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Non-adjusting events
Financial Reporting
answered on 27-Nov-24 15:10
An entity acquires a subsidiary (Business combination - IndAS 103) after the Reporting period. The share Purchase agreement is being entered into after the date of approval of Financial Statements. But the entity is aware of the plan of acquisition before the approval date. In this case, whether the same to be disclosed in the Reporting period or not, sir?
latest answer
IT depends on what level is the discussion and negotiation. If deal has been finalised, but agreement is done later, it would be disclosed. If it is at initial stage, the company should consider materiality. Also note that in case of listed entities, any such negotiations/deals should be disclosed to exchanges immediately.
Swathi S
CA Final
★ 975
1
300
Consolidation
Accountancy
answered on 27-Nov-24 15:12
Trade payables of holding company include ₹35,000 due to subsidy company for good supplied since the acquisition of shares these goods are charged at 10% above cost Accounting treatment ?
latest answer
1. Eliminate Inter-company Balances: The trade payables of ₹35,000 in the holding company and the corresponding trade receivables in the subsidiary's books will be eliminated in consolidation. 2. Adjust for Unrealized Profit: The goods are sold at 10% above cost, meaning the unrealized profit is embedded in the inventory still held by the holding company. Unrealized profit needs to be eliminated from both the inventory and consolidated profit. Calculation of Unrealized Profit: Profit margin = 10% of cost Cost = Selling price / (1 + Profit Percentage) = ₹35,000 / 1.10 = ₹31,818.18 Unrealized Profit = Selling price - Cost = ₹35,000 - ₹31,818.18 = ₹3,181.82
Sushmita Chowdhury
CA Inter
★ 2K+
2
853
SA 220 QUALITY CONTROL ON AUDIT OF FINANACIAL STATEMENTS
Auditing
answered on 28-Nov-24 23:33
IN CASE OF LISTED COMPANIES IS IT PERMITTED THAT QUALITY CONTROL REVIEWER AND ENGAGEMENT AUDIT FIRM CAN BE DIFFERENT.
latest answer
Yes they belong to same firm . It’s at firm level
LAKSHMI NARAYANA perakam
CA Final
★ 0
2
760
amt
Direct Taxation
answered on 28-Nov-24 11:25
FROM THESE 5 DEDECTIONS IF ANY ONE IS ALSO GIVE THEN ALSO HAVE TO CALCULATE AMT OR ALL DEDUCTIONS ARE NEEDED?
latest answer
If any of them is given then AMT would apply.
Saniya Balekai
CA Inter
★ 285
1
639
company audit
Auditing
answered on 29-Nov-24 06:58
is this part of our syllabus or for our understanding mam..?
latest answer
Ok sir..thank you sir
shanthini hariharan
CA Final
★ 10K+
7
680
audit report - 143
Auditing
answered on 29-Nov-24 06:58
mam, may i kindly know under which chapter this comes mam...is this a part of our new syllabus mam
latest answer
Ok sir..
shanthini hariharan
CA Final
★ 10K+
4
630
Financial statements of company
Accountancy
answered on 27-Nov-24 15:14
Is Accounting treatment for Interest Accrued but not due and Outstanding interest for the year Is same? Does both has to be charged under Finance cost ?
latest answer
The accounting treatment for Interest Accrued but Not Due and Outstanding Interest for the year are generally classified under Finance Costs in the statement of profit and loss.
Ankitha Rao
CA Final
★ 4K+
2
676
Doubt regarding why value of R not taken in sub question 3.
AFM
answered on 27-Nov-24 08:26
Sir , why the value of r not taken into consideration ? Since it included in the formula
latest answer
Thank you Sir 🙌
Prethivi Rajan
CA Final
★ 9K+
2
651
Tds
Direct Taxation
answered on 28-Nov-24 11:25
Tds return shd be filed quarterly or monthly?
latest answer
In Income Tax, it is quarterly
Lucky Ten
CA Inter
★ 0
4
632
AS 7
Accountancy
answered on 26-Nov-24 16:02
3 year contract Incurred cost 1st year =30 L Estimated additional cost = 90 L Total Contract Value = 112 L Assume work is completed to the extend of 75% by the end of year 2 Find total expense to be recognised in year 1
latest answer
Revenue = 28 lacs cost = 30 Lacs Loss - 2 lacs Expected loss = 8 lacs. So provision of 6 lacs is made. Total expenses = 36 lacs.
Yadhav yky
CA Inter
★ 0
1
695