1. WELCOME

2. STAGES IN CHANGE OVER TO ACCRUAL ACCOUNTING -V. A. PADMANABHAM, ADDL
STAGES IN CHANGE OVER TO ACCRUAL ACCOUNTING -V.A.PADMANABHAM, ADDL.DIRECTOR/Ctara

3. ACCOUNTING SYSTEM OF IR
DUAL ACCOUNTING SYSYEM IN FORCE.
FINANCE ACCOUNTS TO COMPLY WITH REQUIREMENT OF GOVERNMENT ACCOUNTS
CAPITAL & REVENUE ACCOUNTS TO CONFORM TO COMMERCIAL ACCOUNTS
DOUBLE ENTRY SYSTEM FOLLWED
LINK BETWEEN TWO SETS OF ACCOUNTS MAITAINED THROUGH OPERATION OF SUSPENSE ACCOUNTS

4. ACCOUNTING SYSTEM OF IR-CONTD
SUSPENSE ACCOUNTS ARE DEMANDS PAYABLE, TRAFFIC ACCCOUNT, LABOR AND DEMANDS RECOVERABLE
MINUS ENTRIES/CONTRA ENTRIES OPERATED.
P&L ACCOUNT AND BALANCE SHEET ARE NOT AS PER ACCOUNTING STANDARDS
ACCOUNTING TERMS AND ACCOUNTS ARE WELL STRUCTURED AND UNDERSTOOD BY THE INSIDERS BUT TRANSCLUSCENT TO OUTSIDERS

5. ACCOUNTING SYSTEM IF IR-CONTD
STAKE HOLDERS IN RAILWAY FINANCES HAVE CHANGED AS IR TO GO FOR MARKET AND FDI FOR FUNDS
BUDGETARY SUPPORT IS DWINDLING
CAPITAL EXPANSION RESOURCES REQUIRED ARE HUGE
FINANCIAL STATEMENTS NEED TO BE CHANGED TO SUIT ACCOUNTING STANDARDS

6. STAGES IN CHANGE OVER LEGISLATIVE MODIFICATIONS TO CODES AND MANUALS
CHANGE IN FORMATS OF FINAL ACCOUNTS
BUILDING ASSETS REGISTER OVER IR
WORKING OUT DEPRECIATION ON COMMERCIAL PRINCIPLE
WORKING OUT PENSION LIABILITY

7. STAGES IN CHANGE OVER ORIENTATION AND TRAINING OF STAFF
IMPLEMENTATION OF COMPANY ACCOUNTS ON PILOT PROJECTS
REFINEMENTS OF COSTING SYSTEM
HAVING TARIFF REGULATOR
DISCLSURES IN ACCOUNTING TO STAKEHOLDERS

8. LEGISLATIVE CHANGES
DEFINE WHETHER GBS IS LOAN OR CAPITAL BUT NOT LOAN CAPITAL ASN RLY BALANCESHEET NOW.
SOCIAL OBLIGATIONS COST TO BE REIMBURSED BY GOI AS SUBSIDY
TO DECIDE WHETHER DUAL RESPONSIBILITY AND DUAL ACCOUNTING WILL CONTINUE

9. MODIFICATIONS TO CODES AND MANUALS
MOST OF THE CODES AND MANUALS ARE OUTDATED.
CONCEPTS LIKE PRS,UTS,FOIS NEFT, E RECON
MMIS ARE NOT AVAILABLE IN CODES AND MANUALS
TERMS USED TO BE MADE MORE UNDERSTANDABLE TO USERS OF ACCOUNTS
ALLOCATIONS TO BE CHANGED TO CAPTURE ADVANCE RESERVATIONS MONTHLY

10. CHANGES IN FORMATS AND ACCOUNTS
FORMAT OF P&L ACCOUNT AND BALANCE SHEET TO BE CHANGED TO SUIT ACCOUNTING STANDARDS
DISCLOSURES AS PER GASAB TO COMPLIED WITH.
SCHEDULES AND NOTES TO BE APPENDED TO FINAL ACCOUNTS

11. Changes in P&L Account
Advance reservations to be reduced from earnings.
All outstanding expenses to be brought into account
Depreciation to be debited to P&L Account
Deferred Dividend to be shown as due.
Dividend received from Rly PSUs to be credited.

12. Changes in Balance Sheet
The term Loan Capital to be changed to only Loan.
Surplus to be shown on Liability side
Advance reservations to be shown .
Assets side fixed block to be shown as finished works and works in progress and depreciation to on finished works only

13. ASSET REGISTER ASSET REGISTER TO BE BUILT ON IR
DATA RELATING TO DIFFERENT CATEGORIES OF ASSETS TO BE CAPTURED.
DATE OF ACQUISITION, ORIGINAL COST, CODAL LIFE AND SCRAP VALUE TO BE CAPTURED

14. DEPRECIATION
IR FOLLOWS ADHOC POLICY ON DEPRECIATION BASED ON AFFORDABILITY THAN ON NEED.
EITHER STRAIGHT LINE OR DIMINISHING VALUE METHOD TO BE FOLLWED.
SEPARATE PRIMARY UNIT FOR DEPRECATION TO BE INTRODUCED.
MONEY TO BE INVESTED PROPERLY TO APPRECIATE ADEQUATELY TO PROVIDE FOR REPLACEMENT OF ASSET

15. WORKING OUT PENSION LIABILTY
PENSION LIABILTY TO BE WORKED OUT AS PER PESION FUNDS MANAGED BY FUND MANAGERS LIKE LIC,SBI LIFE
EVERY APPROPRIATION TO PF TO BE REALISTIC AND AS PER REQUIREMENTS

16. ORIENTATION AND TRANING
TRAINING PROGRAMMES ARE ESSENTIAL
ALL SSOs AND OFFICERS ARE TO BE TRAINED
PROFESSSIONAL TRAINERS/FACULTY TO BE INVOLVED
MASTER TRAINERS ARE TO BE TRAINED IN EACH RAILWAY TO GUIDE THE STAFF.
STUDY MATERIAL TO BE DEVELOPED

17. PILOT PROJECTS
IMPLEMENTATION OF ACCRUAL ACCOUNTS ON PILOT PROJECTS SOME DIVISON /RAILWAY
AJMIR DIVISION ON NWR IS SELECTED FOR PILOT PROJECT TO CHANGE OVER TO ACCRUAL ACCOUNTS.
EXECUTIVE INVOLVEMENT IS NECESSARY.
INCOME RECOGNITION AND EXPENDITURE CAPTURING IS ESSENTIAL

18. REFINEMENTS OF COSTING SYSTEM
PRESENT SYSTEM OF COSTING ISTO BE CHANGED
COSTING TO HELP BETTER AND INFORMED DECISIONS BY MANAGEMENT.
BETTER INPUTS ON COSTS AND REVENUE ARE TO BE DEVELOPED TO TAKE INVESTMENT DECISIONS PROPERLY
COSTING TO HELP TAKING DECISION TO INTRODUCE NEW TRAIN OR STREAM OF TRAFFIC AND IN ROR CALCULATION MORE MEANINGFULLY

19. THANK YOU