Consolidation

answered on 07-Aug-24 11:06

Also why havent they made any dividend adjustment to compute pre and post acquisition profits here?

latest answer

Adjustments in pre or post acquisition profits are mode only when dividends are PAID. In this question, the dividends are not yet paid and thus ,no treatment in pre or post acquisition of profits.

Niveta Rajkumar

CA Inter

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191

consolidation

answered on 13-Aug-24 11:44

in the solution to the given question why have they included entire 10 lakhs of preference capital in minority interest and why they haven't considered it in the cost of investment made to subsidiary ?

latest answer

Any ownership interest that is not owned by parent company is considered as minority.

Niveta Rajkumar

CA Inter

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187

Inventory

answered on 08-Aug-24 10:29

Explain about the inventory taking

latest answer

Assume you shd have done physical checking of inventory on 31 st march and you did not conduct physical checking, and same was conducted on 15th april , so we have to do reverse calculation based on information given what was the stock on 31st march Inventory taking means physical checking of inventory with books,

Ramikasri Saravanan

CA Foundation

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164

Inventory

answered on 07-Aug-24 09:11

Explain the concept about inventory taking

latest answer

We will calculate the closing stock as on 31st march. The transactions that were made after 31st march till 15th april will be adjusted to the closing stock on 15th april to arrive the closing stock as on 31st march

Ramikasri Saravanan

CA Foundation

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128

As 10

answered on 06-Aug-24 16:00

4 th one how to calculate . Method

latest answer

Thank you

Lucky Ten

CA Inter

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2

141

Right

answered on 06-Aug-24 15:32

Correct me where im wrong Bonus or right are declared say on 1/6 Then when bonus or right shares are given I.e 1/7 is the record date ? I,e when shares are credited to investor account ?

latest answer

It will be credited within 2 to 7 days post the record date

Sushmita Chowdhury

CA Inter

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166

Preparation of financial statements

answered on 06-Aug-24 15:45

Icai material Pg no.11.45 Illustration 6 Even though it is not mentioned in the question to provide for interest on debentures We've shown it in the profit and loss account as finance cost Why is it not shown under other current liabilities ( assuming that it's payable)?

latest answer

Each entry has two parts 1. You will show expense 2. You will show payable - current liabilities.

Monika T

CA Inter

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117

Consolidation of Financial Statements

answered on 06-Aug-24 11:21

in down stream transaction if the holding company sold goods at a loss to subsidiary, and the goods is lying unsold in the subsidiary company.Then what is the treatment given in consolidation?

latest answer

Eliminate the loss.

Niveta Rajkumar

CA Inter

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121

Dividend

answered on 07-Aug-24 00:07

Sir final dividend is liability in current year because we pay it in next FY. But interim dividend is an expense during the year, but why don't disclose it in expense side of P&L account ?

latest answer

Dividend is not an expense for the company, whether it is final or interim. Since FINAL DIVIDEND is announced in the AGM of the Company, it cannot be withdraw even by Unanimous Consent. That's why it acts as a liability. However still it is appropriation of profits not an charge on profits. But Interim Dividend Can be withdrawn by BOD as it is not approved by General Meeting yet.

Ajaykumar Parit

CA Inter

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172

AS5

answered on 06-Aug-24 07:41

If it's not a change in accounting policy then what will be classified as? Illustration 4 (Part i)

latest answer

Adhoc means there was no scheme or accounting policy, Here they have introduced new policies, it is not change in accounting policies, You can answer stating change in accounting policy definition, and conclude that it is introduction of new accounting policy and it cant be treated as change in accounting policy

Sagar Kathuria

CA Inter

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125