Wipros Accounting Policies

Presented By:
Pandyaraj
Karthik
Raghu
Harish
Prabhat
Ritika
Rohit
Radhika
Malathi
Presented To:
Prof. B.R. Desai
INTRODUCTION
WIPRO : Western Indian Vegetables Products
Limited
Started in Dec 29 1945
1970 1980 : Business opportunities
1977 WIPRO
1980 WIPRO in the IT domain
1982 WIPRO Products Ltd to WIPRO Ltd.
2014 Employees - 1,46,000, 960 countries
ACCOUNTING STANDARDS
GAAP- Set of accounting principles,
standards and procedures to compile
financial statements
a) INDIAN GAAP
b) US GAAP
IFRS - International Financial Reporting
Standards
Foreign Exchange Restatement (FER)
Gains

TRANSITION:
INDIAN GAAP- 2005
US GAAP- 2005 to 2011
IFRS- 2011 ONWARDS

TYPES OF IFRS:
CONSOLIDATED IFRS
STANDALONE IFRS

Revenue recognition
What is Revenue recognition?
Types of accounts
a) Accrued revenue
b) Deferred revenue
For financial year 2001-02, profits according to
Indian GAAP is higher than 18million INR.
For the financial year 2002-03, profit is lower
than 18million INR.
(Cont.)
Revenue recognition
For fixed time frame work INR 106 million were
recognized under the Indian GAAP for June
2002.
Consequently, revenues of INR 42 million for
the sale of software products had been
recognized under Indian GAAP in march 2003.
Revenue for 2013 is INR 338 million
Revenue for 2014 is INR 399 million

INTANGIBLE ASSETS
WIPROS Intangible Assets:
Technology based intangible
Customer related intangible
Marketing related intangible
Amortized Value






Financial Year INR(million)
2002-2003 166
2013-2014 404
0
100
200
300
400
500
2002-03 2013-14
Rs(million)
GOODWILL AMORTIZATION
It is Accrual accounting to understand the
use of assets life and its write down.
Wipro adopted SFAS 142,
Wipro identification of goodwill
Tested goodwill
Co. amortized amount of Rs.175 million



DEFFERED TAX
WHAT IS DEFFERED TAX

DEFFERED TAX LIABILITY

DIFFERED TAX ASSET



2014 2013
DIFFERED TAX LIABILITY 1679 528
DIFFERED TAX ASSET 1553 1022
STOCK BASED COMPENSATION
Followed ABP Opinion 25
Fixed options valued at intrinsic value rather
than fair value
In 1984, established Wipro equity reward
trust(WERT)
After following US GAAP the difference
between market price and amount to be paid
by employee was recorded over vesting
period
2001-02 compensation amortized 79 million
2013-14 compensation amortized 949 million
India(SEBI) introduced employee stock option
scheme and employee purchase scheme
guidelines in 1999
SEBI followed the same guidelines as US
GAAP

CONCLUSION
Multinational
Has to adopt policies under various Principles
Publishes annual report in different forms
Made a mark
THANK YOU