Subject Recand advantes in Accounding

Ay ayabho Toxaton nd AudiHg

23 OMS Page No.
Datc

Inthe Books a Reliance Hd

Journa_Enties_

Dake Particular
Dy192 ,000
3103/1Employees Compensation kp Ale J,92, 0000
lo émployee stockoption ok Alc

IQBeinq Compenso tiom ExpensesHecamiseol

in epec o he employee stock 0ptionl
Ao00 opions qanBed to empoyees at a
discaunt of40 each amitized cn
stmight line bais ove :5 yeaus)
o06 stock ophions X40|2.S)

Pia and lots acLOunt Ds192,000

TD employees Compensation fxp Ale 142 000p

Being Expenses anseued o projit

and Noss aaun- at yeauend

31/032 Employee compenia.hion Cxpenie AlcD 2,00

To employee stotk oplion cls Al. 1,2000o

Being Compeniohom_expenie_ Aoaousnk

TLcoanised inespec af the mployee
stark opHon A000 ophoni qontdl
to employee at a diicounof 24o
Leach_amostised om Shaiamt ne
a i ovey S yeaus)
ogo stock optiont X 2 24025e0
 ep 38
A OMS Page No.
Date

Dake PaAicula
Po TA_and laSs Accoum D 92,000
Jo Employe es Compen saton p A |L42,o o0

USeinq expenie daan1femed oho

andaas atcount ab ea end
32) mployee Stockopimols Al D4000
TAmplayea)CWN, 1)
Jo lenena Resene QCcoumt CWND 4 6000.|

5eina excesoF employ.ees tnmp-

fnsaion expensen ram1texed to:
qenena Keseve account)

3ol Bank Al (1300 X Go 96,000

employae sBocs optim aukkondina Ale 28000

(koo X A0
Toequuky shone Capilal Alc 12000
laoo X10
To SeAuTIiepremiunmA 3100o
1200 X 310 )

Being 800 enmploy ee stock opion

F h e am_exenc1e rice of a Loeaid
 OMS Page Ne.
A Date

DakParzticulta D(2)

ella mplhyee sock opianOAuàanlina A 4koo0

WN)
Io Gleneual ReseNe Ale (AN 2) 48000

Beinatos ouktandna e omnl

Lapse oP ao opi ow he end
0Fexeuaise o opian peuiod ban=
SLcaeredt nenenal-KesexNe Alc)

olemg NloeA
No of option1 Ackua lly Vested.. 3360o
(400X AO)
OLepense ecncnised aURo004 192000]38400o
fxces ex penue_ronsfened hu nenentl48000-
Resenve

a king Nale No-2

No al opions attuall yeskd 96000o

leu expense) se.cosnised L33G000

xcess expenie saneed ta neneal
Reicve
8238 4 clAsSMAte
Date
Poge

TramshPiha_
TYanskCX picimg can be d elined as the Value
which is aHachedto he goods o SerICes
Hransered beBween relatedPanties 9no lhe
oord Stansier pncingIs the price hat s
Poud to y gmo S or serNfceg. ranstered trom
ne uni om organizaHon to iHs 6the units
situaled Ln dieren Counlries wh excepHoni)
mpertanCe oF pacnt Irans ter piing
Eor he pur pose o mana qementaccountn
and reporHng mullinaiana)Companies(MNC
haGome dmauntot discreion while
dehnm heo tw distibue he_pm bits nd
expenss to the suhsiddmeslocaed in
GlouS Countmes

Scmemes 4 Suhsidiary at a (ompany might

e dinuded înto seamenYs t maht be gccounked
r as a Slandalohe buginesS 9nthese cases
ranstey pmcind helps ]n allocaHm evenue_
anàexpenses Po Such Subsid iaris in the right-
mann ex

tae pmtitablutyot a sulsidiary depends on

ae priceg a which the inter-com pany
ransa.cHcms OcCurhesé douy theinle
CompamytranGiCHs arefacing lncreased
SCTUhn by he ovemments Hereuhen
AransiX pmung 1s applied, it coudd impact
23 e Jassente
0ste

A Paye

shareholdes wealth as this intluences

COmpany's taxable inCome and its atter-tax
e e caje flouw

TIS 1m portent thaHa business haVing

Cross-bordeY inler(o mpanytmnacHmg
shauldundexstemd the tanter priáng
Con cep paicularly hr the Lompliadce
equiemtnts as pr law and o
eliminale Hhe skso t non -Complance

The plouina QTa methods ot Caleulaking.

txamser pmciha
Tenea Mehod

Dekermine the price chargeable fo the

pope tramstarred: oF Ser\ite.ha is
poLded în a.compcarable untontrolle
trans aciim Such pice ig hen adigted
toaccount ar he rachcak dit eende
bekoeen he intexmational tansacHon gnd
the comparable .umcontmlled transacHon
hat cela makialy atee he priçein_
ne open market Stch, an_adjusted p1e
isthe Cmsength pnce
Resale Pice Metho
DedLee the pmceat which the p»per
purchased pr SexiLecltqinedb he
llentepmse o m am aSsouaked chteTpse
 B238 classMate
Dale
A Pagu.

as e-Sold o Suppled to an unrelaled enkerpÄse

Such a6 qresale pmce is reduced by nerma
gmoss prob mardn accruing n he.enterpise
o the entrpmse momthe pufchase. and
cesale oF såmillar gcods în a comparable
unconllled tran SacHion-ihere is no
amparable undonolleddranseCHOm. han
Comsider the gmSs potip_ot am unelaked
perSon o m he pureha Se andresale.oF
Compaxcable 0ods hem decrease the expense3
ncLmred: hyhe entexprise In Co mmetHom Luith
he puthaSe oEhe poperHIIhe pice:so
bteuned is adjusied o qcoount hr he
umchonal diterence n he inBermaliamal
ransacHm uwhich mau perhaps malerially
atteeFhe gmS pmhtmarinînthe.apen Marked:|
he adjusted pceis Conslderes tac.ams-lengBh
ce'
Pro Spt NleHhos
De cide he Combined net p h t oFthe_
xelaled entepn se' S omthe IntemaHona
txansácHon Asgess the ContaihuHon mad
b each parl takm9 lnm (onsideraHon
e unciomS eSpdnsibl.uy, asSeLs_0 CD
t z e d Qmd enterna markee daa Diude
he Combimed nek pmtiindhe raHo ot he.
Take
ComirbuHom a s qboNe deBexminedTake
hcpoHt o amNe a fme gm'sJengBh_
pmce ALP):
238
( dassMte
Date
Page

ost-plus Methos
Deadethe dixeckand îndirect costs.
o pmduchon uth ekerence to_mperty_
o r seTVCe tTansheed to he assacieled
entrpMSE Delermine normq gzoss
prot om uncontolled ansacLm.S
Adjust ñOTmal gmoss oht hor the
Hunctioncd amd oher dYHhereneSs obsenved
n the intenalAonal tam sacom-(osts
plus adju Sted gmSS potit mark upuill be
arm'seng h_price: (ALP)
IrahSachom Nek Margin Method
Deide he nek poht margun hmm the-
ndermaional ransacion with
Assoieaed enlerpmse NeL Pzetil
Marin bom the (ompamble unconBrolled
naisacionis compuled Adjust Haene|
Ht at uncantnlled tansacions hr
me diberencebetueen the tansachicn
Ihe ne pmtit margi n So obtaimed.
utkized o gth the am'lgngh_
pmceCALP)L