1. WELCOME

2. TRAFFIC ACCOUNTS IN ACCRUAL PERSPECTIVE -V. A. PADMANABHAM, Addl
TRAFFIC ACCOUNTS IN ACCRUAL PERSPECTIVE -V.A.PADMANABHAM, Addl. Director/CTARA

3. ACCRUAL ACCOUNTING-AN OVERVIEW
ACCRUAL ACCOUNTING RECOGNISES INCOME AND EXPENDITURE AS IT OCCURS
ORGANISATION IS A LEGAL AND PERMANENT ENTITY
FOLLOWS ACCOUNTING STANDARDS WHICH ARE UNIVERSAL AND COMMON
ACCOUNTING IS SYSTEMATIC, SCIENTIFIC,CLASSIFIED, SUMMARIZED AND CONSISTENT

4. ACCRUAL ACCOUNTING-CONTD
FORMATS/TERMS ARE UNIVERSAL
COMPLIANCE WITH GASAB AND STAUTORY REQUIREMENTS.
DISCLOSURES AND TRANSPARENCY.

5. TRAFFIC ACCOUNTING-TEST OF ACCRUAL ACCOUNTING
STATION BALANCE SHEET IS BASIC DOCUMENT FOR SUBMITTING MONTHLY ACCOUNT
APPORTIONMENT OF EARNINGS
ACCOUNTS OFFICE BALANCE SHEET
TRAFFIC SUSPENSE

6. TRAFFIC ACCOUNTING ON IR
ACCOUNTING IS HIGHLY STRUCTURED AND UNIFORM
ACCOUNTING IS AS PER CODES AND MANUALS
FORMATS/ALLOCATIONS ARE STANDARD AND COMUTERIZED ACCOUNTING FOLLOWED.
CONSOLIDATION OF ACCOUNTS IS CONTROLLED THROUGH ALL RAILWAY SYSTEMS

7. TRAFFIC ACCOUNTING-CONTD
ACCOUNTING PROCEDURES ARE TIMETESTED,APPROVED BY CGA AND C&AG
DOUBLE ENTRY SYSTEM FOLLOWED.
LIKE INTERBRANCH TRANSFERS in companies, IR HAS TRANSFER TRANSACTIONS
TRANSACTIONS OF EARNING ARE ACCOUNTED ON ACCRUAL BASIS EXCEPT FEW CASES WHERE CASH ACCOUNTING IS FOLLOWED

8. TRAFFIC ACCOUNTING-CONTD
FOIS. INVOICE IS BASIS FOR FREIGHT ACCOUNTING
PRS,UTS PROGRAMS TAKE CARE OF PASSENGER EARNINGS FROMSTATIONS
CRIS MONITORES BOTH PRS/UTS AND
APPORTIONMENT OF EARNINGS IS CENTRALISED THROUGH RITES UNDER CENTRAL RAILWAY

9. TRAFFIC ACCOUNTING-CONTD
TRAFFIC BOOK PART –A CONSOLIDATES HOME RAILWAY TRANSACTIONS BOTH FOR COACHING AND GOODS
CLOSING BALANCE OF THIS PART REPRESENTS STATION OUTSTANDING
NET RESULTS OF APPORTIONMENT ARE THROUGH PART- B
PART – C COMPILES TRFFIC ACCOUNT WHICH TAKES INTO ACCOUNT AOB ITEMS

10. TRAFFIC ACCOUNT-CONTD
CLOSING BALANCE OF TRAFFIC ACCOUNT (LEDGER ACCOUNT OF ZONAL RAILWAY) DISPLAYS TRAFFIC SUSPENSE OF RAILWAY
IR FOLL0WS ACCRUAL ACCOUNTING IN MOST PART OF THE AREAS.
MIGRATION TO COMPLETE ACCRUAL ACCCOUNTING IS EASY WITH LITTLE CHANGES

11. SUSPENSE ACCOUNTING
IR MAINTAINS SUSPENSE ACCOUNT ON EARNING SIDE TO TAKE INTO ACCOUNT ALL OUTSATNDING INCOMES-TRAFFIC SUSPENSE
EARNINGS ACCOUNTAL IS ON GROSS BASIS AND ACCRUAL BASIS WHETHER REALISED OR NOT IN THE SAME MONTH/YEAR
TRAFFIC SUSPENSE AMOUNT IS REFLECTED ON ASSET SIDE OF BALANCE SHEET

12. SUSPENSE ACCOUNTING-CONTD
THIS IS THE CORE CONCEPT OF ACCRUAL ACCOUNTING WHICH IS TRULY AND MOSTLY FOLLOWED.
ADVANCE RESERVATIONS AMOUNT TO BE SHOWN AS INCOME RECEIVED IN ADVANCE ON LIABILITYSIDE. THIS IS NOT BEING FOLLOWED SO FAR- THIS CAN BE IMPLEMNETED IF POLICY ISSUED BY RAILWAY BOARD.

13. KEY AREAS OF CONCERN
INCOME RECOGNITION BEFORE SERVICE RENDERED- ADVANCE RESERVATIONS.
SIMILAR WAY IN CIRCULAR JOURNEY TICKETS/SEASON TICKETS
DIVERSION DEBITS AND CLAIMS CASES
THEFTS, CASH LOSSES AND WRITE OFFs
PROVISION OF BAD AND DOUBTFUL DEBTS
COSTING OF FREE PASSES ( POLICY ISSUE)

14. CHANGES REQUIRED TERMS ARE TO BE CHANGED TO SUIT ACCOUNTING STANDARDS.
TERMS LIKE REVENUE FROM BUSINESS OPERATIONS ARE USED IN PSUs WHEREAS IR USES EARNINGS FROM PASSENGERS, OTHER COACHING, GOODS AND SUNDRY ARE ADOPTED
ALTERNATIVELY GLOSSARY OF TERMS ARE TO BE EXPLAINED IN THE FOOT NOTES TO P&L ACCOUNT

15. CHANGES- CONTD
ADVANCE RESERVATIONS , CIRCULAR JOURNEY TICKETS/SEASON TICKETS ISSUED FOR JOURNEYS BEYOND MARCH EVERY YEAR ARE TO BE CAPTURED MONTHWISE AND SHOWN AS REDUCTION IN INCOME AND SHOWN AS LIABILITY IN BALANCESHEET.
FOR THIS PURPOSE, NEW ALLOCATION TO BE GIVEN IN FINANCE CODE VOL.II

16. CHANGES-CONTD
DIVERSION OF RAKES ARE TO BE CAPTURED AND INDICATED FOR EACH ZONAL RAILWAY IN FOIS PROGRAM
SRRs TO BE ISSUED IN SYSTEM INDICATION REVISED FREIGHT DUE, WHERE RAKES ARWE DIVERTED AND DELIVERED ETC.
PRESENTLY THE PROCESS IS TAKING YEARS AND CLAIMS/MATCH DELIVERIES ARE OVERDUE

17. CHANGES-CONTD
EVENTHOUGH RAILWAY BOARD ISSUED DIRECTIVES IN AUGUST-2014, ZONAL RAILWAYS HAVE NOT IMPLEMENTED SO FAR.
TO THIS EXTENT, IR HAS NO ACCRUAL ACCOUNTING
PROVISION FOR BAD DEBTS FOR IRRECOVERABLE DUES IN STATION OUTSTANDING AND POWERS TO WRITE OFF TO BE CONSIDERED AS POLICY.

18. CHANGES REQUIRED-CONTD
OPERATION OF MAR SUSPENSE FOR COMPENSATION CLAIMS-COST OF COAL ETC., AGAIN AFFECTS TRUE AND FAIR VIEW OF ACCOUNTS AS BUSINESS ENTITY.

19. THANK YOU