Dear
students, get fully NMIMS solved assignments by professionals
Do send
your query at :
or call
us at :08263069601
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2020
Examination
Ques.1. Ind AS norms are converged with the
International Financial Reporting Standards, but these are not equivalent to
IFRS. Further, there are key differences between the requirements of INDIAN
GAAP, IFRS and Ind AS. Discuss five key differences among these reporting
standards.
Answer: IND-AS
It is a selected set of accounting policies or
broad guidelines regarding the principles and methods to be chosen out of
several alternatives. Standards adhere to certain laws, customs, usage and
business environment in which it operates. The basic purpose of accounting
standards is to harmonize the diverse accounting policies and practices that
are currently used in India. The adoption of accounting standards ensures
uniformity, comparability and qualitative improvement in the preparation and
presentation of financial statement.
Ques.2. Mehra & Sons purchased a second
hand light motor Vehicle at a cost of Rs 2 lacs. Additionally, various
accessories costing Rs50000 were also purchased along with the Vehicles which
are required to be replaced on a yearly basis. Mr. Mehra wants to write off the
overall outflow in Income statement Discuss, whether he is correct or not?
Discuss the need to differentiate between the capital and revenue items? How
these items are to be treated in the financials of the company? Give reasons
supporting the same
Answer: Definition
of Capital Expenditure
When any company buy any long term asset so
amount spent on that asset is called capital expenditure. The purpose is to
enhance the working capacity of any existing capital asset, or to increase its
lifespan to generate future cash flows or to decrease the cost of production.
As a huge amount is spent on it, the expenditure is capitalised, i.e. the
amount of expenditure is spread over the remaining useful life of the asset.
In a nutshell, the expenditure which is done
for initiate current, as well as the future economic benefit, is capital
expenditure. It is a long-term investment done by the entity, in the name of
assets, to create financial gain for the years to come.
Ques.3. a. All India Insurance Company
received an insurance premium of Rs 50 lacs on an insurance policy whose
coverage extends till the mid of the next accounting year.
Ques.3. b. Additionally, the company has a
monthly salary expense of Rs 25 lacs. For the accounting year ended on March
31, 2019 the company paid 275 lacs on account of salary. The salary for the
month end is paid in the first week of April 2019.
Discuss the treatment of both of these
payments in the books and disclosures in the financial statements, as on 31st
March 2020
Answer: a) Unearned revenue is money
received from a customer for work that has not yet been performed. This is
advantageous from a cash flow perspective for the seller, who now has the cash
to perform the required services. Unearned revenue is a liability for the
recipient of the payment, so the initial entry is a debit to the cash account
and a credit to the unearned revenue account.
As a company earns the revenue, it
b) Outstanding
expenses are recorded in the books at the end of an accounting period to
show true numbers of a business. Outstanding expense is a personal account and
is shown on the liability side of a balance sheet.
Expenses are amounts paid for goods or
services purchased. According to the accrual concept of accounting,
transactions are recorded in the books of accounts at the time of their
occurrence and not when the actual cash or a cash
Dear
students, get fully NMIMS solved assignments by professionals
Do send
your query at :
or call
us at :08263069601
No comments:
Post a Comment
Note: only a member of this blog may post a comment.