Whether merger effect to be given in financials??

I had a query with regards to merger effect to be given in the financials. There are 3 Companies A, B and C. B and C have got merged into A by pooling of interests method.

In this case the statutory audit of all the companies is 31 December 2012. The merger is approved by the High Court on 4 January 2013 and intimated to the ROC on 18 January 2013. However, the appointed date of merger is 1 April 2011. The Question is:-

Whether merged accounts can be prepared for the year ended 31 December 2012??

My assessment:
As per AS 14 if the When an amalgamation is effected after the balance sheet date but
before the issuance of the financial statements of either party to the
amalgamation, disclosure is made in accordance with AS 4, ‘Contingencies
and Events Occurring After the Balance Sheet Date’, but the amalgamation
is not incorporated in the financial statements.

However, while reading the same with context to AS 4 it can also be said that the condition existed on date of balance sheet and is known before signing of accounts and hence we can incorporate the same in the accounts.

Kindly advise or brain storm...

I need notes of audit .

can anyone provide me best notes for audit.

Central statutory audit

Dear Sir/ Ma'am,

What is the meaning of 'Central Statutory Audit'..??
How is it different from 'Statutory Audits'..??

Acceptance of deposit rule 1975

Regard:-Acceptance of Deposit (Rules).1975
For the purpose of computation of limits under rules 3(2)(ii) free reserve as per latest audited balance sheet is to be taken. Free reserve definition has been defined vide Rule 2(d) to include balance in premium account and other items. There is an explanation under Rule (3) which prescribes mode of computation of free reserve to be aggregate of share capital and free reserves but accumulated balance of loss, balance of deferred revenue expenditure and other intangible assets have to be excluded.
Now there appears to be anomaly between Rules 2(d) and explanation below Rules 3. A view is taken by the company that for the purpose of computing the limit under Rule 3(2) (i) & 3(2) (ii) definitions as given in Rule 2(d) would be applicable. The effect of this is that accumulated balances of loss, Intangible assets & deferred revenue expenditure have not to be reduced for computing the limit up to which deposit can be taken. Company’s view is that the explanation under Rule 3 is only applicable for the purpose of limits existing prior to 1975.
Although by strict of liberal interpretation company`s view may be correct. But if we accept this, it results in absurdity i.e. definition of free reserves is different for limit of deposit prior to 1975 & existing on date and for deposits accepted/invited post 1975.
The pragmatic and measurable interpretation would be and in accordance with the accepted norms for free reserve to include/reduce the accumulated balance of loss/other intangible and deferred revenue expenditure.
My please clarify and preferably with same institute`s opinion/authority,

Thanks

Qualification on internal audit

what kind of qualification a Statutory auditor can put regarding internal audit fuction of the management.

Regarding audit outside india

I want to know the countries outside India in which a practicing Chartered Accountant can perform audit activities and also the source of that information.
Thanks!

Service tax

Reverse charges of Service will adjusted with CENVAT credit OR it will full expenses .

please help

Applicability of internal audit

When liability of the company arise to get books of account audited from an internal auditor? or

Explain the condition of internal audit/

Inventory valuation

Hi,
I am an article. Currently working on a statutory audit of a company. My query is as follows:

A fasteners manufacturing company has 8 different grades of raw material used in their production process. In the previous financial year for valuation of raw material the company used the average of the Po rates of the last 3 months for each grade of raw material. For 3 of the grades 2 extra processes have to be carried out by the company the cost of which comes to Rs. 7.5 per kg of raw material. In the last financial year while calculation the raw material value Rs. 7.5 was added to the basic rate per kg (average PO rate) for all the 8 grades of raw material. Hence raw material value went up as grades where the extra processes were not carried out were added the process cost per kg too. In the current financial year for valuing raw material the company is adding the Rs. 7.5 only to the 3 grades of raw material. So this year's inventory value will be lesser comparatively. What are the implications of this situation on the financial statements? Does this amount to mistake and hence last year's overvaluation be written off to profit and Loss or this is just a change in accounting policy and hence disclosure and quantification is enough? Please explain

Thanks in advance.

Loan

can a public company can take unsecured loan frm director without any limit?

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