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Ca final fr nov 17 q-3 solution

Dheeraj Rinwa (Student) (98 Points)

01 November 2017

Hi Friends

I am attaching herewith the Solution of Question 3 Consolidated Financial Statement of November 2017 Financial Reporting Paper in this question we will get to know the accounting treatment of Proposed Dividend which is now in line with IFRS because the existing AS-4 has been revised in line with the Provision of IFRS .

I will be very soon uploading the balance part of FR Nov 17 Exam , in case of any query regarding the question paper you can get back to me on below mentioned details.

Regards

Dheeraj Rinwa

Contact-9930196490

Email - dheerajrinwadj @ gmail.com

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5 Replies

Ramakrishnan Lakshmanan (NA) (33 Points)
Replied 01 November 2017

Sir, thanks for the solution... what will be the weightage for notes to accounts - i have done all working notes and CBS correctly... but did not have time to complete the Notes on Accounts alone..

Thanks..

Dheeraj Rinwa (Student) (98 Points)
Replied 02 November 2017

Dear Ramakrishnan
Notes are integral Part of the main solution but Dont worry about that if u have attempted rest of the Part correctly.

U have given ur Best Now God will do the Rest.

I wish you a Very Good Luck.

Focus on upcoming papers.

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Anirudh Tamret (Professional) (45 Points)
Replied 02 November 2017

Sir, the question specifically mentions that dividend has been declared. Declared dividend is already approved by shareholders and is a liabilty. I have treated it as Dividend Payable and accordingly adjusted Minority Interest with it's share of dividend. Will it be correct? The aforementioned method has also been followed by ICAI in an identical question viz. Q8 of Jan 2017 PM.

Moreover, in Q2, tax had been paid on dividend at 10%, I haven't done grossing up of dividend tax as per Sec 115O of Income tax Act, 1961, will it be acceptable?

Your reply would be immensely helpful for everyone.

Dheeraj Rinwa (Student) (98 Points)
Replied 02 November 2017

Dear Anirudh

Till now no question is there for Proposed dividend replicating the correct treatment, when the said AS-4 was revised the Institute did not rectified the answers but changed the word proposed by replacing it with declared making no impact on answers.

In the Solutions of ICAI Study Material & PM they have changed the word proposed dividend with dividend declared and taken a very illogical assumption , but it is not possible to get the final accounts ready on the same day and to declare the dividend,hold the AGM and to approve the said dividend by shareholders as on 31st-March of any year.

So the correct treatment is not to provide for the Dividend in the same year in which it relates but only disclose it by way of notes as i have done in the answer but still you should dont worry about that institute accepts both the answer even though it is completely hypothetical .

As far as your Doubt relating to the Absorption Q-2 is concerned i am uploading the answer .