LIST OF ACCOUNTING STANDARDS ISSUED BY ICAT AS Title Disclosure of Accounting Policies Valuation of Inventories (Cash Flow Statements Contingencies and Events Occurring After the Balance Sheet Date Net Profit or Loss forthe Period, Prior Period Items and Changes in Accounting Policies ‘Depreciation Accounting Withdrawn Construction Contracts ‘Research & Development Withdrawn Revenue Recognition 10 [Accounting for Fixed Assets i The Effects of Changes in Foreign Exchange Rates 12 [Accounting for Government Grants 3 4 Accounting for Investments, [Accounting for Amalgamations Employee Benefits 16 Borrowing Costs 7 Segment Reporting 18 Related Party Disclosures Leases Earnings Per Share ‘Consolidated Finandial Statements and Accounting for Int. in Subsidiaries in Separate Financial Statements [Accounting for Taxes on Income [Accounting for Inv. in associates Discontinuing Operations interim Financial Reporting Intangible Assets Financial Reporting of Interests in Joint Ventures Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets Financial Instruments: Recognition & Measurement Financial Instruments: Presentation Financial Instruments: DisclosureChapter - 1 FORMULATION & APPLICABILITY OF AS 1. Accounting Standards — Basics 1. What are Accounting Standards? What are the issues with which Accounting Standards deal? IP (Ne)-113] ‘What are Accounting Standards? Explain the issues, with which they deal. [P (Alc) N47} Accounting Standards (AS) are written poticy documents issued by an Expert Accounting Body, oF by Government, or by other Regulatory Body, covering the following aspects of accounting transactions in Financial Statements ~ 1, Recognition of transactions and events in the Financial Statements, 2. Measurement ofthese transactions and events, 3. Presentation of these transactions and events in Financial Statements, in a meaningful & understandable manner, & 4, Disclosure requirements in Financial Statements. 2. Outline the advantages and sisadvantages of Accounting Standards. F (Ale) RTP, N04] [ (Ae) -RTP] 7 What ae the objectives of setting Accounting Standards? IF (ue) - RTP] Objectives / Advantages Disadvantages [To promote the dissemination of timely and useful financial information to all Stakeholders and Users. 1. In some cases, alternative ‘ : solutions specif accounting 2 To pov 2 set of standard sxcuming ples auton vorms and | Sestm Snay hal 3. To improve the qualty of Franc Reporting, by promoting comparabtty, | SZPPORNE, aounents. Chats, F consistency and transparency. : Lists Standards may be applied in a rigid and inflexible manner, focussing more on form than substance. | 3. Standards cannot override the | Statute, and should be framed within the framework of the Law. To ensure disclosure of accounting principles and treatments, where important information is not otherwise statutorily required to be disclosed. 5. To reduce (or eliminate if possible), accounting alternatives, thereby leading to better inter-Firm & intra-Firm comparison of Financial Statements, 6. To reduce scope for creative accounting, i.e. twisting of accounting policies to produce Financial Statements favourable to a particular interest group. 3, Explain the composition of the Accout Standards Board (ASB) of ICAL. ‘The Accounting Standards Board (ASB) was constituted on 21% April 1977 by the ICAL. Its composition is as under ~ 1. Elected Members: (a) Elected members of the Council of the ICAI nominated on the ASB, (') Chairman of the Research Committee and the Chairman of the Expert Advisory Committee of the ICAL, if they are not otherwise members of the ASB. 2. Nominated Members: Central Government's Nominee on the Council representing ~ (a) Department of Company Affairs (DCA), (b) C & AG, and (c) Central Board of Direct Taxes (CBOT). 3. Professional Institutions: Representative of ~ (a) Institute of Cost and Works Accountants of India (IWAN) and (b) Institute of Conpany Secretaries of India (ICSI) 4. Academic Institutions: Representative from ~ (a) Universities, & (b) Indian Institutes of Management (IIM) 5. Government Representatives: Representative of ~ (a) Central Board of Excise and Customs (CBEC), (b) Controller General of Accounts. 6. Institution Representatives: Representative of ~ (a) Reserve Bank of India (RBI), (b) Securities and Exchange Board of India (SEBI), and (c) Financial Institutions 7. Industry Associations: Representative from — (a) Associated Chambers of Commerce and Industry (ASSOCHAM), (b) Confederation of Indian Industry (Cll), and (c) Federation of Indian Chambers of Commerce and Industry (FICCI) 8 Other Members: (a) Eminent Professionals co-opted by ICAI (either in practice or in industry, government, education, cetc.), and (b) Representative(s) of any other body, as considered appropriate by the ICAL. LL— wnting ~ For CA Inter Padinuka’s Practical Learning Series ~ Advanced Accounting (as0) ot 7 dards Board : ions ofthe Accounting Sta 4. Outline the Objectives and Functions of th dards need to be developed 9 and establishing in evolvin 1. To.concetve of and suggest areas in wich Accounting SNdaraS TEST Ty of the ICAT View to assk 2. To formulate Accounting Standards with @ view t al Fi ‘Accounting Standards in India. 1 Accounting Standard/internatc 2. Te examine ow a the eleven I ES gap ESI conta inancial Reporting Standard can be snce oF changed Conditions, adapted while formulating the Accounting from the point of 4. To review, at regular intervals, the Accounting Standards . and, if necessary, revise the same. dt guidence on Accounting Standards 5. To provide, from time to time, interpretations and guider OY” | 6. To.carry out such other functions relating to Accounting India? i ion of AS in| 5. What factors are to be considered inthe formulation of sexs re mating he AouNng Sanday, 1e ICAL. of the Accounting Standards are issued veer te ute of the Council : the ASB wil take into consideration the folowing ~ oe 1. International Accounting Standards (IASs) issued by the set ns py the TASB, body to TASB) or Intemational Financial Reporting Standards ¢ Applicable Laws in India, Customs and Usages in India, Business Environment prevailing in India. tandards Committee (predecessor 6. Describe the procedure in the issue of an Accounting Standard in India. For formulating Accounting Standards, the following procedure is scented i Step rocedu 1, Determining the need | Determination of — (@) the broad areas in which Accounting Standards need to be formulated, | for AS and (b) the priority in regard to the selection thereof. Constituting a Study Group consisting of Members of ICAI and others, to consider speci | projects and prepare Preliminary Drafts of proposed Accounting Standards. | The Study Group makes a Draft of the proposed standard containing — (a) Objectives and 3. Drafting the Standard | Scope, (b) Definitions of terms used, (c) Recognition and measurement principles, wherever| applicable, and (d) Presentation and disclosure requirements. | ‘+ ASB considers the Preliminary Draft prepared by the Study Group. | 4 Analysing the Draft | « When any revision is required on the basis of deliberations, the ASB either ~ (a) makes the | 2. Constituting Study Group ‘same, or (b) refers the same to the Study Group, _| ASB circulates the AS Draft to the Council Members of the I in fied ASS Sree te AS rat ICAI and the following spect (2) The Institute of Cost and Works Accountants of India (ICWAL), (©) The Institute of Company Secretaries of India (ICSI), (©) Department of Company Affairs (DCA), | (2) Comptroller and Auditor General of India (caac), 7 Central Board of Direct Taxes (CBDT), : | Standing Committee / Conference of Publi Publi i (3) Reserve Bank of India (RBI), ek) | () Indian Banks' Association (IBA), ; pate, ond Exchange Board of India (SEB, lambers of Com; ju i Industry (Ct) and Fase merce and Industry {ASSOCHAM), Confederation of India| (0 Any ‘ther body. consider [& ting Decent Standard, ASB keeping in view the nature of wl and finalising ASB holds a meeting with the : 1 onthe brent Tepresentatives of Specified Bodies, ; s 5. Circulating the DraftFormulation & Applicability of AS ppt Procedure “| (b) Based on comments received and discussion with representatives of specified bodies, ASB | finalises the Exposure Draft of proposed Accounting Standard (2) The Exposure Draft of the Proposed Standard is issued for comments by the Members of TAT and the publ (b) The Exposure Draft will also be ‘specifically sent to Specified Bodies (as listed above), Stock | Exchanges, and other interest groups, as considered appropriate. B: Fraling the Considering the comments received, the ASB finalises the draft of the Proposed Standard, and exposure Draft submits the same to the Council of the ICAI. 9, Modifying and issuing The Council of the ICAI considers the finalised draft Standard, and if necessary, modifies the 7. Circulating the Exposure Draft the Accounting same in consuitation withthe AS, and then isu , les the Accounting Standard (after modification) Standard on the relevant subject. i ‘ : J 2. Prepare 3. Creulate Study Groups “Tpretiminary brat Tor Preiminary Draft | Specified Bodies alscussion for discussions. 1, Determine areas 5. Consider comments and Accounting ‘submit Final Draft to Council required and refer Standards Board to Study Group 3. Greulate y 4. Finalise Exposure Drat Preliminary Drat for comments by or discussions Council of ICAI 6. Discuss Final Draft, ‘Members of ICAI, Representatives of Public, Stock modify, if required & Exchanges, other appropriate interest groups and other issue the AS Specified Bodies Mandatory AS 7. Outline the nature and scope of Accounting Standards in India, AS are intended to apply only to material items. Material items are those the knowledge of which will have a significant effect on the decisions of Users of Financial Statements. AS's are primarily intended to be broad principles not detailed rules. AS by their nature cannot and do not override the Local Regulations which govern the preparation and presentation of Financial Statements in the country. 4. Ifa particular AS is not in conformity with law, the provisions of law will prevail and the Financial Statements should be prepared in conformity with such law. [In the Financial Statements, there should be a description of the ‘accounting treatment made, along with the reason that it has been adopted because of Law / Court / Tribunal Order, ‘description ofthe difference between the AS and the treatment given by the Enterprise, and (c) financial impact, if any, arising due to the difference. 5. The prescribed disclosure (by way of appropriate notes explaining the treatment of particular tems) to be made in Financial Statements and the Auditor’s Report, are intended only as a clarification, and need not be treated as adverse comments on the Financial Statements, 6. ICAT specifies the date from which a particular Standard will come into effect and the class of enterprises to which it will apply. However, no standard will have retrospective application, unless otherwise stated. 7. AS will be mandatory from respective date(s) mentioned in the Accounting Standard(s). The Auditor is responsible for examining compliance with AS in the Financial Statements and reporting deviations therefrom. 8. Treatment of a Revenue / Expense (or) Receipt / Payment under AS will not influence its treatment under Tax Laws, governing allowability of expense, treatment of income / receipt, etc. However, in case of audit u/s 44AB of the Income Tax Act, 1961, all Financial Statements prepared under Mercantile System of Accounting should comply with AS. 13ing - For CA Inter Padhuka's Practical Learning Series — Advanced Accounting ~ For Wiite cco ions (ASIs). ee wa ‘Accounting Standard Interpretations ( / 6 short notes on. 9 — a . seek to answer issues / questions that arise in the course of appticato, Standard. sees hee and issues ASIS under the authority f ty ASB consi requiring interpretation on any Accounting ‘ave the same authority. Hence, fo Gaal aah he Acourtng Sond (9) 2 Rs Inert (AST) re ee be recommencetory a : recommen 4 : mandatory AS, its ASI will also be mandatory. For a dards) Rules, 200, the ASB has incorpo : z (Accounting Standarc 7 3. Subsequent to Notification of ICA's AS under Companies ac cncegt AST 2, 11, 32, 23,27 and 29 veh hag the ASI's as “Explanation” to the relevant vere “7 for Companies (Accounting Standards) Rules, 20064 wot been notified by Central Government). ie inl ” note sue covered inthe AST are cused in the respective AS 1. Accounting tanderd Interpretations (ASIS) an Accounting Standard ASIs are issued after ‘9. Write short notes on compliance with Accounting Standards. 1. Effective Date: AS will be mandatory from respective date(s) mentioned in the Accounting Standard{s), 3rd implies that ~ 2. Auditors’ Role: The mandatory status of an Accounting Standar ; : (2) Members of ICAT should ensure compliance with the Accounting Standard in the presentation of Financia, Statements of enterprises and discharge their attest functions, : (b) Members are bound to make adequate disclosures of any deviation from Accounting Standard(s), in their Auge Reports to make the Users of Financial Statements aware of deviation(s).. 3. Partial compliance not allowed: Financial Statements are sald to be in compliance with the Accounting Standards Conly when they comply with all the requirements of each applicable Accounting Standard. 10. The Auditor is responsible for ensuring adherence to AS in an Enterprise's Financial Statements. Comment. +. Management Responsibility: Ensuring compliance with the AS while preparing the Financial Statements is the ‘esponsibility of the Management of the enterprise, 2 Legal Requirements: Statutes governing certain Enterprises require the Enterprise's Management that the Financial Statements should be prepared in compliance with the AS, e.g. Companies Act, and the Insurance Regulatory and Development Authority (Preparation of Fin Statements and Auditor's Report of Insurance Companies) Regulations, 2000. 3. Auditor's Responsibility: Responsibly for the preparation of Financial Statements and for adequate disclosure Is {hat of the Management of the Enterprise. The Auditor's responsibilty Is to form hie Opinion and report on such Financial Statements, and report non-compliance, if any, with Accounting Standards, 11. ‘ite short notes on the applicability of Accounting Standards (AS), based on activities performed. [F(Aud) ~ RTP] In the audit ofan organisation whose objects are charitable or religious, the Organisation holds that AS are not applicable, Since only a very small proportion of is activities are business in nature. Comment, [F (Aud) ~ M 03} f Classification of tess based on activities performed v Fully Commercial Actes | [ray Non-Commercial Activities | Partly pe a Non ‘| mmercial Activities ¥ T z ¥ [As fll apoicabte —] (“As not applicable] AS fully applicable, Le. to all activities * General Purpose Financial Statements: Account pose al fants: Accounting Standards are designed to apply to Financial Staloments and other Financial Reporting, which ae sgjon no attest function ofthe Menino ore ical 2. Fully Cor i o : & 500 Crorege nt “aia starting on 01.04.2016 process of faving Net Worth < & 59) see =e 250 Crores but < & 500 Crores, : 01.04.2017 oo8 Formulation & Applicability of AS wef] ‘Companies required to comply ( NBFCS Raving Nek Wort € 500 Coe, nds Helang, Subsidy, in Ventre Asoc panies 1.042018 (i) old, Subsidiary, Joint Venture or Asocate Companies of Scheduled Commercial Banks | ° 2oxe | (excluding RRBs) | @] NBFCs whose Equity 7 Debt Securities are listed or in the process listing on any Stock | | ___ Exchange in india or outside tna, and having Net Worth < € 500 Crore, onoaans | (li) Unlisted NBFCs, having Net Worth > % 250 Crore but < € 500 Crore, ‘ | Gi) Holding, Subsidiary, Joint Venture Or Associate Companies of above. —_|_J Period of Applicability: Company which satisfies the above conditions forthe frst time atthe end of an Accounting ‘Year shall apply Ind AS from the immediate next Accounting Year. Example: A Company which satisfies the above conditions on 31.03.2018 shall apply Ind AS for Financial Year 2018-2019 onvrards. Non-Applicability: (@) Any Companies other than above shall comply with Existing AS specified in Annexure to the Companies (Accounting Standards) Rules, 2006. (0) Mandatory Compliance not applicable to Companies whose Securities are lsted or are inthe process of being listed on — ‘+ SME Exchange as referred to in Chapter XB, or } of SEBI (Issue of Capital & Disclosure + Institutional Trading Platform without IPO as per Chapter XC Requirements) Regulations, 2009 (© Banking Companies and Insurance Companies shall apply the Ind ASs as notified by RBI and IRDA respectively. A) Insurer or Insurance Company shall however, provide Ind AS compat Financial Statement Data for the purposes of preparation of Consolidated Financial Statements by Its Parent or Investor or Venturer, as required by the Parent or Investor or Venturer to comply with the AS Rules. Net Worth: [ ‘Company Net Worth means Net Worth as per [companies which aren existence on 33.08.2014, or | * Stae-sone Fin Stteents as on 31.03.2014/2016, or | : ‘+ First Audited Financial Statements for Accounting Period BFC which are in existence on 31.03.2016 Which ends after that date. ‘Companies which are not in existence on 31.03.2014 oF NBFCs which are in existence on 31.03.2016 or an | First Audited Financial Statements ending after that date in Existing Company falling under above conditions for respect of which it satisfies the condition. the first time after such date Stand-alone and Consolidated FS: Standards once required to be complied with, shall apply to beth Stand Alone and Consolidated Financial Statements. Consistency: Once a Company starts following Ind AS either voluntarily or mandatory, it shall be required to foliow Ind AS for al the subsequent Financial Statements, even if does not satisfy any of the above conditions subsequently Overseas Entities: = 1 @) It may prepare Its Standalone Financial Statements as per the requirements Overseas Subsidiary, asociete, |) rine spect jrton eee Joint Venture of an Indian Company (b) The Indian Company shall prepare its Consolidated Financial Statements 25 per Ind-AS voluntarily or mandatonly, if it satisfies the appicablity conditions. Tndian Subsidiary, Assodate, Joint | If it satisfies the applicability conditions, it shall prepare its Financial Statements | Venture of Foreign Company a per Ind-AS voluntarily or mandatorily, _| Consolidation in certain cases: If in a Group of Companies, some Entities apply existing AS and others apply Ind~ 2S, in such cases, for the purpose of individual Financial Statements, the Entities should apply respective standards applicable to them. For Consolidated Financial Statements (CFS), the f Situation lee (a) NOFC is a Parent (at ultimate level or at intermediate | Subsidiaries, Associates and JVs, have to provide level), and prepares CFS as per existing AS, and relevant Financial Statement data as per the accounting 19ional Was called as 1 e 3. Interpretations issued — Advanced Act adhuka's Practical Learning Series covered by ies ond Ws, are covered © Secor (Yo Pont 2 of voluntary pp} Ind-A ego 2, or (@) Parent is covered by Category (A)/(B) of Point voluntarily apply Ind-AS, and Dee Ge (©) Parent has a NBFC Subsidiary, Associ Venture counting ~ For CA Inter the “Parent | Conizany policies followed Pant RENEE tis rn, consolidation purposes SO ame Ind ASconplant CFS facet France! Seton datas - conn policies followed by id im jae consolation purposes (until the NBFC for required to apply Ind-AS) 5. Convergence with IFRS / Global AS 18. Write short notes on Intemational Financial Reporting Standards (IFRS). IF (Alc) ~y 0% Intemational Financial Reporting Standards (IFRS) comprise the following — Interpretations Committee (IFRIC) of the IASB, countries, ote: TASB comprises professional accountancy bodies of many it erie ‘Accounting Stndarde (IAS) to be followed in the presentation of TASC (Intemational Accounting Standards Committee JERS establishes broad rules and principles in accounting, which are intended to be adopted internat ), and was subsequently reorganized ‘See Note) International Financial Reporting Standards (IFRS) issued by the BS ‘ ee International Accounting Standards (IAS) issued by the IASC (See by the Standards Interpretations Committee (SIC) and International Financial Reporting and was formed to formulate and Pubiish, audited Financial Statements. Eari ler, Tagg into TASB.) by all Reporting Enterprises Hence, IFRS are being increasingly used as Global ‘Accounting and Financial Reporting Standards, 20. Write short notes on the need for ‘convergence with Global Accounting Standards, ‘The need for convergence wi a 2 2. To facilitate Enterprises ansltion and re-statement of Financial Statements, po aclitate Analysts & Investors across Accounting Standards, which wil ensure ~ (©) adaptability, Write short notes on Carve Out/ins, The Government of indi the world, in comparing Financial Statements (2) uniformity, (b) rationaliz ass, and lowe th Global Accounting and Financial Reporting Standards 's due to the following reasons — hich decide to raise Capital from markets other than the country in which itis located, in based on harmonized ‘ation, (c) comparability, (d) transparency, ang improve the Financi; ial Reporting Model, * their risk of errors of Judgement. M lia in Consultation with the 1¢ Intemational Accounting ‘Standards Board (IASB), The dees ese the es amar sean detailed analysis of IFRS requirements and extensiy ee ficordinaly, while formulating 1 FRS-converged 1 ve discussion with indian Accounting Standa the corresponding TAS/IFRS nce rather than adoptioy take Various stakeholders, uO" W8S taken after te rds (Ind AS), efforts have been made to keep and departures have been made where 'saction or event, then ided under Ind AS is "Carve Ins",Formulation & Applicability of AS 3. te re that will not result into Carve In / Outs: e {@) Various terminok i ‘Statement of on aie en made to make it consistent with the terminology used in law, e.g. Bri o¢ Final roan! statement of Comprehensive Income’ and Balance Sheet’ in place of (b) Removal of options in 0 accounting principles and Beer fon Practices in Ind AS vis-a-vis IFRS, have been intain pe Be Comparabilty ofthe nancial statements to be prepared by folowing phatase AL Fes enat will result Into Carve Outs: Certain changes have been made considering the economic environment ferent as compared to the economic environment of developed countries which has been considered while making IFRS. These diff re due to differences in application of accounting principles and ese differences are di i ee ferences are due to diferences In sppcats incipl Changes th: inges that will result into Carve Ins: The differences which are in deviation to the accounting principles and practices stated in IFRS, are commonl J ly known as 'Carve-outs'. Further, if there is no guidance unde parculrtensacon or event, hen he Gidonce provided unde’ Ind Siow asain 22. Give some of the examples of Carve outs / Ins. 1. Para 74 of Ind AS 1: Ind AS 1 clarifies that where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach. 2. Para 3 of Ind AS 10: As a consequence, to carve-out in Ind AS 1, Ind AS 10 provides, that in case of breach of 2 material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the fiablity becomes payable on demand on the reporting date, if the lender, before the approval of the financial statements for issue, agrees to waive the breach, it shall be considered as an adjusting event. 3, Para 35 of Ind AS 28: The entity's financial statements shall be prepared using uniform accounting policies for ke Pare cctons and events in similar circumstances unless, in case of an associate, Its impracticable to do so. In Ind AS 28, the phrase, ‘unless impracticable to do so' has been added in the relevant requirements. 4, Para 34 of Ind AS 103: IFRS 3 requires bargain purchase gain arising on business combination to B= recognised in proft or loss as income. Ind AS 103 requires the same to be recognised in OCT and accumulated in equity as Capital Reserve, unless there Is no clear evidence for the underlying reason for classification of the business combination 2$ 2 bargain purchase, in which case, It shall be recognised directly in equity a5 Capital Reserve. Para 17(e) of Ind AS 16: It provides that the excess of net proceeds from sale of items produced during testing will ret be cusited to Profit or loss i.e. it wil be deducted from the cost of an em cof PPE. However, amendment made in TAS 16 by TASB prohibited deduction of proceeds of items produced during testing from cost of an item of PPE. Tm Trferentll treatment in TAS 16 and Ind AS 16 has led to a carve out which will have consequential impact on depreciation, impairment and deferred tax. \d AS 103 "Business Combinations", gives guidance on in"Accounting of Business itrol" which is not there in TFRS 3. Examples of Carve Ins: Appendix C of Ini Combinations of entities under Common ContInter — wunting ~ For CA Padhuka's Practical Leaning Series — Advanced Acco ed _—Eee as. Multiple Choic : 1. For Level IT Entities ~ (A)Some AS are not applicable (B)Some Paras of some AS are not applicable (C)Both of the above (O)None of the above 2. For Level III Entities ~ s: Some AS are ot ape Bsome Paras of some AS are not applicable (QBoth of the above (D)None of the above Ind AS shall be adopted by specific classes of companies based on their: (A) _ Net worth (8)Uisting Status (©)Net worth or Listing Status (O) Net worth and Listing Status For the accounting period beginning on or after 1st April, 2019, all unlisted NBFCs whose net worth is more than or equal to .. but less than shall mandatorily 1e Ind ASS. (A) __%100 crore; %500 crore (8)¥250 crore; 2500 crore (©)3300 crore; £600 crore (0)400 crore; %800 crore AS 3 & AS 17 are not applicable in their entirety te (A) Level If Entities (E) Level III Entities (C) SMCs (O)Allof the above AS for Non Corporate Entities in India are issued by (A) Central Govt (E) State Govt (O) Institute of Chartered (D)NFRA ‘Accountants of India Accounting Standards for Corporate Entities in India os (A) Central Govt on Govt (C) Institute of Charter (OONFRA red Accountants of India Which committee is responsible for approval sent rr an ent pose lity to (A) NFRA PY Gateeres (B) MCA, (©) Central (asta Government Advisory Commitee 1.12 e Questions 10. cre 12. 3B. 14, 15, 16, what is given in IFRS are called ~ (A) Carve-outs. B) Carve-ins {Bicone danteators. (D)EAC ASB stands for (A)__International Accounting Standards Bia, (B) International Advisory Standards Boar "°™ (C)International Accounting Standard Boar (D) Indian Accounting Standard Board Non Corporate Entities which are not Level whose turnover (excluding other income) gy, rupees but rot ent in the immediately prane accounting year are classified as Level II enttigs "? (A) 5 Crores, 250 Crores (B) 10 Crores, 5 Crores (©) 5 Crores, 25 Crores (0) 2 Crores, 10 Crores The following Accounting Standard is not appeaie to Non-corporate Entities falling in Level a x entirety — (A) AS 10 (B) AS1 (©) as2 (D) aS 17 All Non Corporate Entities, whose tumoe (excluding other income) exceeds in tte immediately preceding accounting year, are dlssfet as Level I entities, (A) 250 Crores (8) 10 Crores (C) 50 Crores () 25 Crores Non Corporate Entities are classified into __ la entities ~ (A) 1 (B) 2 (C) 3 (D) 4 For Applicability of AS, Corporate Entities 2 Classified into — Classes, (A) 1 (8) 2 3 (0) 4 Ind AS is applicable starting on 01.04.2016 for the Companies - form the accounting Pett? |(A) having Net Worth > & 500 ro = res (8) having Turnover > % 500 Crores (© having Borrowings > ® 500 Crores (0) having Pad up Captal > 500 Crores 17. Conaitons for Non-SMCs and _ Corporate Entities re same. (A) Level 1 (B) Level 2 (©) Level 3 (0) Level 4 18, For Applicabity of AS, borrowings (including publ deposits). relevant. { ro (A) atthe end of immediately precesing accounting year (8) at the beg) accounting year (©) at any time during the accounting year (B) at any time during the any preceding accounting year 19 of immediately preceding mediately preceding 19. All Non Corporate Entities engaged in commercial, industrial or business activities having borrowings (including public deposits) in excess of € 2 Crores but does not exceed % 10 Crores at any time during the immediately preceding accounting year are ~ (A) Level Il entities (B) Level IV entities, (©) Level III entities (0) Level I entities, 20. “Small and Medium Sized Company” (SMC) means, & ‘company- (A) which may be a Bank, Financial Institution (B) which may be a Insurance Company (© whose turnover does not exceed € 250 Crores in the immediately preceding accounting year (0) whose turnover does not exceed € 50 Crores in the immediately preceding accounting year 21, AS Is not applicable to ~ (A) Fully Commercial Activities (B) Fully Non-Commercial Activities (© Partly Commercial and Partly Non-Commercial Activities (0) All of the above 22. Carve In / Outs arise from difference between — (A) AS & Ind AS (B) Ind AS & IFRS (C) AS & IFRS (D) AS & US GAAP 23, Inwihich of the folowing cases Carve In arise? {@) Various terminology related changes have bee vais to make it consistent with the terminology used in a ptions in accounting princiles and Removal of options in acco 4 practices in Ind AS vis-a-vis TFRS, have been ear to maintain consistency and comparability 1.13 Formulation & Applicability of AS of the financial statements to be prepared by following Ind AS. (©) Differences which are in deviation to_ the accounting principles & practices stated in IFRS (4) Additional guidance given in Ind AS over and above what is given in IFRS 24. In which of the following cases Carve In / Out does not arise? (A) Various terminology related changes have been rade to make it consistent with the terminology used in law (B) Differences which are in deviation to the ‘accounting principles and practices stated in IFRS (©) Additional guidance given in Ind AS over and above what is given in IFRS (0) Allof the above 25, The differences which are in deviation to the ‘accounting principles and practices stated in IFRS, are commonly known as — (A) Carve-outs (8) Carve-Ins (C) Changes that will not result into Carve In / Outs (0) Deviations 26. Voluntary Compliance of Ind AS is applicable from — (A) 14.2016 (@) 14.2015 (© 14.2018 (0) 14.2019 27. Mandatary Compliance of Ind AS is applicable from — (A) 14.2016 (B) 14.2015 (© 14.2018 (0) 14.2019 28, Compliance of Ind AS is deferred for ~ (A) Banking Companies (B) NBFCS (©) Insurance Companies (D) Banking and Insurance Companies 29. For Applicability of AS, Turnover ~ (A) does not include Other Income (B) include Other Income (©) include GST (0) include Other Income & GST 30. For Applicability of AS, Net Worth does not include = (A) Reserves created out of revaluation of assets (B) Statutory Reserves (C) Securities Premium Account (D) Allof the above 31, Financial Statement” in relation to a Company, need not include ~ {A) Balance Sheet as at the end of the financial year,For CA Inter — ting ~ ‘Advanced Accour jinted Merchant Learning Set ‘td, which has appoi It Bankers Padhuka’s Practical © praca ’a@ Red Herring Prospectus Head ty ye case of a Not for potty in nd Loss Account, oF (8) Profit ar a ‘on any activity not Gompeomne and Expendture Account for (© ah Pow Sesement for the financial year, (D) Statement of Changes in Equity include ~ 32, Non-Banking Financial Company does not inc (A) Housing Finance Companies {) machort sono Companes (C) Micro Finance Companies () Mutual Fund Companies the = 33, *Net Worth” means the aggregate value C1 ag (A) Paid=Up Share Capital and al Brertlum out of the profs and Secures Premium ‘Account, after deducting the aggregate value of the Accumulated Losses, Deferred Expenditure and Miscelaneous Expenditure not writen of, ‘audited Balance Sheet. (@) PatUp Shore Captal and all Reserves created ut of the profits and excluding Securities Premium Account, after deducting the aggregate value of the Accumulated Losses, Deferred Expenditure and Miscellaneous Expenditure not written off, as per the audited Balance Sheet. (©) Paic-Up Share Capital and all Reserves created out of the profits and Securities Premium Account, before deducting the aggregate value of the Accumulated Losses, Deferred Expenditure and Miscellaneous Expenditure not written off, as per the audited Balance Sheet, (©) Paid-Up Share Capital and all Reserves created Out of the profits and Securities Premium Account, after deducting the aggregate value of the Accumulated Losses, Deferred Expenditure and Miscellaneous Expenditure not written off, 25 per the provisional Balance Sheet. 34. Applicability of Accounting Standards to Corporate Entities are given under - (A) Companies (Accounting Standards) Rules (8) Companies (NAFRA) Rules (C) ICAT Regulations (0) Companies (Ind AS) Rules 38, Mandatary Compliance of Ind AS to NBFC is applicable from — (A) 14.2016 (®) 14.2015 (© 14.2018 (0) 1.42019 Wh 36. eet the following Companies can be Classified (A) A Pvt Ltd, a Subsidia , of ‘Company listed on Londen Stock pens oe (6) BPVELtd, which has a Tunover of ¢ 450 Crores, 79 Crores Lili he urpose of filing the same with the sa Exchange Board of India ties (0) None of the above An existing Company, which was previously y, 77 GNIC and subsequently becomes an SMC, shall ng Aualfied for exemption oF relaxation in rep ‘Accounting Standards available to an SMC — ‘ (A) until the Company remains an SMC fo, , consecutive accounting periods. 3 (B) until the Company remains an SMC fy consecutive accounting periods (©) until the Company remains an SMC for any» accounting periods (©) even if the Company remains an SiC toy consecutive accounting periods. 38. Intemational Financial Reporting Standards ire) comprise the following — (A) International Financial Reporting Standards (IFRS) issued by the IASB (8) International Accounting Standards (IAS) issued by the IASC (©) Interpretations issued by the Standards Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC) of the TASB. (0) Allof the above 39. Level IT Entities include — (A) Entities whose Equity Securities are listed, or in the process of listing on any Stock Exchange in India (B) Entities whose Debt Securities are listed, or in the process of listing on any Stock Exchange outside India. (C) Banks (including Co-operative Banks), Financial Institutions, or Entities carrying on Insurance business. (0) None of the above 40. A Company which satisfies the prescribed conditions (on 31.03.2018 shall apply Ind AS for — (A) Financial Year 2017-2018 onwards, (8) Financial Year 2018-2019 onwards. (C) Any Financial Year from 2017-2018 onwards. (0) Any Financial Year from 2018-2019 onwards. 41, Once a Company starts following Ind AS___, it shall be required to follow Ind AS for all the Subsequent Financial Statements, even if does not satisfy any of the prescribed conditions subsequently, (A) voluntarily (8) mandatorily (©) voluntarily or mandatorily (©) None of the above 42. When a change in accounting policy i justified?43. 45. 47. 48. i> 0 ‘comply with accounting standard Fo ensure more appropriate present financial statement of the enterprise eat (2) To comply with ow (D) All of the above Tt Is essential to standardize the accounting principles and policies in order to ensure ~ (A) Transparency (B) Profitability (©) Reputation (0) All of the above A specific accounting policy refers to — (A) Accounting Principles (8) Methods of applying those principals (©) Both (A) & (8) (©) None of the above ‘Assets should be valued at the price paid to acquire them is based on - (A) Realization concept (8) Cost concept (©) Matching concept (0) Periodicity concept The Central Government may, by notification, constitute 2 National Financial Reporting Authority (INFRA) under of the Companies Act, 2013. (A) Section 131 (B) Section 132 (©) Section 133 (D) Section 134 Consistency with reference to application of accounting principles refer to the: (A) All the companies in the same Industries should use identical procedures and methods. (B) Income and assets have not been overstated. (©) Accounting methods and procedures used have to be consistently applied from year to year. (D) Any accounting method or procedure can be utilized, 'AS-B on Accounting for Research and Development __ Formulation & Applicability of AS (A) Is replaced by AS-26 (8) Is applicable only to listed companies (C) Is mandatory for Research Institutions (0) Is still in use. 49. Accounting Standards... the statue: (A) Can override (B) Cannot override (©) May override (D) None of the above 50, In case of charitable trusts & co-operative societies — (A) If their activities are purely charitable or non- ‘commercial then accounting standards are not applicable. (B) Even if a very small proportion of the activities Of trusts/co-operative societies are considered to be commercial, industrial or business in nature, then accounting standards are applicable. (C) Both (A) and (B) (D) None of the above 51. Which of the following are fundamental accounting assumptions (A) Going Concern (B) Matching (©) Consistency (0) Dual Aspect (E) Materiality (P) Accrual Select the correct answer from the options given below: (A) A, CRE (8) 8,08F (C) AC&F (0) AD&F 52. If rights and beneficial interest in a property is transferred but documentation and legal formalities are pending then seller & purchaser should record in their accounts as sale & purchase. This the exemple of - (A) Prudence (B) Substance over from (© Materiaity (D) RealizationING STANDARDS ISSUED BY ICAL LIST OF INDIAN ACCOUNT) InAs Description 4 1 Presentation of Financial Statements Inventories : 1 Statement of Cash Flows “Accounting policies, Changes in Accounting Esti rors 10 ater the reporting period | 2 Income _ — 16 Property, Plant and Equipment 7 Employee benefits 7 ae for Government Grants and Disclosure of Government Assistance | 2 ‘The Effect of Changes in Foreign Exchange Rates 2 Borrowing Costs | 24 Related Party disclosures | 77 ‘Separate financial Statements | 28 Tavestment in Associates and Joint Ventures Ey Financial Reporting in Hyper-Infiationary Economies 32 Financia Instruments — Presentation 33 Earnings per share | 4 Interim Financial Reporting | 36 Impairment of assets 7 Provisions, Contingent Liabilities and Contingent assets 38 Intangible Assets | 0 Investment Property | 4 ‘Agricuture ; 101 First Time Adoption of Ind-AS 102 ‘Share based Payment 103 Business Combinations i 104 Insurance Contracts 1 105 Non-Current Assets held for Sale & Discontinues Operations 106 Exploration for end Evaluation of Mineral Resources 107 Financial Instruments ~ Disclosures ae Operating Segments 109 Financial Instruments 110 Consolidated Financial Statements i Joint Agreements | 12 Disclosure of Interest in other Entities 13 Fair Value Measurement | 114 Regulatory Deferral accounts 5 Revenue from contracts with customers 116 Leases