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  • Group 2 Accounting Standard Revision Chart by CA Patil Sir

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    Sanjeev Verma
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    Group 2 Accounting Standard Revision Chart by CA Patil Sir

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    Group 2 Accounting Standard Revision Chart by CA Patil Sir

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    6 views16 pages

    Group 2 Accounting Standard Revision Chart by CA Patil Sir

    Uploaded by

    Sanjeev Verma
    Group 2 Accounting Standard Revision Chart by CA Patil Sir

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 16
    AS.26 INTANGIBLE ASSET (PAGE NO. 1 = see ea 7 as peconites are" [fin Gilfanaapnaton] / EExetne penne ‘by entity to ‘economic benefit | at nominal_) |as perAS.14 [= it 2 GENERATE FUTURE fromasset wil. i NON-CAS! ‘which ul folowing CONDITIONS: 2) Seporately denial. ) Without physica subsfanee- «) Held for production supply of goods senicos,enta to other & admin, pure taxes ater dre ‘nwoutable exper, Trade dlsount seule resced. Exponses Expenses cured Incr ti pase dung fe capuaized. trisphase Like: Sage, flere otemeajee engaged on dvalpmont cocable OM. Other recy Srtuabe cont (i) Abnormal losses (ii) Inter-Departmental profit. AS.26 (PAGE NO.2) Any subsequent expenses on |.TiAl are charged to P&LAIC. But if such expenses increase future economic benefit then such expenses are added to carrying value of LTA. ws 1)Every LTA. has finite lite 2)Every LTA. has to be amortaised over a maximum, period of 10 years. 3) LTA. may be amortised over a period longer than 10 year PROVIDED enterprises has persuasive evidence for such longer life. METHOD) 1)COST OF ITA. ‘SHOULD BE AMORTISED 'SYESTAMATICALLY to ‘match amortaisation cost with economic benefit from consumption OfLTA. 2)If pattem of ‘economic benefit from consumption Of TA. can not be estimated then COST MUST BE AMORTISED USING SLM. RV. is considered Zero unless (i) A party has agree to buy ITA. at end of economic life OR (ii) There is active market for resale of |.T.A. ll _——~—~—~:_.. — , ‘88.20 (EARNING PER SHARE) [PAGE NO. 1) 1. Basic EPS: farina available to ESH W.A. No. of Eq. Share ‘ ¥ (Tax (xx) ‘Affe calculate W.A. No. of equity share, each of 0) condom No oto ha fe = ee (Preawidenter: Barts gueenecnnsu Ncmmaste PSC tenascin teorepemaea 1) eee =, ae 3h case of ght issue of share an adjusting (Extraordinary income (xx) factoris also multiplied wih opening als share, “EAESH before Ei x Adjusting factor= ee SE “incase orm ein r roan yearePS 6 Post right total no. of equity share “if entity has extra-ordinary item in statement of P&L THEN 4) Paty paid up shares are converted into equivalent entity has to report basic EPS No.of filly paid up share If dvidend entlement with or without €.i((GNORE TAX) Fight of uly paid up & party paid up share IS SAME. Diluted EPS IS that may arise in coming year because of issue of equity without any consideration like CONVERSION opportunity bonus share in right share & in employee stock option plan. a = ‘ist STEP (2nd STEP | a) Caloulate cumulative EPS considering basic EPS & including INCREMENTAL incremental EPS one by one EPS = Saving due to isgle of equity share > _b2Sed on ranking. No. of new shares to be issued, CUMMULATIVE = C.Y. EAESH + Saving in EAESH EPS CY. WANO. of share + New issue share b)HIGHEST INCREMENTAL EPS WOULD BRING LOWEST DILUTION therefore b) Lowest cumulative EPS would be diluted EPS. AS-12 ACCOUNTING FOR GOVERNMENT GRANT —ZiEE FoR Paoworen contmisuTioN: SEG FOG revenue exrenses: —— BEE Fornovoerasser] hy [Govt Ary goverment) GOV. GRANT: assistant fom gow < ON, cash or kind WITH! CONDITION (a) Cred G Go assotAlG —=— Debi rotund wast ANE blgaton for ture ex, RECOGNITION OF G.G Reasonable certinty of receipt + 2 Itis probable that condition of G.G ——__would be satisfied, — aT THE TIME OF RECEIPT ATTN Tm OF REFUND) (0s Grait 66 basic ———— Dp ttn oak AC erayCredto dale GAC ————— ANB REVISE BEAL SO [Amorise DGG in ao of dep] Dalanes to PALA, Cedi 6.6. to capital eserye & Debit rend to capt eseve DoN'TUSe FoR Wio Losses ne. JANO PAYING DIVIDEND, Gredt GG to PELNG when Sabi rund PALA Credo defer. 6. & amorise ver the pored of banat. Debit refund a DEG AIC Blany balance to PBLNC, NO ced G.G.toCRAC — Debirendto CRAC. credo DGG AIG & (G7 Deb etn to DOG NE ‘YES anerite ovr poid 37 'y balance to PLA ** if any asset is recieved free of cost then A/C at nominal value say 100 “If asset is purchased at concessional price then A/C at price paid for. *“AS.12 Don't cover transaction in normal course of business with Govt. & participation of Govt. in ownership of entity. 1) BORROWING e a)intrest b)Dis. on deb.& pre. on red. C)Other ancillary cost d)Finance charge AS.19 6)Exchange DI for production, aquisition & construction of qualifying “ (Don't include investment asset) |BORROWING COST IS CAPITALISED when: eer emanneynun emir ‘When entity can not ident ) con boffewing ~~ (B.C. incurred on borrowing specifically direct relationship of borrowing ~~ Maken for Q.A. , is directly capitalised with Q.A. THEN B.C. SHOULD tA. BE CAPITALISED USING WAG.R 7 Fy Investment fom surplus borewed fund earnec ' eigibleforcapitazalon s Reduced tom 8Ctobe \ (Total B.C. / total borrowing tam IMPORT WHEN ENTITY HAS OPERATION EXPORT Tae ION OUTSIDE F.C. BORROWING FOREIGN BRANCH F.C. INVESTMENT FOREIGN SUBSIDARY CO. 4. ee Ge Garo = SRT ONES = WSETTLENENTD RECOGNISE F.C. ALL F.C. MONETORY ALLF.C. MONETORY TRANSACTION AT ASSET & LIABILITY ASSET & LIABILITY F.C. EXCHANGE RATE SHOULD BE REPORTED SETTELED PRE USING F.C. EXCHANGE, USING F.C. EXCHANGE, BATE‘OF TRANSACTION, RATE PREVAILING. RATE APPLICABLE ON AS PERAS.11 ANY F.C. EXCHANGE DIFFERENCE ARISING ON REPORTING. OR SETTLEMENT OF F.C. MONETORY ITEM SHOULD BE TRANSFER TO P&LAIC AS A INCOME [F.C.EXCHANGE GAIN] OR EXPENSES -[FCEXCHANGELOSS]) SITUATION = WHEN ENTERPRISES HAS LONG TERM F.C. MONETARY, LIABILITY RELATED TO DEPRECIABLE ASSET. WHEN ENTERPRISES HAS LONG TERM F.C.M.L. RELATED. TO NON DEP. ASSSET. TREATMENT. OF EXCHANGE PARA 46 PROVIDE GAIN / [LOSS] MJ OPTION TO ADJUST EXCHANGE GAIN| OR LOSS WITH CARRYING VALUE PARA 46A PROVIDE OPTION TO TRANSFER SUCH EXCHANGE GAIN/LOSS ‘TO FOREIGN CURRENCY MONETORY ITEM TRANSLATION DIFFERENCE A/C OF DEP. ASSET. 4 PARA 46 PARA 46A ARE OPTIONAL TO ENTERPRISES BUT 4 ons CONTRASIN FORWARD CONTRACT, cal CONTRACT, FOR HEDGING cal SPECULATION [INTENTION IS TO REDUCE: [INTENTION IS TO EARN POSSIBLE LOSSES] PROFIT ] [1] FORWARD CONTRACT IS TREATED AS F.C. MONETARY, ITEM. [1] FC. IS TREATED AS F.C, MONETARY ITEM + [2] CALCULATE PREMIUM / DIS.ON FORWARD CONTRACT AND AMORTISE THE SAME TO P&L| AVC OVER THE PERIOD OF FORWARD CONTRACT PREIDIS = SPOT EXCHANGE RATE i FORWARO EXCNANGE RATE CONTINGENCIE ADJUSTING EVENTS, = EVENT WHICH OCCURRED AFTER BIS DATE & BEFORE ‘APPROVAL OF AICS. PROVIDE ADDITIONAL INFORMATION. FOR ESTIMATION OF ANOUNT OF CONDITION EXISTING ON B/S DATE —_—_—_ ADJUST THE BALANCE OF ASSET & LIABILILY ON B/S. DATE FOR SUCH EVENTS. EX. [A] LOSS OF CASH EXIST ON B/S DATE BUT KNOWN AFTER B/S DATE BUT BEFORE APPROVAL. [8] B/D OF DEBTOR AFTER B/S DATE BUT BEFORE APPROVAL OF AICS, PRO FOR B/D. WAS CREATED ON B/S DATE [C] SALE AGREED BEFORE B/S DATE BUT COMPLETED AFTER B/S DATE ~~. SHEET DATE NON ADJUSTING EVENT'S = OTHER THAN ADJUSTING EVENT ys PROVIDE DISCLOSURE OF SUCH EVENT IN REPORT OF APPROVING AUTHORITY OF F.S. IF SUCH EVENT ARE MATERIAL. EX: [A] LOSE DUE TO MAJOR EARTHQUAKE, [B] LOSS IN VALVE OF INVESTMENT [C] B/D OF HUGE DEBTOR FOR WHICH PRO. WAS NOT CREATED ON B/S DATE. [D] PROPOSED DIVIDEND ITIS ALSO DISCLOSED IN NOTES TO FS. —E= — EXCEPTION TO ADJUSTNG EVENT WHICH IMPAIR GOING CONCERN ASSUMPTION IS TREATE DAS ADJUSTING EVENT. ACCOUNTING STANDARD - 19 A/ICING FOR LEASE FINANCE LEASE [ R&R ARE TRANSFERRED ] ‘ALEASE IS FINANCE LEASE IF ANY OF FOLLOWING CONDITION ARE SATISFIED: (PV. OF MLP= OR COVER MAJOR PART OF FMV. (LEASE TERM= OR COVER MAJOR PART OF ECONOMIC LIFE OF ASSET (lll) LESSEE HAS OPTION TO BUY ASSET AT END OF LEASE TERM ATA PRICE LOWER THAN FMV AT THAT TIME, (IV)LEASE ASSET IS OF SUCH NATURE THAT IT CANT BE USED BY ANY OTHER PARTY WITHOUT MAJORMODIFICATION. MLP DO NOT INCLUDE CONTINGENT RENT & MAINTENANCE CHARGES [CACCOUNTING FOR FINANCE LEASE) (LESSOR ; a (ASSET AC Or (DLESSEE AC or. TO LESSOR TO Sale AIC (LOWER OF PV. OF MLP OR FMV) (OWeROF Pv. OF MLP OR FMV) (ll) FINANCE CHARGE Ale Dr (Lessee AC Dr TO LESSOR TO FINANCE INCOME (I)LESSOR AG OF (BANK) AIC Dr TO BANK TO Lessee (DEP. ANC Dr {I NOTAPPLICABLE TO ASSET (PELAIC Dr SALE Ac Dv TO FINANCE CHARGE i TO DEP, TOPE ‘SUBSEQUENT YEAR) EXCEPT ENTRY NO.1 ALL ENTRY WOULD BE PASSED IN SUBSEQUENT YEAR. 2. OPERATING LEASE [ R&R ARE NOT TRANSFERRED ] ALEASE IS A OPERATING LEASE IF IT IS NOT AFINANCE LEASE. ACCOUNTING i)RENT. Dr. TO P&LAIC LESSEE & LESSOR MUST RECOGNISE RENT EXP. & INCOME IN PROPORTION OF ECONOMIC BENEFIT. 1) GROSS INVESTMENT IN LEASE = SUM OF MLP 2) NET INVESTMENT IN LEASE = P.V. OF MLP 3)UNEARNED FINANCE INCOME= 1-2 WHAT IF QUESTION DOES NOT PROVIDE ANNUAL LEASE RENT ANNUAL FMV - PV. OF R.V. LEASE RENT =“ ANNUITY FACTOR 2. SALE & LEASE BACK TRANSACTION ‘A. SAUE & FINANCE LEASE BACK B. SALE & OPERATING LEASE BACK TEED [ASSETSOLD /CESSDR: ESSOR LESSEE) [ASSETSOLD» “LESSOR LEASE BACK AS A FINANCE LEASE. LEASE BACK AS A OPERATING LEASE PIL ON SALE ‘AIG SHOULD OFASSET BE CREDITED SG 8etao | \WIMS. VF No TRANSFERED~ DEFER RENTAC vamos Cen Tora ac] ~ SEER BES alr OS™C~C*C*CGNITHDIFFERENCE aap aq (move Re sions LEASE RENT

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