Liquidation of companies

answered on 29-Nov-20 20:55

Icai study material Illustration 5 How to calculate liquidator's remuneration?

latest answer

Tnq

Gomathi K

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As 4.

answered on 29-Nov-20 20:39

Sir only legal case filed by a client before 31 march, is it a any condition exist or can say require any provision based upon only legal case file

latest answer

Ok ji

DEEP VICKY

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As 18

answered on 30-Nov-20 08:47

Example Common directorship?

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two companies are not considered to be related simply because they have a director in common, (unless the director is able to affect the policies of both companies in their mutual dealings) Director is the related party of a company.

Krishna kumar

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Doubt

answered on 29-Nov-20 17:55

Sir is it compulsory to open suspense account (like ledger) in this question .

latest answer

Better to open.

Sri kanaga Varshini

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Partnership sale to company illustration 6

answered on 29-Nov-20 17:57

Why there is no adjustments for joint life policy and goodwill?

latest answer

Joint life policy is already surrendered. So it will no longer appear in balance sheet. I did not understand your query on goodwill.

vinay ajith

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As-20

answered on 29-Nov-20 15:49

In computation of basic EPS (NUMERATOR) Will we deduct transfer to statutory reserves?

latest answer

No.

Bharath sha

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As 29 - understanding this whole contingent liability, provision, and reimbursement thing

answered on 29-Nov-20 20:03

X Ltd is battling a legal case in court since 2015. Up until 24th May, 2017, X Ltd's legal team provided absolute assurance that there would be no outflow of Future Economic Benfits (FEB). On that date, the tables have turned in court and the management, fearing outflow of FEB is not remote, deems it wise to disclose the matter as contingent liability in footnote of FY 17-18's Balance Sheet. Y Ltd, an associate of X Ltd, ever since the start of the case in 2015 has been constantly reassuring X Ltd that it would reimburse the legal expense if the matter at court ever turned upside down. On 3rd June, 2018, FEB outflow became inevitable as per ultimate declaration of court, and X Ltd is forced to made a provision for it. By end of March, 2020, it paid a whooping amount of Rs 200 Crore to the plaintiff. Still 300 crore is left to be paid. Rs 100 Crore is reimbursed by Y Ltd. Reimbursement of balance amount is also virtually certain. What shall be the treatment in financial Statements for YE 2020

latest answer

Ok. Sir.

Kumarjit Dey

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Is Discontinuing Operation (as per AS 24)

answered on 29-Nov-20 11:19

a form of Restructuring of Business [1st point in attached]

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There could be a case during restructuring which involves discontinuing of operation.

Kumarjit Dey

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AS 29 + AS 4

answered on 29-Nov-20 11:33

XYZ Ltd paid Diwali Bonus, as a customary practice, to its employees totalling Rs 50 Lacs in 2019. As it is a usual practice, and as the entity will have to pay again next year, the managemnet decided to make a provision for the same of Rs 50 Lacs in Nov, 2019. In May, 2020, 2 months before date of FS approval, the management realized that as the number of employees increased since the provision was made in Nov, it will have to pay more bonus. As per management's judgment, 5% increase in bonus payment is estimated. Is the entity's decision to make provision in accordance with AS 29? Should the entity recognized, if at all, the 5% increase as provision in 2020 or 2019? Please comment, Sir.

latest answer

Yes.

Kumarjit Dey

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buyback

answered on 29-Nov-20 11:25

in case crr in buyback what is the order of creating crr In some cases crr created like Profit and loss a/c Revenue reserve In some Other cases Securities premium General reserve

latest answer

P&L will be last.

subramanyam yendakuarthi

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