MCQ On Ind AS 7 Statement of cash flow

1.       An entity shall prepare cash flow statement as:

(a)    Notes to account

(b)   Integral part of financial statements

(c)    Optional

(d)   None of the above

2.       Statement of cash flow shall report cash flows classified by:

(a)    Operating activities and investing activities

(b)   Investing activities and financing activities

(c)    Operating activities and financing activities

(d)   Operating activities, financing activities and investing activities

3.       Operating activities includes:

(i)      Principal revenue producing activities of an entity.

(ii)    Other activities that are not investing or financing activities.

(a)    (i)

(b)   (ii)

(c)    (i) and (ii)

(d)   (i) or (ii)

4.       Cash from operation will increase due to:

(a)    Increase in current assets

(b)   Decrease in current liabilities

(c)    Neither of two

(d)   Both (a) and (b) above

5.       Cash flow is based upon:

(a)    Accrual basis of accounting

(b)   Cash basis of accounting

(c)    Hybrid basis of accounting

(d)   None of the above

Answer: 

1.  B , 2. D , 3 C , 4. C 5. B

Support-desk for Implementation of Ind AS

With the beginning of financial year 2016-17, the era of implementation of Ind AS has begun in India. In this regard, a number of issues are constantly being faced by the Small and Medium Practitioners (SMPs) and companies in the implementation of Ind AS. In view of this, it has been decided to launch a “Support-desk for Implementation of Ind AS”, so as to address the difficulties faced by the members and stakeholders as early as possible.

For this purpose, a support desk has been created, wherein the members can submit their queries, questions, suggestions online by clicking on the below-mentioned link:

Support-desk for implementation of Ind AS


https://docs.google.com/forms/d/1_KTFV6gIAFsBSXpyalyb2P2XkOdvGX4Nhc52z8lWhwg/viewform?edit_requested=true


Alternatively, you may send your views by e-mail at indas@icai.in. 

MCQ on Ind AS applicability_2

1.      Ind-AS stands for:

a)      Indian accounting standard

b)      International accounting standard

c)      Indian financial reporting standard

d)      None of the above

2.      Ind AS is applicable to:

a)      Individual

b)      Partnership Firms

c)      Companies

d)      Trust

3.      Ind AS was notified on which date:

a)      February 16, 2015

b)      February 16, 2016

c)      February 15, 2016

d)      February 15, 2015

4.      As per the roadmap for Ind AS adoption for first phase companies, what is the date of transition?

a)      April 01, 2016

b)      April 01, 2015

c)      March 31, 2015

d)      March 31, 2016

5.      As per the roadmap for Ind AS adoption, Net worth means?

a)      As defined in clause 2 (55)of the Companies Act 2013

b)      As defined in clause 2 (57)of the Companies Act 2013

c)      As defined in clause 2 (56)of the Companies Act 2013

d)      None of the above

Answers :   1 A , 2 C , 3 A , 4B , 5B  

Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 4

Issue 1 : Excise duty and revenue

Issue 2 : Service tax and revenue

Issue 3 : Negative net worth and  Applicability of Ind AS

Issue 4 : Comparative years information


Link for the resource :

http://resource.cdn.icai.org/43101indas32829.pdf

MCQ on Ind AS 1

The objective of Ind AS 1 Presentation of Financial Statements is to:

a)      provide basis for presentation of general purpose financial statements

b)       sets out overall requirements for the presentation of financial statements,

c)       sets out guidelines for financial statements structure

d)       All of the above

An entity shall apply Ind AS 1 in:

a)      preparing and presenting general purpose financial statements in accordance with Indian Accounting Standards (Ind ASs).

b)      preparing and presenting financial statements in accordance with Indian Accounting Standards (Ind ASs).

c)      preparing and presenting financial statements in accordance with Accounting Standards.

d)     preparing and presenting general purpose financial statements in accordance with Accounting Standards.

Ind AS 1 does not apply to the

a)      structure and content of condensed interim financial statements

b)      financial statements prepared in accordance with Ind AS 34, Interim Financial Reporting.

c)      None of the above

d)     Both  a and b

Ind AS 1 “Presentation of financial statements” applies to

a)      Consolidated financial statements in accordance with Ind AS 110, Consolidated Financial Statements,

b)      Separate financial statements in accordance with Ind AS 27, Separate Financial Statements.

c)      Both of the above

d)     Only a

Ind AS 1 does not apply to

a)      The structure and content of Financial Statements prepared in accordance with Ind AS 34, Interim Financial Reporting

b)      Consolidated FS in accordance with Ind AS 110, Consolidated Financial Statements

c)      Separate FS in accordance with Ind AS 27, Separate Financial Statements

d)     None of the above

Major differences between AS 12 and Ind AS 20

Government loans with below market rate of interest

Under AS 12, there is no specific guidance for this topic.

Under Ind AS 20, Government loans with below market rate of interest are initially recognised as the difference between the initial carrying amount of the loan and proceeds received

Forgivable loans

Under AS 12, there is no specific guidance for forgivable loans.

Under Ind AS 20, such loans are treated as government grants when there is a reasonable assurance that the entity will meet the terms of the forgiveness of the loans

Non-monetary grants

Under AS 12, if an asset is given at the discounted price by the government, the grant and asset is recognised at the discounted price. Also, if asset is given free of cost, then, it is recorded at the nominal value.

Under Ind AS 20, non-monetary grants are measured at fair value only. Option to record at the nominal value is not there under Ind AS.

Note: There is carve out in Ind AS 20 that under IAS 20, an entity has option to measure such non-monetary grants either at the fair value or at nominal value.

Under AS 12, there are two approaches: Capital approach or the income approach.

Under capital approach, grants in the nature of promoter’s contribution are credited directly to shareholders fund. Under income approach, grants are recognised in statement of profit and loss on a systematic basis to match them with the related costs.

 Under Ind AS 20, government grants are not directed credited to the shareholder’s fund.  Government grants are recognised as income to match them with corresponding expenses in statement of profit and loss. Further, grants related to assets should be presented in the balance sheet only by setting up the grant as deferred income.

Note: There is carve out in Ind AS 20 that under IAS 20, an entity can present grants related to assets either by setting up the grant as deferred income or by deducting the grant in arriving at the carrying amount of the asset.

Major differences between AS 15 and Ind AS 19

Actuarial gains and losses

Under AS 15, all actuarial gains and losses should be recognised immediately in profit or loss.

Under Ind AS 19, actuarial gains and losses are recognised immediately in other comprehensive income. These are subsequently not reclassified to income statement.

Discount Rate

Under AS 15, Market yield on government bonds as at the balance sheet date is used as discount rates.

Under Ind AS 19 also, market yield on government bonds as at the balance sheet date is used as discount rates.

Ind AS 19 contains a curve out from the IFRS in the sense that under IFRS, discount rate is determined by reference to market yield on high quality corporate bonds.

Past service costs and Curtailments

Under AS 15, past service cost is recognised as an expense on a straight line basis over the period until the benefits becomes vested and if, benefits vested already, recognise immediate as an expense.

Entity recognises a curtailment when it occurs.

Under Ind AS 19, past service cost including curtailments is recognised as expenses at the earliest of the following dates:

•       When the plan amendment or curtailment occurs.
•       When the entity recognises related restructuring costs or termination benefits.

Actuarial Valuation

Under AS 15, detailed actuarial valuation is carried out at least once every three years and fair value of  the plan assets are determined at each balance sheet date.

Under Ind AS 19, such calculation is performed at sufficient regularity so that the amounts recognised in the financial statements do not differ materially from the amount that would have been determined at the end of the reporting period. The standard does not specify the sufficient regularity.