This document focuses on the misapplication of Indian Accounting Standards (Ind AS), particularly Ind AS 38 and Ind AS 36, regarding the treatment of R&D expenditures and impairment losses. It examines how improper capitalization of R&D costs and the failure to recognize impairment losses in a timely manner can distort financial statements, leading to inflated asset values and overstated profits. Additionally, the document references a recent SEBI order that highlights non-compliance with these standards, which resulted in misleading financial reporting and misstated key financial metrics. These missteps not only affect investor trust but also undermine the reliability of financial disclosures. The document stresses the need for adherence to proper accounting practices to ensure transparency and maintain market integrity.
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