. Company may overstate their assets.

[00:07:35]The company uh decides to uh what should I say? Hide few disclosures.

[00:07:40]Company decides to uh understate its liabilities because of all these things, corporate scandals and fraud detections.

[00:07:47]Frauds can happen and it is you It is you who a chartered accountant have to identify and you have to report.

[00:07:55]If revenue is recognized early, profit are false. If impairment you have ignored, assets will be overstated. FR is not just accounting, it is corporate truth verification.

[00:08:06]And one more thing, sir. Stock market and investors' decisions.

[00:08:10]Investors will buy will buy or will they will decide to invest or not based on the financials of the company.

[00:08:17]Correct? Based on profits, cash flows, accounting, segment reporting. All these will be governed again by financial reporting principles.

[00:08:26]And every investor in the stock market depends on financial reporting before investing crores. FR is the language through which the companies communicate with the investors. Example, you can take any example of high net worth individuals.

[00:08:40]Sir, how they manage their funds? They will manage their funds especially by doing too much complicated calculations. Of course, those calculations will be based on the core financial statements of the company.

[00:08:55]Guys, financial reporting is not something which you will get just by mugging the things.

[00:09:01]Too many concepts are there.

[00:09:04]Too many concepts are there. You have to understand them logically. Then only you will understand the essence of the subject.

[00:09:11]So, if you don't have the ability to interlink our curriculum with the practicality, the very purpose of the subject will be defeated.

[00:09:21]So, that is the reason you have to choose right mentor.

[00:09:26]Who will Of course, he have to teach the concepts plus he should have the ability to link it with practical aspects.

[00:09:33]Because if you qualify, if you don't know the practical implications of anything, any subject, guys, it can be FR, AFM, or DT, whatever it is.

[00:09:42]You just have to interlink with the practicality.

[00:09:45]Then only your knowledge will be appreciated because theoretical knowledge, if it coupled with practical experience, then only you will be getting the maximum benefit out of it.

[00:09:55]I hope the purpose of this video is actually communicated to you.

[00:09:59]Because I just wanted to give a different view of how our institute is actually testing, how our institute wants to shape its professionals to meet the practical requirements of the companies or society.

[00:10:14]And one more thing, guys, don't forget to guess what me and CA CMA Ravi Kumar sir have decided to come up with you.

[00:10:20]So, that's it, guys. Thank you so much.

[00:10:22]And once again, hearty congratulations to all the CA final students who have given their attempt. I wish every one of you have to qualify.

[00:10:30]Okay? So, that's it, guys. Thank you so much.