Accounting Standards

AS 1: Disclosure of Accounting Policies Fundamental Accounting Assumptions (Based On Para Nos. 9, 10 And 27) Question 1.A limited has sold its building for ₹ 50 lakhs and the purchaser has paid the full price. The Company has given possession to the purchaser. The book value of the building is ₹ 35 lakhs. As […]

Accounting Standards-Applicability of AS What Are As? What Are The Advantages/Benefits Question 1.What are Accounting Standards? Explain the issues, with which they deal. (4 Marks) (November 2017)Answer:Accounting Standards (ASs) are written policy documents issued by expert accounting body or by government or other regulatory body covering the aspects of recognition, measurement, presentation and disclosure of […]

Accounting Standards Question 1.Write short note:Recognition of Govt. grants related to specific fixed assets (PPE). (June 2017, 4 marks)Answer:Recognition of Govt. grants related to specific fixed assets (PPE):Grants received specifically for fixed asset(PPE) is disclosed in the financial statement either(i) by way of deduction from the gross block of the asset concerned, thus granted recognized […]

Lease Accounting – CMA Inter Financial Accounting Question 1. Write short note:Operating Lease and Finance Lease (Dec 2017, 4 marks)Answer:Operating Lease and Finance LeaseA lease is an agreement whereby the lessor conveys to the lessee in return for a payment or sones of payments the right to use an asset for an agreed period of […]

Preliminary Question 1.X Industries Ltd. is a company in which 25% of shareholding is held by Central Government; 10% shareholding is held by Government of Maharashtra and 15% shareholding is held by Central Government and Government of Rajasthan jointly. Examine whether, X Industries Ltd. Is a government company.Answer:Government Company: As per Sec. 2(45) of Companies […]

Accounting Standards – CA Foundation Accounts Question 1.Need of Accounting StandardsAnswer:Need of Accounting Standards: Accounts gives information to various groups. The financial statement can serve the interest of different interest groups only if there is uniformity and full disclosure of relevant information. There are various alternatives regarding accounting treatment and valuation norms which may be […]

Accounting Concepts, Principles and Conventions – CA Foundation Accounts Study Material Question 1.What are Accounting Concepts, Principles & Conventions?Answer:Usually, accounting theories are expressed (referred) as Postulates, Concepts, Principles, Doctrines, Axioms, Rules, Standard, Assumptions, Canon etc. These are basic assumptions & norms on which the whole system of accounting is developed. These gives the basic structure […]