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Another doubt/problem relating to AS 4

answered on 06-May-20

If there has been a cash embezzlement of Rs. 2 Lacs on 28 February and the management came to know about it on 30th April and the date of approval of FS is 31st May, as per AS 4, is such embezzlement an adjusting event or not? If it is an adjusting event, what is the "condition" exisitng on the Balance date for which is it being treated as adjusting event? Is this the condition?: Management's expectation of cash embezzlement.

latest answer

Embezzlement of â?¹ 2,00,000 detected by BOD on 30 th April before the approval of FS .It is an adjusting event. For adjusting events - A condition should exist on b/s date - additional evidence to confirm such condition - such additional evidence should be MATERIAL Detection of embezzlement on 30 th April is additional evidence for such condition on B/S date and it is material. Hope you understand and sorry for keep you waiting on this

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

3

71

After assembly of audit file,can the auditor delete audit documentation before retention period?

answered on 06-May-20

If not, why?

latest answer

1.There are no explicit rules relating to the retention of working papers. They should be retained as long as the auditor opines them to be useful in servicing the client or to comply with legal or professional requirements... 2. Standard on Quality Control 1 (SQC 1), however, requires it to be at least7 years from the date of auditorâ??s report.

K.V. Karthik

K.V. Karthik

CA Inter

34K+

1

80

A company purchased a machine for backup plan, do not used it in the year,is there is need to provide depreciation?

answered on 06-May-20

If yes,why?

latest answer

Is it ready for use? If it is ready then depreciation has to be charged. The fact that it was not used is irrelevant as depreciation is provided for reduction in value due to usage / elapse of time etc,

K.V. Karthik

K.V. Karthik

CA Inter

34K+

1

57

Share capital and debenture

answered on 05-May-20

This is excluded from the portions For may2020 also. right ?

latest answer

Thax

Swathi Krishna

Swathi Krishna

CA Inter

7K+

2

55

Please answer this AS 4 related question for me.

answered on 05-May-20

If an entity identifies a general expense - say Rs 4000 paid to an electrician (which was omitted by mistake and which relates to previous FY) between BS date and date on which BoD approves FS, how should the entity provide for it/what should be the accounting treatment?

latest answer

Problem solved. Thank you.

Kumarjit Dey

Kumarjit Dey

CA Inter

4K+

2

62

Rectification of errors

answered on 06-May-20

If we don't transfer sales returns book total to trial balance as sales returns total, how did the trial balance be effected by undercast Or overcast of subsidiary book (sale returns book) Plz answer me anyone

latest answer

Tanq and I found it

Eswar Narayan

Eswar Narayan

CA Inter

3K+

2

106

Liability on share

answered on 07-May-20

Will all the shareholders of unlimited company have unlimited liabilities? Can a shareholder hold limited liability share in an unlimited company?

latest answer

Thanks Sir

Venkateshwara Prabhu

Venkateshwara Prabhu

CA Inter

16K+

2

47

What are the approaches in data warehouse?

answered on 16-May-20

Like top-down, bottom-up,etc., so much confusing yaar!

latest answer

Bottom up approach- we will create small data warehouses and them merge them all to create large data warehouse. Top down approach- we will create a large data warehouse and then later create small date warehouses from that large data warehouse as per the requirement

K.V. Karthik

K.V. Karthik

CA Inter

34K+

1

56

What is human friendly name for device on internet?

answered on 08-May-20

Explain reason also please!

latest answer

Thanks for clear explanation sir!

K.V. Karthik

K.V. Karthik

CA Inter

34K+

9

162

Can anyone give formulas for risk premium, market premium, market risk premium?

answered on 09-May-20

Always confusing!

latest answer

Risk premium is calculated by subtracting the return on risk-free investment from the return on investment. Risk Premium formula helps to get a rough estimate of expected returns on a relatively risky investment as compared to that earned on a risk-free investment. The risk premium is calculated by subtracting the return on risk-free investment from the return on investment. Risk Premium formula helps to get a rough estimate of expected returns on a relatively risky investment as compared to that earned on a risk-free investment. Risk premium = Ra - Rf Ra - Asset/ Investment return Rf - Risk free return Market risk premium is the additional return an investor will receive (or expects to receive) from holding a risky market portfolio instead of risk-free assets. Market risk premium is part of the Capital Asset Pricing Model (CAPM) which analysts and investors use to calculate the acceptable rate of return for an investment. Market Risk Premium = Expected Rate of Return â?? Rf Rf - Risk free return Market risk is the risk which arise due to market related conditions like entry of substitute, changes in demand conditions, availability and access to resources etc. For Example, a thermal power project gets affected if the coal mines are unable to supply coal requirements of a thermal power company etc.

K.V. Karthik

K.V. Karthik

CA Inter

34K+

1

68

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