Answers reqfor following question of nov 11- accounts paper

Final 1228 views 5 replies

CA, CS(Professional) ROHAN

B.com CA CS Sr officer -Finance & MIS

309 Points Joined August 2009

guys can any of u provide me answers for following questions of nov 2011- financial reporting paper .

Q1 (B) WHAT WAS TO BE WRITTEN FOR NOTES TO ACCOUNTS IN CASE OF DEPRECIATION ? WAS IT THAT ACCUMULATED DEPRECIATION OF164 LAKHS WAS GIVEN AND CO CHANGED THE METHOD TO WDV AS THE COST WAS ALSO GIVEN BECOZ ICAI CANNOT ASK JUST A SIMPLE NOTES TO ACCOUNTS AS IT WAS NOT TO TEST OUR VOCUBLARY SKILLS ...

Q5 ( A) WAS THE FIGURE OF SHARE CAPITAL IN LAKHS OR CRORES BECOZ RESERVES WERE IN LAKHS AND ALSO WHETHER CAPITAL RESERVE IS TO BE CONSIDERED A PART OF SHAREHOLDERS FUNDS WHILE CALCULATING EVA .bECOZ I GOT A - VE VALUE ADDEDD AND THE MARKET VALUE ADDED WAS IN CRORES???

Q6 WHETHER OPTION TO SELL PPE WAS A FINANCIAL INSTRUMENT ??I THINK IT IS NOT AS IT IS NOT COVERED BY AS-30 AND ALSO DOES NOT MEET THE DEFINATION CRITERIA OF FINANCIAL ASSET OR A LIABLITY .. WAT SAY GUYS ???

Replies (5)

Guest

For 1, its an onerous contract, so al future lease pmnts were to b expensed in curnt yr. 2. Que is crct, mva is agregate of future evas and eva is positive. 3. I thnk its nt fe.

CA, CS(Professional) ROHAN

B.com CA CS Sr officer -Finance & MIS

309 Points Joined August 2009

pulkit, i think the lease part was were any further cost incurred upto making the leased assets ready for use will be recognised as a part of the asset only becoz had it to be expensed it wnt require nay special disclosure in notes to accounts. Also wat bout the depreciation . i dnt think it was just to be worded in a copy paste matter. that depreis to be charged @ 15% on asset. wat say ?

CA Sahil Singla..

Service Tax

3746 Points Joined August 2008

what about EVA question ? was capital reserve part of operating capital ?

CA, CS(Professional) ROHAN

B.com CA CS Sr officer -Finance & MIS

309 Points Joined August 2009

i think sahil the same should not be included in the calculation ... nt much sure ....lets c wat othrs say ....ne thots on the above 2 questions ??

richa

ca student

195 Points Joined October 2007

hi..can u tell....if in ques of second part to Value added ..... profit/ loss on sale in subsidiary and associates ..capital reserve on acquistion was to be adjusted ??