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33500mtp Final sr2 p1 PDF
33500mtp Final sr2 p1 PDF
33500mtp Final sr2 p1 PDF
1. (a) FINMIN Ltd. is engaged in the business of financial services and is undergoing tight
liquidity position, since most of the assets of the company are blocked in various
claim/petitions in a Special Court. FINMIN Ltd. has accepted Inter-Corporate
Deposits (ICDs) and is making its best efforts to settle the dues. There were claims
at varied rates of interest from lenders from the due date of ICDs to the date of
repayment. The company has provided interest, as per the terms of the contract till
the due date and a note for non provision of interest from the due date to date of
repayment was affected in the financial statements. On account of uncertainties
existing regarding the determination of the amount and in the absence of any
specific legal obligation at present as per the terms of contracts, the company
considers that these claims are in the nature of “claims against the company not
acknowledged as debt,” and the same has been disclosed by way of a note in the
accounts instead of making a provision in the Statement of profits and loss.
Comment on the correctness of the treatment for such claims as done by the
company.
(b) Topsy Ltd. has two divisions. It provides depreciation for both the divisions on
straight line basis as per the rates prescribed by Schedule XIV to the Companies
Act. While finalising the accounts for the year ended 31.3.2012, the company wants
to change the method to Written Down Value method for one of its divisions as the
management thinks that the assets of the said division suffer faster wear and tear.
Please advise the company on the above and also state whether the change should
be prospective or retrospective?
(c) M/s XYZ Ltd. has three segments namely X, Y, Z. The total Assets of the Company
are ` 10.00 crores. Segment X has ` 2.00 crores, segment Y has ` 3.00 crores
and segment Z has ` 5.00 crores. Deferred tax assets included in the assets of
each segments are X- ` 0.50 crores, Y—` 0.40 crores and Z—` 0.30 crores. The
accountant contends that all the three segments are reportable segments.
Comment.