Manager - Retail Financial Accounting & Reporting (4-8 yrs)

We are currently hiring a manager to handle retail, financial accounting focused on leases and inventory accounting along with reporting on IndAS and IFRS . This role requires mandatory experience in retail or any other direct consumer organisation having retail or warehouse assets. Position is based in Gurgaon.

In a retail organization, financial accounting and reporting focus on several key experience areas, particularly when applying Indian Accounting Standards (IndAS) and International Financial Reporting Standards (IFRS). These standards ensure transparency, consistency, and comparability in financial statements. Below are the primary experience areas for financial accounting and reporting in a retail organization, with a focus on IndAS and IFRS compliance:

1. Revenue Recognition (IndAS 115 / IFRS 15)

- Key Focus: Recognizing revenue from retail sales, including in-store, online, and omnichannel transactions, in line with the five-step model of IndAS 115/IFRS 15 (identify contract, performance obligations, transaction price, allocate price, and recognize revenue when obligations are met).

- Retail-Specific Considerations: Handling discounts, loyalty programs, gift cards, and returns, which require estimating variable consideration and deferring revenue for future obligations.

Experience Areas:

- Structuring revenue contracts to comply with performance obligation criteria.

- Accounting for loyalty points as deferred revenue.

- Managing revenue adjustments for promotional offers and seasonal sales.

2. Inventory Accounting (IndAS 2 / IFRS 2)

- Key Focus: Valuing and reporting inventory, a critical asset in retail, at the lower of cost or net realizable value (NRV).

- Retail-Specific Considerations: Managing high inventory turnover, stock obsolescence, and seasonal inventory (e.g., fashion or perishable goods).

Experience Areas:

- Applying cost formulas (e.g., weighted average or FIFO) suited to retail inventory.

- Assessing NRV for slow-moving or obsolete stock.

- Implementing stock-take procedures and reconciling physical counts with financial records.

3. Leases (IndAS 116 / IFRS 16)

- Key Focus: Accounting for retail store leases, which are significant due to widespread use of leased premises.

- Retail-Specific Considerations: Recognizing right-of-use (ROU) assets and lease liabilities for store and warehouse leases, calculating lease terms, and handling variable lease payments (e.g., turnover-based rent).

Experience Areas:

- Measuring lease liabilities using incremental borrowing rates.

- Accounting for lease modifications or terminations.

- Ensuring proper disclosure of lease commitments in financial statements.

4. Property, Plant, and Equipment (IndAS 16 / IFRS 16)

- Key Focus: Managing fixed assets like store fixtures, equipment, and warehouses.

- Retail-Specific Considerations: Depreciation methods for assets with varying useful lives and impairment assessments for underperforming stores.

Experience Areas:

- Calculating depreciation using appropriate methods (e.g., straight-line or diminishing balance).

- Conducting impairment tests for store assets in low-performing locations.

- Capitalizing costs for store refurbishments or expansions

5. Financial Instruments (IndAS 109 / IFRS 9)

- Key Focus: Managing financial assets and liabilities, such as trade receivables, payables, and hedging instruments.

- Retail-Specific Considerations: Handling credit sales, customer financing, or supplier credit terms, and managing foreign currency transactions for imported goods.

Experience Areas:

- Classifying and measuring financial instruments (e.g., amortized cost or fair value).

- Applying expected credit loss (ECL) models for trade receivables.

- Hedging foreign exchange risks for imported inventory.

6. Provisions, Contingent Liabilities, and Contingent Assets (IndAS 37 / IAS 37)

- Key Focus: Recognizing provisions for warranties, returns, or legal disputes.

- Retail-Specific Considerations: Estimating provisions for product returns or customer complaints, especially in high-return categories like apparel or electronics.

Experience Areas:

- Calculating provisions based on historical return rates.

- Disclosing contingent liabilities (e.g., pending litigation with suppliers or customers).

- Reviewing and updating provisions periodically.

7. Taxation (IndAS 12 / IAS 12)

- Key Focus: Accounting for income taxes, including deferred tax assets and liabilities.

- Retail-Specific Considerations: Managing tax implications of promotional discounts, inventory write-downs, or lease accounting.

Experience Areas:

- Calculating deferred tax on temporary differences (e.g., depreciation or provisions).

- Ensuring compliance with tax disclosures under IndAS/IFRS.

- Coordinating with tax authorities for GST/VAT compliance in retail transactions.

8. Consolidation and Group Reporting (IndAS 110 / IFRS 10)

- Key Focus: Preparing consolidated financial statements for retail chains with multiple subsidiaries or franchises.

- Retail-Specific Considerations: Consolidating financials from various store locations, e-commerce platforms, or international operations.

Experience Areas:

- Identifying subsidiaries and applying control criteria.

- Eliminating intercompany transactions (e.g., inventory transfers between stores).

- Preparing group-level disclosures compliant with IndAS/IFRS.

9. Presentation and Disclosure

- Key Focus: Ensuring financial statements meet the presentation and disclosure requirements of IndAS 1 / IAS 1.

- Retail-Specific Considerations: Providing detailed disclosures on revenue streams, inventory, leases, and segment performance (e.g., online vs. offline sales).

Experience Areas:

- Drafting notes to financial statements with clear, concise information.

- Segment reporting for different retail formats or geographies.

- Ensuring compliance with fair presentation and materiality principles.

10. Internal Controls and Compliance

- Key Focus: Establishing robust internal controls to ensure accurate financial reporting under IndAS/IFRS.

- Retail-Specific Considerations: Mitigating risks of fraud, misstatement, or inventory shrinkage in a high-transaction environment.

Experience Areas:

- Designing controls for point-of-sale (POS) systems and cash reconciliations.

- Conducting audits to verify compliance with IndAS/IFRS.

- Implementing systems for real-time financial reporting across multiple locations.

IndAS vs. IFRS in Retail Context

- Similarities: IndAS is largely converged with IFRS, so most principles (e.g., revenue recognition, leases, inventory) align closely. Both emphasize fair value, transparency, and stakeholder relevance.

Differences:

- IndAS includes India-specific carve-outs (e.g., treatment of foreign currency convertible bonds or certain lease exemptions).

- IndAS requires additional disclosures for Indian regulatory compliance (e.g., Companies Act, 2013).

- Retail organizations must ensure compliance with both IndAS (for Indian reporting) and IFRS (if listed globally or reporting to international stakeholders).