auditing
This query is : Resolved
akkkkkkkkkkkkkkkkkkk
(Querist)
08 August 2010
how will u as an auditor treat the following?
1-receipt of substantial amount by way of damages from supplier in respect of inferior quality of raw material received and consumed during the year under audit?
2- finished goods were valued at cost of production including administration overhead.
3-financial expenses and advances paid to contractor during the period of construction.
4-know how relating to manufacturing process paid rs. 50 lakhs and know how relating to drawing of plant and machinery amounting tors. 100 lakhs.
1-receipt of substantial amount by way of damages from supplier in respect of inferior quality of raw material received and consumed during the year under audit?
2- finished goods were valued at cost of production including administration overhead.
3-financial expenses and advances paid to contractor during the period of construction.
4-know how relating to manufacturing process paid rs. 50 lakhs and know how relating to drawing of plant and machinery amounting tors. 100 lakhs.
09 August 2010
1. Reduce the amount from purchases
2.As per AS 5 cost of finished goods comprise of cost of purchase,cost of conversion and other cost incurred to bring the goods in their current location.Accordingly adding admin overhead may be relevant.
3.I would refer to AS 7."When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract should be recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date. An expected loss on the construction contract should be recognised as an expense immediately."
4.This amount can be shown as deferred Expenses and amortised over a period justified by the management which you may need to understand and agree to.
2.As per AS 5 cost of finished goods comprise of cost of purchase,cost of conversion and other cost incurred to bring the goods in their current location.Accordingly adding admin overhead may be relevant.
3.I would refer to AS 7."When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract should be recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date. An expected loss on the construction contract should be recognised as an expense immediately."
4.This amount can be shown as deferred Expenses and amortised over a period justified by the management which you may need to understand and agree to.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
